HG Vora Capital Management sold 1.2 million shares of United Parks & Resorts Inc. (PRKS) for $53.5 million, cutting its ownership from 11 % to 3 % of the company’s assets under management. The sale was disclosed in an SEC filing on November 14, 2025, and represents a substantial shift for the deep‑value specialist that had previously held a sizable position in PRKS.
United Parks & Resorts reported a third‑quarter 2025 revenue of $511.85 million, down 6.2 % year‑over‑year, and earnings per share of $1.61, missing the consensus estimate of $2.24 by $0.63. The revenue decline was driven by lower attendance and a reduction in revenue per capita, attributed to an unfavorable holiday calendar, weather disruptions, and a reversal in international visitation. The company’s net margin fell to 12.39 %, reflecting the combined impact of weaker top‑line growth and the failure to achieve cost‑efficiency targets for four consecutive quarters.
The market reaction to the earnings miss was swift: analysts lowered price targets and downgraded the stock, citing the company’s inability to meet EBITDA expectations and concerns about long‑term asset performance. The sale by HG Vora, a firm that typically invests in companies with leveraged balance sheets or near‑term operational challenges, signals a reassessment of United Parks & Resorts’ value and prospects. The divestiture aligns with the broader market sentiment that the company’s growth trajectory has slowed and that its operational headwinds—such as weather‑related attendance dips and competitive pressure—may persist.
Management’s commentary in the earnings release highlighted that the decline in total revenue was primarily due to decreased attendance and lower revenue per capita, while noting that in‑park spending per capita had increased slightly. The company’s guidance for the next quarter remained cautious, with no significant upside in revenue or earnings, underscoring management’s focus on cost discipline amid a challenging macro environment.
The sale by HG Vora, coupled with the earnings miss and analyst downgrades, underscores a broader narrative of uncertainty for United Parks & Resorts. Investors are now evaluating whether the company can reverse its attendance trend, restore profitability, and regain confidence in its long‑term strategy.
The transaction and the company’s financial performance together suggest that United Parks & Resorts faces a period of strategic reassessment. The reduction in institutional ownership may prompt a closer look at the company’s operational initiatives and capital allocation decisions as it seeks to navigate a competitive and weather‑sensitive industry.
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