# Travel & Leisure Co. (TNL)

Informational only - not investment advice.

CIK: 0001361658
SIC: 7011 Hotels & Motels
SIC breadcrumb: [Services](/division/I/) > [SIC Major Group 70](/major-group/70/) > [SIC 7011 Hotels & Motels](/industry/7011/)
Latest 10-K filed: 2026-02-18
SEC page: https://www.sec.gov/edgar/browse/?CIK=1361658
Filing source: https://www.sec.gov/Archives/edgar/data/1361658/000136165826000009/tnl-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-18 · accession 0001361658-26-000009 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001361658.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 4,021,000,000 USD | 2025 | verified |
| Net income | 230,000,000 USD | 2025 | verified |
| Assets | 6,760,000,000 USD | 2025 | verified |
| Free cash flow | 523,000,000 USD | 2025 | computed |
| Net margin | 5.72% | 2025 | computed |
| Operating margin | 13.75% | 2025 | computed |
| Revenue YoY | +4.06% | 2025 | computed |

Stockholders' equity was not positive at FY2025 year-end (-981,000,000 USD, as filed); ROE and liabilities / equity are omitted rather than computed.

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only).

Peer groups: [Lodging and hotel operators](/compare/lodging/) · SIC 7011 Hotels & Motels

No market price, no rating, no forecast on this site. Not investment advice.

## Peer comparisons including TNL

- Lodging and hotel operators: [peer review](/compare/lodging/) · [market-risk page](/compare/lodging/risk/)

### Peer percentile fingerprint

| Ratio | TNL | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 5.7% | 5.8% | 47 | 18 |
| Operating margin | 13.8% | 15.8% | 36 | 15 |
| Revenue growth | 4.1% | 3.9% | 53 | 18 |
| FCF margin | 13.0% | 9.6% | 71 | 18 |
| ROA | 3.4% | 2.9% | 53 | 18 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7011 Hotels & Motels, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 4021000000 | USD | 2025 | 2026-02-18 |
| Net income | 230000000 | USD | 2025 | 2026-02-18 |
| Assets | 6760000000 | USD | 2025 | 2026-02-18 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-18. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001361658.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  |  | 4,043,000,000 | 2,160,000,000 | 3,134,000,000 | 3,567,000,000 | 3,750,000,000 | 3,864,000,000 | 4,021,000,000 |
| Net income | 611,000,000 | 854,000,000 | 672,000,000 | 507,000,000 | -255,000,000 | 308,000,000 | 357,000,000 | 396,000,000 | 411,000,000 | 230,000,000 |
| Operating income | 658,000,000 | 439,000,000 | 523,000,000 | 812,000,000 | -105,000,000 | 618,000,000 | 653,000,000 | 720,000,000 | 733,000,000 | 553,000,000 |
| Diluted EPS | 5.52 | 8.24 | 6.77 | 5.48 | -2.97 | 3.52 | 4.24 | 5.28 | 5.82 | 3.44 |
| Operating cash flow | 963,000,000 | 986,000,000 | 442,000,000 | 452,000,000 | 374,000,000 | 568,000,000 | 442,000,000 | 350,000,000 | 464,000,000 | 640,000,000 |
| Capital expenditures | 117,000,000 | 107,000,000 | 99,000,000 | 108,000,000 | 69,000,000 | 57,000,000 | 52,000,000 | 74,000,000 | 81,000,000 | 117,000,000 |
| Dividends paid | 223,000,000 | 242,000,000 | 194,000,000 | 166,000,000 | 138,000,000 | 109,000,000 | 135,000,000 | 136,000,000 | 142,000,000 | 149,000,000 |
| Share buybacks | 619,000,000 | 599,000,000 | 330,000,000 | 340,000,000 | 128,000,000 | 25,000,000 | 351,000,000 | 309,000,000 | 234,000,000 | 301,000,000 |
| Assets | 9,819,000,000 | 10,450,000,000 | 7,158,000,000 | 7,453,000,000 | 7,613,000,000 | 6,588,000,000 | 6,757,000,000 | 6,738,000,000 | 6,735,000,000 | 6,760,000,000 |
| Liabilities | 9,101,000,000 | 9,676,000,000 | 7,727,000,000 | 7,977,000,000 | 8,581,000,000 | 7,382,000,000 | 7,661,000,000 | 7,655,000,000 | 7,615,000,000 | 7,742,000,000 |
| Stockholders' equity | 714,000,000 | 769,000,000 | -574,000,000 | -530,000,000 | -975,000,000 | -801,000,000 | -913,000,000 | -918,000,000 | -881,000,000 | -981,000,000 |
| Cash and cash equivalents | 113,000,000 | 48,000,000 | 218,000,000 | 355,000,000 | 1,196,000,000 | 369,000,000 | 550,000,000 | 282,000,000 | 167,000,000 | 253,000,000 |
| Free cash flow | 846,000,000 | 879,000,000 | 343,000,000 | 344,000,000 | 305,000,000 | 511,000,000 | 390,000,000 | 276,000,000 | 383,000,000 | 523,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  |  | 12.54% | -11.81% | 9.83% | 10.01% | 10.56% | 10.64% | 5.72% |
| Operating margin |  |  |  | 20.08% | -4.86% | 19.72% | 18.31% | 19.20% | 18.97% | 13.75% |
| Return on assets | 6.22% | 8.17% | 9.39% | 6.80% | -3.35% | 4.68% | 5.28% | 5.88% | 6.10% | 3.40% |

