Travel + Leisure Co. Reports First Quarter 2026 Results (Form 8-K)

Travel + Leisure Co. Reports First Quarter 2026 Results

ORLANDO, Fla. (April 22, 2026) - Travel + Leisure Co. (NYSE:TNL), a leading leisure travel company, today reported first quarter 2026 financial results for the three months ended March 31, 2026. Highlights and outlook include:

•Net revenue of $961 million. Gross VOI sales of $549 million, up 7% year-over-year

•Net income of $79 million (diluted earnings per share of $1.22)

•Adjusted EBITDA of $225 million and Adjusted diluted earnings per share of $1.45(1), representing 11% and 31% year-over-year growth, respectively

•Volume per guest (VPG) of $3,321, a 3% increase year-over-year, on a 5% increase in tours

•Expects second quarter Adjusted EBITDA of $260 million to $270 million and reaffirms full-year Adjusted EBITDA guidance of $1,030 million to $1,055 million

•Returned $128 million to shareholders through $41 million of dividends and $87 million of share repurchases

President and Chief Executive Officer Michael D. Brown commented, "We're off to a strong start to 2026, with positive momentum in our Vacation Ownership business and above plan first quarter Adjusted EBITDA. We achieved healthy Gross VOI sales and tour growth, while executing our resort optimization initiative. These results underscore strong execution, resilient owner demand, and the durability of our business model."

"Our multi-brand strategy continues to advance, with robust growth in Margaritaville Vacation Club and Eddie Bauer Adventure Club during the quarter. We also announced the fourth location for Sports Illustrated Resorts in Baton Rouge, home of Louisiana State University and Southern University, a highly complementary market that fits well within the club's growing portfolio."

(1) This press release includes Adjusted EBITDA, Adjusted diluted EPS, Adjusted free cash flow, Gross VOI sales, Adjusted net income, and Adjusted EBITDA margin, which are measures that are not calculated in accordance with Generally Accepted Accounting Principles in the U.S. ("GAAP"). See "Presentation of Financial Information" and the tables for the definitions and reconciliations of these non-GAAP measures. Forward-looking non-GAAP measures are presented in this press release only on a non-GAAP basis because not all of the information necessary for a quantitative reconciliation is available without unreasonable effort.

Business Segment Results

Vacation Ownership

$ in millions			Q1 2026			Q1 2025			% change
Revenue			$798			$755			6		%
Adjusted EBITDA			$191			$159			20		%

Vacation Ownership revenue increased 6% to $798 million in the first quarter of 2026 compared to the same period in the prior year. Net vacation ownership interest (VOI) sales increased 11% year over year. Gross VOI sales increased 7% driven by a 5% increase in tours and a 3% increase in VPG.

First quarter Adjusted EBITDA was $191 million compared to $159 million in the prior year period driven by the revenue growth and expense savings from the resort optimization initiative.

Travel and Membership

$ in millions			Q1 2026			Q1 2025			% change
Revenue			$165			$180			(8)		%
Adjusted EBITDA			$59			$68			(13)		%

Travel and Membership revenue decreased 8% to $165 million in the first quarter of 2026 compared to the same period in the prior year. This was driven by a $13 million decrease in transaction revenue due to a 10% decrease in revenue per transaction and flat transaction volume.

First quarter Adjusted EBITDA decreased 13% to $59 million compared to the same prior year period. This decrease was driven by a higher mix of travel club transactions, which generate lower margins, partially offset by lower operating costs.

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Balance Sheet and Liquidity

Net Debt - As of March 31, 2026, the Company's leverage ratio for covenant purposes was below 3.2x. The Company had $3.6 billion of corporate debt outstanding as of March 31, 2026, which excluded $2.1 billion of non-recourse debt related to its securitized notes receivables portfolio.

Timeshare Receivables Financing - The Company closed on a $325 million term securitization transaction on March 26, 2026 with a weighted average coupon of 5.11% and a 98% advance rate.

Cash Flow - For the three months ended March 31, 2026, net cash provided by operating activities was $38 million compared to $121 million in the prior year period. Adjusted free cash flow was effectively neutral for the three months ended March 31, 2026 compared to $152 million in the same period of 2025. These decreases were driven by an increase in cash utilization for working capital items, mainly inventory acquisitions; with adjusted free cash flow further impacted by net repayments on non-recourse vacation ownership debt.

Share Repurchases - During the first quarter of 2026, the Company repurchased 1.2 million shares of common stock for $87 million at a weighted average price of $72.51 per share. As of March 31, 2026, the Company had $832 million remaining in its share repurchase authorization.

