Lindblad Expeditions Q3 2026 Earnings Call Transcript

Lindblad Expeditions (NASDAQ:LIND) reported third-quarter financial results on Tuesday. The transcript from the company’s third-quarter earnings call has been provided below.

This transcript is brought to you by Benzinga APIs. For real-time access to our entire catalog, please visit https://www.benzinga.com/apis/ for a consultation.

View the webcast at https://events.q4inc.com/attendee/416185057

Summary

Lindblad Expeditions reported record-setting financial performance for the third quarter, with the highest ever quarterly adjusted EBITDA and net income, driven by a 12.1% increase in total revenue to $269.2 million.

The company has raised its full-year guidance for the second time in six weeks due to strong booking momentum and the acquisition of White Desert and Echo Charlie, which are expected to contribute significantly to future growth.

Lindblad Expeditions is focusing on three strategic pillars: maximizing revenue through dynamic pricing and extended booking windows, optimizing financial performance via cost innovations and fuel efficiency, and pursuing accretive growth through acquisitions, including the recent acquisition of White Desert and Echo Charlie.

Despite higher fuel costs, the company achieved a 130 basis point gross margin expansion to 49.5%, highlighting effective cost management and operational efficiencies.

Occupancy rates exceeded 90% for the third consecutive quarter, and net yield per available guest night increased 6.4%, reflecting strong demand and pricing power.

Management emphasized the potential for further growth in the underpenetrated expedition cruise market and highlighted the addition of air travel experiences as a key differentiator in their experiential travel platform.

Looking ahead, the company anticipates continued mid-single-digit capacity growth, driven by charter expansions and potential new fleet additions, while maintaining a focus on sustainable practices and cost management.

Full Transcript

Natalya Leahy (Chief Executive Officer)

Opportunity ahead of us and how our increasingly diversified experiential travel platform positions us to capture it. We continue to benefit from powerful macro trends as affluent travelers increasingly seek authentic, immersive experiences in extraordinary places. Expedition cruising is one of the fastest growing and most underpenetrated segments of leisure travel. While expedition capacity has more than doubled over the past decade, it still represents less than 1% of total cruise capacity, with fewer than half a million guests traveling on expedition cruises annually.

To put the broader opportunity in perspective, our approximately 60,000 annual guests across eight brands represent less than 0.1%. Of course, global travelers with financial means to experience our journeys. This gives us an enormous runway for growth and, importantly, with the addition of White Desert and Echo Charlie, we have further strengthened our position as a truly global experiential travel platform. Our eight complementary brands now offer extraordinary experiences by sea, by land, and by air, creating more opportunities for guests to explore the world with us across multiple brands and destinations while further diversifying our portfolio and expanding our addressable market. I believe this combination of strong market tailwinds, an exceptionally large untapped opportunity, and our expanded platform positions us extremely well for sustainable long-term value creation.

Now let me walk you through the progress we made across our three strategic first, maximizing revenue through higher occupancy, pricing, and deployment optimization; second, optimizing financial performance through cost innovation and fixed asset utilization; and third, pursuing accretive growth opportunities. Beginning with our first pillar, maximizing revenue, we continue to execute against several revenue levers we have discussed previously: dynamic pricing, improved marketing communication, maximizing sales channels, and optimizing revenue management.

These initiatives continue to deliver on their objectives as evidenced by our results and forward booked position. We stated several times that one of our goals over the past 18 months was to expand booking curves, which drives better revenue predictability and stronger price elasticity. I’m happy to share that our average booking window increased from 9.5 months to 11.9 months. We also continue to see strong momentum in onboard and extension revenues, delivering 27% growth year to date, and with a robust pipeline of initiatives ahead, I believe we have significant room to further unlock the full potential of this revenue stream.

Moving to our second pillar, cost innovation and fixed asset utilization. We have a culture of continuous improvement, and we continue executing several efficiency initiatives across the company. To give you a few examples, we outsourced our warehouse operations and completely overhauled our accounts payable processes. We’re also building out our supply chain and inventory management capabilities and exploring AI to drive further efficiencies. Fuel costs remain a significant headwind, but I’m particularly proud of the partnership between our shoreside and shipboard teams that worked together to deliver year-over-year improvements in fuel consumption this quarter. Despite 4% capacity growth, we have a strong pipeline of process improvements and cost initiatives, and we see more opportunities ahead to capture efficiencies and improve margins.

