A company that runs mountain resorts and luxury lodging across North America, Australia, and Europe, operating 42 ski areas including several of the most-visited resorts in the U.S. Its signature product is the Epic Pass, a season pass that lets skiers and riders visit its mountains, alongside ski schools, dining, retail, and hotels under the RockResorts brand, including National Park properties like Grand Teton Lodge Company.
Skier visits fell 15.5% as record-low western U.S. snowfall drove early resort closures, pushing Mountain EBITDA down 8.8%.
A historic snow drought in the western U.S. cut skier visits by 15.5%, the deepest quarterly decline in at least five years. fell 7.0% to $271.0 million and dropped 14.5% to a loss of $209.8 million, as a 22% plunge in non-pass lift revenue overwhelmed a $25.1 million increase in pass product sales. The advance-commitment pass model again cushioned the blow, but early 2026/2027 pass sales are down 10% in units, raising the question of whether the strategy has reached its limit.
Key takeaways
Skier visits fell 15.5%, driven by record-low snowfall and warm temperatures in the western U.S. that forced early resort closures, the company's worst weather quarter in over 30 years.
Mountain Reported fell 8.8% to $579.6 million, as a 22.0% drop in non-pass lift from reduced visitation outweighed a $25.1 million increase in pass product revenue.
Total lift fell 5.3%, but rose 12.0% to $100.24, reflecting the mix shift toward higher-priced pass products as lower-frequency, non-pass guests stayed away.
Section summaries
Management's Discussion and Analysis
Mountain EBITDA fell 8.8% in Q3 FY2026 as record-low western U.S. snowfall drove a 15.5% drop in skier visits, partially offset by pass revenue growth and cost discipline.
⌄
Mountain decreased $55.8 million (8.8%) in Q3, driven by a 15.5% decline in skier visits due to record low snowfall and warm temperatures that caused early resort closures.
Lodging Reported fell 44.6% to $6.8 million, with combined down 15.7% as reduced skier visitation cut demand for owned hotels and managed condominiums.
Net declined $141.9 million to $582.7 million, primarily from weaker Mountain and Lodging results, partially offset by $66.8 million in lower income tax payments.
Early 2026/2027 North American season pass sales through May 26, 2026 showed units down approximately 10% and sales dollars down approximately 5%, the largest early-season unit decline since the pass strategy was introduced.
What changed
The 15.5% skier visit decline in Q3 FY2026 was the largest quarterly drop in at least five years, far exceeding the 3.0% decline in Q3 FY2025 and the 12.5% decline in Q2 FY2026, confirming that the post-COVID normalization in non-pass visitation has been compounded by extreme weather rather than stabilizing.
The $8.8 million in deferred pass from delayed Q2 resort openings flagged last quarter was not explicitly recaptured in Q3 results; total pass product revenue rose $25.1 million, but the filing does not state how much of that was the deferred amount versus new spring pass sales.
The Resource Efficiency Transformation Plan, which targeted $100 million in annualized cost savings by the end of FY2026, was not mentioned in the Q3 MD&A, suggesting either that savings are being absorbed by inflation and European costs or that disclosure has been deprioritized.
rose to $2.65 billion from $2.24 billion a year ago, and the $275 million delayed-draw term loan draw flagged in Q2 was used to repay maturing convertible notes, confirming the company continues to layer on fixed-rate debt while carrying $1.3 billion in variable-rate exposure at 5.8%.
The early 2026/2027 pass sales decline of 10% in units and 5% in dollars through late May 2026 is a sharp reversal from the 2% unit decline and 3% dollar increase reported through early December 2025, suggesting the pricing that had offset flat unit demand for several seasons may be fading.
What to watch
Whether the 10% unit decline in early 2026/2027 pass sales through May 2026 persists through the September final sales deadline, or whether the decline narrows as the season approaches — a double-digit unit drop would be the first material contraction in the advance-commitment base since the strategy launched.
Whether the $100 million Resource Efficiency Transformation Plan target is achieved in FY2026, and whether any savings are disclosed in the FY2026 10-K or have been fully absorbed by inflation and European integration costs.
Whether skier visits recover in FY2027 after two consecutive years of decline (9.5% in FY2024, 3% in FY2025, and a worsening trend in FY2026), or whether the post-COVID reset in non-pass visitation represents a permanent structural shift in the guest mix.
The trajectory of and capital allocation in the FY2026 10-K, specifically whether the company reduces share repurchases or the to prioritize debt reduction as variable-rate debt reaches $1.3 billion at 5.8% and each 100-basis-point rate move now impacts interest by $13.1 million.
Total lift fell 5.3% as a 22.0% drop in non-pass revenue outweighed a $25.1 million increase in pass product revenue, while effective ticket price rose 12.0% to $100.24.
Lodging fell 44.6% to $6.8 million, with combined owned hotel and managed condo RevPAR down 15.7% on lower demand tied to reduced skier visitation.
Net declined $141.9 million to $582.7 million, primarily due to weaker Mountain and Lodging results, partially offset by $66.8 million in lower income tax payments.
rose to $2.65 billion from $2.24 billion a year ago, and the company drew $275 million on a delayed-draw term loan to repay maturing 0.0% Convertible Notes.
Early 2026/2027 season pass sales through May 26, 2026 showed units down approximately 10% and sales dollars down approximately 5% versus the prior-year period.
Quantitative and Qualitative Disclosures About Market Risk
Interest-rate risk from $1.3B variable debt and unhedged FX translation exposure to CAD, AUD, and CHF are the primary market risks.
⌄
Variable-rate debt was $1.3B (43.4% of total debt) at an average rate of 5.8% during the nine months ended April 30, 2026.
A 100-basis-point change in borrowing rates would alter annual interest payments by approximately $13.1 million.
Foreign currency translation risk arises from Canadian, Australian, and Swiss operations whose results are reported in local currencies before conversion to USD.
An intercompany loan to Whistler Blackcomb not deemed permanently invested creates additional CAD transaction exposure.
The company does not currently use hedging arrangements to mitigate foreign currency fluctuations.
were a $71.5 million gain in the nine months ended April 30, 2026, up from $22.9 million a year earlier.
We are a party to various lawsuits arising in the ordinary course of business. We believe that we have adequate insurance coverage and/or have accrued for all loss contingencies for asserted and unasserted matters and that, although the ultimate outcome of such claims cannot be…
⌄
We are a party to various lawsuits arising in the ordinary course of business. We believe that we have adequate insurance coverage and/or have accrued for all loss contingencies for asserted and unasserted matters and that, although the ultimate outcome of such claims cannot be ascertained, current pending and threatened claims are not expected, individually or in the aggregate, to have a material adverse impact on our financial position, results of operations and cash flows.
There have been no material changes to the risk factors we previously disclosed in our Form 10-K, which was filed on September 29, 2025 as of and for the fiscal year ended July 31, 2025.
⌄
There have been no material changes to the risk factors we previously disclosed in our Form 10-K, which was filed on September 29, 2025 as of and for the fiscal year ended July 31, 2025.