Financial Analysis

"Note 17. Commitments and Contingencies Ship Purchase Obligations Our future capital commitments consist primarily of new ship orders. As of December 31, 2025, we had three Icon-class ships and one Oasis-class ship on order for our Royal Caribbean brand with an aggregate capacity of approximately 22,500 berths. As of December 31, 2025, we had one Edge-class ship and four river cruise ships on order for our Celebrity brand with capacity of approximately 3,930 berths. The following provides further information on recent developments with respect to our ship orders. In November 2025, we entered into agreements in connection with the 95% Finnvera-backed financing of approximately 80% of the contract price of the fourth Icon-class ship. The maximum loan amount under the financing is not to exceed the United States dollar equivalent of 2.1 billion, or approximately $2.4 billion based on the exchange rate at December 31, 2025. The loan will amortize semi-annually and has an expected final maturity of 12 years from the delivery date. Interest on the loan will accrue at a floating rate equal to Term SOFR + 0.90%. The fourth Icon-class ship will have a capacity of approximately 5,600 berths. In October 2025, we executed definitive building contracts for the first four ships in the initial order of 10 ships for Celebrity River Cruises which was launched in January 2025. In June 2025, we entered into a credit agreement for the unsecured financing of the sixth Edge-class ship, Celebrity X …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following table disaggregates our total revenues by geographic regions where we provide cruise itineraries (in millions): Year Ended December 31, 2025 2024 2023 Revenues by itinerary North America (1) $ 11,542 $ 10,594 $ 8,707 Asia/Pacific 1,716 1,380 993 Europe 2,951 2,697 2,685 Other Regions (2) 862 1,025 847 Total revenues by itinerary 17,071 15,696 13,232 Other revenues (3) 864 788 668 Total revenues $ 17,935 $ 16,484 $ 13,900 (1) Includes the United States, Canada, Mexico, and the Caribbean. (2) Includes seasonality impacted itineraries primarily in South American countries, and Antarctica. (3) Includes revenues primarily related to cancellation fees, vacation protection insurance, pre- and post-cruise tours and fees for operating certain port facilities. Amounts also include revenues related to procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 7. Investments and Other Assets for more information on our unconsolidated affiliates. For the years ended December 31, 2025, 2024 and 2023, our guests were sourced from the following areas: Year Ended December 31, 2025 2024 2023 Passenger ticket revenues: United States 74 % 75 % 74 % All other countries (1) 26 % 25 % 26 % (1) No other individual country's revenue exceeded 10% for the years ended December 31, 2025, 2024 and 2023.

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"Note 11 . Stock-Based Employee Compensation We currently have awards outstanding under one stock-based compensation plan, our 2008 Equity Plan, which provides for awards to our officers, directors and key employees. The 2008 Equity Plan, as amended, provides for the issuance of up to 10,083,570 shares of our common stock pursuant to grants of (i) incentive and non-qualified stock options, (ii) stock appreciation rights, (iii) stock awards (including time-based and/or performance-based stock awards) and (iv) restricted stock units (including time-based and performance-based restricted stock units). During any calendar year, no one individual (other than non-employee members of our Board) may be granted awards of more than 500,000 shares and no non-employee member of our Board may be granted awards with a value, measured as of the grant date, which together with cash compensation paid to such director for such calendar year, would exceed $750,000. Restricted stock units outstanding as of December 31, 2025, generally vest in equal installments over three or four years from the date of grant. In addition, performance shares and performance share units generally vest in three years. With certain limited exceptions, awards are forfeited if the recipient ceases to be an employee before the shares vest. Our officers receive their long-term incentive awards through a combination of performance share units and restricted stock units. Each performance share unit award is expressed as a …