## As-reported value updates

10 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/TNL/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-22. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001361658.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 1.38 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.81 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 1.25 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 986,000,000 | 110,000,000 | 1.49 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 936,000,000 | 129,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 916,000,000 | 66,000,000 | 0.92 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 |  | 66,000,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 985,000,000 |  | 1.81 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 993,000,000 | 97,000,000 | 1.39 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 971,000,000 | 119,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 934,000,000 | 73,000,000 | 1.07 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 1,018,000,000 | 108,000,000 | 1.62 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 1,044,000,000 | 111,000,000 | 1.67 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 1,025,000,000 | -61,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 961,000,000 | 79,000,000 | 1.22 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 1,063,000,000 | 109,000,000 | 1.72 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from TNL's latest 10-K: [/company/TNL/business/](/company/TNL/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from TNL's latest 10-K: [/company/TNL/risk-factors/](/company/TNL/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1361658/000136165826000053/wyn-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-22
Report date: 2026-06-30

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

FORWARD-LOOKING STATEMENTS

This report includes “forward-looking statements” as that term is defined by the Securities and Exchange Commission (“SEC”). Forward-looking statements are any statements other than statements of historical fact, including statements regarding our expectations, beliefs, hopes, intentions or strategies regarding the future. In some cases, forward-looking statements can be identified by the use of words such as “may,” “will,” “expects,” “should,” “believes,” “plans,” “anticipates,” “estimates,” “predicts,” “potential,” “projects,” “continue,” “guidance,” “commitments,” “future,” “outlook,” or other words of similar meaning. Forward-looking statements are subject to risks and uncertainties that could cause actual results of Travel + Leisure Co. and its subsidiaries (“Travel + Leisure Co.” or “we”) to differ materially from those discussed in, or implied by, the forward-looking statements. Factors that might cause such a difference include, but are not limited to, risks associated with: the acquisition of the Travel + Leisure brand and the future prospects and plans for Travel + Leisure Co., including our ability to execute our strategies to grow our cornerstone timeshare and exchange businesses and expand into the broader leisure travel industry; the health of the travel industry and declines or disruptions caused by adverse economic conditions (including inflation, recent tariff actions and other trade restrictions, higher interest rates, and recessionary pressures), travel restrictions, terrorism or acts of violence, political strife, war (including hostilities in Ukraine and the Middle East), pandemics, and severe weather events and other natural disasters; our ability to compete in the highly competitive timeshare and leisure travel industries; uncertainties related to acquisitions, dispositions and other strategic transactions; adverse changes in consumer travel and vacation patterns, consumer preferences and demand for our products; increased or unanticipated operating costs and other inherent business risks; our ability to comply with financial and restrictive covenants under our indebtedness; our ability to access capital and insurance markets on reasonable terms, at a reasonable cost or at all; maintaining the integrity of internal or customer data and protecting our systems from cyber-attacks; compliance with consumer privacy laws; the timing and amount of future dividends and share repurchases, if any; failure to obtain the necessary court approvals associated with our resort optimization initiative; and those other factors disclosed as risks under “Risk Factors” in documents we have filed with the SEC, including in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 18, 2026. We caution readers that any such statements are based on currently available operational, financial and competitive information, and they should not place undue reliance on these forward-looking statements, which reflect management’s opinion only as of the date on which they were made. Except as required by law, we undertake no obligation to review or update these forward-looking statements to reflect events or circumstances as they occur.

