DOLPHIN Cove Limited remained narrowly profitable during the first quarter of 2026, even as Jamaica’s slower tourism recovery sharply reduced attendance at its attractions and cut revenue by nearly 40 per cent.

The operator of Dolphin Cove and Yaaman Adventure Park said reduced airline capacity, delayed hotel reopenings and fewer available rooms across major resort areas continued to weigh on visitor traffic following Hurricane Melissa.

Revenue fell 39 per cent to US$2.5 million during the three months ended March 31, while profit after tax declined 83 per cent to approximately US$143,000.

The profit, however, was helped by a roughly US$168,000 reversal of impairment allowances previously booked against receivables. Management said that, without the reversal, the company would have been close to breaking even.

The downturn spread beyond admission sales. Revenue from dolphin attractions fell to approximately US$1.1 million, while income from restaurants, gift shops, photography and other services declined to about US$1.4 million.

Dolphin Cove partly absorbed the blow by reducing direct costs and cutting selling expenses, helping total operating expenses decline to US$2.14 million from US$2.45 million a year earlier.

While operating performance weakened, the company made significant progress collecting money already owed to it.

Dolphin Cove collected approximately US$1.5 million from a long-outstanding receivable during the quarter. That inflow helped cash and cash equivalents rise from US$400,000 at the end of December to US$1.7 million at March 31 and supported US$1.6 million in net cash generated from operating activities.

Its short-term financial position nevertheless remains tight. Working capital improved from negative US$600,000 at December, but remained negative US$400,000 and was substantially weaker than the positive US$2.9 million recorded a year earlier.

The stronger cash position comes amid continuing uncertainty over receivables linked to Dolphin Cove’s wider corporate group. Its ultimate parent, Leisure Investments Holdings LLC, and Dolphin Discovery remain in Chapter 11 proceedings in the United States. Dolphin Cove said its Jamaican operations continue unaffected but acknowledged uncertainty over the collection of some related-party balances.

Despite the softer quarter, the company maintained a conservative debt-to-equity ratio of 0.06:1 and funded approximately US$312,000 in capital expenditure.

Management said positive trends from Latin American markets, stronger conversion among cruise passengers and resilient demand from local and direct customers offered some encouragement.

The company is now seeking to diversify its visitor base and improve the guest experience as it awaits a broader tourism recovery.

The pace of that rebound will depend heavily on the restoration of airline seats, hotel-room capacity and visitor flows across Jamaica’s major resort areas.