Travel + Leisure (TNL) Q3 2026 earnings summary

Executive summary

• Q3 net revenue rose 5% to $1.101B; Adjusted EBITDA increased 6% to $283M, and Adjusted diluted EPS rose 23% to $2.21.

• Through 9M, revenue grew 4%, Adjusted EBITDA 8%, Adjusted net income 15% and Adjusted diluted EPS 21%.

• Healthy travel demand and acquisition contributions supported results; FY26 gross VOI sales and Adjusted EBITDA guidance were raised, while the 2027 growth framework remained unchanged.

Financial highlights

• Q3 net income was $108M versus $111M; diluted EPS was $1.73 versus $1.67. Adjusted net income was $138M versus $119M.

• Gross VOI sales reached $720M, up 6%; tours rose 7%, while reported VPG was $3,286, down 0.6%.

• Q3 Adjusted EBITDA margin expanded 20 bps to 25.7%; operating income was $195M versus $214M.

• 9M revenue was $3.125B versus $2.996B, Adjusted EBITDA $777M versus $718M, and diluted EPS $4.66 versus $4.35.

Outlook and guidance

• FY26 gross VOI sales guidance is $2.625B–$2.675B, VPG $3,325–$3,375 and Adjusted EBITDA $1.070B–$1.085B; guidance ranges were narrowed to the top end.

• FY26 Adjusted diluted EPS growth is expected in the low 20s; the adjusted tax rate is ~28% and free cash flow conversion ~50% of EBITDA.

• The 2027 framework remains 6%–8% gross VOI sales growth and mid-single-digit Adjusted EBITDA growth; acquisition contributions, lower loan loss provision and G&A efficiencies are expected tailwinds, partly offset by higher ABS funding costs and brand investment.

• 2027 incremental liquidity is estimated at $150M, split roughly evenly between acquired receivables and the Resort Optimization Initiative; some real estate proceeds may extend into 2028.