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what it is
It sells vacation ownership interests, finances those sales, and collects fees from managing resorts, rentals, and exchange networks.
how it gets paid
FY2025 total revenues were ~$5.03B vs ~$4.97B in 2024 (~+1.3%) on the consolidated revenue table—not the old ~$4.7B misread. Largest line: sale of vacation ownership products ~$1.46B (~29% of total revenues).
why it's growing
Growth is not “exciting”: total revenues barely moved YoY while the business is restructuring and took large non-cash impairments. Consolidated contract sales were $1.8B FY2025 (a different KPI than GAAP revenue).
what just happened
FY2025 GAAP diluted EPS was $(8.84) (net loss ~$308M) including ~$577M of non-cash impairment charges; adjusted diluted EPS was $7.16. Q4 2025 was loss-heavy on a GAAP basis as impairments landed in the quarter.
At a glance
B+ balance sheet — decent shape, but not bulletproof
10/100 earnings predictability — expect surprises
~9× on adjusted FY2025 EPS — GAAP P/E is not meaningful this year
5.0% dividend yield — cash in your pocket every quarter
4.5% return on capital — nothing to write home about
xvary composite: 53/100 — below average
What they do
It sells vacation ownership interests, finances those sales, and collects fees from managing resorts, rentals, and exchange networks.
This business sells trust first. Marriott Vacations has over 120 properties and more than 22,000 ownership villas under brands like Marriott, Ritz-Carlton, and Sheraton, so you are buying a familiar badge, not an unknown condo pitch. That matters because 85% of 2024 revenue came from the U.S., where those brands, sales centers, and customer pipelines are already in place.
How they make money
~$5.03B
FY2025 total revenues · ~+1.3% vs FY2024 (consolidated statements)
Sale of vacation ownership products
$1.46B
+1.1%
Management and exchange
$0.86B
+2.0%
Rental
$0.65B
+0.8%
Financing (interest income)
$0.36B
+5.3%
Cost reimbursements (pass-through)
$1.70B
+0.5%
The products that matter
timeshare sales and financing
Vacation Ownership
~$1.46B revenue · ~29% of FY2025 total revenues
GAAP sale of vacation ownership products revenue ~$1.46B FY2025. Separately, the company also reports consolidated contract sales $1.8B—do not conflate the two KPIs.
core engine
resort operations and owner services
Management & Exchange
~$0.86B · ~17% of FY2025 total revenues
Consolidated line management and exchange ~$860M FY2025—recurring-ish economics, but still not a substitute for contract sales momentum.
stabilizer
vacation property rentals
Rental
~$0.65B · ~13% of FY2025 total revenues
Rental revenue ~$650M FY2025—watch leisure demand and rate/mix; it is not large enough to mask a weak ownership sales cycle by itself.
margin pressure
Key numbers
9.0x
trailing p/e
P/E ratio → price compared with profit → so what: you are paying $9 for each $1 of earnings, which is cheap if earnings hold.
~$5.6B
corporate + non-recourse debt
Year-end 2025: ~$3.5B corporate debt and ~$2.1B non-recourse securitized VOI notes receivable debt (per the release)—liquidity and refi windows matter as much as occupancy.
5.0%
dividend yield
Dividend yield → cash paid to shareholders each year → so what: you get paid to wait, but only if cash flow stays intact.
14.2%
operating margin
Operating margin → profit after running the business → so what: this is solid for travel, but not high enough to make the debt irrelevant.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 35 / 100
- long-term debt ~$5.6B corporate + non-recourse (see KPI)
- net profit margin 5.2% — keeps 5 cents of every dollar in revenue
- return on equity 10% — $0.10 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in VAC 3 years ago → it's now worth $4,750.
The index would have given you $14,770.
source: institutional data · total return
What just happened
fy 2025 reported
FY2025 total revenues ~$5.03B (~+1.3% YoY); adjusted diluted EPS $7.16 vs GAAP diluted loss $(8.84) after impairments.
