Pursuit Attractions & Hospitality, Inc.

NOTE 1. OVERVIEW AND BASIS OF PRESENTATION

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements (Condensed Consolidated Financial Statements) were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information required by GAAP or United States Securities and Exchange Commission (“SEC”) rules and regulations for complete financial statements. These financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These Condensed Consolidated Financial Statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 25, 2026 (the “2025 Form 10-K”).

The Condensed Consolidated Financial Statements include the accounts of Pursuit and all of its majority-owned subsidiaries, and all intercompany account balances and transactions have been eliminated in consolidation.

Certain prior year amounts have been reclassified in order to conform to current year presentation. The Company’s Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025, include reclassifications of expense of $2.6 million and $10.0 million, respectively, from operating expenses (exclusive of depreciation and amortization shown separately below) to selling, general, and administrative expenses to conform to the Company’s current presentation.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenue, costs, and expenses during the reported period. Estimates and assumptions are used in accounting for, among other things: impairment testing of recorded goodwill, intangible assets, and long-lived assets; allowance for uncollectible accounts receivable; sales reserve allowances; provision for income taxes, including uncertain tax positions; valuation allowances related to deferred tax assets; pension and postretirement benefit costs and obligations; share-based compensation costs; the discount rates used to value lease obligations; and the allocation of purchase price of acquired businesses. These estimates are inherently based on judgment and information currently available. Actual results could differ from these and other estimates. The Company believes the assumptions underlying these financial statements are reasonable.

Nature of Business and Recent Developments

Pursuit is a global attractions and hospitality company that owns and operates a collection of inspiring and unforgettable travel experiences in iconic destinations. Pursuit is managed on a consolidated basis for purposes of assessing performance and making operating decisions. Accordingly, Pursuit is deemed to be a single operating segment.

Flyover Attractions Sale

On July 31, 2026, Pursuit completed the sale of all of its equity in the Flyover attractions (the “Flyover Attractions”) to Brogent Technologies Inc. (“Brogent”) pursuant to an Equity Purchase Agreement, dated January 21, 2026 (as supplemented and amended, the “Flyover Sale Agreement”), for a purchase price of approximately $75.0 million in cash, subject to post-closing adjustments (the “Flyover Attractions Sale”). The financial results of the Flyover Attractions are consolidated in Pursuit's financial statements through the date of sale. The Company does not report the Flyover Attractions as a discontinued operation. See Note 4 –Acquisitions and Dispositions for additional information.

Eagle Wing Tours Acquisition

On July 14, 2026, the Company entered into a Share Purchase Agreement with the shareholders of Eagle Wing Tours (“Eagle Wing”), pursuant to which Pursuit acquired all of the issued and outstanding shares of Eagle Wing for an aggregate purchase price of CAD $23.9 million (approximately USD $16.9 million as of the acquisition date). Eagle Wing, located on Vancouver Island, British Columbia, operates a whale watching and marine wildlife experience through a fleet of five vessels. See Note 4 –Acquisitions and Dispositions for additional information. The financial results of Eagle Wing are consolidated in Pursuit’s financial statements prospectively from the date of acquisition.

Insurance Recoveries

On July 22, 2024, Jasper National Park was closed and evacuated due to wildfire activity, and wildfires entered the Jasper townsite on July 24, 2024. The Company received insurance proceeds as a partial settlement payment relating to losses from the wildfires of approximately $6.5 million during the nine months ended September 30, 2025. Additionally, during the three and nine months ended September 30, 2025, the Company received approximately $4.2 million in business interruption insurance proceeds, which were recorded as a gain included in other expense (income), net in the Condensed Consolidated Statements of Operations. During the three and nine months ended September 30, 2026, the Company received approximately $0.3 million and $5.1 million, respectively, in business interruption insurance proceeds and recorded associated income from these proceeds of $4.6 million in other expense (income), net on the Company’s Condensed Consolidated Statement of Operations for the nine months ended September 30, 2026. As of September 30, 2026, the Company received an aggregate of $29.1 million in total insurance proceeds related to the Jasper wildfires. As of September 30, 2026, the Company does not anticipate receiving additional insurance proceeds related to the Jasper wildfires.

Tabacón Acquisition

On July 1, 2025, Pursuit entered into a Share Purchase Agreement (the “Tabacón Purchase Agreement”) with the shareholders of Inversiones Turísticas Arenal, S.A. (“ITA”), pursuant to which the Company acquired all of the issued and outstanding shares of ITA. ITA is the owner and operator of Tabacón Thermal Resort & Spa (“Tabacón”), an eco-luxury resort spanning 570 acres of rainforest which features two thermal river attractions, located in the Arenal region of Costa Rica. Tabacón features 105 rooms, an internationally renowned spa, and signature culinary experiences. See Note 4 –Acquisitions and Dispositions for additional information. The financial results of Tabacón are consolidated in Pursuit’s financial statements prospectively from the date of acquisition.

Impact of Recent Accounting Pronouncements

The following table provides a brief description of recent accounting pronouncements:

NOTE 2. REVENUE AND RELATED CONTRACT LIABILITIES

Contract Liabilities

A contract liability represents an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer before transferring control of those goods or services. The Company periodically receives customer deposits prior to transferring the related product(s) or service(s) to the customer, which are recorded as “Contract liabilities” in the Condensed Consolidated Balance Sheets. The contract liabilities are recognized as revenue upon satisfaction of the related contract performance obligation(s). The Company’s performance obligations are short-term in nature. The contract liabilities as of December 31, 2025 will be primarily recognized in revenue during the year ending December 31, 2026.

Disaggregation of Revenue

The following tables disaggregate revenue by major service and product lines, timing of revenue recognition, and geographical regions served for the three and nine months ended September 30, 2026 and 2025:

(1)Tabacón was acquired by Pursuit on July 1, 2025. Accordingly, the revenue of Tabacón is included in the Company’s results of operations prospectively from the date of acquisition.

NOTE 3. SHARE-BASED COMPENSATION

The Company grants share-based compensation awards to its officers, directors, and certain key employees pursuant to the 2017 Pursuit Attractions and Hospitality, Inc. Omnibus Incentive Plan, as amended (the “2017 Plan”). The 2017 Plan has a 10-year term beginning from the most recent amendment in May 2022 and provides for the following types of awards: (a) incentive and non-qualified stock options; (b) restricted stock awards and restricted stock units; (c) performance units or performance shares; (d) stock appreciation rights; (e) cash-based awards; and (f) certain other stock-based awards.

The following table summarizes share-based compensation expense for the three and nine months ended September 30, 2026 and 2025:

(1)The income tax benefit amount for all periods primarily reflects the tax benefit associated with employees based outside of the U.S.