Revenue growth has normalized to 11.3% as of 2026Q1, while operating margins expanded to 26.1% from 17.1% in 2023Q4, reflecting successful scaling of the fixed-cost base.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 18.39B | 17.93B | 16.48B | 13.9B | 8.84B | 1.53B | 2.21B | 10.95B | 9.49B | 8.78B | 8.5B | 8.3B | 8.07B | 7.96B | 7.69B | 7.54B | 6.75B | 5.89B | 6.53B | 6.15B | 5.23B | 4.9B | 4.56B | 3.78B | 3.43B | 3.15B | 2.87B | 2.55B | 2.64B | 1.94B | 1.36B |
| Revenue Growth % | 9.74% | 8.8% | 18.6% | 57.24% | 477.02% | -30.64% | -79.83% | 15.34% | 8.16% | 3.31% | 2.38% | 2.79% | 1.43% | 3.54% | 2% | 11.62% | 14.65% | -9.84% | 6.23% | 17.58% | 6.66% | 7.63% | 20.38% | 10.19% | 9.19% | 9.75% | 12.56% | -3.42% | 35.96% | 42.86% | 14.64% |
| Cost of Goods Sold | 9.7B | 9.54B | 8.65B | 7.78B | 6.62B | 2.74B | 2.77B | 6.06B | 5.26B | 4.9B | 5.02B | 5.1B | 5.31B | 5.31B | 5.16B | 4.94B | 4.46B | 4.07B | 4.4B | 3.98B | 3.25B | 2.99B | 2.82B | 2.38B | 2.11B | 1.93B | 1.65B | 1.5B | 1.59B | 1.22B | 854.5M |
| COGS % of Revenue | - | 53.16% | 52.48% | 55.94% | 74.84% | 178.79% | 125.19% | 55.36% | 55.43% | 55.78% | 59.03% | 61.45% | 65.72% | 66.65% | 67.08% | 65.58% | 66.02% | 69.12% | 67.41% | 64.75% | 62.14% | 61.07% | 61.89% | 62.92% | 61.53% | 61.5% | 57.66% | 58.77% | 60.45% | 62.88% | 62.96% |
| Gross Profit | 8.68B | 8.4B | 7.83B | 6.13B | 2.22B | -1.21B | -556.3M | 4.89B | 4.23B | 3.88B | 3.48B | 3.2B | 2.77B | 2.65B | 2.53B | 2.59B | 2.29B | 1.82B | 2.13B | 2.17B | 1.98B | 1.91B | 1.74B | 1.4B | 1.32B | 1.21B | 1.21B | 1.05B | 1.04B | 719.7M | 502.8M |
| Gross Margin % | 47.23% | 46.84% | 47.52% | 44.06% | 25.16% | -78.79% | -25.19% | 44.64% | 44.57% | 44.22% | 40.97% | 38.55% | 34.28% | 33.35% | 32.92% | 34.42% | 33.98% | 30.88% | 32.59% | 35.25% | 37.86% | 38.93% | 38.11% | 37.08% | 38.47% | 38.5% | 42.34% | 41.23% | 39.55% | 37.12% | 37.04% |
| Gross Profit Growth % | - | 7.24% | 27.89% | 175.4% | 284.26% | -116.97% | -111.38% | 15.51% | 9.03% | 11.5% | 8.79% | 15.61% | 4.25% | 4.9% | -2.47% | 13.09% | 26.16% | -14.57% | -1.78% | 9.47% | 3.72% | 9.96% | 23.72% | 6.21% | 9.11% | -0.21% | 15.57% | 0.7% | 44.86% | 43.14% | 13.88% |
| Operating Expenses | 3.56B | 3.49B | 3.73B | 3.25B | 2.99B | 2.66B | 4.05B | 2.81B | 2.34B | 2.14B | 2B | 2.32B | 1.83B | 1.86B | 2.13B | 1.66B | 1.49B | 1.33B | 1.3B | 1.27B | 1.12B | 1.04B | 982.4M | 877.03M | 770.15M | 755.25M | 643.85M | 569.73M | 553.83M | 1.64B | 1.14B |
| OpEx % of Revenue | - | 19.46% | 22.61% | 23.36% | 33.82% | 173.83% | 183.14% | 25.62% | 24.61% | 24.35% | 23.58% | 28.01% | 22.61% | 23.32% | 27.67% | 22.06% | 22.09% | 22.58% | 19.85% | 20.59% | 21.45% | 21.16% | 21.57% | 23.18% | 22.43% | 24.01% | 22.47% | 22.38% | 21.01% | 84.35% | 84.01% |
