Travel+Leisure Co (TNL) Q3 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic …

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Revenue: $1.044 billion, up 5% year-over-year.
Adjusted EBITDA: $266 million, up 10% year-over-year.
Adjusted EBITDA Margin: Expanded 100 basis points to 25%.
Adjusted Earnings Per Share: $1.80, up 15% year-over-year.
Free Cash Flow: $106 million returned to shareholders during the quarter.
Vacation Ownership Revenue: $876 million, up 6% year-over-year.
Vacation Ownership Adjusted EBITDA: $231 million, up 14% year-over-year.
Gross VOI Sales: $682 million, supported by 2% tour flow growth.
Volume Per Guest (VPG): $3,304, up 10% year-over-year.
Travel and Membership Revenue: $169 million, up 1% year-over-year.
Travel and Membership Adjusted EBITDA: $58 million, down 6% year-over-year.
Adjusted Free Cash Flow Growth: 23% year-over-year.
Net Leverage: 3.3 times, down from 3.4 times a year ago.
Liquidity Position: Nearly $1.1 billion, including $240 million in cash.
Full Year Adjusted EBITDA Guidance: Raised to $965 million to $985 million.
Full Year Gross VOI Sales Guidance: Raised to $2.45 billion to $2.50 billion.
Full Year VPG Guidance: Raised to $3,250 to $3,275.

Release Date: October 22, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Travel+Leisure Co (NYSE:TNL) reported over $1 billion in revenue for Q3 2025, with a significant year-over-year increase in adjusted EBITDA and earnings per share.
The company returned $106 million to shareholders during the quarter, demonstrating strong free cash flow generation.
The vacation ownership business showed sustained momentum with a volume per guest (VPG) of $3,304, marking the 18th consecutive quarter with VPGs over $3000.
Tour flow remained healthy with 200,000 tours, indicating strong consumer demand for travel.
The company is expanding its brand portfolio with new ventures like the Sports Illustrated Resort in Chicago and the Eddie Bauer Adventure Club, targeting diverse traveler profiles and expanding revenue streams.

The travel and membership segment saw a 6% decline in adjusted EBITDA, despite a 1% increase in revenue.
There is ongoing pressure on the exchange business within the travel and membership segment due to industry consolidation.
The company faces challenges in maintaining margins while increasing new owner sales, which typically have lower margins.
The booking window has shortened slightly, indicating potential consumer hesitancy or changes in booking behavior.
The company is closing a number of legacy resorts, which may have financial implications and reflects a need for portfolio maintenance.

Q: Michael, your VOI business continues to perform well despite some consumer weakness in certain areas. What do you think is driving this strength? A: Michael Brown, President and CEO, explained that the strength is due to investments in digital platforms and partnerships that enhance vacation experiences, leading to higher satisfaction scores. Additionally, the company has improved its consumer profile by increasing FICO scores and household income levels, which has made the model more efficient.

Q: Can you discuss the opportunities for converting urban hotels into timeshare properties, specifically with the Sports Illustrated brand? A: Michael Brown highlighted that urban conversions, like the Sports Illustrated Resort in Chicago, are attractive due to current real estate market conditions. The company is also exploring opportunities in college towns, which remain a strategic focus.

Q: What changes have you made to drive the 30% increase in travel club transactions? A: Michael Brown noted that the increase is due to refined strategies focusing on profitable clubs and enhanced marketing efforts. The company has seen a 30% increase in transactions, although revenue per transaction has decreased by 12%, which is typical in growth cycles.

Q: How do you view the long-term earnings potential of the new brands being added to the portfolio? A: Michael Brown stated that each new brand, such as Sports Illustrated and Eddie Bauer, is expected to generate at least $200 million in top-line revenue. These brands will initially focus on new owner growth and eventually transition to an owner upgrade model.

Q: Can you provide an update on the loan loss provision and its future outlook? A: Erik Hoag, CFO, mentioned that the loan loss provision is expected to settle in the upper teens in the long term. The company has seen a downward trend in provisions, indicating a positive outlook for future financial stability.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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