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what it is
Travel + Leisure sells memberships, resort stays, and vacation ownership to people who want packaged trips.
how it gets paid
FY2025 net revenue was $4.02B (+4.1% vs. prior year). Vacation Ownership segment revenue was $3.36B (~84% of the total); Travel and Membership was $0.66B (~16%).
why it's growing
Adjusted diluted EPS was $6.34 FY2025 (+10.3% vs $5.75 FY2024). Adjusted EBITDA was $990M on $4.02B net revenue (~24.6% margin).
what just happened
Q4 2025 net revenue ~$1.03B. GAAP diluted loss $(0.95) after ~$210M inventory write-downs; adjusted diluted EPS $1.83 (+6% vs $1.72 prior-year quarter).
At a glance
B+ balance sheet — decent shape, but not bulletproof
25/100 earnings predictability — expect surprises
~11.7x trailing on FY25 adjusted diluted EPS ($6.34) — GAAP $3.44 is lower after write-downs
3.3% dividend yield — cash in your pocket every quarter
11.0% return on capital — nothing to write home about
xvary composite: 70/100 — average
What they do
Travel + Leisure sells memberships, resort stays, and vacation ownership to people who want packaged trips.
You are not buying one hotel brand. You are buying nearly 20 travel and lifestyle brands, including Club Wyndham, WorldMark, and RCI. Leaving means giving up points, clubs, and trips already tied to your wallet.
How they make money
$4.02B
FY2025 net revenue · +4.1% vs. prior year (segment totals match reportable segments in the Feb 18, 2026 release)
Vacation Ownership
$3.36B
up
Travel and Membership
$0.66B
down
segment view per Feb 18, 2026 earnings release — consolidated lines also show net VOI sales, service fees, consumer financing, and other.
The products that matter
vacation ownership network
Club Wyndham
flagship brand · $4.02B FY25 net revenue
Club Wyndham sits inside Vacation Ownership — $3.36B segment revenue in FY2025. If VOI demand softens, the majority of net revenue is in the blast radius.
core brand
recurring travel memberships
Membership programs
Travel and Membership · $662M FY25 segment revenue
This segment was down ~5% vs. prior year in FY2025; Q4 mix skewed to lower-margin travel-club transactions per the release. It’s the smaller line, but it affects how “steady” the top line feels.
repeat demand
resort and club portfolio
Leisure travel brands
nearly 20 brands
The company cites a broad brand portfolio (Club Wyndham, WorldMark, RCI, and newer lifestyle names). Breadth helps, but FY2025 results still hinge on Vacation Ownership.
portfolio scale
Key numbers
~11.7x
adj. trailing p/e
$74.49 ÷ FY2025 adjusted diluted EPS $6.34 ≈ 11.7x. GAAP diluted EPS was $3.44 after Resort Optimization charges — a much higher multiple on that figure.
3.3%
dividend yield
The dividend yields 3.3%. That gives you cash back while you wait for the stock to rerate.
24.6%
adj. EBITDA margin
FY2025 adjusted EBITDA $990M on $4.02B net revenue. GAAP operating income was lower after impairments — do not confuse the two.
$67
price target
The 18-month target is $67. That is below the current $74.49 price, so the market is already ahead of the target.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 50 / 100
- long-term debt ~$3.47B corporate debt + ~$2.12B non-recourse securitized (Dec 31, 2025)
- net profit margin ~5.7% GAAP net margin FY25 ($230M net income / $4.02B) — write-downs drag GAAP vs adjusted
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in TNL 3 years ago → it's now worth $20,910.
The index would have given you $14,770.
source: institutional data · total return
What just happened
gaap loss, adj beat
Q4 net revenue ~$1.03B; adjusted diluted EPS $1.83 (+6% vs. prior year).
GAAP net loss $(61)M and diluted loss $(0.95) included ~$210M of inventory write-downs and impairments from the Resort Optimization Initiative. Street models usually focus on adjusted EPS, which cleared the noise in the quarter.
$1.03B
Q4 revenue
$1.83
Q4 adj. EPS
$6.34
FY25 adj. EPS
the number that mattered
FY2025 adjusted diluted EPS of $6.34 on $4.02B net revenue, with adjusted free cash flow of $516M — the frame management used for “full year” execution in the Feb 18, 2026 release.
-
2026 outlook: adjusted EBITDA guided to $1,030M–$1,055M; Q1 2026 adjusted EBITDA $210M–$220M.
-
Board approved a new $750M share repurchase authorization; FY2025 buybacks were $300M (5.4M shares).
-
Management will recommend raising the Q1 2026 dividend to $0.60 per share (subject to board approval in Mar 2026).
-
Resort Optimization Initiative: FY2025 included $216M of inventory write-downs and impairments; 17 resorts flagged for reinvestment or repositioning.
-
Balance sheet: ~$3.47B corporate debt; ~$2.12B non-recourse securitized notes; covenant leverage under 3.1x; liquidity ~$1.15B (cash + revolver).
source: Travel + Leisure Co. press release, Feb 18, 2026 (Q4 & FY2025)
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What could go wrong
the #1 risk is a discretionary travel slowdown hitting vacation ownership demand.
med
consumer pullback in leisure spending
TNL lives in discretionary travel. If households cut vacations, the $4.02B net revenue base — mostly Vacation Ownership — feels it directly.
impact: segment revenue was $3.36B in Vacation Ownership FY2025; a VOI slowdown hits the core.
med
balance sheet flexibility
Corporate debt ~$3.47B plus ~$2.12B non-recourse securitized paper (Dec 31, 2025). Structure matters: securitization is non-recourse, but the overall balance sheet is still debt-heavy.
impact: covenant headroom and refinancing terms matter whenever travel demand wobbles.
med
membership economics not proving durable enough
The better version of this story depends on repeat customers and loyalty behavior. Earnings predictability at 25/100 says that still needs proving.
impact: if adjusted EBITDA margins compress while GAAP charges recur, the “cheap on adjusted EPS” story gets harder to trust.
between $4.02B of net revenue and a layered debt stack (corporate plus securitized), this is discretionary travel — execution and leverage both have to cooperate.
source: institutional data · regulatory filings · risk analysis
Pay attention to
trend
revenue growth versus margin stability
FY2025 net revenue +4.1% vs. prior year; GAAP net margin ~5.7% after write-downs vs ~24.6% adjusted EBITDA margin — watch both when the story gets noisy.
metric
long-term debt
track corporate debt, securitized balances, and liquidity (~$1.15B per release) through 2026 guidance.
calendar
next earnings print
with earnings predictability at 25/100, every quarter is a fresh test of whether the steady-story pitch is real.
risk
analyst targets versus price
the current price is $74.49 while the 3–5 year midpoint is $67. if operations do not keep improving, that gap can close the wrong way.
Analyst rankings
short-term outlook
top 5%
momentum score 1 — the highest rating. in human-speak, analysts think this stock's recent run can keep going near term.
risk profile
average
stability score 3 — a middle-of-the-pack risk setup. not especially safe, not especially fragile.
chart momentum
average
technical score 3 — the chart is constructive, but not doing anything so unusual that you can ignore fundamentals.
earnings predictability
25 / 100
low predictability — the business may be steady enough over time, but the quarter-to-quarter path can still surprise you.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 199 buyers vs. 180 sellers in 3q2025. total institutional holdings: 59.2M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$41
$93
$74.49
current price
$67
target midpoint · 10% from current · 3-5yr high: $105 (+40% · 12% ann'l return)
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