BUSINESS AND OVERVIEW

We are a global provider of hospitality services and travel products with the following two segments:

•Vacation Ownership — develops, markets and sells vacation ownership interests (“VOIs”) to individual consumers, provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts. This segment is wholly comprised of our Vacation Ownership business line.

•Travel and Membership — operates a variety of travel businesses, including vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment is comprised of our Exchange and Travel Club business lines.

Economic Conditions and Key Business Trends

Our results for the three and six months ended June 30, 2026 highlight the strength and efficiency of our vacation ownership sales process driven by high quality tours, and the recognition of benefits resulting from strategic decisions made in 2025, mainly the resort optimization initiative. These benefits are apparent in both the quarter to date and year to date results of our Vacation Ownership segment with revenue and Adjusted EBITDA increases as compared to the prior year. Revenue growth at this segment was driven by higher tours and volume per guest (“VPGs”), with Adjusted EBITDA further benefitted by cost savings attributable to lower maintenance fees incurred on unsold VOIs as a result of resorts closed as part of the resort optimization initiative. We believe the tour increase, coupled with a significant increase in VPGs as compared to the prior year, highlights consumers’ recognition of the value proposition of our products. Such value proposition becomes especially apparent during periods of inflation when the costs of other accommodation types are rising. Our Vacation Ownership business is benefited by the fact that the majority of our owners do not have loans and are therefore less dependent on economic conditions when making travel decisions, which provides opportunities for upgrade sales. Subsequent to the end of the quarter, we closed on the acquisition of Yes& Vacations and entered into a definitive agreement to acquire Spinnaker Resorts. These transactions will expand our network of resorts and number of owners. Upon closing, these transactions are expected to be immediately accretive and create opportunities for owner monetization, receivables optimization, and recurring management fee growth. These acquisitions will be included within our Vacation Ownership segment. See Note 23—Subsequent Events for additional information.

At our Travel and Membership business, the results for the three and six months ended June 30, 2026 reflect the impacts of continued exchange headwinds associated with reduced member counts and the increased mix of members with club

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affiliations. While Travel Club transactions have increased on both a quarter to date and year to date basis as compared to the prior year, this shift in transaction mix is putting downward pressure on revenue per transaction as there was a significant decline in Travel Club revenue per transaction due to an increased mix of transactions sourced from lower commission partners. Given recent declines in the number of exchange members, this business may be negatively impacted in the future if we are required to purchase additional inventory to supplement the inventory supplied by exchange members. Despite the headwinds faced by this business it remains a capital-light, high-margin business that generates significant cash flows. We continue to focus on stabilizing the long-term earnings and cash flow generation of this business through operational improvements, new strategic partnerships, and digital initiatives.

While we continue to benefit from the changes we made to our marketing criteria to strengthen sales efficiencies and improve the performance of our vacation ownership contract receivables (“VOCR”) portfolio, similar to a number of other companies, we are experiencing some pressure on our loan portfolio primarily due to delinquencies remaining elevated over historical levels, however delinquency levels are beginning to normalize with sequential improvement as compared to the first quarter of the year.

