Travel + Leisure (TNL) Q4 2025 earnings summary

Executive summary

• Achieved 4% full-year revenue growth to $4.02 billion and 7% adjusted EBITDA growth to $990 million in 2025, exceeding raised outlooks, with strong Q4 performance and robust Vacation Ownership momentum.

• Gross VOI sales grew 8% year-over-year in both Q4 and full year 2025, totaling $2.49–$2.5 billion.

• Adjusted diluted EPS rose 10% for the year to $6.34; Q4 net loss of $61 million due to $210 million in inventory write-downs and impairments.

• Returned $449 million to shareholders in 2025 via $300 million in buybacks and $149 million in dividends, reducing share count by 6–8%.

• Advanced multi-brand strategy, launched new partnerships, invested in digital capabilities, and entered 2026 with strong momentum and robust leisure travel demand.

Financial highlights

• 2025 revenue: $4.02 billion (up 4%); adjusted EBITDA: $990 million (up 7%); EPS: $6.34 (up 10%); free cash flow: $516 million (up 16%).

• Q4 revenue: $1.026–$1.03 billion; EBITDA: $272 million (up 8%); EPS: $1.83; Q4 gross VOI sales: $638 million (up 8%).

• Adjusted EBITDA margin at 24.6–25% for 2025; free cash flow conversion at 52%.

• Over $2.9 billion returned to shareholders since 2018 spin-off; 37% reduction in shares outstanding.

• Net income margin was 5.7% for 2025.

Outlook and guidance

• 2026 adjusted EBITDA guidance: $1.03–$1.055 billion (4–7% growth); gross VOI sales expected at $2.5–$2.6 billion.

• VPG guidance for 2026: $3,175–$3,275; Q1 2026 gross VOI sales $520–$540 million; EBITDA $210–$220 million.

• EPS growth expected in the teens, supported by EBITDA growth, lower interest expense, and share repurchases.

• Loan loss provision expected to decline to ~20% in 2026, with a long-term target in the high teens.

• Management will recommend a Q1 2026 dividend increase to $0.60 per share.