Travel + Leisure (TNL) investor relations material

Executive summary

• Net revenue reached $1.06 billion for Q2 2026, a 4% year-over-year increase, with gross VOI sales up 6% to $693 million and adjusted EBITDA up 8% to $269 million; adjusted diluted EPS rose 14% to $1.88.

• Net income was $109 million, with volume per guest (VPG) up 2% year-over-year to $3,318.

• Two strategic acquisitions (Yes& Vacations and Spinnaker Resorts) add over 100,000 owners and 23 resorts, expanding the owner base by more than 10%.

• Resort optimization initiative and digital innovation, including new app launches, improved profitability and owner engagement.

• $125 million was returned to shareholders via dividends and share repurchases in Q2 2026.

Financial highlights

• Vacation Ownership revenue rose 6% year-over-year to $907 million, with segment EBITDA up 13% to $247 million.

• Travel and Membership revenue declined 5% to $157 million, with segment EBITDA down 11% to $49 million.

• Adjusted EBITDA margin improved to 25.3% from 24.6% in the prior year quarter.

• For the first half of 2026, net cash from operating activities was $258 million, and adjusted free cash flow was $95 million.

• VPG exceeded plan at $3,318, up 2% year-over-year.

Outlook and guidance

• Full-year 2026 guidance raised: Adjusted EBITDA of $1.065–$1.085 billion, gross VOI sales of $2.6–$2.675 billion, VPG of $3,325–$3,375.

• Q3 2026 guidance: Adjusted EBITDA of $275–$285 million, gross VOI sales of $700–$740 million, VPG of $3,300–$3,350.

• Full-year EPS growth expected at ~20%; adjusted tax rate ~29%; free cash flow conversion ~50% of EBITDA.

• Management expects continued benefits from the resort optimization initiative and immediate accretion from acquisitions.

• The company projects adequate liquidity and inventory to support sales for at least the next three to four years.