Travel + Leisure Co. Reports Third Quarter 2026 Results
Travel & Leisure Co. (TNL) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Travel + Leisure Co. Reports Third Quarter 2026 Results ORLANDO, Fla. (October 27, 2026) — Travel + Leisure Co. (NYSE:TNL), a leading leisure travel company, today reported third quarter 2026 financial results for the three months ended September 30, 2026. Highlights
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance provide fresh data for traders to adjust positions.
Market read
New earnings and guidance may drive short‑term price movement in TNL and related travel stocks.
What to watch
Higher leverage ratio and upcoming debt maturities could temper upside.
Travel + Leisure Co. reported third quarter 2026 net revenue of $1.10 billion, net income of $108 million and diluted earnings per share of $1.73, while raising full-year Adjusted EBITDA guidance to $1.070 billion to $1.085 billion.
Vacation Ownership revenue, Gross VOI sales, Adjusted EBITDA and adjusted diluted EPS increased year over year, and the Company raised Adjusted EBITDA guidance. However, Travel and Membership revenue and Adjusted EBITDA declined, GAAP operating income and net income declined, and nine-month operating cash flow and adjusted free cash flow were lower than the prior-year period.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net revenuesGAAP | $1.10B | – | 5 % |
| Q3 2026 operating incomeGAAP | $195M | – | – |
| Q3 2026 net income attributable to Travel + Leisure Co. shareholdersGAAP | $108M | – | (3) % |
| Q3 2026 diluted earnings per shareGAAP | $ 1.73 | – | 4 % |
| Q3 2026 net income marginGAAP | 9.8 % | – | – |
| Q3 2026 Adjusted EBITDAnon-GAAP | $283M | – | 6 % |
| Q3 2026 Adjusted EBITDA marginnon-GAAP | 25.7 % | – | – |
| Q3 2026 Adjusted net incomenon-GAAP | $138M | – | 16 % |
| Q3 2026 Adjusted diluted earnings per sharenon-GAAP | $ 2.21 | – | 23 % |
| Q3 2026 Gross VOI salesnon-GAAP | $720M | – | 6 % |
| Q3 2026 Net VOI salesGAAP | $545M | – | 10 % |
| Q3 2026 toursother | 213K | – | 7 % |
| Q3 2026 VPGother | $ 3,286 | – | (1) % |
| Q3 2026 loan loss provisionGAAP | $148M | – | 1 % |
| Q3 2026 Exchange transaction revenueGAAP | $62M | – | (14) % |
| Q3 2026 Travel Club transaction revenueGAAP | $40M | – | (15) % |
| Nine months ended September 30, 2026 net revenuesGAAP | $3.13B | – | 4 % |
| Nine months ended September 30, 2026 operating incomeGAAP | $564M | – | – |
| Nine months ended September 30, 2026 net income attributable to Travel + Leisure Co. shareholdersGAAP | $296M | – | 2 % |
| Nine months ended September 30, 2026 diluted earnings per shareGAAP | $ 4.66 | – | 7 % |
| Nine months ended September 30, 2026 Adjusted EBITDAnon-GAAP | $777M | – | 8 % |
| Nine months ended September 30, 2026 Adjusted EBITDA marginnon-GAAP | 24.9 % | – | – |
| Nine months ended September 30, 2026 Adjusted net incomenon-GAAP | $350M | – | 15 % |
| Nine months ended September 30, 2026 Adjusted diluted earnings per sharenon-GAAP | $ 5.51 | – | 21 % |
| Nine months ended September 30, 2026 net cash provided by operating activitiesGAAP | $388M | – | – |
| Nine months ended September 30, 2026 free cash flownon-GAAP | $221M | – | – |
| Nine months ended September 30, 2026 Adjusted free cash flownon-GAAP | $254M | – | – |
| Cash and cash equivalents as of September 30, 2026GAAP | $306M | – | – |
| Debt as of September 30, 2026GAAP | $4.04B | – | – |
| Non-recourse vacation ownership debt as of September 30, 2026GAAP | $2.02B | – | – |
| Leverage ratio for covenant purposes as of September 30, 2026other | 3.3x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Vacation OwnershipNet VOI sales increased 10% year-over-year due to a 6% increase in Gross VOI sales and a lower provision rate. Gross VOI sales growth was driven by a 7% increase in tours, partially offset by a 1% decrease in VPG. | $953M | – | 9 % |
| Travel and MembershipRevenue was primarily affected by a $17 million decrease in transaction revenue. Transactions were impacted by an increasing mix of exchange members with a club affiliation who have a lower transaction propensity. | $150M | – | (11) % |
2026 full year outlook
- NoteAdjusted EBITDA of $1.070 billion to $1.085 billion
- NoteGross VOI sales of $2.625 billion to $2.675 billion
- NoteVPG of $3,325 to $3,375
Capital returns
- During the third quarter of 2026, the Company repurchased approximately 1.1 million shares of common stock for $75 million at a weighted average price of $71.45 per share.