| Selling, General & Admin | 2.24B | 2.22B | 2.13B | 1.79B | 1.58B | 1.37B | 1.2B | 1.56B | 1.3B | 1.19B | 1.11B | 1.09B | 1.05B | 1.04B | 1.01B | 960.6M | 848.08M | 762M | 776.52M | 783.04M | 699.86M | 635.31M | 588.27M | 514.33M | 431.06M | 454.08M | 412.8M | 371.82M | 359.21M | 272.4M | 194.6M |
| SG&A % of Revenue | - | 12.39% | 12.89% | 12.89% | 17.91% | 89.43% | 54.31% | 14.24% | 13.73% | 13.51% | 13.05% | 13.09% | 12.99% | 13.13% | 13.16% | 12.74% | 12.56% | 12.94% | 11.89% | 12.73% | 13.38% | 12.96% | 12.91% | 13.59% | 12.55% | 14.44% | 14.4% | 14.6% | 13.63% | 14.05% | 14.34% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 1.27B | 1.6B | 1.46B | 1.41B | 1.29B | 2.85B | 1.25B | 1.03B | 951.19M | 894.91M | 1.24B | 776.76M | 811.66M | 1.12B | 702.43M | 643.72M | 568.21M | 520.35M | 483.07M | 421.64M | 402.07M | 394.14M | 362.69M | 339.1M | 301.17M | 231.05M | 197.91M | 194.61M | 1.36B | 945.7M |
| Operating Income | 5.13B | 4.91B | 4.11B | 2.88B | -766M | -3.87B | -4.6B | 2.08B | 1.89B | 1.74B | 1.48B | 874.9M | 941.86M | 798.15M | 403.11M | 931.63M | 802.63M | 488.51M | 831.98M | 901.34M | 858.45M | 871.57M | 753.59M | 526.18M | 550.98M | 455.61M | 569.54M | 480.17M | 488.74M | -915.8M | -637.5M |
| Operating Margin % | 27.88% | 27.37% | 24.91% | 20.71% | -8.67% | -252.61% | -208.33% | 19.02% | 19.96% | 19.87% | 17.39% | 10.54% | 11.67% | 10.03% | 5.24% | 12.36% | 11.89% | 8.29% | 12.74% | 14.66% | 16.42% | 17.78% | 16.54% | 13.9% | 16.04% | 14.49% | 19.87% | 18.86% | 18.54% | -47.23% | -46.97% |
| Operating Income Growth % | - | 19.56% | 42.67% | 475.72% | 80.21% | 15.9% | -320.94% | 9.92% | 8.64% | 18.06% | 68.84% | -7.11% | 18.01% | 98% | -56.73% | 16.07% | 64.3% | -41.28% | -7.69% | 5% | -1.51% | 15.66% | 43.22% | -4.5% | 20.93% | -20% | 18.61% | -1.75% | 153.37% | -43.65% | -14.12% |
| EBITDA | 6.79B | 6.52B | 5.71B | 4.33B | 641M | -2.58B | -3.32B | 3.33B | 2.93B | 2.7B | 2.37B | 1.7B | 1.71B | 1.55B | 1.13B | 1.63B | 1.45B | 1.06B | 1.35B | 1.38B | 1.28B | 1.27B | 1.15B | 888.88M | 890.08M | 756.78M | 800.59M | 678.08M | 683.35M | -1.06B | -728.7M |
| EBITDA Margin % | 36.92% | 36.36% | 34.61% | 31.17% | 7.25% | -168.21% | -150.41% | 30.4% | 30.85% | 30.71% | 27.92% | 20.51% | 21.23% | 19.51% | 14.75% | 21.68% | 21.42% | 17.94% | 20.7% | 22.51% | 24.48% | 25.98% | 25.2% | 23.49% | 25.92% | 24.06% | 27.94% | 26.63% | 25.92% | -54.65% | -53.69% |
| EBITDA Growth % | 14.53% | 14.3% | 31.69% | 575.98% | 124.87% | 22.43% | -199.81% | 13.66% | 8.65% | 13.62% | 39.38% | -0.72% | 10.4% | 36.98% | -30.63% | 12.98% | 36.87% | -21.86% | -2.32% | 8.15% | 0.51% | 10.97% | 29.12% | -0.13% | 17.61% | -5.47% | 18.07% | -0.77% | 164.49% | -45.41% | -14.09% |