That brings me to our third pillar, accretive growth, which I am most excited to discuss today. On our last few calls we talked about evaluating opportunities to add to our portfolio of brands. On September 15, we announced the acquisition of a majority stake in White Desert and Echo Charlie. It is the largest transaction in the company’s history and the beginning of an incredible new chapter in our 60-year legacy of exploration. If you aren’t yet familiar with White Desert, you’re in for something truly special.

Founded in 2005 by the record-breaking polar explorer Patrick Woodhead, White Desert flies guests deep into the interior of Antarctica on private aircraft to otherworldly camps in places very few people will ever see, in one-of-a-kind, bucket-list itineraries that range from a journey to the geographic South Pole to a visit with an emperor penguin colony of more than 20,000 birds. When I experienced White Desert, I immediately felt a shared spirit of curiosity and innovation and a mutual desire to keep pushing the boundaries of what travel can be.

White Desert adds a distinctive new offering to our platform that we are actively working on growing, including the addition of a fourth camp. I’m equally excited about what Echo Charlie brings to our portfolio. Echo Charlie is a new expedition travel brand we’re launching together with Patrick. It combines White Desert’s aviation expertise with our knowledge of extraordinary places to create journeys into some of the world’s most remote regions—the kinds of adventures many of us grew up reading about, dreaming about, and never stopped hoping to experience ourselves. We see a strong long-term value creation opportunity here.

We just introduced three inaugural 2027 itineraries, each offering multiple departure dates exclusively to our past guests, and we are planning to launch publicly over the coming days. Echo Charlie gives past guests of Lindblad and White Desert’s new reason to travel with us. Our Chief Expedition Officer, our Head of Corporate Development, and I just returned from Cape Town, where we spent time with the White Desert team brainstorming our future together.

What an amazing group of people. They are incredibly innovative, talented, and let me tell you, really fun. I came away even more convinced that we are a great cultural fit and even more excited about what we can build together and the growth opportunities ahead. We are also very pleased that Patrick Woodhead will serve as a Strategic Innovation Advisor to Lindblad. This acquisition reinforces our view that the Lindblad Experiential Travel Platform provides an exceptional opportunity to drive value creation by enabling affluent travelers to explore by air, land, and sea. As we talk about our why and commitment to sustainability, I would like to highlight that White Desert shares the same commitment to our mission. White Desert flies hundreds of scientists to research stations across Antarctica each season, and it has long been a trusted partner for the scientific community.

Additionally, White Desert recently announced the first commercial agreement in Africa to supply sustainable aviation fuel in partnership with Sasol. This will help lower the carbon emissions of our flights and support our carbon offset program. Before I turn the call over to Rick, let me leave you with three key takeaways. First, our revenue maximization efforts are working. Net yields increased 6%, occupancy rose to 91%, and our ’27 and ’28 bookings continue to pace ahead. Second, we are becoming a more efficient organization, and that discipline is showing up in adjusted EBITDA margins and growth. Third, our accretive growth initiatives give us multiple ways to capture a large and still underpenetrated market.

With White Desert and Echo Charlie, we have added air to our cruise expeditions and land journeys, making us a comprehensive experiential travel platform. Lastly, this year has had its share of challenges, from geopolitical risks to significantly higher fuel prices. I’m very proud of our operating results in the face of them, and I want to thank every member of our team for their focus, their resilience, and their unwavering commitment to the guest experience. And to our new colleagues at White Desert and Echo Charlie, we’re delighted to have you with us. With that, I am turning it to you, Rick.

Rick Goldberg (Chief Financial Officer)

Thank you, Natalia. I’m pleased to report that the third quarter was another record-setting quarter for Lindblad Expeditions with our highest ever quarterly adjusted EBITDA and net income and our third consecutive quarter with occupancy above 90%. Reflecting the strong performance and continued booking momentum, we’re raising our full year guidance for the second time in just six weeks. Before diving into the details, I’d also like to recognize the acquisition of White Desert and Echo Charlie, our largest acquisition to date and an important milestone in Lindblad’s growth.

I’m particularly proud of the team’s work to bring this transaction to completion, reflecting the capabilities we’ve built to identify, evaluate, and execute strategic acquisitions. With that, let me walk through our third quarter results in more detail. Total company revenue for the third quarter was 269.2 million, an increase of 29 million or 12.1% compared to the prior year. Lindblad segment revenues were 153.4 million, an increase of 15.8 million or 11.5% compared to the prior year. Despite a 4.3% increase in available guest nights, occupancy increased 3.1 percentage points from 88.1% to 91.2%, and net yield per available guest night increased 6.4% to $1,398, the highest Q3 net yield in company history.

