Travel + Leisure (TNL) Q2 2025 earnings summary

Executive summary

• Net revenue for Q2 2025 reached $1.02 billion, up 3% year-over-year, driven by strong Vacation Ownership growth and higher property management fees, partially offset by softer Travel and Membership performance.

• Adjusted EBITDA was $250 million, up 2% year-over-year, with adjusted diluted EPS rising to $1.65, up 9% year-over-year.

• Net income from continuing operations was $108 million for Q2 2025, with diluted EPS of $1.62.

• Returned $107 million to shareholders via $37 million in dividends and $70 million in share repurchases.

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

Financial highlights

• Vacation Ownership revenue grew 6% year-over-year to $853 million, with VPG up 7% to $3,251 and tours up 3%.

• Travel and Membership revenue declined 6% to $166 million; adjusted EBITDA down 11% to $55 million, impacted by industry consolidation and lower transaction volume.

• Adjusted free cash flow for the first six months was $123 million; operating cash flow was $353 million.

• Net income margin for Q2 2025 was 10.6%; adjusted EBITDA margin was 24.6%.

• Dividend payments totaled $78 million in the first half of 2025; share repurchases totaled $140 million.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: adjusted EBITDA of $955–$985 million, gross VOI sales of $2.4–$2.5 billion, VPG of $3,200–$3,250.

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

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

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

• Anticipates additional interest expense savings following refinancing of the revolving credit facility.