| D&A (Non-Cash Add-back) | 1.66B | 1.61B | 1.6B | 1.46B | 1.41B | 1.29B | 1.28B | 1.25B | 1.03B | 951.19M | 894.91M | 827.01M | 772.45M | 754.71M | 730.49M | 702.43M | 643.72M | 568.21M | 520.35M | 483.07M | 421.64M | 402.07M | 394.14M | 362.69M | 339.1M | 301.17M | 231.05M | 197.91M | 194.61M | -143.8M | -91.2M |
| EBIT | 5.47B | 5.3B | 4.49B | 3.11B | -792M | -3.97B | -4.93B | 2.32B | 2.15B | 1.93B | 1.59B | 943.51M | 1.02B | 806.11M | 374.07M | 989.84M | 886.86M | 488.51M | 831.98M | 901.34M | 858.45M | 871.57M | 753.59M | 526.18M | 550.98M | 455.61M | 569.54M | 480.17M | 488.74M | -915.8M | -637.5M |
| Net Interest Income | -994M | -968M | -1.57B | -1.37B | -1.33B | -1.27B | -823.2M | -381.57M | -300.87M | -269.88M | -286.51M | -265.7M | -247.96M | -318.52M | -334.45M | -357.1M | -361.96M | -293M | -313.2M | -313.76M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 27M | 24M | 16M | 36M | 36M | 17M | 21.04M | 26.95M | 32.8M | 30.1M | 20.86M | 12.03M | 10.34M | 13.9M | 21.33M | 25.32M | 9.24M | 7.02M | 14.12M | 20.02M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.02B | 992M | 1.59B | 1.4B | 1.36B | 1.29B | 844.24M | 408.51M | 333.67M | 299.98M | 307.37M | 277.73M | 258.3M | 332.42M | 355.79M | 382.42M | 371.21M | 300.01M | 327.31M | 333.78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -583M | -605M | -1.21B | -1.17B | -1.39B | -1.39B | -1.17B | -175.1M | -79.01M | -118.92M | -193.82M | -209.12M | -177.71M | -324.46M | -384.82M | -324.21M | -286.98M | -488.51M | -831.98M | -901.34M | -858.45M | -871.57M | -753.59M | -526.18M | -550.98M | -455.61M | -569.54M | -480.17M | -488.74M | 915.8M | 637.5M |
| Pretax Income | 4.54B | 4.3B | 2.9B | 1.7B | -2.16B | -5.26B | -5.78B | 1.91B | 1.82B | 1.63B | 1.28B | 665.78M | 764.15M | 473.69M | 18.29M | 607.42M | 515.65M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Margin % | 24.71% | 24% | 17.57% | 12.26% | -24.39% | -343.34% | -261.46% | 17.42% | 19.13% | 18.51% | 15.11% | 8.02% | 9.46% | 5.95% | 0.24% | 8.06% | 7.64% | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Income Tax | 41M | 15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0.9% | 0.35% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Net Income | 4.48B | 4.27B | 2.88B | 1.7B | -2.16B | -5.26B | -5.8B | 1.88B | 1.81B | 1.63B | 1.28B | 665.78M | 764.15M | 473.69M | 18.29M | 607.42M | 515.65M | 162.42M | 573.72M | 603.4M | 633.92M | 715.96M | 474.69M | 280.66M | 351.28M | 254.46M | 445.36M | 383.85M | 330.77M | 175.1M | 150.9M |
| Net Margin % | 24.39% | 23.82% | 17.45% | 12.21% | -24.39% | -343.34% | -262.47% | 17.16% | 19.08% | 18.51% | 15.11% | 8.02% | 9.46% | 5.95% | 0.24% | 8.06% | 7.64% | 2.76% | 8.78% | 9.81% | 12.12% | 14.6% | 10.42% | 7.42% | 10.23% | 8.09% | 15.54% | 15.08% | 12.55% | 9.03% | 11.12% |
