Vail Resorts released its Q3 2026 results and reported its weakest quarter in recent memory, with skier visits falling 15.5% and net income dropping 19.3% in the three months ended April 30, 2026. In addition, pass sales for the 2027-27 season have been hit with a slow uptake, but within the downturn is a more complex picture — one of a business model that was explicitly built to withstand seasons like this, and is largely doing so.
The results, released June 8, cover Q3 of Vail’s fiscal year 2026 — the three months ended April 30, 2026 and the core of the North American ski season — and reflect what CEO Rob Katz described as one of the most challenging winters the company has faced across the western United States.
A Look at the Q3 2026 Numbers
Net income attributable to Vail Resorts came in at $314.4 million, down 19.3% from $389.7 million a year earlier. Meanwhile Resort Reported EBITDA declined 9.5% to $586.4 million, while resort net revenue fell 7.0% to $1.21 billion.
Behind every decline sits a single driver: skier volume. Vail recorded 7.276 million skier visits in Q3 2026, down from 8.609 million in the prior year, a loss of 1.333 million visits or 15.5% decline in a single quarter. The majority of that fall was concentrated in destination resorts in the Rockies and Lake Tahoe, the regions most exposed to the historic snowpack failure that defined the 2025–26 western U.S. ski season.
On a year-to-date basis, the trend deepens. Net income is down 26.7% to $337.7 million, and Resort EBITDA is down 10.3% to $868.0 million. The deterioration has accelerated through the year, from Q2’s 14.1% decline in net income to Q3’s 19.3%, reflecting both persistent weather impacts and rising interest costs unrelated to snowfall.
The One Bright Spot: Spending Per Skier
One of the most notable countercurrents in the data is spending per visit. Effective Ticket Price rose 12.0% to $100.24, up from $89.47 a year earlier. While visits fell sharply, lift revenue declined only 5.3%, buffered by an increased spending per skier.
Ski school revenue fell 11.5%, dining declined 10.7%, and retail and rental dropped 8.3% — all broadly tracking visitation. But lift revenue proved more resilient due to the advance commitment of season-pass holders. It shows that the subscription model helps cushion the blow of a bad season for resorts, as season pass holders have already paid, and they tend to show up even in poor snow years. As a result, Resort EBITDA margin only contracted 130 basis points, from 50.0% to 48.7%, despite a 7% revenue decline. “Our advance commitment model provided considerable stability,” Katz said, “and strong cost discipline kept us on track to exceed our resource efficiency transformation plan savings for the year.”
A Season That Has Deteriorated From Q2
The Q3 results are not the first warning sign in Vail’s 2026 fiscal year. Q2 results, released in March, showed net income down 14.1% and EBITDA down 8.3%, prompting a full-year Resort EBITDA guidance cut.
Q3 confirms the downward trajectory continued into late season rather than stabilizing. Resort EBITDA guidance now sits at $735 million to $755 million, down again from the prior range of $745 million to $775 million. Net income guidance has also tightened to $128 million to $162 million.
Through March 1, skier visits were already down 11.9%. By April 30, that decline had widened to 15.5%, showing continued deterioration through the final stretch of the season.
The Balance Sheet Question
Vail’s balance sheet shows increasing pressure but no immediate distress. Total debt rose 11.5% year over year to $3.02 billion. Stockholders’ equity declined 37.1% to $551.7 million, driven by lower earnings and continued capital returns. Net debt now stands at $2.65 billion, or 3.5x trailing twelve-month EBITDA of $750.2 million.
Liquidity remains solid at $1.1 billion as of April 30, and capital investment guidance for 2026 is unchanged at $234 million to $239 million.
The dividend, however, stands out. At $2.22 per share quarterly, Vail is paying out more than its full-year earnings guidance implies in earnings per share terms. That gap is currently being funded from liquidity — sustainable in the short term, but not indefinitely if earnings do not recover.
Looking Ahead: Pass Sales and the Autumn Test
Early pass sales for the 2026-27 EPIC Pass through May 26 show units down approximately 10%, days sold down 8%, and sales dollars down 5% year over year. The smaller decline in revenue reflects a shift toward higher-priced unlimited pass products, which are outperforming lower-frequency options.
Katz said the weaker sales reflect timing rather than structural demand loss, noting that poor conditions have historically delayed purchases rather than eliminated them entirely.
There are some early positives. The new Young Adult pass — priced at $869 for skiers aged 13 to 30 — is outperforming expectations relative to other segments, suggesting Vail’s attempt to address affordability and retention is gaining traction.
In the Southern Hemisphere, performance is notably stronger. Epic Australia Pass sales are up 26% in units and 31% in revenue from last year. The strong growth from the Australian market is a welcome reversal, however, the Australian market is small by comparison to America.
What It Means for the 2026 Fiscal Year
As a result of the weak Q3, Vail Resorts has lowered its forecast for the Fiscal Year again. Full year Resort EBITDA guidance now sits at $735 million to $755 million — down from the $745 million to $775 million range issued at Q2, and well below the $859 million the company was targeting at the start of the year. Net income guidance has been tightened to $128 million to $162 million, down from $144 million to $190 million at Q2.
The cumulative guidance cuts tell the story of a season that deteriorated in stages rather than all at once. Each quarterly update has brought a modest reduction rather than a dramatic revision — which reflects both the stabilizing effect of the advance commitment model and the reality that the weather damage was already largely priced in by the time Q2 results were released in March.
The dividend remains at $2.22 per share quarterly — unchanged throughout the difficult season — but the gap between the payout and this year’s earnings is widening. Full year guidance implies earnings per share well below the $8.88 annual dividend, meaning Vail is currently funding the gap from its $1.1 billion liquidity position. Manageable for now, but a situation that requires a stronger FY2027 to resolve cleanly.
The autumn pass selling season will be the first real signal of whether that recovery is coming.