10-Q · April 22, 2026
Travel + Leisure reported Q1 net revenues of $961.0M (up $27.0M vs Q1 2025’s $934.0M) and net income attributable of $79M (vs $73M). Diluted EPS from continuing operations was $1.22 (vs $1.07 in Q1 2025); operating…
Earnings analysis · 10-Q
TNL earnings analysis
Filed July 22, 2026 · Our reading of the company's report
The latest report
Travel + Leisure delivered Q2 revenue of $1.063 billion, up $45 million year over year, led by Vacation Ownership, but GAAP EPS of $1.72 trailed the supplied $1.90 consensus estimate. Vacation Ownership growth and $21…
Read full summary
Travel + Leisure delivered Q2 revenue of $1.063 billion, up $45 million year over year, led by Vacation Ownership, but GAAP EPS of $1.72 trailed the supplied $1.90 consensus estimate. Vacation Ownership growth and $21 million of quarterly developer-obligation savings offset continued deterioration in Travel and Membership, where revenue fell $9 million. Operating cash flow remained positive at $258 million for the first half, though it declined $95 million year over year amid higher inventory and prepaid investment; the filing contains no revenue or EPS guidance.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.72
- Operating margin
- 19.8%
What stood out
-
Revenue growth continued, with modest margin pressure
Q2 net revenue increased $45 million year over year to $1.063 billion, versus $1.018 billion in Q2 2025. Operating income rose $4 million to $210 million, although the operating margin narrowed to 19.8% from 20.2%.
-
Vacation Ownership drove the quarter
Vacation Ownership revenue rose $54 million to $907 million and Adjusted EBITDA increased $29 million to $247 million. Gross VOI sales increased 6.0% to $693 million, supported by a 2.1% increase in VPG to $3,318 and 1.4% tour growth to 200,000.
-
EBITDA and EPS improved year over year
Company Adjusted EBITDA increased $19 million to $269 million, while net income attributable to shareholders was $109 million versus $108 million. Diluted EPS of $1.72 was up from $1.62 in Q2 2025 and $1.22 in Q1 2026.
-
Liquidity and covenant headroom remain solid
Cash and cash equivalents increased $29 million from year-end to $282 million, and revolver availability was $954 million at June 30, 2026. The interest-coverage ratio was 5.05x, above the 2.00x covenant minimum.
-
Resort optimization is delivering cost savings
Resort optimization reduced developer obligations by $21 million in Q2 and $40 million in the first half versus the prior year. Management expects the initiative to be net positive to Adjusted EBITDA despite foregone sales and management fees at affected resorts.
-
Operating cash flow remained positive
Six-month operating cash flow was $258 million and capital expenditures were $44 million, implying approximately $214 million of free cash flow before vacation-ownership inventory investment. Capex declined by $14 million year over year.
What to watch
-
No material formal risk-factor updates
There were no material changes to the formal risk factors from the 2025 Form 10-K as of June 30, 2026. Accordingly, Item 1A identifies 0 material risk-factor updates.
-
Travel and Membership mix remains a headwind
Travel and Membership revenue declined $9 million to $157 million and Adjusted EBITDA declined $6 million to $49 million. Exchange transactions fell 13.4% to 171,000, exchange membership fell 1.6% to 3.275 million, and total revenue per transaction declined 12.3% to $263.
-
Optimization savings carry ongoing charges
The resort optimization program generated $31 million of additional first-half 2026 costs, including $25 million of inventory write-downs and impairments. The company had already recorded $233 million of related charges in 2025.
-
Working-capital investment reduced cash conversion
Six-month operating cash flow fell $95 million year over year to $258 million, driven in part by a $54 million increase in cash used for vacation-ownership inventory and a $22 million increase in prepaid expenses. Inventory increased $51 million while net vacation-ownership contract receivables declined $49 million from year-end.
-
Leverage and refinancing needs remain material
Corporate debt increased $226 million from year-end, and secured notes plus the term loan totaled $3.63 billion at June 30, 2026. The company faces $418 million of debt maturities in the following 12 months, including $400 million of 6.00% secured notes due April 2027.
Management's outlook
The 10-Q contains no numeric revenue or EPS guidance. Management anticipates 2026 vacation-ownership development spending of $200 million-$230 million and capital expenditures of $90 million-$100 million; it expects inventory to support sales for at least the next three to four years.
Earlier filings 4
10-K · February 18, 2026
Travel + Leisure Co. (TNL) positions itself as the largest vacation ownership and exchange platform, pursuing a multi‑brand expansion and travel‑club strategy to grow its cornerstone timeshare and exchange businesses.…
10-Q · October 22, 2025
Travel + Leisure reported Q3 net revenues of $1,044 million (up $51 million vs. Q3 2024’s $993 million), operating income of $214 million (vs. $189 million prior-year) and diluted EPS from continuing operations of $1.67…
10-Q · July 23, 2025
Travel + Leisure Co. reported quarterly revenue of $1,018 million (Q2 2025), up $33 million versus Q2 2024 ($985 million). Operating income improved to $206 million (operating margin ~20.2%) and diluted EPS from…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.