Royal Caribbean Group

RCL · NYSE · Consumer Discretionary · Financials, fiscal 2016 to 2025

RCL · Last close · October 26, 2026

$280.60

Royal Caribbean Group's revenue rose 8.8% to $17.9 billion in fiscal 2025. Its operating margin was 27.4%, up from 24.9% a year earlier. Free cash flow was $1.2 billion, down 38.1%. It paid out $2.0 billion in dividends and buybacks, 160% of free cash flow. The diluted share count fell 1.8%.

ROYAL CARIBBEAN CRUISES LTD Latest fiscal year ended December 31, 2025 10-K filed February 11, 2026 · 0000884887-26-000007 Updated October 9, 2026

Revenue

$17.9B

8.8%

Operating margin

27.4%

2.5 pts

Net income

$4.3B

48.4%

Free cash flow

$1.2B

38.1%

Return on capital

16.6%

1.4 pts

Market cap

$75.2B

Oct 26 close

P/E

17.3x

On $16.20 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

What Royal Caribbean Group does

Royal Caribbean Group sells cruise vacations. It owns three global brands: Royal Caribbean, Celebrity Cruises and Silversea. Royal Caribbean aims at families and couples with casual ships. Celebrity Cruises sells a more upscale experience. Silversea runs smaller, luxury and expedition ships to remote places such as Antarctica. Ships call on more than 1,000 destinations on all seven continents, and the company also owns private land-based destinations for its guests.

The company earns its money from cruise vacations and runs its three global brands as a single business. It also owns half of TUI Cruises, a joint venture with a German tourism company that sells cruises to German guests under the TUI Cruises and Hapag-Lloyd Cruises names. Together the brands run 69 ships. The company says its main cruise competitors are Carnival, Disney Cruise Line, MSC Cruises, Norwegian Cruise Line Holdings, Viking and Virgin Voyages. It also competes with resorts, hotels, theme parks and other ways to spend leisure time.

The company has more ships on order, including Royal Caribbean, Celebrity and TUI Cruises vessels due between 2026 and 2032. It has also started a river cruise line under the Celebrity name. Most guests of its global brands come from North America. It sells in other countries through its own staff and independent representatives, and relies on travel advisors to sell its cruises.

Its biggest risks, as it describes them

Cruise demand and guest spending falling when the economy or travel conditions weaken.
Incidents on ships or at its destinations, and bad publicity, hurting its reputation and bookings.
Delays at shipyards, which build and repair its ships, affecting new ships and upgrades.
More cruise ships worldwide, or competition from other vacations, pushing down its prices and sales.
Disease outbreaks, bad weather and wars disrupting its voyages.

From Royal Caribbean Group's annual report on Form 10-K, filed February 11, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2016 to 2025, earnings per share grew 11.4% a year and net income 14.3% a year, as new shares raised the share count by 27% and diluted each share's earnings.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Royal Caribbean Group yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Royal Caribbean Group's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Royal Caribbean Group's cash from operations minus depreciation in fiscal 2025 (free cash flow before spending to grow: capital spending was 3.0 times depreciation, which holds its free cash flow down) of $4.7B, net cash of −$20.5B at December 31, 2025 and 274 million diluted shares, from its filings. The scenarios are fitted to Royal Caribbean Group: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 26.6% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 12%: 11% for a cyclical or higher-risk business (Hotels, Resorts & Cruise Lines), plus 1 point for unsteady results (a loss in fiscal 2022); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus depreciation in fiscal 2025: a rough guide to cash flow before spending to grow, for a company building heavily.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Royal Caribbean Group's own revenue growth, as above. Cautious: growth of 10% then 6% a year, 2% after year 10, a 13% discount rate. Base: growth of 20% then 11% a year, 2.5% after year 10, a 12% discount rate. Optimistic: growth of 25% then 14% a year, 3% after year 10, a 11% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $280.60
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Royal Caribbean Group's earnings per share of $16.20 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 17.8×, the middle of Royal Caribbean Group's own P/E today, its peers' median and its sector's median (the Consumer Discretionary median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 13%, 12% and 11%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to June 30, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: Expedia Group, Marriott International, Airbnb, Carnival.

Earnings growth in the years ahead (% a year) Starts at Royal Caribbean Group's revenue growth over the last 3 years, 26.6% a year, kept between 0% and 20%, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $280.60
Value at this multiple, against the last close: —
Royal Caribbean Group's P/E at the last close: 17.3×

Company	Last close	Earnings per share	P/E today
Marriott InternationalMAR	$394.75	$9.67	40.8×
AirbnbABNB	$171.05	$4.40	38.9×
Expedia GroupEXPE	$283.97	$16.07	17.7×
Royal Caribbean GroupRCL	$280.60	$16.20	17.3×
CarnivalCCL	$26.86	$2.29	11.7×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	2,702	1,935	497	388	825
Debt incl. finance leases	21,090	23,391	21,452	20,076	21,345
Net debt (negative means net cash)	18,388	21,456	20,955	19,688	20,520
Net debt to EBITDA	—	33.5x	4.8x	3.5x	3.1x
Debt to equity	4.2x	8.2x	4.5x	2.6x	2.1x
Interest coverage	−3.0x	−0.6x	2.0x	2.6x	5.0x
Current ratio	0.5x	0.4x	0.2x	0.2x	0.2x
Quick ratio	0.5x	0.3x	0.2x	0.1x	0.2x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Royal Caribbean Group shares on the open market, and 7 insiders sold $631.0 million.