| Net Income Growth % | 38.1% | 48.52% | 69.53% | 178.71% | 59.01% | 9.27% | -408.56% | 3.75% | 11.44% | 26.63% | 92.76% | -12.87% | 61.32% | 2490.32% | -96.99% | 17.8% | 217.48% | -71.69% | -4.92% | -4.81% | -11.46% | 50.83% | 69.13% | -20.1% | 38.05% | -42.87% | 16.02% | 16.05% | 88.9% | 16.04% | 1.28% |
| Net Income (Continuing) | 4.5B | 4.29B | 2.9B | 1.7B | -2.16B | -5.26B | -5.78B | 1.91B | 1.82B | 1.63B | 1.28B | 665.78M | 764.15M | 473.69M | 18.29M | 607.42M | 515.65M | 162.42M | 573.72M | 603.4M | 633.92M | 663.47M | 474.69M | 280.66M | 351.28M | 254.46M | 445.36M | 383.9M | 330.77M | 182.7M | 150.9M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 218M | 208M | 172M | 175M | 0 | 0 | 0 | 569.98M | 542.02M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 16.55 | 15.61 | 10.94 | 6.31 | -8.45 | -20.89 | -27.05 | 8.95 | 8.56 | 7.53 | 5.93 | 3.02 | 3.43 | 2.14 | 0.08 | 2.77 | 2.51 | 0.75 | 2.68 | 2.82 | 2.94 | 3.26 | 2.26 | 1.42 | 1.79 | 1.32 | 2.31 | 2.06 | 1.83 | 1.14 | 1.18 |
| EPS Growth % | 36.36% | 42.69% | 73.38% | 174.67% | 59.55% | 22.77% | -402.23% | 4.56% | 13.68% | 26.98% | 96.36% | -11.95% | 60.28% | 2575% | -97.11% | 10.36% | 234.67% | -72.01% | -4.96% | -4.08% | -9.82% | 44.25% | 59.15% | -20.67% | 35.61% | -42.86% | 12.14% | 12.57% | 60.53% | -3.39% | 0.85% |
| EPS (Basic) | - | 15.73 | 11.00 | 6.63 | -8.45 | -20.89 | -27.05 | 8.97 | 8.60 | 7.57 | 5.96 | 3.03 | 3.45 | 2.16 | 0.08 | 2.80 | 2.55 | 0.76 | 2.69 | 2.84 | 3.01 | 3.47 | 2.39 | 1.45 | 1.82 | 1.32 | 2.34 | 2.15 | 1.90 | 1.16 | 1.19 |
| Diluted Shares Outstanding | 271M | 273M | 279M | 283M | 255.01M | 251.81M | 214.34M | 209.93M | 211.55M | 215.69M | 216.32M | 220.69M | 223.04M | 220.94M | 219.46M | 219.23M | 217.71M | 215.29M | 214.19M | 213.97M | 215.62M | 219.62M | 210.04M | 197.65M | 196.25M | 192.77M | 192.8M | 186.34M | 180.75M | 153.6M | 127.88M |
| Basic Shares Outstanding | 270M | 271M | 261M | 256M | 255.01M | 251.81M | 214.34M | 209.41M | 210.57M | 214.62M | 215.39M | 219.54M | 221.66M | 219.64M | 217.93M | 216.98M | 215.03M | 213.81M | 213.48M | 212.78M | 210.61M | 206.33M | 198.62M | 193.56M | 193.01M | 192.77M | 190.33M | 178.54M | 174.09M | 150.95M | 126.81M |
| Dividend Payout Ratio | - | 6.18% | 3.72% | - | - | - | - | 32.08% | 29.13% | 26.92% | 27% | 42.09% | 26.04% | 30.32% | 643.66% | 3.57% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High Fixed Cost Sensitivity
According to the provided quarterly data, RCL's revenue growth has decelerated from a peak of 29.2% in 2024Q1 to 11.3% by 2026Q1, suggesting that the post-pandemic demand surge is transitioning into a more sustainable, albeit slower, growth phase for the company's multi-brand cruise operations.