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"Note 14 . Income Taxes Income before income taxes by domestic and foreign subsidiaries (in millions): Year Ended December 31, 2025 2024 2023 Liberia $ 3,411 $ 2,417 $ 1,432 Foreign subsidiaries 962 524 279 Income before income taxes $ 4,373 $ 2,941 $ 1,711 For the year ended December 31, 2025, we adopted ASU No. 2023-09, Income Taxes (Topic 740), on a prospective basis. Provision for Income Taxes: Current and Deferred: For the year ended December 31, 2025, current tax expense was $64 million and deferred tax expense (benefit) was $18 million. Our income tax expense relates entirely to the operations of foreign subsidiaries For the years ending December 31, 2024 and 2023, our income tax expense was approximately $46 million and $6 million, respectively. These amounts mainly resulted from taxes on our non-US operations, certain items not qualifying under Section 883, tonnage taxes, and other subsidiary income taxes, none of which were considered significant. For the year ended December 31, 2025, there were no individual jurisdictions with material cash taxes paid. Reconciliation of income tax expense, computed by applying the Liberia statutory rate (in millions): Year Ended December 31, 2025 Income before income taxes $ 4,373 Less: Equity investment income 414 Income before income taxes, excluding equity investment income 3,959 Tax at Liberia statutory rate of 25% 990 25 % Nontaxable or nondeductible items Liberia international shipping income exemption (850) (21) % Foreign ta …

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"Note 9 . Leases Operating leases Our operating leases primarily relate to preferred berthing arrangements, real estate, and shipboard equipment which are included within Operating lease right-of-use asset s and Long-term operating lease liabilities, with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheets as of December 31, 2025 and 2024. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. The company's preferred berthing agreement with Miami-Dade County (""County"") includes the development plans for the County to finance the construction of a new and improved cruise Terminal G at PortMiami. The aggregate amount of the operating lease liabilities recorded for this berthing agreement was $168 million as of December 31, 2025 and December 31, 2024, respectively. There will be future remeasurements of the operating lease as the County completes several construction milestones throughout the term of the extended lease, including an expected remeasurement in 2027 or later, when the County satisfies substantial completion of Terminal G, as the minimum lease payments will increase at such time to approximately $55 million per year, with expected 3% annual increases thereafter. For some of our real estate leases and berthing agreements, we do have the option to ext …

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Note 8 . Debt Debt consists of the following (in millions): As of December 31, Weighted Average Rate (1) Maturities Through 2025 2024 Fixed rate debt: Unsecured senior notes 5.56% 2026 - 2036 $ 11,197 $ 9,699 Unsecured term loans 3.32% 2026 - 2037 8,024 7,687 Convertible notes % 2025 322 Total fixed rate debt 19,221 17,708 Variable rate debt: Unsecured revolving credit facilities (2) % 2028 / 2030 340 USD unsecured term loans 5.36% 2026 - 2037 2,328 2,227 Euro unsecured term loans 3.46% 2028 - 2042 194 212 Total variable rate debt 2,522 2,779 Finance lease liabilities 159 117 Total debt (3) 21,902 20,604 Less: unamortized debt issuance costs (557) (528) Total debt, net of unamortized debt issuance costs 21,345 20,076 Lesscurrent portion (3,180) (1,603) Long-term portion $ 18,165 $ 18,473 (1) Weighted average interest rates are based on outstanding loan balance as of December 31, 2025, and for variable rate debt include either EURIBOR or Term SOFR plus the applicable margin. (2) Advances under our unsecured revolving credit facilities accrue interest at Term SOFR plus an interest rate margin of 1.10% as of December 31, 2025. Based on applicable Term SOFR rates, as of December 31, 2025, the interest rate under the unsecured credit facilities was 4.79%. We also pay a facility fee of 0.15% of the total commitments under such facility. (3) At December 31, 2025 and 2024, the weighted average interest rate for total debt was 4.69% and 4.76%, respectively. Unsecured Revolving Credit …

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Adoption of Accounting Pronouncements In August 2023, the FASB issued ASU No. 2023-05, Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement. This ASU provides guidance requiring a joint venture to initially measure all contributions received upon its formation at fair value. The guidance is intended to provide users of joint venture financial statements with more decision-useful information. This ASU is effective for joint venture entities with a formation date on or after January 1, 2025 on a prospective basis. Early adoption is permitted, and joint ventures formed prior to the adoption date may elect to apply the new guidance retrospectively back to their original formation date. We adopted the new guidance effective for the fiscal year beginning January 1, 2025. The adoption of this guidance did not have a material impact to our consolidated financial statements or disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The new guidance is intended to enhance the transparency and decision usefulness of income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This ASU is effective for annual periods beginning after December 15, 2024 on a prospective basis with the option to apply retrospectively. We adopted the new guidance for the fiscal year beginning Januar …

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Note 13 . Retirement Plan We maintain a defined contribution plan covering shoreside employees. We make annual non-elective contributions to the plan on behalf of all eligible participants equal to 3% of participants' eligible earnings. Additional annual contributions to the plan are discretionary and are based on fixed percentages of participants' salaries and years of service, not to exceed certain maximums. Contribution expenses were $25 million, $23 million, and $21 million, for the years ended December 31, 2025, 2024 and 2023, respectively.