Date	Insider	Trade	Shares	Price	Value	Filing
Jul 29, 2026	Michael W BayleyPres&CEO, Royal Caribbean Intl	Sold	12,811	$315.99	$4.0 million	Form 4
Feb 27, 2026	Arne Alexander WilhelmsenDirector	Sold	245,476	$311.54	$76.5 million	Form 4
Feb 26, 2026	Arne Alexander WilhelmsenDirector	Sold	356,026	$318.39	$113.4 million	Form 4
Feb 25, 2026	Arne Alexander WilhelmsenDirector	Sold	170,105	$315.92	$53.7 million	Form 4
Feb 24, 2026	Arne Alexander WilhelmsenDirector	Sold	345,111	$315.73	$109.0 million	Form 4
Feb 23, 2026	Arne Alexander WilhelmsenDirector	Sold	19,140	$317.30	$6.1 million	Form 4
Feb 20, 2026	Arne Alexander WilhelmsenDirector	Sold	109,297	$314.81	$34.4 million	Form 4
Feb 19, 2026	Arne Alexander WilhelmsenDirector	Sold	101,902	$312.09	$31.8 million	Form 4
Feb 18, 2026	Arne Alexander WilhelmsenDirector	Sold	104,540	$321.64	$33.6 million	Form 4
Feb 17, 2026	Arne Alexander WilhelmsenDirector	Sold	180,000	$325.09	$58.5 million	Form 4
Feb 17, 2026	Laura H BethgePresident, Celebrity Cruises	Sold	7,854	$326.21	$2.6 million	Form 4
Feb 17, 2026	Maritza Gomez MontielDirector	Sold	1,385	$327.18	$453,144	Form 4

The latest 12 of 18 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Pass	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Pass	Pass
Current ratio rose	Fail	Fail	Pass
Share count didn't rise	Fail	Pass	Pass
Gross margin rose	Pass	Pass	Pass
Revenue rose relative to assets	Pass	Pass	Pass
F-score	7 of 9	8 of 9	9 of 9
Accruals ratio	−8.1%	−6.6%	−5.6%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Royal Caribbean Group side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Royal Caribbean Group	FY25	8.8%	27.4%	6.9%	16.6%	3.1x	9
Expedia Group	FY25	7.6%	12.7%	21.1%	40.5%	0.2x	8	Compare
Marriott International	FY25	4.3%	15.8%	10.0%	27.4%	3.5x	7	Compare
Airbnb	FY25	10.3%	20.8%	—	—	−3.5x	6	Compare
Carnival	FY25	6.4%	16.8%	9.8%	12.1%	3.5x	7	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	8,496	8,778	9,494	10,951	2,209	1,532	8,840	13,900	16,484	17,935
Revenue growth	2.4%	3.3%	8.2%	15.3%	−79.8%	−30.6%	477.0%	57.2%	18.6%	8.8%
Gross profit	3,481	3,881	4,232	4,888	−556	−1,207	2,224	6,125	7,832	8,852
Research and development	—	—	—	—	—	—	—	—	—	—
Operating income	1,477	1,744	1,895	2,083	−4,602	−3,870	−766	2,878	4,106	4,910
Net income	1,283	1,625	1,811	1,879	−5,798	−5,260	−2,156	1,697	2,877	4,268
Diluted EPS (US$)	5.93	7.53	8.56	8.95	−27.05	−20.89	−8.45	6.31	10.94	15.61
Diluted shares (millions)	216	216	212	210	214	252	255	283	279	274
Cash flow
Cash from operations	2,517	2,875	3,479	3,716	−3,732	−1,878	481	4,477	5,265	6,465
Capital expenditure	2,494	564	3,660	3,025	1,965	2,230	2,710	3,897	3,268	5,229
Free cash flow	22	2,310	−181	692	−5,697	−4,108	−2,229	580	1,997	1,236
Dividends paid	346	438	528	603	326	0	0	0	107	824
Share buybacks	300	225	575	100	0	0	0	0	0	1,159
Acquisitions	0	0	916	0	0	0	0	0	0	0
Stock-based compensation	33	70	46	76	40	64	36	126	267	175
Balance sheet at fiscal year end
Cash and short-term investments	133	120	288	244	3,684	2,702	1,935	497	388	825
Debt incl. finance leases	9,387	7,540	10,778	11,035	19,329	21,090	23,391	21,452	20,076	21,345
Total assets	22,310	22,361	27,698	30,320	32,465	32,258	33,776	35,131	37,070	41,619
Total liabilities	13,189	11,659	16,051	17,586	23,704	27,173	30,907	30,232	29,335	31,374
Shareholders' equity	9,121	10,702	11,106	12,164	8,761	5,086	2,869	4,724	7,563	10,037
Margins and ratios
Gross margin	41.0%	44.2%	44.6%	44.6%	−25.2%	−78.8%	25.2%	44.1%	47.5%	49.4%
Operating margin	17.4%	19.9%	20.0%	19.0%	−208.3%	−252.6%	−8.7%	20.7%	24.9%	27.4%
Net margin	15.1%	18.5%	19.1%	17.2%	−262.5%	−343.3%	−24.4%	12.2%	17.4%	23.8%
Free cash flow margin	0.3%	26.3%	−1.9%	6.3%	−257.9%	−268.1%	−25.2%	4.2%	12.1%	6.9%
Return on capital	6.7%	7.5%	7.5%	7.4%	−15.3%	−12.8%	−2.5%	11.4%	15.2%	16.6%
Return on equity	14.9%	16.4%	16.6%	16.1%	−55.4%	−76.0%	−54.2%	44.7%	46.8%	48.5%
Return on assets	6.0%	7.3%	7.2%	6.5%	−18.5%	−16.2%	−6.5%	4.9%	8.0%	10.8%
Net debt to EBITDA	3.9x	2.8x	3.6x	3.2x	—	—	33.5x	4.8x	3.5x	3.1x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Royal Caribbean Group's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Royal Caribbean Group.