Travel + Leisure (TNL) Q1 2026 earnings summary

Executive summary

• First quarter 2026 results exceeded guidance, with net revenue of $961 million, strong Vacation Ownership growth 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.

• Adjusted EBITDA grew 11% to $225 million, with EPS up 31% to $1.45; net income was $79 million, and diluted EPS was $1.22.

• Multi-brand strategy and digital initiatives, including new brands and apps, are driving growth and increased booking activity.

• Resort optimization initiative delivered expected cost savings, with closures of aging resorts and $19–22 million in related charges.

Financial highlights

• Revenue grew 3% year-over-year to $961 million; adjusted EBITDA rose 11% to $225 million; net income increased to $79 million; adjusted net income was $93 million, up 22%.

• Gross VOI sales were $549 million, up 7% year-over-year, with tours up 5% and volume per guest up 3% to $3,321.

• Returned $128 million to shareholders via $41 million in dividends and $87 million in share repurchases; dividend increased to $0.60 per share.

• Vacation Ownership segment EBITDA was $191 million, up 20%; Travel and Membership EBITDA was $59 million, down 13%.

• Adjusted EBITDA margin improved to 23.4%; net income margin rose to 8.2%.

Outlook and guidance

• Reaffirmed full-year 2026 guidance: gross VOI sales $2.5–$2.6 billion, adjusted EBITDA $1.03–$1.055 billion, volume per guest $3,175–$3,275.

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

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