The deceleration in top-line expansion reflects a shift from recovery-driven volume gains to a reliance on pricing power and capacity additions. Investors should monitor whether the current 11.3% growth rate can be maintained as the company faces tougher year-over-year comparisons and potential saturation in core North American markets.
As reported in the financial statements, RCL achieved a gross margin of 49.5% in 2026Q1, significantly outperforming the 29.6% reported by peer Carnival Corporation, which suggests that RCL's vertical integration and private destination strategy provide a durable competitive advantage in capturing higher-margin discretionary vacation spending.
The ability to maintain gross margins near the 50% threshold indicates strong pricing power and effective management of onboard revenue streams. This performance appears to validate the company's focus on the contemporary-premium segment, which remains more resilient to price-sensitive competition than mass-market alternatives.
Based on the income statement figures, RCL demonstrated significant operating leverage as operating income reached $1.2 billion in 2026Q1, with operating margins expanding to 26.1% compared to 17.1% in 2023Q4, highlighting the company's success in scaling revenue faster than its fixed-cost base.
The improvement in operating margins suggests that the company is effectively absorbing its high fixed-cost structure through increased occupancy and higher net yields. However, this leverage remains a double-edged sword, as any material decline in occupancy could lead to rapid margin compression given the rigid nature of maritime operating expenses.
Analysis of the reported figures reveals that stock-based compensation remains a consistent expense, totaling $38 million in 2026Q1, which warrants careful consideration when evaluating the sustainability of the company's net income growth and the dilution impact on shareholders over the long term.
While net income has shown strong growth, the recurring nature of stock-based compensation suggests that adjusted earnings metrics should be scrutinized to ensure they reflect true operational performance. Investors should monitor whether these non-cash expenses continue to scale in proportion to revenue or if they represent an increasing drag on bottom-line profitability.
Despite strong recent profitability, the company's reliance on continuous capital investment to maintain its fleet and private destinations creates a structural vulnerability, as evidenced by the potential for significant impairment charges if older vessels fail to meet evolving environmental and carbon intensity standards.
Short-term margin strength may mask the long-term risk of a heavy debt maturity wall and the necessity for ongoing, high-cost fleet modernization. The market's current valuation may be underestimating the potential for future CapEx requirements to constrain free cash flow and limit the company's ability to return capital to shareholders.
Quick answers to the most common questions about buying RCL stock.
For fiscal year 2025, Royal Caribbean Cruises Ltd. (RCL) reported total revenue of $17.93B. This represents a 1221.4% increase compared to $1.36B in 1996.
Royal Caribbean Cruises Ltd. (RCL) is profitable, generating $4.27B in net income for the fiscal year ending 2025 with a net profit margin of 23.8%.
Royal Caribbean Cruises Ltd. (RCL) reported an operating income of $4.91B, resulting in an operating profit margin of 27.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Royal Caribbean Cruises Ltd. (RCL) generated $8.40B in gross profit for the year, representing a gross profit margin of 46.8%. This demonstrates the company's core pricing power and production efficiency.