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Note 3 . Revenue Revenue Recognition Revenues are measured based on consideration specified in our contracts with customers and are recognized as the related performance obligations are satisfied. The majority of our revenues are derived from passenger cruise contracts which are reported within Passenger ticket revenues in our consolidated statements of comprehensive income (loss). Our performance obligation under these contracts is to provide a cruise vacation in exchange for the ticket price. We receive payment before we satisfy this performance obligation and recognize revenue over the duration of each cruise, which generally ranges from three to 14 nights. Passenger ticket revenues include charges to our guests for port costs that vary with passenger head counts. These types of port costs, along with port costs that do not vary by passenger head counts, are included in our operating expenses. The amounts of port costs charged to our guests and included within Passenger ticket revenues on a gross basis were $1.3 billion, $1.1 billion and $896 million for the years ended December 31, 2025, 2024 and 2023, respectively. Our total revenues also include Onboard and other revenues , which consist primarily of revenues from the sale of goods and services onboard our ships that are not included in passenger ticket prices. We receive payment before or concurrently with the transfer of these goods and services to cruise passengers and recognize revenue over the duration of the relat …

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"Note 2 . Summary of Significant Accounting Policies Revenues and Expenses Deposits received on sales of passenger cruises are initially recorded as customer deposit liabilities on our balance sheet. Customer deposits are subsequently recognized as passenger ticket revenues, together with revenues from onboard and other goods and services and all associated cruise operating expenses of a voyage. For further information on revenue recognition, refer to Note 3 . Revenue . Cash and Cash Equivalents Cash and cash equivalents include cash and marketable securities with original maturities of less than 90 days. Inventories Inventories consist of provisions, supplies and fuel carried at the lower of cost (weighted-average) or net realizable value. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Improvement costs that we believe add value to our ships are capitalized as additions to the ship, the useful lives of the improvements are estimated and depreciated over the shorter of the improvements' estimated useful lives or that of the associated ship, and the replaced assets are disposed of on a net cost basis. In addition, we capitalize interest on borrowings during the active construction period of capital projects. Capitalized interest is added to the cost of the assets and depreciated over the estimated useful lives of the assets. The estimated cost and accumulated depreciation of replaced or refurbished ship componen …

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Note 10 . Shareholders' Equity Dividends During the fourth and third quarters of 2025, our Board declared dividends of $1.00 per share, which were paid in January 2026 and October 2025, respectively. During the second and first quarters of 2025 the Board declared dividends of $0.75 per share which were paid in July 2025 and April 2025, respectively. During the fourth and third quarters of 2024, the Board declared dividends of $0.55 and $0.40 per share which were paid in January 2025 and October 2024, respectively. During the second quarter of 2024, we repaid the principal amounts deferred under our export credit facilities, which eliminated the restriction on dividends and share repurchases. Refer to Note 8 . Debt for further information on the transaction. We did not declare any dividends during the year ended December 31, 2023. In February 2026, our Board declared a dividend of $1.50 per share, payable in April 2026. Common Stock Repurchase Program In February 2025, our Board authorized a 12-month common stock repurchase program for up to $1.0 billion that was completed in November 2025. During the year ended December 31, 2025, we repurchased 3.5 million shares of our common stock under this program, for a total of $1.0 billion in open market transactions that were recorded in Treasury Stock in our consolidated balance sheets. In December 2025, our Board authorized a common stock repurchase program for up to $2.0 billion. The timing and number of shares to be repurchased wi …

