Third Quarter 2026
Filed Nov 4, 2026Marriott Vacations Worldwide Reports Third Quarter 2026 Financial Results
Third-quarter contract sales increased 29%, development profit increased 97%, GAAP net income attributable to common stockholders was $82 million versus a $2 million loss, and Adjusted EBITDA increased 27% to $216 million. The Company raised the midpoint of full-year Contract Sales and Adjusted EBITDA guidance despite an estimated $16 million Hurricane Lowell impact.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenuesGAAP | $1.37B | – | 8% |
| Q3 2026 revenues excluding cost reimbursementsGAAP | $921M | – | 14% |
| Q3 2026 sale of vacation ownership productsGAAP | $459M | – | 28% |
| Q3 2026 management and exchange revenueGAAP | $212M | – | —% |
| Q3 2026 rental revenueGAAP | $155M | – | 4% |
| Q3 2026 financing revenueGAAP | $95M | – | 4% |
| Q3 2026 cost reimbursementsGAAP | $446M | – | – |
| Q3 2026 cost of vacation ownership productsGAAP | −$49M | – | 4% |
| Q3 2026 marketing and sales expenseGAAP | −$268M | – | (14%) |
| Q3 2026 management and exchange expenseGAAP | −$116M | – | 2% |
| Q3 2026 rental expenseGAAP | −$143M | – | (11%) |
| Q3 2026 financing expenseGAAP | −$45M | – | (19%) |
| Q3 2026 royalty feeGAAP | −$29M | – | (3%) |
| Q3 2026 general and administrative expenseGAAP | −$71M | – | (33%) |
| Q3 2026 depreciation and amortizationGAAP | −$33M | – | – |
| Q3 2026 litigation chargesGAAP | −$2M | – | – |
| Q3 2026 modernizationGAAP | −$6M | – | – |
| Q3 2026 restructuringGAAP | −$10M | – | – |
| Q3 2026 impairmentGAAP | — | – | – |
| Q3 2026 income before income taxes and noncontrolling interestsGAAP | $113M | – | NM |
| Q3 2026 net income attributable to common stockholdersGAAP | $82M | – | NM |
| Q3 2026 diluted earnings per shareGAAP | $2.24 | – | NM |
| Q3 2026 diluted sharesGAAP | 38.6M | – | 10% |
| Q3 2026 adjusted pretax incomenon-GAAP | $126M | – | 63% |
| Q3 2026 adjusted net income attributable to common stockholdersnon-GAAP | $98M | – | 47% |
| Q3 2026 adjusted diluted earnings per sharenon-GAAP | $2.64 | – | 56% |
| Q3 2026 Adjusted EBITDAnon-GAAP | $216M | – | 27% |
| Q3 2026 Adjusted EBITDA Marginnon-GAAP | 23.4% | – | 250 bps |
| Q3 2026 contract salesother | $565M | – | 29% |
| Q3 2026 contract sales, net of resalesother | $554M | – | – |
| Q3 2026 development profitother | $142M | – | 97% |
| Q3 2026 development profit marginother | 31.0% | – | 1,080 bps |
| Q3 2026 management and exchange profitother | $96M | – | 2% |
| Q3 2026 management and exchange profit marginother | 45.2% | – | 90 bps |
| Q3 2026 rental profitother | $12M | – | (40%) |
| Q3 2026 rental profit marginother | 8.3% | – | (600 bps) |
| Q3 2026 financing profitother | $50M | – | (6%) |
| Q3 2026 financing profit marginother | 52.0% | – | (580 bps) |
| Q3 2026 VPGother | $4.82B | – | 30% |
| Q3 2026 toursother | 107,687 | – | (2%) |
| Q3 2026 sales reserve as a percentage of contract salesother | 14.8% | – | – |
| Nine months 2026 total revenuesGAAP | $3.94B | – | 6% |
| Nine months 2026 net income attributable to common stockholdersGAAP | $181M | – | 47% |
| Nine months 2026 diluted earnings per shareGAAP | $5.07 | – | 55% |
| Nine months 2026 Adjusted EBITDAnon-GAAP | $592M | – | 5% |
| Nine months 2026 Adjusted EBITDA Marginnon-GAAP | 22.2% | – | (60 bps) |
| Nine months 2026 adjusted net income attributable to common stockholdersnon-GAAP | $225M | – | 8% |
| Nine months 2026 adjusted diluted earnings per sharenon-GAAP | $6.21 | – | 17% |
| Nine months 2026 net cash, cash equivalents, and restricted cash provided by operating activitiesGAAP | $204M | – | – |
| Nine months 2026 free cash flownon-GAAP | $435M | – | – |
| Nine months 2026 adjusted free cash flownon-GAAP | $449M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Vacation OwnershipContract sales increased 29% to $565 million and VPG increased 30% to $4,822, driven by higher average transaction size from better sales execution and product and operational enhancements implemented in the second quarter. Segment Adjusted EBITDA increased primarily due to higher contract sales and lower average cost of vacation ownership products. | $857M | – | 15% |
