Travel + Leisure (TNL) Q3 2025 earnings summary

Executive summary

• Achieved Q3 2025 net revenue of $1.044 billion, up 5% year-over-year, with Adjusted EBITDA of $266 million (+10% YOY) and Adjusted diluted EPS of $1.80 (+15% YOY).

• Returned $106 million to shareholders in Q3 through dividends and share repurchases.

• Vacation Ownership revenue rose 6% to $876 million, with VPG at $3,304 and 200,000 tours, marking the 18th consecutive quarter above $3,000.

• Expanded brand portfolio with new Sports Illustrated Resorts and Eddie Bauer Adventure Club, including a new Chicago location.

• Recognized by TIME as one of the World's Best Companies in 2025.

Financial highlights

• Q3 revenue was $1.044 billion, up 5% year-over-year; Adjusted EBITDA margin reached 25.5%.

• Adjusted net income rose 8% year-over-year; Adjusted EPS increased 15% to $1.80.

• Free cash flow for the nine months ended September 30, 2025, was $326 million, up 23% year-over-year.

• Returned $106 million to shareholders in Q3; $210 million in stock repurchased year-to-date.

• Net income margin improved to 10.6% from 9.8% year-over-year.

Outlook and guidance

• Raised full-year 2025 Adjusted EBITDA guidance midpoint to $975 million (range: $965M–$985M).

• Increased gross VOI sales guidance to $2.45B–$2.50B and VPG to $3,250–$3,275.

• Q4 guidance reflects seasonality and incremental investments in new brands.

• Full-year capital expenditures projected between $120 million and $130 million.

• Management expects continued savings from refinancing and adequate liquidity for the next year and beyond.