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    TNL
    Earnings call· Jun 2026(Q2 FY26)

    Travel & Leisure Co. TNL

    Jul 22, 2026 Source

    Executive summary

    Travel + Leisure Q2 FY26 — Strong Performance and Accretive Acquisitions Drive Raised Outlook

    Travel + Leisure delivered strong Q2 FY26 results, driven by robust owner trends and sustained travel demand, leading to increased VOI sales and expanded EBITDA margins. Strategic acquisitions of Yes& Vacations and Spinnaker Resorts are expected to be immediately accretive, enhancing the resort portfolio and owner base. Management raised full-year guidance, reflecting confidence in continued growth, the success of its multi-brand strategy, and disciplined capital allocation.

    Highlights

    5

    • First-half adjusted EBITDA grew 9% year-over-year, fueled by a 120 basis point improvement in EBITDA margin.

    • First-half adjusted EPS increased 21% year-over-year, amplified by share repurchases.

    • Q2 gross VOI sales increased 6% to $693 million, exceeding the company's guidance range.

    • Acquisitions of Yes& Vacations and Spinnaker Resorts add 23 resorts and over 100,000 owners, and are immediately accretive to earnings.

    • Full-year EBITDA guidance midpoint was raised by more than $30 million, reflecting strong performance and acquisition contributions.

    Concerns

    2

    • Travel and Membership segment revenue declined 5% to $157 million, and segment EBITDA declined 11% to $49 million.

    • The full-year consolidated loan loss provision rate is now expected to be approximately 21%, modestly higher due to the impact of acquisitions.

    Guidance & targets

    10
    CategoryTargetConfidence
    Full year EBITDA
    $1.065 billion to $1.085 billion
    high materiality
    High
    Full year gross VOI sales
    $2.6 billion to $2.675 billion
    high materiality
    High
    Full year adjusted tax rate
    approximately 29%
    medium materiality
    Medium
    Full year free cash flow conversion
    roughly half of EBITDA
    medium materiality
    Medium
    Full year year-over-year EPS growth
    approximately 20%
    high materiality
    High
    Q3 gross VOI sales
    $700 million to $740 million
    medium materiality
    High
    Q3 EBITDA
    $275 million to $285 million
    medium materiality
    High
    Q3 volume per guest (VPG)
    $3,300 to $3,350
    medium materiality
    High
    Full year consolidated loan loss provision rate
    approximately 21%
    medium materiality
    Medium
    Share buybacks
    similar level to 2025
    medium materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Vacation Ownership
    The business performed well across key operating metrics, driven by healthy demand, continued strength in volume per guest, and benefits from the resort optimization initiative. Credit performance remained consistent with underwriting standards.
    Gross VOI sales: $693 millionGross VOI sales growth: 6%EBITDA growth: 13%Tours growth: 1%New owner mix: up slightly year-over-yearWeighted average FICO scores at origination: above 740Down payment levels: improved year-over-yearLoan provision rate: flat year-over-yearDelinquency rates: improved sequentially from Q1
    		$907 million6%—$247 million
    Travel and Membership
    Revenue and EBITDA declined, reflecting the continued evolution of the exchange business. The focus is on stabilizing long-term earnings and free cash flow generation through operational improvements, strategic partnerships, and digital initiatives.
    EBITDA decline: 11%
    		$157 million-5%—$49 million

    Operational metrics

    31
    Revenue growth
    4%YoY
    Q2 FY26

    Enterprise revenue growth.

    Adjusted EBITDA growth
    8%YoY
    Q2 FY26

    Enterprise adjusted EBITDA growth.

    Adjusted EPS growth
    14%YoY
    Q2 FY26

    Enterprise adjusted EPS growth.

    Adjusted EBITDA margin expansion
    70
    Q2 FY26

    Reflecting healthy operating leverage.

    Adjusted EBITDA growth
    9%
    H1 FY26

    Fueled by EBITDA margin improvement.

    Adjusted EBITDA margin improvement
    120
    H1 FY26

    Improvement in EBITDA margin.

    Adjusted EPS growth
    21%YoY
    H1 FY26

    Share repurchases amplified per share economics.

    Capital returned to shareholders
    $253 million
    H1 FY26

    Total capital returned through dividends and share repurchases.

    Common shares outstanding reduction
    4%
    H1 FY26

    Reflecting ongoing commitment to disciplined capital allocation.

    Gross VOI sales growth
    6%
    Q2 FY26

    Above guidance range, supported by high-quality tours and strong owner engagement.

    Volume per guest (VPG)
    $3,318up 2% year-over-year
    Q2 FY26

    Exceeded plan.

    Booking window
    109at or above prior year levels
    Q2 FY26

    Key booking metric.

    Average length of stay
    4at or above prior year levels
    Q2 FY26

    Key booking metric.

    Owner base expansion
    100,000more than 10%
    current

    Added through acquisitions of Yes& Vacations and Spinnaker Resorts.

    Margaritaville annual VOI sales
    $150 million
    annual

    On track to exceed.

    Accor Vacation Club sales growth
    nearly double
    FY26

    On track.

    Eddie Bauer Adventure Club sales
    meaningfully exceeding expectations
    current

    Performance of new brand.

    Multi-brand VOI sales mix
    10%
    FY26

    On track to approach this percentage of total sales mix.

    Club Wyndham app bookings
    30%
    current

    Represents total club bookings.

    Share repurchases
    $88 millionincrease of 25% from prior year
    Q2 FY26

    Common stock repurchased.

    Acquisition investment
    $340 million
    current

    Total investment for Yes& Vacations and Spinnaker Resorts acquisitions.

    Acquisition expected EBITDA contribution
    $50 million
    full year

    Expected EBITDA generated by acquired businesses on a full year synergized basis.