| Exchange & Third-Party ManagementRevenues excluding cost reimbursements declined due to lower exchange and other transaction revenue at Interval International. Segment Adjusted EBITDA remained flat at $21 million. | $48M | – | (5%) |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Full Year 2026 outlook
- Tax rate30% to 29%
- NoteContract sales: $2,120 to $2,140
- NoteAdjusted EBITDA*: $810 to $830
- NoteAdjusted net income attributable to common stockholders*: $315 to $335
- NoteAdjusted earnings per share - diluted*: $8.65 to $9.15
- NoteAdjusted free cash flow*: $410 to $430
- NoteInterest expense, net: $176 to $174
- NoteDepreciation and amortization: $135 to $133
- NoteCurrent guidance includes an estimated $16 million adverse impact to Adjusted EBITDA from Hurricane Lowell in Kauai.
Capital returns
- The Board of Directors authorized the extension of the remaining $322 million share repurchase authorization from December 31, 2026 to December 31, 2027.
- Nine months 2026 repurchase of common stock: $—; nine months 2025: $(36) million.
- Nine months 2026 payment of dividends: $(110) million; nine months 2025: $(110) million.
What drove it
- VPG increased 30% year over year, driven by higher average transaction size from better sales execution and product and operational enhancements implemented in the second quarter.
- North America tours increased 4% year over year, driven by higher owner connection rates.
- Vacation Ownership Segment Adjusted EBITDA margin increased to 29.6% from 26.1%, primarily due to lower sales and marketing as a percentage of revenue and lower product cost rates.
- The Company originated an additional $60 million of receivables, which increased the current-period sales reserve but is expected to generate incremental financing profit over time.
- Development profit increased 97% to $142 million and development profit margin increased 1,080 bps to 31.0%.
Concerns
- Total tours declined 2%, attributable to purposeful actions to prioritize higher profitability and cash flow in the Asia-Pacific region.
- Sales reserve as a percentage of contract sales increased to 14.8% from 13.4% in the second quarter.
- Rental profit declined 40% to $12 million and rental profit margin declined 600 bps to 8.3%, reflecting higher inventory costs and the partial closure of five resorts in Kauai, Hawaii, attributable to Hurricane Lowell.
- Financing profit declined 6% to $50 million and financing profit margin declined 580 bps to 52.0%.
- General and administrative costs increased $18 million in the third quarter compared to the prior year, primarily due to higher incentive compensation.
- The full-year outlook includes an estimated $16 million adverse impact to Adjusted EBITDA from Hurricane Lowell in Kauai.
What to watch
- Execution against full-year Contract Sales guidance of $2,120 to $2,140 and Adjusted EBITDA guidance of $810 to $830.
- Whether higher receivable originations and the 14.8% sales reserve convert into the expected incremental financing profit over time.
- The recovery of rental profit after higher inventory costs and partial closures of five Kauai resorts.
- The development of Interval International membership and exchange and other transaction revenue, following a 5% decline in Exchange & Third-Party Management revenue.
- Progress in net corporate leverage following the decline to 3.6 times and the subsequent $460 million term securitization.
Balance sheet and cash flow
- The Company ended the quarter with approximately $1.1 billion in liquidity, including $229 million of cash and cash equivalents and $776 million of available capacity under its revolving corporate credit facility.
- Corporate debt was $3.0 billion and non-recourse debt related to securitized vacation ownership notes receivable was $2.4 billion at the end of the third quarter.
- Net corporate leverage ratio was 3.6 times in the third quarter, compared to 4.0 times at the end of the second quarter.
