Travel + Leisure (TNL) Q2 2026 earnings summary

Executive summary

• Net revenue for Q2 2026 reached $1.06 billion, up 4% year-over-year, driven by strong vacation ownership sales, improved volume per guest, and robust travel demand.

• Adjusted EBITDA grew 8% to $269 million, with net income of $109 million and diluted EPS of $1.72; adjusted diluted EPS rose 14% to $1.88.

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

• Resort optimization initiative reduced developer obligations, improved profitability, and included removal of aging resorts and addition of high-demand properties.

• $125 million was returned to shareholders in Q2 2026 via $37 million in dividends and $88 million in share repurchases.

Financial highlights

• Q2 2026 net revenues: $1.06 billion; adjusted EBITDA: $269 million; net income: $109 million; diluted EPS: $1.72.

• Vacation Ownership revenue rose 6% to $907 million; gross VOI sales up 6% to $693 million; segment EBITDA up 13% to $247 million.

• Travel and Membership revenue declined 5% to $157 million, mainly due to a 12% drop in revenue per transaction, partially offset by a 6% increase in transaction volume.

• 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.

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.