Travel + Leisure (TNL) Investor presentation summary

Investment highlights and strategy

• Multi-brand strategy expands addressable market, leveraging lifestyle and foundational brands to reach diverse consumer segments and drive new owner growth.

• High-quality, loyal owner base with 97% retention and average household income of $130K, fueling predictable recurring revenue and upgrade cycles.

• Over 75% of revenue is recurring or predictable, supported by subscription, property management, and consumer financing streams.

• $20.8B in potential future revenue over the next 10 years from existing owners and resorts, with owners historically spending 2.6x their initial purchase.

• Resilient business model demonstrated by sustained profitability and rapid recovery through economic cycles, including the Great Recession and COVID-19.

Financial performance and growth

• Achieved 4% revenue CAGR and 5% adjusted EBITDA CAGR over three years, with a 25% adjusted EBITDA margin and 26% adjusted ROIC as of 2025.

• Q2 2026 net revenue grew 4% year-over-year to $1,063M, with gross VOI sales up 6% and adjusted EBITDA up 8%.

• Returned $3B+ to shareholders since 2018, reducing share count by 38% and increasing quarterly dividend per share by 46%.

• 2026 guidance targets $1,065M–$1,085M adjusted EBITDA and $2.6B–$2.675B gross VOI sales.

• Strong free cash flow conversion (52% in 2025), supporting balanced capital allocation between reinvestment, dividends, and buybacks.

Business segments and operational drivers

• Vacation Ownership segment comprises 79% of adjusted EBITDA, with 280+ resorts and 797K owners worldwide.

• Travel & Membership segment, though smaller, delivers high margins (34% adjusted EBITDA margin) and recurring subscription revenue from 3.3M members.

• Captive consumer finance business generates significant net interest income, with a $3.3B loan portfolio at a 15% weighted average coupon.

• Higher underwriting standards have improved loan portfolio quality, with average FICO scores rising to 739 and portfolio equity at 55.6%.

• Owner upgrades represent ~70% of VOI sales, occurring at lower acquisition cost and driving higher lifetime value.