- Inventory was $906 million at the end of the quarter, including $227 million classified as a component of Property and equipment.
- During the quarter, the Company generated $66 million of net proceeds through the sale of Asia Pacific vacation ownership notes receivable at an interest rate of 6.70%.
- Subsequent to quarter end, the Company completed a $460 million term securitization with a weighted average coupon of 5.91% and a 98% advance rate.
- Nine months 2026 capital expenditures for property and equipment, excluding inventory, were $(34) million, compared with $(45) million in the prior year.
Analysis
Marriott Vacations Worldwide reported a sharply improved third quarter. Total revenues increased 8% to $1,367 million and revenues excluding cost reimbursements increased 14% to $921 million. Vacation Ownership was the central growth engine, with contract sales increasing 29% to $565 million and VPG increasing 30% to $4,822. Development profit rose 97% to $142 million, while development profit margin expanded 1,080 bps to 31.0%.
The operating improvement translated into substantially stronger earnings. Net income attributable to common stockholders was $82 million, compared with a net loss attributable to common stockholders of $2 million, and diluted earnings per share was $2.24 compared with a diluted loss per share of $0.07. Adjusted EBITDA increased 27% to $216 million, with Adjusted EBITDA Margin increasing 250 bps to 23.4%. Vacation Ownership Segment Adjusted EBITDA increased 30% to $255 million and its margin increased 350 bps to 29.6%, supported by higher contract sales, lower sales and marketing as a percentage of revenue, and lower product cost rates.
Mix within the non-development businesses was less favorable. Exchange & Third-Party Management revenue declined 5% to $48 million because of lower exchange and other transaction revenue at Interval International, although segment Adjusted EBITDA was $21 million versus $21 million in the prior year. Rental revenue increased 4% to $155 million, but rental profit declined 40% to $12 million because of higher inventory costs and the partial closure of five Kauai resorts following Hurricane Lowell. Financing profit declined 6% to $50 million as financing expense increased 19%.
Cash generation and leverage progressed over the nine months. Net cash, cash equivalents, and restricted cash provided by operating activities was $204 million, free cash flow was $435 million, and adjusted free cash flow was $449 million. Liquidity was approximately $1.1 billion, and net corporate leverage declined to 3.6 times from 4.0 times at the end of the second quarter. The Company also generated $66 million of net proceeds from an Asia Pacific notes receivable sale and subsequently completed a $460 million term securitization.
Management raised the midpoint of both Contract Sales and Adjusted EBITDA guidance. Full-year Contract Sales guidance is $2,120 to $2,140 and Adjusted EBITDA guidance is $810 to $830, despite an estimated $16 million adverse impact to Adjusted EBITDA from Hurricane Lowell in Kauai. Adjusted free cash flow guidance remains $410 to $430, with the upper end reduced from $460 in the prior guidance disclosed in this release. The principal reported operational items to monitor are the 14.8% sales reserve, the 2% decline in tours, rental-margin pressure, and the pace of Interval International revenue.
Management, verbatim
We are very pleased with our third quarter financial results, as they demonstrate the substantive momentum in our business, on the heels of our strong second quarter. Further, they reflect the continued success of the strategies we began implementing in the second quarter as part of the transformation now underway.
Matt Avril, Chief Executive Officer
By way of example, VPG increased to an industry leading $4,822, 30% above last year, and our operating discipline drove 27% Adjusted EBITDA growth.
Matt Avril, Chief Executive Officer
Our emphasis on differentiating Owner experiences such as our Inner Circle by Aflac events platform - which features curated regional and national entertainment - are fueling our sales success.
Matt Avril, Chief Executive Officer
Not in the filing
stated, not guessed- A separate previous earnings release OUTLOOK section was not provided; therefore, no actual-versus-prior-guidance comparisons are included.
- Q3 2026 operating cash flow was not reported.
- Q3 2026 free cash flow and adjusted free cash flow were not reported.
- GAAP full-year 2026 guidance was not provided.
- Full-year 2026 revenue guidance was not provided.
- Full-year 2026 gross margin guidance was not provided.
- Full-year 2026 operating expense guidance was not provided.
- A quarterly dividend per share was not reported.
- Q3 2026 share repurchases were not reported.
- Year-over-year percentage changes were not printed for several consolidated income-statement expense line items.
Written by an AI language model 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 checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.