Travel + Leisure (TNL) Q4 2025 earnings summary

Executive summary

• Achieved strong 2025 results with 4% revenue growth and 7% adjusted EBITDA growth year-over-year, exceeding raised full-year outlook, with Q4 net revenue of $1.03 billion and full-year $4.02 billion.

• Core Vacation Ownership business drove performance, supported by loyal owner base, margin expansion, and repeatable execution.

• Advanced multi-brand strategy, launching new partnerships and brands such as Sports Illustrated Resorts Club, Eddie Bauer Adventure Club, and Accor Vacation Club expansion.

• Returned $449 million to shareholders via dividends and share repurchases, reducing share count by 6%.

• Entered 2026 with strong momentum, clear growth path, and robust demand in leisure travel.

Financial highlights

• 2025 revenue: $4.02 billion (up 4% year-over-year); adjusted EBITDA: $990 million (up 7%); EPS: $6.34 (up 10%); free cash flow: $516 million (up 16%).

• Q4 revenue: $1.03 billion; adjusted EBITDA: $272 million (up 8% year-over-year); EPS: $1.83.

• Vacation Ownership gross sales up 8% year-over-year in Q4 and full year; VPG up 6% to $3,359.

• Travel and Membership segment EBITDA: $228 million for 2025; Q4 revenue down 6% year-over-year due to exchange headwinds.

• Converted 52% of EBITDA into free cash flow for the year.

Outlook and guidance

• 2026 Adjusted EBITDA guidance: $1.03–$1.055 billion (4–7% growth year-over-year), with positive net impact from Resort Optimization Initiative.

• Gross VOI sales expected to rise 1–5% to $2.5–$2.6 billion; underlying growth would be 5–9% excluding sales office closures.

• EPS growth expected in the teens, supported by EBITDA growth, lower interest expense, and share repurchases.

• Q1 2026 guidance: gross VOI sales $520–$540 million; EBITDA $210–$220 million.

• Loan loss provision expected to decline to ~20% in 2026, with a long-term target in the high teens.