United Parks & Resorts Inc. (PRKS) is the target of a lawsuit filed by Sesame Workshop, the nonprofit behind the Sesame Street brand, alleging that the company failed to pay royalties under its partnership to operate Sesame Place parks and attractions. The lawsuit was filed on March 12, 2026, and seeks to terminate the licensing agreement that allows United Parks to use Sesame Street intellectual property in its parks.
The partnership between United Parks and Sesame Workshop dates back to the opening of Sesame Place in Philadelphia in 1980. The lawsuit follows a prior legal dispute in September 2024, when a federal judge ordered United Parks to pay Sesame Workshop $11.4 million for unpaid license fees, a payment that was reportedly made in October 2025. Sesame Workshop also cited United Parks’ decision to close Sesame Place San Diego in September 2025 as a point of contention.
United Parks’ financial performance has been under pressure. In its Q4 2025 earnings release, the company reported a 46 % decline in net income and a 26 % decline in full‑year 2025 revenue compared with the same periods in 2024. Revenue for the quarter was $373.5 million, missing analyst estimates of $376.7 million, while earnings per share were $0.28 versus consensus expectations of $0.54–$0.57. CEO Marc Swanson said, “Our fiscal 2025 results did not meet our expectations,” citing uneven consumer environment, international tourism trends, and weather‑related attendance swings.
If the court finds United Parks liable, the company could face substantial monetary damages and the risk of losing the Sesame Place license, which would force a re‑evaluation of its Sesame Street‑themed lands and attractions. The lawsuit could further strain the company’s cash flow and add to the headwinds already reflected in its recent earnings miss.
The lawsuit adds another layer of risk that investors are likely to monitor closely, following the company's recent earnings miss and the broader headwinds reflected in its financial results.
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