Lindblad Expeditions Holdings, Inc. completed the mandatory conversion of its 62,000 shares of 6.0% Series A Convertible Preferred Stock on February 3, 2026, after the company’s common‑stock price exceeded $14.25 for 20 of the last 30 trading days. The conversion, triggered on January 16, 2026, will issue roughly 9.0 million common shares, raising the total common‑share count to about 64.4 million and eliminating the preferred‑stock class entirely.
The move removes a debt‑like instrument that carried a 6.0% dividend rate, thereby cutting the company’s interest‑bearing obligations and improving its debt‑to‑equity ratio. By converting the preferred shares into common equity, Lindblad gains greater financial flexibility to fund fleet expansion and land‑segment investments without diluting existing shareholders. Management highlighted that the conversion is part of a broader balance‑sheet repair strategy that also included a 2025 debt refinancing that lowered the long‑term interest rate to 7.00% and extended maturity to 2030.
Lindblad’s recent financial performance underscores the timing of the conversion. In Q3 2025 the company reported revenue of $240.2 million, up 17% from $206.0 million in Q3 2024, and adjusted EBITDA of $57.3 million, a 25% increase over the prior year. The strong revenue growth was driven by a 10% rise in expedition‑cruising revenue to $137.6 million and a 12% increase in land‑experience revenue to $102.6 million, reflecting robust demand in both core segments.
The conversion also signals confidence in the company’s share price trajectory. The 6.0% preferred stock was issued in August 2020 as part of an $85 million private placement to support operations during the COVID‑19 pandemic. By converting it now, Lindblad demonstrates that its equity base can sustain the current market valuation and that the company is no longer reliant on a dividend‑bearing preferred instrument to support its capital structure.
Management emphasized that the conversion “further simplifies our capital structure and strengthens our balance sheet, providing greater flexibility to allocate capital in support of our long‑term strategy.” The action aligns with the company’s ongoing focus on debt reduction, operational efficiency, and strategic growth in both expedition cruising and land‑based offerings.
The market reacted positively, with analysts noting the balance‑sheet improvement and the elimination of a 6.0% dividend obligation. The conversion is expected to enhance Lindblad’s credit profile and support future capital allocation decisions without diluting existing shareholders.
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