Travel + Leisure (TNL) Q4 2025 earnings summary

Executive summary

• Achieved strong 2025 results with $4.02 billion revenue, 8% gross VOI sales growth, and Adjusted EBITDA of $990 million, exceeding expectations and supporting momentum into 2026.

• Adjusted diluted EPS rose 10% to $6.34 for 2025; Q4 Adjusted EBITDA grew 8% year-over-year.

• Returned $449 million to shareholders in 2025 via $300 million in buybacks and $149 million in dividends; new $750 million repurchase authorization approved.

• Advanced brand expansion with launches like Sports Illustrated and Eddie Bauer Adventure Club, expanded partnerships, and invested in digital capabilities.

• Initiated Resort Optimization Initiative, removing underperforming resorts and adding higher-demand properties, resulting in net portfolio growth and $216 million in inventory write-downs and impairments.

Financial highlights

• 2025 revenue grew 4% year-over-year to $4.02 billion; Adjusted EBITDA up 7% to $990 million; Adjusted diluted EPS up 10% to $6.34.

• Q4 2025 revenue was $1.03 billion, Adjusted EBITDA $272 million, and Adjusted diluted EPS $1.83.

• Gross VOI sales reached $2.49 billion in 2025, up 8% year-over-year.

• Adjusted free cash flow for 2025 was $516 million, with 52% conversion from Adjusted EBITDA.

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

Outlook and guidance

• 2026 Adjusted EBITDA expected at $1.03–$1.055 billion, up 4–7% year-over-year.

• 2026 gross VOI sales projected at $2.5–$2.6 billion; VPG guidance $3,175–$3,275.

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

• Q1 2026 guidance: gross VOI sales of $520–$540 million, Adjusted EBITDA of $210–$220 million.

• Board intends to recommend a Q1 2026 dividend of $0.60 per share.