Travel + Leisure Co. Posts Double-Digit Q3 Profit Growth

TL;DR

**TNL's Q3 numbers are solid, showing strong vacation ownership sales and profit growth, making it a buy for leisure sector bulls.**

AI Summary

Travel + Leisure Co. (TNL) reported a strong third quarter for 2025, with net income attributable to shareholders increasing to $111 million, up from $97 million in Q3 2024, representing a 14.4% rise. Basic earnings per share from continuing operations grew to $1.70 from $1.40 year-over-year. Total net revenues for the quarter reached $1,044 million, a 5.1% increase from $993 million in Q3 2024, primarily driven by a 8.6% increase in vacation ownership interest sales to $494 million. Operating income also saw a significant boost, climbing 13.2% to $214 million from $189 million in the prior year. For the nine months ended September 30, 2025, net income from continuing operations was $291 million, a 11.9% increase from $260 million in the same period of 2024. The company's cash and cash equivalents increased to $240 million as of September 30, 2025, from $167 million at December 31, 2024, demonstrating improved liquidity. Share repurchases continued, with $211 million spent in the nine months ended September 30, 2025, compared to $162 million in the prior year, reducing common shares outstanding to 64.3 million.

Why It Matters

This strong performance by Travel + Leisure Co. signals robust demand in the vacation ownership and travel sectors, which could indicate broader consumer confidence in discretionary spending. For investors, the increased net income and EPS, coupled with continued share repurchases, suggest a healthy financial position and a commitment to shareholder returns, potentially making TNL an attractive investment in the leisure industry. Employees may benefit from a stable and growing company, while customers could see continued investment in travel products and services. In a competitive landscape, TNL's growth in vacation ownership sales and overall revenue demonstrates its ability to capture market share and adapt to evolving travel trends, potentially putting pressure on rivals.

Risk Assessment

Risk Level: medium — While TNL shows strong financial performance, the company's significant debt of $3,554 million as of September 30, 2025, up from $3,468 million at December 31, 2024, presents a medium risk. Additionally, the reliance on consumer financing for vacation ownership sales, with vacation ownership contract receivables at $2,592 million, exposes the company to potential credit risks and economic downturns affecting consumer spending.

Analyst Insight

Investors should consider initiating or increasing positions in TNL, given the strong Q3 2025 performance, particularly the 14.4% net income growth and increased share repurchases. Monitor the company's debt levels and consumer financing portfolio for any signs of deterioration, but the current trajectory suggests continued upside.

Financial Highlights

revenue

$1.04B

total Debt

$3.55B

net Income

$111M

eps

$1.70

cash Position

$240M

revenue Growth

+5.1%

Revenue Breakdown

Key Numbers

• $111M — Net Income (Q3 2025) (Increased 14.4% from $97M in Q3 2024)
• $1.70 — Basic EPS (Q3 2025) (Up from $1.40 in Q3 2024, indicating strong per-share profitability)
• $1.04B — Net Revenues (Q3 2025) (Increased 5.1% from $993M in Q3 2024, driven by vacation ownership sales)
• $494M — Vacation Ownership Interest Sales (Q3 2025) (Grew 8.6% from $455M in Q3 2024, a key revenue driver)
• $214M — Operating Income (Q3 2025) (Increased 13.2% from $189M in Q3 2024, showing operational efficiency)
• $291M — Net Income (9 months 2025) (Increased 11.9% from $260M in the same period of 2024)
• $240M — Cash and Cash Equivalents (Sep 30, 2025) (Increased from $167M at Dec 31, 2024, improving liquidity)
• $211M — Common Stock Repurchases (9 months 2025) (Increased from $162M in the prior year, boosting shareholder value)
• 64.3M — Common Shares Outstanding (Sep 30, 2025) (Reduced from 67.1M at Dec 31, 2024, due to repurchases)
• $3.55B — Total Debt (Sep 30, 2025) (Increased from $3.47B at Dec 31, 2024, a point of financial leverage)

Key Players & Entities

• Travel + Leisure Co. (company) — Registrant and global provider of hospitality services and travel products
• Deloitte & Touche LLP (company) — Independent Registered Public Accounting Firm
• SEC (regulator) — Securities and Exchange Commission
• $111 million (dollar_amount) — Net income attributable to Travel + Leisure Co. shareholders for Q3 2025
• $97 million (dollar_amount) — Net income attributable to Travel + Leisure Co. shareholders for Q3 2024
• $1,044 million (dollar_amount) — Total net revenues for Q3 2025
• $494 million (dollar_amount) — Vacation ownership interest sales for Q3 2025
• $240 million (dollar_amount) — Cash and cash equivalents as of September 30, 2025
• $211 million (dollar_amount) — Repurchase of common stock for the nine months ended September 30, 2025
• 64,325,188 (dollar_amount) — Shares of common stock outstanding as of September 30, 2025