Q4 2025: adjusted diluted EPS $1.86; adjusted EBITDA $186M. Consolidated contract sales $458M in the quarter and $1.8B for the year—use the right KPI for the question you are asking.
~$5.03B
FY2025 revenues
$7.16
adj. diluted EPS
$751M
adj. EBITDA (FY)
the number that mattered
The GAAP loss is impairment-driven; the operating question is whether adjusted earnings and cash generation can outrun the debt stack—read both GAAP and adjusted tables.
-
shares of marriott vacations (vac) have ridden volatile expectations this year.
-
management's subdued outlook and modest 2024 year-end results sent the shares down 44% at the start of 2025, before revived economic confidence and inline first-quarter results resulted in a 72% rebound through july.
-
the share-price slide from there began modestly, with decent second-quarter earnings; however, third-quarter results were well below expectations, and pushed the shares down 45% from the july highs.
-
there were many factors behind the disappointment, including a 2% vs. prior year decline in revenues, a 4% dip in contract sales, a 5% decline in value per guest, and a 1% fall in the number of tours, and a 6% decline in earnings.
-
however, earnings were up for the first three quarters of the year, largely due to lower tax rates and the benefits of mv's modernization program, which is targeted to deliver $150 million to $200 million in gains by the end of 2026.
P0: Q4 & FY2025 results (Feb 25, 2026) — ir.marriottvacationsworldwide.com
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What could go wrong
the core risk is simple: VAC still depends on a very optional purchase, and the balance sheet gives management less room for error than the low multiple suggests.
med
vacation ownership demand weakens
vacation ownership sales are ~38% of FY revenue in this snapshot and were down ~3% FY in the segment table. if tour flow or close rates soften, that line moves first.
impact: the segment carrying most of the revenue mix stops covering for everything else
med
~$5.6B of debt turns volatility into pressure
Heavy corporate and securitized leverage makes earnings volatility feel bigger in equity terms—especially when GAAP results swing on non-cash impairments.
impact: less room for misses, slower recovery, and more scrutiny on dividend durability
med
rental pressure keeps spreading
rental revenue was down ~4% FY per the segment table. the segment is small, but softness here rarely stays politely contained if travel demand weakens.
impact: the earnings recovery story keeps getting pushed out
med
leadership transition delays a clean fix
an interim CEO can stabilize operations, but "interim" is not a strategy. if you own the stock, you want a clear operating playbook quickly.
impact: execution gets watched harder and valuation stays skeptical
The quiet part: “cheap on adjusted earnings” only holds if you trust the adjusted bridge—GAAP FY2025 is loss-making on impairments, debt is ~$5.6B inclusive of non-recourse securitizations, and demand is elective.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
contract sales growth
management is guiding for 1% contract sales growth in 2026. low bar, real bar. if the core engine cannot clear even that, the recovery case gets thin fast.
risk
debt reduction progress
Asset-sale plans are meaningful only if proceeds show up against a ~$5.6B total debt picture (corporate + non-recourse)—track cash, not slide decks.
calendar
interim ceo strategy update
the first clear operating plan under the interim CEO matters. you want specifics on sales trends, inventory discipline, and how capital gets allocated from here.
trend
recurring segment resilience
management & exchange profit grew 9% even in a bad quarter. if that keeps holding up while rental stabilizes, the downside case gets less ugly.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts think the stock is moving with the tape, not escaping it.
risk profile
average
stability score 3 — middle-of-the-pack risk, but the debt load keeps it from feeling remotely defensive.
chart momentum
below average
technical score 4 — the chart still wants evidence before it signs off on the turnaround story.
earnings predictability
10 / 100
that means analysts do not trust the earnings stream to arrive cleanly quarter after quarter. you should read the stock the same way.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 144 buyers vs. 142 sellers in 3q2025. total institutional holdings: 31.3M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$44
$129
$64
current price
$87
target midpoint · +36% from current · 3-5yr high: $135 (+110% · 23% ann'l return)
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