Our interest expense during the first half of 2026 was benefitted by savings associated with our 2025 and 2026 corporate debt refinancing activities. The 2025 refinancing activities reduced the associated interest rate spread on borrowings under our revolving credit facility by 25 basis points at all pricing levels, reduced the interest rate on our term loan B facility by 50 basis points, and provided for a nearly 50 basis point interest rate reduction on our refinanced $350 million notes. During the second quarter of 2026, we reduced the associated interest rate on our refinanced $650 million notes by nearly 40 basis points. As a result, interest expense for the first half of the year remained flat despite higher outstanding borrowings. Additionally, we closed on a $325 million term securitization at the end of the first quarter of 2026 with a 98% advance rate and weighted average coupon rate of 5.11%, which is well below the average interest rate on our portfolio creating significant interest income opportunities and serving to strengthen our liquidity position. Subsequent to the end of the second quarter, we closed on additional term securitization financings of $300 million with a 98% advance rate and weighted average coupon rate of 5.52%. These transactions reflect our ability to access the capital markets even during times of market volatility.

While overall we had a strong first half of the year, the sustained effects of hostilities in the Middle East, inflationary pressures, high interest rates, high fuel costs, and risk of recession inherently result in uncertainty in business trends and consumer behavior. Since our Vacation Ownership and Travel and Membership businesses are highly dependent on the health of the travel industry, declines in, or disruptions to, the industry such as those caused by adverse economic conditions may adversely affect us. We are also subject to the other risks and uncertainties discussed in “Risk Factors” contained in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 18, 2026.

Resort Optimization Initiative

In order to promote the long-term strength of our vacation ownership resorts, during 2025 we undertook a strategic review 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 those located in markets that no longer align with owner demand. This initiative has generated, and is expected to generate further, meaningful savings attributable to developer obligations, which represent the maintenance fees we incur on unsold VOIs. Such savings are partially offset by the loss of, or reduction in, VOI sales and property management fees earned at the impacted resorts, but are expected to result in a positive net impact to Adjusted EBITDA. These benefits are reflected in the $40 million reduction in developer obligations associated with this initiative through the first half of the year, as compared to the prior year.

In connection with these actions, we incurred $233 million of charges in 2025. These charges are discussed further in Note 20—Restructuring—Resort Optimization Initiative to the Condensed Consolidated Financial Statements, along with a description of the restructuring plan we are undertaking in connection with this strategic review.

During the six months ended June 30, 2026, we incurred an additional $31 million of charges associated with the resort optimization initiative, consisting of $11 million of inventory impairment charges and $14 million of inventory write-downs driven by actions that were approved by owners during the first half of 2026, and $6 million of resort closure, severance, and other associated employee costs.

As of June 30, 2026, we have received confirmation of both HOA board and required member approvals of the proposed actions under this initiative.

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Pillar Two

The Organization for Economic Co-operation and Development (“OECD”), continues to advance initiatives, including Pillar Two which introduced a global minimum ta

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1361658/000136165826000009/tnl-20251231.htm
Complete FY 2025 MD&A: /company/TNL/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-18
Report date: 2025-12-31

ITEM 7.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

BUSINESS AND OVERVIEW

We are a global provider of hospitality services and travel products with the following two reportable segments:

•Vacation Ownership — develops, markets, and sells vacation ownership interests (“VOIs”) to individual consumers, provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts. This segment is wholly comprised of our Vacation Ownership business line.

•Travel and Membership — operates a variety of travel businesses, including vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment is comprised of our Exchange and Travel Club business lines.

Economic Conditions and Key Business Trends

During 2025, our business saw continued demand for leisure travel which resulted in higher Gross VOI sales and Adjusted EBITDA growth at our Vacation Ownership business, as compared to the prior year. Tour flow increased year‑over‑year in the fourth quarter, as well as for the full year. We believe this tour increase, coupled with a significant increase in volume per guest (“VPGs”) as compared to the prior year, highlights consumers’ recognition of the value proposition of our products. Such value proposition becomes especially apparent during periods of inflation when the costs of other accommodation types are rising. Although consumer sentiment progressively declined throughout 2025, our Vacation Ownership business is benefited by the fact that the majority of our owners do not have loans and are therefore less dependent on economic conditions when making travel decisions, which provides opportunities for upgrade sales.