Land Experiences segment revenues were 115.8 million, an increase of 13.2 million or 12.8% compared to Q3 2025, primarily driven by a 12% growth in guests. Turning now to the cost side of the business, operating expenses before stock-based compensation, transaction and reorganization expenses, and depreciation and amortization increased 22.1 million or 12.1% versus Q3 2025. Specifically, cost of tours increased 11.6 million or 9.3%, driven by additional voyages and trips as well as higher fuel costs. Despite higher fuel prices, revenue growth outpaced the increase in costs, resulting in gross margin expansion of 130 basis points to 49.5%.

We remain focused on reducing fuel consumption through technology and operational improvements while preserving the flexibility for our captains and expedition leaders to adjust itineraries in real time to optimize the guest experience. These efforts are delivering tangible results. Despite a 4.3% increase in capacity, we reduced total fuel consumption year over year. However, higher fuel prices resulted in a 1.3 million or 22% increase in fuel expense, with fuel costs representing 4.9% of Lindblad segment revenue compared to 4.5% in the prior year quarter.

Selling and marketing costs increased 7.7 million or 25.5%, primarily due to the final royalty rate step-up under our National Geographic agreement, and general and administrative costs excluding stock-based compensation, transaction-related expenses, and reorganization costs increased 2.9 million or 10.2%. Approximately two-thirds of this increase, or 1.8 million, was attributable to a one-time Employee Retention Tax Credit benefit recognized in the third quarter of 2025.

Excluding this prior-year benefit, G&A as a percentage of revenue declined approximately 1 percentage point year over year, reflecting disciplined cost management and improving operating leverage as we scale the business. Adjusted EBITDA for the quarter was 64.1 million, an increase of 6.9 million or 12% compared to the third quarter of 2025. Lindblad segment adjusted EBITDA increased 4.3 million or 13.2% to 37.1 million, while Land Experiences segment adjusted EBITDA increased 2.5 million or 10.3% to 27 million. And despite higher fuel costs and the final royalty rate step-up under our National Geographic agreement, we maintained adjusted EBITDA margins of 23.8%, consistent with the prior-year quarter.

Net income available to stockholders reached 24.2 million, or $0.36 per diluted share, compared to a slight loss in the prior-year quarter. Importantly, this represents the highest quarterly net income in our company’s history, a significant milestone that underscores the progress we’re making in driving profitable growth. Through the first nine months of the year, net income available to stockholders totaled 28.8 million, or $0.44 per diluted share.

Turning to the balance sheet, we ended the quarter with total cash of 308.2 million, an increase of 18.4 million since year-end 2025. This reflects strong operating cash flow of 111.3 million, driven primarily by solid business performance and increased bookings for future travel. Cash used in investing activities totaled 73.4 million, including 18.8 million in capital expenditures primarily for maintenance of our owned fleet, and approximately 54.6 million for the acquisition of 60% controlling interest in White Desert and Echo Charlie, net cash acquired and subject to customary post-closing accounting reconciliations.

Year to date, free cash flow reached 92.5 million, an increase of 32.1 million or 53% compared to the prior-year quarter. Following the acquisitions of White Desert and Echo Charlie, net leverage stood at 2.5 times at quarter end compared to 2.2 times at the end of the second quarter. Our balance sheet remains strong, and we believe we are well positioned to continue pursuing accretive growth opportunities, including fleet expansion through new builds, acquisitions, and charters, as well as additional land experience acquisitions.

Turning now to our full year outlook, when we announced the acquisition of White Desert on September 15, we raised our full year guidance to reflect both the addition of White Desert and the continued strength of our core business. Since then, our core business has continued to demonstrate strong momentum, and I’m pleased to share that we are once again raising our outlook. As Natalia mentioned, booking momentum remains strong with continued strength in booking for travel during the remainder of 2026, and both 2027 and 2028 are pacing ahead of the prior year.

Reflecting this momentum, we now expect net yield per available guest night to increase 6% to 7% year over year, up from our previous guidance of 5.5% to 6.5%. We are also raising our full year revenue guidance to a range of 870 million to 885 million, compared to our prior range of 850 million to 880 million. While higher fuel prices continue to present a headwind, the strength of our underlying business is helping offset these pressures. Accordingly, we are raising the low end of our full year adjusted EBITDA guidance by 2 million, resulting in an updated range of $142 million to $148 million compared to our previous range of $140 million to $148 million.