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"Note 8. Commitments and Contingencies Ship Purchase Obligations As of June 30, 2026, our Global Brands and our Partner Brands have the following ships on order: Ship Shipyard Expected Delivery Dates Approximate Berths Royal Caribbean Oasis-class: Unnamed Chantiers de l'Atlantique 2nd Quarter 2028 5,700 Icon-class: Hero of the Seas Meyer Turku Oy 3rd Quarter 2027 5,600 Unnamed Meyer Turku Oy 2nd Quarter 2028 5,600 Unnamed Meyer Turku Oy 2nd Quarter 2029 5,600 Discovery-class: Unnamed Chantiers de l'Atlantique 4th Quarter 2029 4,300 Unnamed Chantiers de l'Atlantique 2nd Quarter 2032 4,300 Celebrity Cruises Edge-Class: Celebrity Xcite Chantiers de l'Atlantique 4th Quarter 2028 3,250 Celebrity River Cruises: Celebrity Compass TeamCo Shipyard 2nd Quarter 2027 170 Celebrity Seeker TeamCo Shipyard 3rd Quarter 2027 170 Unnamed TeamCo Shipyard 1st Quarter 2028 170 Unnamed TeamCo Shipyard 2nd Quarter 2028 170 Mein Schiff Unnamed Fincantieri 1st Quarter 2031 4,100 Unnamed Fincantieri 4th Quarter 2032 4,100 Total Berths 43,230 In 2025, we executed definitive building contracts for the first four ships in the initial order of 10 ships for Celebrity River Cruises which was launched in January 2025. Subsequently, in January 2026, Celebrity River Cruises announced a commitment for 10 additional ships that will expand its river cruise fleet to 20 vessels. In February 2026, the conditions for effectiveness including financing on our agreement with Chantiers de l'Atlantique to build two ships …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following table disaggregates our total revenues by geographic regions where we provide cruise itineraries (in millions): Quarter Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenues by itinerary North America (1) $ 3,053 $ 2,842 $ 6,269 $ 5,696 Asia/Pacific 348 326 960 972 Europe 1,014 943 1,085 980 Other regions (2) 199 210 501 469 Total revenues by itinerary 4,614 4,321 8,815 8,117 Other revenues (3) 218 217 469 420 Total revenues $ 4,832 $ 4,538 $ 9,284 $ 8,537 (1) Includes the United States, Canada, Mexico, and the Caribbean. (2) Includes seasonality impacted itineraries primarily in South American countries and Antarctica. (3) Includes revenues primarily related to cancellation fees, vacation protection insurance, pre- and post-cruise tours, and fees for operating certain port facilities. Amounts also include revenues related to procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 5. Investments and Other Assets for more information on our unconsolidated affiliates.For the quarters and six months ended June 30, 2026 and 2025, our guests were sourced from the following areas: Quarter Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Passenger ticket revenues: United States 78 % 77 % 76 % 76 % All other countries (1) 22 % 23 % 24 % 24 % (1) No other individual country's revenue exceeded 10% for the quarters and six months ended June 30, 2026 and 2025 .

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"Note 7. Leases Operating leases Our operating leases primarily relate to preferred berthing arrangements, real estate, and shipboard equipment which are included within Operating lease right-of-use assets , and Long-term operating lease liabilities, with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheets as of June 30, 2026 and December 31, 2025. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. The company's preferred berthing agreement with Miami-Dade County (""County"") includes the development plans for the County to finance the construction of a new and improved cruise Terminal G at PortMiami. The aggregate amount of the operating lease liabilities recorded for this berthing agreement was $167 million as of June 30, 2026 and $168 million as of December 31, 2025. There will be future remeasurements of the operating lease as the County completes several construction milestones throughout the term of the extended lease, including an expected remeasurement in 2027 or later, when the County satisfies substantial completion of Terminal G, as the minimum lease payments will increase at such time to approximately $55 million per year, with expected 3% annual increases thereafter. For some of our real estate leases and berthing agreements, we do have the opt …