- For the nine months ended September 30, 2026, the Company repurchased approximately 3.5 million shares of common stock for $250 million.
- As of September 30, 2026, the Company had $671 million remaining in its share repurchase authorization.
- The Company paid $36 million ($0.60 per share) in cash dividends on September 30, 2026 to shareholders of record as of September 16, 2026.
- For the nine months ended September 30, 2026, the Company paid $114 million in cash dividends.
- Management will recommend a fourth quarter dividend of $0.60 per share for approval by the Company’s Board of Directors in November 2026.
What drove it
- Vacation Ownership Adjusted EBITDA was $ 250 million, compared with $ 231 million in the prior-year period, primarily driven by revenue growth.
- Travel and Membership Adjusted EBITDA was $ 51 million, compared with $ 58 million in the prior-year period, driven by a decline in Exchange transaction volume and a higher mix of Travel Club transactions that generate lower margins, partially offset by lower operating costs.
- The resort optimization initiative generated and is expected to generate further savings attributable to developer obligations, partially offset by the loss of, or reduction in, VOI sales and property management fees at impacted resorts.
- The Company incurred $2 million and $27 million of inventory write-downs and impairments during the three and nine months ended September 30, 2026 in connection with resort optimization actions.
Concerns
- Travel and Membership revenue declined 11 % and Adjusted EBITDA declined 12 % in the third quarter.
- Q3 2026 operating income was $ 195 million versus $ 214 million in the prior-year quarter, while net income attributable to shareholders was $ 108 million versus $ 111 million.
- VPG decreased 1 % to $ 3,286, reflecting the mix impact from recent acquisitions, which more than offset year-over-year organic growth.
- Leverage increased from the prior period due to funding of the Yes& Vacations and Spinnaker Resorts acquisitions, which closed during the third quarter.
- Nine-month net cash provided by operating activities and Adjusted free cash flow were below the prior-year period.
What to watch
- Full-year delivery against Adjusted EBITDA guidance of $1.070 billion to $1.085 billion.
- Gross VOI sales performance against the $2.625 billion to $2.675 billion full-year guidance range.
- VPG performance against the $3,325 to $3,375 full-year guidance range.
- The impact of acquisition mix on VPG and the contribution from the Yes& Vacations and Spinnaker Resorts acquisitions.
- Exchange transaction volume, Travel Club transaction mix, and Travel and Membership margins.
- Savings and revenue effects associated with the resort optimization initiative.
Balance sheet and cash flow
- Cash and cash equivalents were $ 306 million as of September 30, 2026, compared with $ 253 million as of December 31, 2025.
- Restricted cash was $ 193 million as of September 30, 2026.
- Corporate debt outstanding was $4.0 billion as of September 30, 2026, excluding $2.0 billion of non-recourse debt related to the securitized notes receivables portfolio.
- The Company had $ 4,041 million of debt and $ 2,025 million of non-recourse vacation ownership debt as of September 30, 2026.
- Net cash provided by operating activities was $ 388 million for the nine months ended September 30, 2026, compared with $ 516 million in the prior-year period.
- Net cash used in investing activities was $ 353 million for the nine months ended September 30, 2026, including $ 290 million of acquisitions, net of cash acquired.
- Subsequent to quarter-end, the Company closed a $300 million term securitization transaction with a weighted average coupon of 6.18% and a 98% advance rate.