In closing, we’re proud of the progress we’ve made this year, delivering record financial results while continuing to invest in the long-term growth of our business. With strong booking momentum, a healthy balance sheet, and an expanded portfolio of differentiated travel experiences, we’re more confident than ever in Lindblad’s future. Thank you for your interest in the company. With that, Natalia and I would be happy to answer any questions you may.

OPERATOR

We will now begin the question-and-answer session. Please limit yourself to two questions. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Stephen Wisinski.

Your line is open. Please go ahead.

Stephen Wisinski (Analyst)

Yeah, you guys, good morning. So I want to ask about the 2027–2028 booked position and current demand patterns. You know, so if we think about 2027–2028 bookings, you guys noted you’re running at record booked levels or a booked position at this point. I guess my question is, as we think about that booked position, can you maybe give us some color around how pricing is looking in those out years? Just trying to understand what that pricing could look like at this point given your occupancy is now running in that low 90s range.

And to us that should mean you should be able to kind of push a little bit more on price given where demand is. But I’ll stop there and let you answer that if you can.

Natalya Leahy (Chief Executive Officer)

Yeah. Good morning, Steve. Great question. I mean, we are at the optimal occupancy level like we noticed, and the revenue booked position is all-time high in 2027 in company history, which by mathematical definition means that our pricing is up, and I’m very pleased. It’s of course pricing-course, and we are managing over 100 destinations. But on many, many occasions our pricing is in double digits now. It will level to about mid-single-digit yields.

That’s what I would be forecasting. But we are very pleased with what we are doing with revenue management and demand generation both in 2027 and 2028.

Stephen Wisinski (Analyst)

Okay, so just to be clear there, you’re kind of saying as we think about next year like the mid-single-digit yield would be pretty fair at this point. Okay. And then want to ask about maritime capacity expansion, which Rick touched on just briefly in his prepared remarks. I think from our seat the next step here has to be, from a growth perspective, more capacity given where demand is for luxury and exploration. Obviously that continues to be extremely, extremely strong. Maybe Rick or Natalia give us a little bit more color in terms of the options that are out there for you guys in terms of maybe how you’re thinking about those options between building, whether it’s building, whether it’s chartering, whether it’s buying.

But any more color on there I think would be super helpful. Thanks.

Natalya Leahy (Chief Executive Officer)

Yeah, Steve, let me start and we can jump in on that. First of all, as we talked about, we continue to expand our charter capacity. We have seen mid-single-digit capacity growth this year mainly from our optimization of deployment but also from significant expansion of our charters. And we will continue to see mid-single-digit capacity growth on our charter-expanded business going forward. As we talked about in the last couple calls, we also work on adding ships to our fleet.

We’re not ready to share yet, but we are very close to finalizing our plans in that regard, and I just ask us all to be a little patient with that. Rick, anything to add?

Rick Goldberg (Chief Financial Officer)

Nope, I think you covered it, Natalia.

Stephen Wisinski (Analyst)

Okay, guys, appreciate the color. Thank you so much.

OPERATOR

Your next question comes from the line of Ian Zaffino with Oppenheimer. Your line is open. Please go ahead.

Ian Zaffino (Analyst at Oppenheimer)

Hi, great. Thank you very much. Glad to see demand is so strong here. You know, question would be just on Q4 and maybe EBITDA guide. Can you help us understand the bridge there? You know, is this kind of mostly related to fuel? I’m just looking at the year-over-year comp. And is that all fuel? Anything else going on there? Anything else you could do to mitigate that? Thanks.

Rick Goldberg (Chief Financial Officer)

Yeah, thanks so much, Ian. What I’d say with Q4 is, you know, as we shared previously, we expect capacity to be down mid-single digits in Q4 due to the timing of dry docks and repositionings. We’re continuing to expect full-year capacity to be up 4.5% to 5%. But there always is some fluctuation between quarters in terms of dry docks and repositioning, and so you’re seeing that in Q4. And in addition, you know, we have fuel price which remains a headwind for the business.

And despite that, we’re continuing to see strong in-year bookings, which is helping to offset and mitigate those factors.

Ian Zaffino (Analyst at Oppenheimer)

Okay. And then maybe sticking on fuel for a second longer. I know you mentioned a few things to mitigate fuel costs, but any thinking on surcharges or pursuing hedges or anything like that, or any other mitigating steps that you think you could take? Maybe even dynamic pricing — I don’t know if that factors into any of that. If you could give us some color there. Thank you.