At our Travel and Membership business, 2025 continued to reflect the impacts of exchange headwinds, which resulted in lower revenues. This decline was primarily attributed to a reduction in member counts and an increasing mix of exchange members with club affiliations. Exchange members with club affiliations have historically demonstrated a lower propensity to transact, which has contributed to a decline in exchange transactions. This decline was partially offset by continued growth in Travel Club transactions. Exchange revenue per transaction remained flat compared to the prior year, while Travel Club revenue per transaction declined. However, the overall improvement in Travel Club transactions outpaced the decline in revenue per transaction leading to increased revenue for this subset of the business, supporting this segment’s performance. Given recent declines in the number of exchange members, this business may be negatively impacted in the future if we are required to purchase additional inventory to supplement the inventory supplied by exchange members.

While we continue to benefit from the changes we made to our marketing criteria to strengthen sales efficiencies and improve the performance of our vacation ownership contract receivables (“VOCR”) portfolio, similar to a number of other companies, we are experiencing some pressure on our loan portfolio primarily due to delinquencies remaining elevated over historical levels.

We have seen an improvement in interest rates on our variable rate corporate borrowings which positively impacted our interest expense during 2025. Interest expense was also benefitted by savings associated with refinancing our revolving credit facility at the end of the second quarter, which reduced the associated interest rate spread on borrowings by 25 basis points at all pricing levels, and the refinancing of our $350 million notes in the third quarter with a nearly 50 basis point interest rate reduction. We anticipate further interest savings following the refinancing of our Term Loan B facility, which occurred at the end of the fourth quarter and reduced the interest rate on this facility by 50 basis points (see Note 15—Debt to the Consolidated Financial Statements for additional details on these refinancings). Additionally, we completed three term securitizations during 2025. Two had terms comparable to our 2024 transactions, while the third, completed in the fourth quarter, achieved our lowest coupon rate since 2022. These transactions demonstrate the strength of our business, even during times of market volatility.

While overall we have benefited from positive demand trends through the year, the sustained effects of inflationary pressures over time, high interest rates and risk of recession inherently result in uncertainty in business trends and consumer behavior. Recent tariff actions and other trade restrictions have increased this uncertainty.

Our Vacation Ownership and Travel and Membership businesses are highly dependent on the health of the travel industry and declines in, or disruptions to, the industry such as those caused by adverse economic conditions may adversely affect us. We are also subject to the other risks and uncertainties discussed in “Risk Factors” contained in Part I, Item 1A of this Annual Report on Form 10-K.

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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. See Note 25—Restructuring—Resort Optimization Initiative to the Consolidated Financial Statements for a description of the restructuring plan we are undertaking in connection with this strategic review.

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 an expected positive net impact to Adjusted EBITDA beginning in 2026. In connection with these actions, during 2025, we incurred the following charges:

•$216 million of inventory write-downs and impairments, which are included within Cost of vacation ownership interests on the Consolidated Statements of Income;

•$9 million of other charges consisting primarily of employee‑related costs, of which $5 million is included within Operating expense and $4 million is included in Restructuring on the Consolidated Statements of Income; and

•$8 million of property and equipment impairments, which are included within Asset impairments, net.

We would expect to incur an additional $4 million of inventory impairment charges and an additional $11 million of inventory write-downs if the remaining actions are approved by the owners in the first quarter of 2026.

Pillar Two

The Organization for Economic Co-operation and Development (“OECD”), continues to advance initiatives, including Pillar Two which introduced a global minimum tax at a rate of 15%. A number of countries have implemented the OECD’s Pillar Two rules with effective dates of January 1, 2024 and January 1, 2025, for different aspects of the directive. As of December 31, 2025, based on the countries in which we do business that have enacted legislation effective January 1, 2025, the impact of these rules did increase our effective tax rate but overall the impact to our financial statements was not material. This may change as other countries enact similar legislation and further guidance is released. We continue to closely monitor regulatory developments to assess potential impacts, including the OECD’s published administrative guidance, released January 5, 2026, on a side-by-side system, which would effectively exempt U.S. multinationals from certain provisions of Pillar Two.