    Finance receivables securitized from acquisitions
    $80 million
    current

    Roughly this amount of finance receivables from acquisitions will be securitized.

    Acquisition net capital deployed
    $260 million
    current

    Net capital deployed after securitizing finance receivables.

    Acquisition net investment multiple
    5x
    current

    Resulting net investment multiple.

    Acquisition leverage impact
    0.2
    current

    Transactions add approximately 0.2 per 1 turn of leverage.

    Leverage
    3.2x
    end of FY26

    Expected leverage at year-end.

    Leverage
    3.2xdown from 3.4x in Q2 last year
    Q2 FY26

    Leverage at quarter-end.

    Liquidity
    $1.2 billion
    Q2 FY26

    Available capacity.

    ABS transaction
    $300 million
    this week

    Second ABS transaction of the year.

    Loan loss provision rate (organic)
    modestly below prior year levels
    FY26

    Expected for the core business, excluding acquisitions.

    Product announcements

    2
    ProductTypeDetails
    Sports Illustrated Resorts Nashvillelaunch
    Margaritaville applaunch

    Deals & partnerships

    2
    Yes& VacationsAcquisition of a well-run platform adding high-quality resorts and expanding the owner base.Part of ~$340 million total investment for both acquisitions

    Adds resorts in highly sought-after leisure destinations, including Hilton Head and Maui, and expands the owner base by over 100,000 owners. Closed approximately 10 days prior to the call.

    Spinnaker ResortsAcquisition of a well-run platform adding high-quality resorts and expanding the owner base.Part of ~$340 million total investment for both acquisitions

    Agreement executed to acquire Spinnaker Resorts, adding resorts in highly sought-after leisure destinations, including Hilton Head and Maui, and expanding the owner base by over 100,000 owners. Expected to close in August.

    Risks & headwinds

    2
    Travel and Membership segment declineQ2 FY26

    Revenue declined 5% to $157 million; segment EBITDA declined 11% to $49 million.

    Mitigation: Focus on stabilizing long-term earnings profile and free cash flow generation through operational improvements, new strategic partnerships, and digital initiatives.

    Increased consolidated loan loss provision rate due to acquisitionsFY26

    Full year consolidated loan loss provision rate expected to be approximately 21%.

    Mitigation: Expect the acquired portfolio to migrate closer to Travel + Leisure's historical performance as the company applies its collections and servicing capabilities.

    What to watch in Q3 FY26

    5

    Spinnaker Resorts acquisition closing

    August (Q3 FY26)
    CurrentAgreement executed
    TargetClosed

    Why it matters

    Completion of the acquisition is key to realizing the expected financial contributions and strategic benefits, including expanded resort portfolio and owner base.

    although we've signed Spinnaker, we will close on that business in August.

    Q&A highlights

    10

    What are your latest thoughts on the state of your consumer?

    The consumer remains committed to vacations, with strong and consistent metrics across booking patterns, forward bookings, length of stay, new owner business, and VPGs. No signs of weakening have been observed, and the company is pleased with strong demand heading into the summer season.

    “When you look at our booking patterns, our forward bookings, length of stay, distance travel to get on vacation, all those are remarkably consistent from what we saw in Q1, in April. You can see through our new owner business, that ticked up. Tours and transactions as well as our owner VPGs being above the range. The economic side of our measurement remains very consistent and very strong.”

    asked by Charles Scholes · answered by Michael Brown

    2 min read5 chapters

    Detailed Narrative

    01

    Acquisition Strategy and Benefits

    The company announced the acquisitions of Yes& Vacations and Spinnaker Resorts, adding 23 resorts to its portfolio, including 6 properties in Hilton Head and 7 in Maui. These are highly sought-after leisure destinations where new development is challenging. The acquisitions also expand the owner base by over 10% with more than 100,000 new owners, 80% of whom have fully paid off their timeshare loans. These deals are immediately accretive to earnings and preserve balance sheet flexibility, allowing the company to maintain its capital allocation strategy.

    02

    Multi-Brand Strategy Progress

    Travel + Leisure's multi-brand strategy is scaling effectively. Margaritaville is on track to exceed $150 million in annual VOI sales, Accor Vacation Club sales are expected to nearly double in 2026, and Eddie Bauer Adventure Club sales are meaningfully exceeding expectations. Sports Illustrated Resorts is also progressing, with a Nashville resort opening in the third quarter and sales already underway. Combined, VOI sales from these brands are on track to approach 10% of the company's total sales mix this year.

    03

    Digital Infrastructure Investment

    The company is actively investing in its digital infrastructure to enhance the owner experience. A new Margaritaville app was recently launched, and the broader digital roadmap aims to facilitate owner search, plan, book, and travel through digital channels. The successful Club Wyndham app, launched less than two years ago, now accounts for over 30% of total club bookings, demonstrating the effectiveness of these digital initiatives.

    04

    Resort Optimization Initiative Performance

    The resort optimization initiative, which involves removing a small number of aging, lower-demand resorts, continues to perform exceptionally well. The company is realizing expected expense savings, and stronger conversion rates and Volume Per Guest (VPG) have more than offset the loss in tour volume from closed sales centers. This has allowed Travel + Leisure to maintain its VOI sales growth rate while strengthening the overall system and improving financial health.

    05

    Consumer Health and Travel Demand

    The consumer base remains healthy and continues to prioritize travel. First-half arrivals, adjusted for strategic resort closures, increased year-over-year. Key booking metrics, including a 109-day booking window and a 4-day average length of stay, are at or above prior-year levels. These trends provide clear visibility into continued growth for the second half of the year and reflect the strength of the owner base and product value proposition.

    AI-generated summary of the company’s earnings call. Not investment advice.