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Note 6. Debt Debt consists of the following (in millions): Weighted Average Rate (1) Maturities Through As of June 30, 2026 As of December 31, 2025 Fixed rate debt: Unsecured senior notes 5.52% 2027 - 2038 $ 12,041 $ 11,197 Unsecured term loans 3.33% 2026 - 2038 8,445 8,024 Total fixed rate debt 20,486 19,221 Variable rate debt: Unsecured revolving credit facilities (2) 4.65% 2028 - 2030 300 USD unsecured term loan 5.04% 2026 - 2038 2,279 2,328 Euro unsecured term loan 4.06% 2026 - 2042 183 194 Total variable rate debt 2,762 2,522 Finance lease liabilities 159 159 Total debt (3) 23,407 21,902 Less: unamortized debt issuance costs (571) (557) Total debt, net of unamortized debt issuance costs 22,836 21,345 Lesscurrent portion (1,573) (3,180) Long-term portion $ 21,263 $ 18,165 (1) Weighted average interest rates are based on outstanding loan balance as of June 30, 2026, and for variable rate debt include either EURIBOR or the applicable Term SOFR plus the applicable margin. (2) Advances under our unsecured revolving credit facilities accrue interest at Term SOFR plus an interest rate margin of 1.02%. Based on applicable Term SOFR rates, as of June 30, 2026, the interest rate under the unsecured credit facilities was 4.65%. We also pay a facility fee of 0.11% of the total commitments under such facility. (3) At June 30, 2026 and December 31, 2025 , the weighted average interest rate for total debt was 4.66% and 4.69%, respectively. Unsecured Revolving Credit Facilities As of Ju …

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Recent Accounting Pronouncements In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosures about certain categories of expenses (including purchases of inventory, employee compensation, depreciation and intangible asset amortization) that are included in the expense captions presented on the face of the income statement, as well as disclosures about selling expenses. This new guidance is intended to provide investors with more detailed expense information in order to better understand an entity's cost structure and forecast future cash flows. This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted, and entities may apply the guidance prospectively or retrospectively. We are evaluating the impact of the new guidance on disclosures to our consolidated financial statements. In September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal - Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal - Use Software. This new guidance is intended to eliminate the use of project stages and introduces a principles-based framework for recognizing and capitalizing internal-use software costs. The ASU is effecti …

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Note 3 . Revenue Revenue Recognition Revenues are measured based on consideration specified in our contracts with customers and are recognized as the related performance obligations are satisfied. The majority of our revenues are derived from passenger cruise contracts which are reported within Passenger ticket revenues in our consolidated statements of comprehensive income (loss). Our performance obligation under these contracts is to provide a cruise vacation in exchange for the ticket price. We receive payment before we satisfy this performance obligation and recognize revenue over the duration of each cruise, which generally ranges from three to 14 nights. Passenger ticket revenues include charges to our guests for port costs that vary with passenger head counts. These types of port costs, along with port costs that do not vary by passenger head counts, are included in our operating expenses. The amounts of port costs charged to our guests and included within Passenger ticket revenues on a gross basis were $354 million and $318 million for the quarters ended June 30, 2026 and 2025, respectively, and $675 million and $594 million for the six months ended June 30, 2026 and 2025, respectively. Our total revenues also include Onboard and other revenues , which consist primarily of revenues from the sale of goods and services onboard our ships that are not included in passenger ticket prices. We receive payment before or concurrently with the transfer of these goods and servic …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Note 2 . Summary of Significant Accounting Policies Recent Accounting Pronouncements In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosures about certain categories of expenses (including purchases of inventory, employee compensation, depreciation and intangible asset amortization) that are included in the expense captions presented on the face of the income statement, as well as disclosures about selling expenses. This new guidance is intended to provide investors with more detailed expense information in order to better understand an entity's cost structure and forecast future cash flows. This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted, and entities may apply the guidance prospectively or retrospectively. We are evaluating the impact of the new guidance on disclosures to our consolidated financial statements. In September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal - Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal - Use Software. This new guidance is intended to eliminate the use of project stages and introduces a principles-based framework for recognizing and capitali …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Note 9. Shareholders' Equity Dividends During both the first and the second quarter of 2026 we declared a cash dividend on our common stock of $1.50 per share, which was paid in April 2026 and July 2026, respectively. Additionally, during the first quarter of 2026, we paid a cash dividend on our common stock of $1.00 per share, which was declared during the fourth quarter of 2025. Common Stock Repurchase Program In December 2025, our Board authorized a common stock repurchase program for up to $2 billion. The timing and number of shares to be repurchased will depend on a variety of factors including price and market conditions. Repurchases under the program may be made at management's discretion from time to time on the open market or through privately negotiated transactions. During the six months ended June 30, 2026, we repurchased 3.7 million shares of our common stock under this program, for a total of $1 billion in open market transactions that were recorded in Treasury Stock in our consolidated balance sheets. As of June 30, 2026, we have $805 million that remains available for future stock repurchase transactions under our Board authorized program.

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