Recent Legislation

On July 4, 2025, the bill commonly referred to as the “One Big Beautiful Bill Act” was signed into law. Among other provisions, the bill extends permanently, with modifications, tax provisions enacted as part of the 2017 Tax Cuts and Jobs Act and restores and makes permanent many business provisions, such as full expensing for research and development and capital investments. In addition, the bill contains other new tax relief measures and various revenue raising measures. The legislation has multiple effective dates. For the provisions effective in 2025, there was no material impact to our effective tax rate for the year ended December 31, 2025. For the provisions which will become effective in 2026, we are currently assessing the potential impact of these changes on our business and financial results.

SEGMENT OVERVIEW

Vacation Ownership

We develop, market, and sell VOIs to individual consumers, provide consumer financing in connection with the sale of VOIs, and provide property management services at resorts. Our sales of VOIs are either cash sales or developer-financed sales. Developer-financed sales are typically collateralized by the underlying VOI. Revenue is recognized on VOI sales upon transfer of control, which is defined as the point in time when a binding sales contract has been executed, the financing contract has been executed for the remaining transaction price, the statutory rescission period has expired, and the transaction price has been deemed to be collectible.

For developer-financed sales, we reduce the VOI sales transaction price by an estimate of uncollectible consideration at the time of the sale. Our estimates of uncollectible amounts are based largely on the results of our static pool analysis which relies on historical payment data by customer class.

We leverage a number of different tools to impact the percentage of developer-financed sales and balance our consumer default risk profile, such as offering credit cards and other third-party financing directly to consumers to facilitate cash down payments and sales, underwriting discipline, and periodic sales of VOCRs.

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In connection with entering into a VOI sale, we may provide our customers with certain non-cash incentives, such as credits for future stays at our resorts. For those VOI sales, we allocate the sales price between the VOI sale and the non-cash incentive based upon the relative standalone selling price of the performance obligations within the contract. Non-cash incentives generally have expiration periods of two years or less and are recognized at a point in time upon transfer of control.

We provide day-to-day property management services including oversight of housekeeping services, maintenance, and certain accounting and administrative services for property owners’ associations and clubs. These services may also include reservation and resort renovation activities. The initial terms of such property management agreements are generally between three to five years; however, the vast majority of the agreements provide a mechanism for an automatic one year renewal upon expiration of the terms. Our management agreements contain cancellation clauses, which allow for either party to cancel the agreement, by either a majority board vote or a majority vote of non-developer interests. We receive fees for such property management services which are collected monthly in advance and are based upon total costs to operate such resorts (or as services are provided in the case of resort renovation activities). Fees for property management services typically approximate 10% of budgeted operating expenses. We are entitled to consideration for reimbursement of costs incurred on behalf of the property owners’ association in providing management services (“reimbursable revenue”). These reimbursable costs principally relate to the payroll costs for management of the associations, club and resort prop

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/TNL/mda/fy2025/
All MD&A years: /company/TNL/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/TNL/mda/fy2024/): filed 2025-02-19; accession 0001361658-25-000012 (https://www.sec.gov/Archives/edgar/data/1361658/000136165825000012/tnl-20241231.htm)
- [FY 2023 MD&A](/company/TNL/mda/fy2023/): filed 2024-02-21; accession 0001361658-24-000007 (https://www.sec.gov/Archives/edgar/data/1361658/000136165824000007/tnl-20231231.htm)
- [FY 2022 MD&A](/company/TNL/mda/fy2022/): filed 2023-02-22; accession 0001361658-23-000012 (https://www.sec.gov/Archives/edgar/data/1361658/000136165823000012/tnl-20221231.htm)
- [FY 2021 MD&A](/company/TNL/mda/fy2021/): filed 2022-02-23; accession 0001361658-22-000013 (https://www.sec.gov/Archives/edgar/data/1361658/000136165822000013/wyn-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 7011 Hotels & Motels) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PCE](/indicator/PCE/): Personal Consumption Expenditures
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [UNRATE](/indicator/UNRATE/): Unemployment Rate
- [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/TNL.md · JSON record: /company/TNL.json · verified financials: /company/TNL/financials.json / /company/TNL/financials.csv · machine TOC for the whole site: /llms.txt