Analysis
Third-quarter revenue growth was led by Vacation Ownership, where revenue increased 9 % to $ 953 million. Net VOI sales increased 10 % to $ 545 million and Gross VOI sales increased 6 % to $ 720 million. Tours rose 7 % to 213 thousand, while VPG declined 1 % to $ 3,286. The Company attributed the VPG decline to the mix impact from recent acquisitions, which more than offset year-over-year organic growth.
Travel and Membership remained the principal weak point. Revenue decreased 11 % to $ 150 million and Adjusted EBITDA decreased 12 % to $ 51 million. Exchange transaction revenue declined 14 % to $ 62 million, Travel Club transaction revenue declined 15 % to $ 40 million, and total Travel and Membership transaction revenue declined 14 % to $ 102 million. Management attributed the revenue decline primarily to a $17 million decrease in transaction revenue and cited an increasing mix of exchange members with a club affiliation that have lower transaction propensity.
Consolidated adjusted measures improved while GAAP operating profitability declined. Adjusted EBITDA increased 6 % to $ 283 million and Adjusted diluted EPS increased 23 % to $ 2.21. In contrast, operating income declined to $ 195 million from $ 214 million and net income attributable to shareholders declined to $ 108 million from $ 111 million. The quarter included $ 18 million of acquisition-related deal costs, $ 12 million of restructuring, $ 4 million of amortization of acquired intangibles, and $ 2 million of inventory write-downs and asset impairments in the adjusted-net-income reconciliation.
Capital allocation included $75 million of third-quarter share repurchases and $36 million of cash dividends. For the nine months ended September 30, 2026, acquisitions, net of cash acquired, were $ 290 million, share repurchases were $ 250 million, and dividends paid were $ 114 million. Operating cash flow was $ 388 million versus $ 516 million in the comparable period, while Adjusted free cash flow was $ 254 million versus $ 326 million. Corporate debt outstanding was $4.0 billion, excluding $2.0 billion of non-recourse debt, and covenant leverage was 3.3x after acquisitions funded during the quarter.
The Company raised the midpoint of full-year Adjusted EBITDA guidance to a new range of $1.070 billion to $1.085 billion. It also guides for Gross VOI sales of $2.625 billion to $2.675 billion and VPG of $3,325 to $3,375. The outlook concentrates attention on sustaining Vacation Ownership sales momentum, restoring Travel and Membership transaction activity, and realizing the stated positive net Adjusted EBITDA impact from the resort optimization initiative.
Management, verbatim
Travel + Leisure delivered another strong quarter, building on our momentum throughout the year. Our owners continue to prioritize travel, demand remains healthy, and that strength is translating into growth in earnings and cash flow.
Michael D. Brown, President & CEO of Travel + Leisure Co.
Year-to-date, on an adjusted basis, revenue is up 4%, EBITDA is up 8% and EPS is up 21%. These strong results validate the strategy we have outlined in recent years—consistent execution, advancing our multi-brand platform and allocating capital with discipline. With strong visibility into the balance of the year, we are confident in our ability to sustain this momentum.
Michael D. Brown, President & CEO of Travel + Leisure Co.
Not in the filing
stated, not guessed- Prior outlook or guidance was not provided, so comparison of actual results with prior guidance is unavailable.
- GAAP gross margin was not reported.
- Quarterly operating cash flow and quarterly free cash flow were not reported.
- Full-year revenue, gross margin, operating expense and tax-rate guidance were not reported.
- Prior-quarter comparisons for reported metrics were not reported.
- A Q3 2026 GAAP effective tax rate was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Travel + Leisure Co. filed a Form 8‑K with Q3 2026 results and updated guidance.
Ticker impact
Travel + Leisure Co. reported Q3 2026 results and raised full-year Adjusted EBITDA guidance to $1.070‑$1.085 billion.
likely upward pressure as investors price in higher EBITDA expectations
The raised guidance reflects improved cash flow and earnings, prompting bullish sentiment.
Market effects
Positive for leisure travel and timeshare sector as guidance beat expectations.
U.S. leisure travel stocks may see modest gains.
Limited to travel sector, no broad market effect.
Counterpoint
If the raised guidance is already priced in, the stock may face a pull‑back.
Key entities
- companyTravel + Leisure Co.
Leisure travel and timeshare operator.
