Travel + Leisure (TNL) Q1 2026 earnings summary

Executive summary

• Net revenue reached $961 million in Q1 2026, with gross VOI sales up 7% year-over-year to $549 million and adjusted EBITDA rising 11% to $225 million; adjusted diluted EPS increased 31% to $1.45.

• Strong Vacation Ownership performance was driven by higher tours, increased volume per guest, and benefits from resort optimization, while Travel and Membership faced headwinds from lower exchange member counts and transaction mix shifts.

• Multi-brand strategy and digital initiatives, including new brands and apps, are fueling growth and engagement.

• Resort optimization initiative delivered cost savings, with additional charges for inventory write-downs and closures.

Financial highlights

• Net income was $79 million, with adjusted net income up 22% year-over-year to $93 million; net income margin improved to 8.2%.

• Adjusted EBITDA margin increased to 23.4% from 21.6% year-over-year.

• VPG was $3,321, tours increased 5%, and net vacation ownership interest sales rose 11% year-over-year.

• Returned $128 million to shareholders via $41 million in dividends and $87 million in share repurchases.

• Adjusted free cash flow was neutral for the quarter, down from $152 million in Q1 2025, due to higher working capital needs and debt repayments.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: gross VOI sales $2.5–$2.6 billion, adjusted EBITDA $1.03–$1.055 billion, VPG $3,175–$3,275.

• Q2 2026 guidance: gross VOI sales $660–$690 million, adjusted EBITDA $260–$270 million, VPG $3,200–$3,250.

• Expect to convert roughly half of full-year EBITDA into free cash flow, with back-end loaded cash flow due to inventory investments.

• Full-year adjusted tax rate expected at ~29%; EPS growth projected in the teens year-over-year.

• Full-year capital expenditures expected at $90–$100 million; vacation ownership project spending projected at $200–$230 million.