Dividend - The Company paid $41 million ($0.60 per share) in cash dividends on March 31, 2026 to shareholders of record as of March 20, 2026. Management will recommend a second quarter dividend of $0.60 per share for approval by the Company's Board of Directors in May 2026.

Resort Optimization Initiative - In order to promote the long-term strength of our vacation ownership

resorts, we undertook a strategic review during 2025 with the intent of optimizing the overall quality of

our resort portfolio, aligning with evolving owner preferences, preserving the affordability of maintenance

fees, and mitigating the need for costly special assessments in the future. This review identified 17

resorts requiring significant owner reinvestment, or that are in markets that no longer align with owner

demand. This plan is expected to result in meaningful annual savings attributable to the maintenance

fees we incur on unsold VOIs. Such savings would be partially offset by the loss of, or reduction in, VOI

sales and property management fees earned at the impacted resorts resulting in a positive net impact to

Adjusted EBITDA in 2026. In connection with these actions, the Company incurred $19 million

of inventory write-downs and impairments during the three months ended March 31, 2026.

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Outlook

The Company is providing guidance for the second quarter 2026:

•Adjusted EBITDA of $260 million to $270 million

•Gross VOI sales of $660 million to $690 million

•VPG of $3,200 to $3,250

The Company is reaffirming guidance for the 2026 full year:

•Adjusted EBITDA of $1,030 million to $1,055 million

•Gross VOI sales of $2.5 billion to $2.6 billion

•VPG of $3,175 to $3,275

This guidance is presented only on a non-GAAP basis because not all of the information necessary for a quantitative reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure is available without unreasonable effort, primarily due to uncertainties relating to the occurrence or amount of these adjustments that may arise in the future. Where one or more of the currently unavailable items is applicable, some items could be material, individually or in the aggregate, to GAAP reported results.

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Conference Call Information

Travel + Leisure Co. will hold a conference call with investors to discuss the Company's results and outlook today at 8:30 a.m. ET. Participants may listen to a simultaneous webcast of the conference call, which may be accessed through the Company's website at travelandleisureco.com/investors, or by dialing 877-733-4794 ten minutes before the scheduled start time. For those unable to listen to the live broadcast, an archive of the webcast will be available on the Company's website for 90 days beginning at 12:00 p.m. ET today.

Presentation of Financial Information

Financial information discussed in this press release includes non-GAAP measures such as Adjusted EBITDA, Adjusted diluted EPS, Adjusted free cash flow, gross VOI sales, Adjusted net income, Adjusted pre-tax income and Adjusted EBITDA margin, which include or exclude certain items, as well as non-GAAP guidance. The Company utilizes non-GAAP measures, defined in Table 7, on a regular basis to assess performance of its reportable segments and allocate resources. These non-GAAP measures differ from reported GAAP results and are intended to illustrate what management believes are relevant period-over-period comparisons and are helpful to investors when considered with GAAP measures as an additional tool for further understanding and assessing the Company's ongoing operating performance by adjusting for items which in our view do not necessarily reflect ongoing performance. Management also internally uses these measures to assess our operating performance, both absolutely and in comparison to other companies, and in evaluating or making selected compensation decisions. Exclusion of items in the Company's non-GAAP presentation should not be considered an inference that these items are unusual, infrequent or non-recurring. Full reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures for the reported periods appear in the financial tables section of the press release.

The Company may use its website as a means of disclosing information concerning its operations, results and prospects, including information which may constitute material nonpublic information, and for complying with its disclosure obligations under SEC Regulation FD. Disclosure of such information will be included on the Company's website in the Investor Relations section at travelandleisureco.com/investors. Accordingly, investors should monitor that Investor Relations section of the Company website, in addition to accessing its press releases, its submissions and filings with the SEC, and its publicly noticed conference calls and webcasts.

About Travel + Leisure Co.

Travel + Leisure Co. (NYSE: TNL) is a leading leisure travel company, providing more than six million vacations to travelers around the world every year. The Company operates a diverse portfolio of vacation ownership, travel club, and lifestyle travel brands designed to meet the needs of the modern leisure traveler, whether they're traversing the globe or enjoying destinations closer to home. This includes experiential brands such as Sports Illustrated Resorts, Eddie Bauer Adventure Club, Margaritaville Vacation Club, and Accor Vacation Club, as well as cornerstone brands Club Wyndham, WorldMark, and RCI. With hospitality and responsible tourism at its heart, the Company's more than 19,000 dedicated associates worldwide help fulfill its mission to put the world on vacation. Learn more at travelandleisureco.com.

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