FAQ

Risk Factors

• Economic Downturns Impacting Discretionary Spending [high — market]: The company's performance is sensitive to economic conditions. A significant downturn could reduce consumer demand for travel and leisure services, particularly high-ticket items like vacation ownership interests. This could lead to lower sales and profitability.
• Changes in Travel and Tourism Regulations [medium — regulatory]: Evolving regulations related to travel, health, and safety can impact operations and consumer confidence. Compliance with new or changing rules may require significant adjustments and incur additional costs.
• Dependence on Third-Party Suppliers and Partners [medium — operational]: The company relies on a network of hotels, resorts, and other service providers. Disruptions to these relationships or the performance of these partners could negatively affect the customer experience and the company's reputation.
• Interest Rate Fluctuations on Debt [medium — financial]: With $3.55 billion in total debt as of September 30, 2025, the company is exposed to interest rate risk. Rising interest rates could increase the cost of servicing its debt, impacting profitability.
• Litigation and Legal Proceedings [low — legal]: The company is subject to various legal actions and claims arising in the ordinary course of business. Adverse outcomes in significant litigation could result in substantial financial liabilities.

Industry Context

The travel and leisure industry is highly competitive and sensitive to economic conditions and consumer confidence. Companies like Travel + Leisure Co. operate in segments including vacation ownership, travel agencies, and loyalty programs. Trends include a growing demand for experiential travel and personalized services, alongside increasing digital integration and sustainability concerns.

Regulatory Implications

Travel and leisure companies face a complex regulatory environment, including consumer protection laws, data privacy regulations (e.g., GDPR, CCPA), and health and safety standards, particularly post-pandemic. Compliance is crucial to avoid fines and maintain customer trust.

What Investors Should Do

1. Monitor vacation ownership sales growth
2. Analyze debt levels and interest coverage
3. Evaluate the impact of share repurchases
4. Assess competitive positioning

Key Dates

• 2025-09-30: End of Q3 2025 — Reported strong financial results with increased net income, EPS, and revenues, driven by vacation ownership sales.
• 2025-12-31: End of Fiscal Year 2024 — Reported cash and cash equivalents of $167 million and total debt of $3.47 billion.
• 2025-02-19: Auditor's Report Date for FY 2024 — Indicated an unqualified opinion on the consolidated financial statements for the year ended December 31, 2024.
• 2025-10-22: Date of Independent Registered Public Accounting Firm's Review Report — Confirmed that no material modifications were needed for the interim financial information to conform with GAAP.

Glossary

Vacation ownership interest sales

Revenue generated from the sale of timeshare or fractional ownership interests in vacation properties. (A primary revenue driver for TNL, showing significant growth in Q3 2025.)

Basic earnings per share

The net income attributable to common shareholders divided by the weighted-average number of common shares outstanding during the period. (Indicates the profitability on a per-share basis, which increased to $1.70 in Q3 2025.)

Operating income

Profitability from a company's core business operations before interest and taxes. (Increased by 13.2% to $214 million in Q3 2025, reflecting improved operational efficiency.)

Cash and cash equivalents

Highly liquid investments with maturities of three months or less from the date of purchase. (Increased to $240 million, indicating improved liquidity for the company.)

Common shares outstanding

The total number of shares of common stock that have been issued and are held by investors. (Reduced to 64.3 million due to share repurchases, a strategy to enhance shareholder value.)

Variable Interest Entities (VIEs)

Entities for which equity investors have no voting rights or are otherwise unable to control the entity. The primary beneficiary consolidates the VIE. (Note 11 indicates the company has VIEs, which can impact financial reporting and risk exposure.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Travel + Leisure Co. has demonstrated robust growth, with net income from continuing operations up 11.9% and net revenues increasing by 5.1% in Q3 2025. The company has also significantly improved its liquidity, with cash and cash equivalents rising from $167 million to $240 million. Shareholder value initiatives are evident through increased share repurchases, leading to a reduction in common shares outstanding. While debt has slightly increased, the overall financial health appears strong, supported by operational efficiencies reflected in higher operating income.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share TNL New York Stoc

Filing Documents

• wyn-20250930.htm (10-Q) — 2291KB
• tnl-ex15_2025930x10q.htm (EX-15) — 3KB
• tnl-ex311_2025930x10q.htm (EX-31.1) — 9KB
• tnl-ex312_2025930x10q.htm (EX-31.2) — 9KB
• tnl-ex32_2025930x10q.htm (EX-32) — 5KB
• 0001361658-25-000315.txt ( ) — 13542KB
• wyn-20250930.xsd (EX-101.SCH) — 86KB
• wyn-20250930_cal.xml (EX-101.CAL) — 77KB
• wyn-20250930_def.xml (EX-101.DEF) — 522KB
• wyn-20250930_lab.xml (EX-101.LAB) — 918KB
• wyn-20250930_pre.xml (EX-101.PRE) — 724KB
• wyn-20250930_htm.xml (XML) — 2524KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Condensed Consolidated Financial Statements (Unaudited)

