Luxury cruise operator Viking (NYSE:VIK) reported Q3 CY2025 revenue of $2 billion, meeting Wall Street expectations with a 19.1% YoY increase. However, its GAAP profit of $1.15 per share fell 3.7% below analyst estimates. Viking’s operating margin rose to 30.2%, up from 29.1% in the same quarter last year. The company’s free cash flow margin was 30.5% at quarter end, down from 42.5% a year ago. Despite this, analysts expect Viking’s revenue to grow by 15.9% over the next 12 months, indicating confidence in the company’s products and services.

Viking, known for its fleet of small luxury cruise ships, has shown a weak annualized revenue growth rate of 17.1% over the last two years. However, this quarter saw a 19.1% increase in revenue to $2 billion, aligning with analyst estimates. The company’s operating margin improved to 30.2%, signaling increased efficiency. While Viking’s cash profitability has been subpar, with a free cash flow margin averaging 18%, it saw a 30.5% margin in Q3. Analysts predict an improvement in cash conversion over the next year, potentially increasing flexibility for investments and returns to shareholders.

Viking’s Q3 results showed a beat in adjusted EBITDA expectations but a miss in EPS. The stock price rose 1.3% to $73.18 post-reporting. Investors evaluating Viking stock should consider valuation, business qualities, and recent performance. Accessing a full research report can provide valuable insights for decision-making, especially for active Edge members.

Read more at Barchart: Viking (NYSE:VIK) Posts Q3 CY2025 Sales In Line With Estimates