Travel + Leisure (TNL) investor relations material

Executive summary

• Q2 2025 net revenue exceeded $1B, with adjusted EBITDA of $250M and adjusted EPS of $1.65, driven by Vacation Ownership growth and higher property management fees, offsetting Travel and Membership declines.

• Net income from continuing operations was $108M, up year-over-year; diluted EPS from continuing operations was $1.62.

• Returned $107M to shareholders in Q2 via $37M dividends and $70M buybacks, reflecting strong free cash flow.

• Announced new projects and partnerships, including Margaritaville in Orlando, Sports Illustrated Resorts in Nashville, and Accor in Indonesia.

• Continued investment in technology, marketing, and product innovation, including app launches and AI-driven personalization.

Financial highlights

• Q2 2025 revenue reached $1.02B, up 3% year-over-year, with Vacation Ownership revenue up 6% to $853M and VPG up 7%.

• Adjusted EBITDA was $250M, up 2% year-over-year; adjusted EBITDA margin was 24.6%.

• Net cash provided by operating activities for the first six months was $353M, up $132M year-over-year.

• Adjusted free cash flow for the first six months was $123M, up from $112M year-over-year.

• Interest expense decreased $6M year-over-year in Q2 2025, reflecting lower effective rates and reduced debt.

Outlook and guidance

• Full-year 2025 adjusted EBITDA expected in the $955M–$985M range; gross VOI sales $2.4B–$2.5B; VPG guidance raised to $3,200–$3,250.

• Q3 2025 guidance: adjusted EBITDA of $250M–$260M, gross VOI sales of $650M–$680M, VPG of $3,200–$3,250.

• Management expects continued leisure travel demand to support Vacation Ownership growth, but notes ongoing pressure on loan portfolio delinquencies and economic uncertainties.

• Full-year capital expenditures expected between $125M and $135M; vacation ownership development spending $150M–$180M.