Item 1. Condensed Consolidated Financial Statements (Unaudited) 3 Report of Independent Registered Public Accounting Firm 3 Condensed Consolidated Statements of Income 4 Condensed Consolidated Statements of Comprehensive Income 5 Condensed Consolidated Balance Sheets 6 Condensed Consolidated Statements of Cash Flows 7 Condensed Consolidated Statements of Deficit 8 Notes to Condensed Consolidated Financial Statements 10 Note 1 - Background and Basis of Presentation 10 Note 2 - New Accounting Pronouncements 10 Note 3 - Revenue Recognition 11 Note 4 - Earnings Per Share 16 Note 5 - Acquisitions 17 Note 6 - Discontinued Operations 17 Note 7 - Vacation Ownership Contract Receivables 18 Note 8 - Inventory 20 Note 9 - Property and Equipment 21 Note 10 - Debt 21 Note 11 - Variable Interest Entities 24 Note 12 - Fair Value 25 Note 13 - Derivative Instruments and Hedging Activities 26 Note 14 - Income Taxes 26 Note 15 - Leases 27 Note 16 - Commitments and Contingencies 29 Note 17 - Accumulated Other Comprehensive Loss 30 Note 18 - Stock-Based Compensation 30 Note 19 - Segment Information 32 Note 20 - Impairments and other charges 37 Note 21 - Restructuring 37 Note 22 - Transactions with Former Parent and Former Subsidiaries 38 Note 23 - Related Party Transactions 40 Note 24 - Subsequent Event 40

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 41

Forward-Looking Statements

Forward-Looking Statements 41

Quantitative and Qualitative Disclosures About Market Risks

Item 3. Quantitative and Qualitative Disclosures About Market Risks 56

Controls and Procedures

Item 4. Controls and Procedures 56

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 58

Risk Factors

Item 1A. Risk Factors 58

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 58

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 58

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 58

Other Information

Item 5. Other Information 58

Exhibits

Item 6. Exhibits 59

Signatures

Signatures 60 1 Table of Contents GLOSSARY OF TERMS The following terms and acronyms appear in the text of this report and have the definitions indicated below: Adjusted EBITDA A non-GAAP measure, defined by the Company as net income from continuing operations before depreciation and amortization, interest expense (excluding consumer financing interest), early extinguishment of debt, interest income (excluding consumer financing revenues) and income taxes. Adjusted EBITDA also excludes stock-based compensation costs, separation and restructuring costs, legacy items, transaction and integration costs associated with mergers, acquisitions, and divestitures, asset impairments/recoveries, gains and losses on sale/disposition of business, and items that meet the conditions of unusual and/or infrequent. Legacy items include the resolution of and adjustments to certain contingent assets and liabilities related to acquisitions of continuing businesses and dispositions, including the separation of Wyndham Hotels & Resorts, Inc. and Avis Budget Group, Inc., and the sale of the vacation rentals businesses. Integration costs represent certain non-recurring costs directly incurred to integrate mergers and/or acquisitions into the existing business. AOCL Accumulated Other Comprehensive Loss AUD Australian Dollar ABG Avis Budget Group, Inc., formerly Cendant Corporation Awaze Awaze Limited, formerly Compass IV Limited, an affiliate of Platinum Equity, LLC Board Board of Directors Company Travel + Leisure Co. and its subsidiaries CODM Chief Operating Decision Maker EPS Earnings Per Share FASB Financial Accounting Standards Board GAAP Generally Accepted Accounting Principles in the United States HOA Homeowners' Associations NQ Non-Qualified stock options NZD New Zealand Dollar PSU Performance-vested restricted Stock Units RSU Restricted Stock Unit SEC Securities and Exchange Commission SOFR Secured Overnight Financing Rate SPE Special Purpose En

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Condensed Consolidated Financial Statements (Unaudited)

Item 1. Condensed Consolidated Financial Statements (Unaudited). REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders and Board of Directors of Travel + Leisure Co. Results of Review of Interim Financial Information We have reviewed the accompanying condensed consolidated balance sheet of Travel + Leisure Co. and subsidiaries (the "Company") as of September 30, 2025, the related condensed consolidated statements of income, comprehensive income and deficit for the three-month and nine-month periods ended September 30, 2025 and 2024, and of cash flows for the nine-month periods ended September 30, 2025 and 2024, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for them to be in conformity with accounting principles generally accepted in the United States of America. We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2024, and the related consolidated statements of income, comprehensive income, cash flows and deficit for the year then ended (not presented herein); and in our report dated February 19, 2025, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2024, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived. Basis for Review Results This interim financial information is the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the appl

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