Natalya Leahy (Chief Executive Officer)

Ian, let me cover your surcharge and dynamic pricing question, and we can comment on hedging. Pricing, I firmly believe, has to be driven by the consumer. Our job is to drive demand and develop capabilities — first of all, develop an outstanding product and guest experience. That will be supported by our marketing tools to generate pricing capabilities, and we are doing that in a very strong way, which helps offset any kind of cost fluctuation, including fuel or investments in our food or guest experience.

I don’t believe you can just add a surcharge for fuel. I think it needs to be supported by guest experience and natural organic demand. I’ll let Rick comment on hedging.

Rick Goldberg (Chief Financial Officer)

The company has never hedged fuel, consistent with some other public peers. Our focus is really on looking at ways that we can control fuel prices. We talked a little bit on the call about the steps that we’re taking to reduce consumption. We’re also looking at how and where we purchase fuel in order to help us limit the impact of these price increases that we’re seeing in the fuel markets.

Ian Zaffino (Analyst at Oppenheimer)

Okay, thank you very much.

OPERATOR

Your next question comes from the line of Chris Waronka with Deutsche Bank. Your line is open. Please go ahead.

Chris Waronka (Analyst at Deutsche Bank)

Hey, good morning. Thanks for taking the questions. I know you’ve always talked about the importance of availability of airfare — particularly an adequate number of first-class seats from some key feeder U.S. markets. If you look out to 2027, given airlines keep playing around with their schedules in response to fuel, is there anything on the good side or bad side that you see schedule-wise? Do you think there’s going to be enough first-class capacity in the major airlines and the major feeder markets to your markets internationally?

Thank you.

Rick Goldberg (Chief Financial Officer)

Thanks so much, Chris. We’re not seeing anything in terms of air routes that we expect to impact demand for our 2027 or 2028 itineraries at this time.

Natalya Leahy (Chief Executive Officer)

And again, Chris, remember that with all the growth we have for our company, we only have 60,000 guests traveling with us annually across all of our brands.

Chris Waronka (Analyst at Deutsche Bank)

Yeah, that’s a great point. Thanks, Natalya. The follow-up question is: we’ve seen one of the major cruise companies adopt a newer land-based strategy with a joint venture. I know that’s not something you would necessarily look at in that size or scope, but is there any thought to hotel operations in certain markets if there’s the right opportunity that fits your demographic?

Natalya Leahy (Chief Executive Officer)

Chris, this is very much related to our main topic of this call. We are, and have been, building a truly experiential travel platform. We are not per se in the hotel business; we are in the experiential travel business. Our goal is to grow our portfolio by delivering very hard-to-replicate, exceptional experiential guest experiences in the most unique destinations. We have a portfolio of land companies that take people by foot and by bicycle to the most exceptional destinations, close to nature and culture.

Now we added White Desert. We are launching Echo Charlie, and all of these brands play in this experiential travel segment, allowing our guests to transition from brand to brand as they experience this world.

Chris Waronka (Analyst at Deutsche Bank)

Okay, understood. Very helpful. Thanks, Natalya. Thanks, Rick. Thank you.

OPERATOR

Your next question comes from the line of Anthony Burney with Jefferies. Your line is open. Please go ahead. As a reminder, please unmute your device locally. Anthony, if you are speaking, we can’t hear you. Maybe let’s go to the next question, and if Anthony comes back on, we can bring him back into the queue. Your next question is from Eric Delorias with Craig-Hallum Capital Group. Your line is open. Please go ahead.

Eric Delorias (Analyst at Craig-Hallum Capital Group)

Great, thanks for taking my questions, and congrats on another very impressive quarter here. Both my questions are focused on the Land Expedition growth opportunities. We saw some increased ownership stakes this quarter. What capacity remains for increased ownership stakes across some of your various Land Expedition brands or companies? And then, ownership stakes aside, how should we think about the organic growth opportunities within your existing Land Expedition portfolio?

Rick Goldberg (Chief Financial Officer)

I’ll start with the second half of that question, Eric. We continue to see tremendous opportunities to grow our land portfolio businesses organically, and you can see the results over the last year of those businesses. We remain very bullish on them. In terms of the increased stakes, earlier in the year we purchased a little bit of the outstanding stakes for Natural Habitat Adventures as well as Classic Journeys. However, over the last year all of the founders of our land experience businesses have signed extensions to continue to lead those companies into the future, and we remain very excited and enthusiastic about those partnerships.

