Key Highlights

  • Net revenues rose 5% to USD 1.10 billion, and adjusted EBITDA rose 6% to USD 283 million.
  • Adjusted diluted EPS rose 23% to USD 2.21, while GAAP diluted EPS was USD 1.73 versus USD 1.67.
  • Gross vacation ownership sales rose 6% to USD 720 million on 213,000 tours, up 7%.
  • Full-year adjusted EBITDA guidance narrowed to USD 1.070 billion to USD 1.085 billion, the high end of the prior range.

Vacation Ownership Drives Growth

Travel + Leisure Co. (NYSE:TNL) reported third quarter 2026 results on Tuesday. Net revenues were USD 1.101 billion, up from USD 1.044 billion. Vacation ownership interest sales rose to USD 545 million from USD 494 million, service and membership fees were USD 408 million, and consumer financing revenue was USD 118 million. GAAP diluted EPS was USD 1.73 versus USD 1.67, while adjusted diluted EPS was USD 2.21, up 23%.

Adjusted EBITDA of USD 283 million rose 6%, driven by the vacation ownership segment. Vacation ownership revenue rose 9% to USD 953 million, while travel and membership revenue fell 11% to USD 150 million as the mix shifted from higher-margin exchange activity to travel clubs. Management said exchange members with a club affiliation have a lower transaction propensity.

Gross vacation ownership interest sales rose 6% to USD 720 million, supported by recent acquisitions and organic demand. Tours rose 7% to 213,000, led by new owner tours, and volume per guest fell 1% to USD 3,286 because of acquisition mix.

Acquisitions and Multibrand Strategy

The company invested USD 350 million in the acquisitions of Yes& Vacations and Spinnaker Resorts, which added over 100,000 owners to the platform. Chief Executive Brown said integration is progressing ahead of schedule and that full cost benefits are targeted within 12 months. Management described the Margaritaville Vacation Club as running at about USD 175 million of annual gross sales and the Accor Vacation Club at about USD 50 million in its third year. The multibrand approach is intended to broaden the marketing funnel and contribute about 10% of total sales this year, and an expanded partnership with Wyndham Hotels and Resorts targets Sports Illustrated Resorts in college towns and urban markets.

Nine-Month Results, Credit and Capital Return

Nine-month net revenues were USD 3.125 billion versus USD 2.996 billion, and GAAP diluted EPS was USD 4.66 versus USD 4.35. Marketing expense rose to USD 187 million in the quarter from USD 162 million. Cash was USD 306 million and restricted cash USD 193 million. Corporate debt was USD 4.0 billion with leverage of 3.3 times.

The loan loss provision rate is now guided to 20% for the year, down from 21%, on improved delinquency and default performance. A USD 300 million term securitization completed after quarter end carried a 98% advance rate and a 6.18% weighted average coupon. Through nine months the company repurchased about 3.5 million shares for USD 250 million and paid USD 114 million in dividends. Management cited a long-term free cash flow conversion target of 50% of EBITDA.

Guidance

Full-year adjusted EBITDA is guided to USD 1.070 billion to USD 1.085 billion, narrowed to the high end of the earlier range. Gross vacation ownership sales are guided to USD 2.625 billion to USD 2.675 billion, reflecting stronger core sales, and volume per guest to USD 3,325 to USD 3,375. On 2027, a finance executive said benefits would be partly offset by higher securitization funding costs and a modest margin headwind from investment in new brands.

Vacation Ownership Markers to Follow

Tracking points include volume per guest against USD 3,286, tour growth relative to 7%, and travel and membership revenue after the 11% decline. Further items are Spinnaker and Yes& integration savings, delinquency and default trends against the 20% provision rate, and ABS funding costs against the 6.18% coupon.