Eric Delorias (Analyst at Craig-Hallum Capital Group)

Great. That takes my question.

OPERATOR

And again we have Anthony Burney with Jefferies. Your line is open. Please go ahead.

Anthony Burney (Analyst at Jefferies)

Hi, good morning. Can you hear me now?

OPERATOR

Good morning. Yes, we can, Anthony.

Anthony Burney (Analyst at Jefferies)

Hey, sorry about that before. Thank you for taking our questions. Congrats on a great quarter. Apologies if this was asked before, but just following up on the capacity question — I think I heard charters will increase cruise capacity by mid-single digits next year. Is that correct? And are there any other factors to consider? And then also on the land side, I appreciate that you can flex your capacity up and down with demand pretty easily, but can you give us any color on how much volume you expect next year in that segment as well? Thank you.

Natalya Leahy (Chief Executive Officer)

Anthony, we are going to provide next year’s guidance in upcoming calls — not going to share exact numbers — but you are hearing correctly that we will continue to grow our charter business in some of the most unique destinations. We expanded our Amazon offerings. We have Greg Mortimer expanding our Alaska business, and we continue to develop these long-term partnerships. You heard about European river cruises, etc. So yes, that will continue to be our moderate capacity growth lever.

And yes, our land businesses are growing both in the geographies they are offering and by adding additional departures or various products within their current destinations. Last time we talked about Off the Beaten Path launching a new brand product in Alaska that sold out within days. We continue to innovate in places where we already are strong.

Anthony Burney (Analyst at Jefferies)

Perfect. And then last one for me: in the past you’ve called out dozens of cost innovation initiatives that you have available. Can you quantify how much you intend to save with those, and which cost buckets you think should see the biggest benefits?

Natalya Leahy (Chief Executive Officer)

Rick will answer the more detailed question. What I want to stress here is we continue to see focus on costs. While we have seen significant results translate into margins this year, we’re still in pretty early innings on that work, given some of the investments in technology we are making and capabilities. I mentioned today inventory management as one of the areas where we’re going to really see some results in upcoming years, given our investments in technology, people, and capabilities in that space.

Rick, anything to add?

Rick Goldberg (Chief Financial Officer)

I’d just say that of the initiatives that we have launched here in 2026, we won’t see the full benefit of those hit the P&L until 2027, given the long lead time that many of them have. And if you think about what lines on the P&L are most impacted, it’s cost of tours, G&A, and CapEx.

Anthony Burney (Analyst at Jefferies)

Great, thank you very much.

OPERATOR

Your last question comes from the line of Stephen Grambling with Morgan Stanley. Your line is open. Please go ahead.

Stephen Grambling (Analyst at Morgan Stanley)

Hey, thank you for taking the questions. Maybe a good segue from that last question on technology is thinking about the potential impact of agentic bookings. I know that you’re mainly direct in terms of your business, but I’m curious how you make sure that, as more people use agents and/or AI as they’re researching their vacations, you ensure that you’ll be at the top of the heap — or even see opportunity to improve awareness and pricing capabilities.

Thank you.

Natalya Leahy (Chief Executive Officer)

Yes, thank you, Stephen. It’s great to hear from you, and we talked a little bit last time you and I spoke about that. I think we are all learning here. What I would say is that, yes, people use AI to get information, and therefore as we think about our storytelling and demand generation, what plays a bigger role than ever are areas like public relations or organically generated opinion on things like Reddit, etc. What we can do there is, one, we are investing in our public relations and storytelling capabilities.

We just welcomed a new PR leader into our organization last quarter. We also have to continue to deliver exceptional guest experiences that generate organic comments that are feeding AI agents as they’re providing recommendations. Hopefully that helps.

Stephen Grambling (Analyst at Morgan Stanley)

Yes, thank you.

Natalya Leahy (Chief Executive Officer)

You’re welcome.

OPERATOR

There are no further questions at this time. I will now turn the call back to Rick Goldberg for closing remarks.

Rick Goldberg (Chief Financial Officer)

Thanks so much. Really appreciate everyone taking the time to join today’s call and your continued interest in Lindblad Expeditions. Thanks so much, everyone. Bye now.

OPERATOR

This concludes today’s call. Thank you for attending. You may now disconnect.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.