Travel + Leisure Co. (NYSE:TNL) Beats Q3 2025 Earnings Estimates and Raises Full-Year Outlook

Travel + Leisure Co. (NYSE:TNL) reported financial results for the third quarter of 2025 that surpassed analyst expectations on the bottom line, while revenue came in largely as anticipated. The company's performance and an improved full-year outlook were met with cautious optimism in early market activity.

Earnings and Revenue Performance

The leisure travel company posted a strong quarterly performance, with its core vacation ownership business driving growth. The company reported net revenue of $1.04 billion, essentially meeting analyst estimates of $1.04 billion and representing a 5.1% increase over the same period last year.

A significant highlight was the company's earnings power. Travel + Leisure reported adjusted earnings per share of $1.80, exceeding the consensus estimate of $1.74 per share. This represents a solid beat on profitability and marks the 18th consecutive quarter the company has achieved a volume per guest (VPG) figure above $3,000.

Key financial metrics from the quarter include:

• Net Income: $111 million
• Adjusted EBITDA: $266 million
• Vacation Ownership Revenue: $876 million (up 6% year-over-year)
• Volume Per Guest (VPG): $3,304 (a 10% increase year-over-year)

Market Reaction and Price Action

Following the earnings release, Travel + Leisure Co. shares experienced positive momentum in pre-market trading, indicating investor approval of the results. The stock's performance in the lead-up to the report had been relatively flat, with minor declines over the past month. The positive pre-market movement suggests the market is reacting favorably to the earnings beat and the company's raised guidance, viewing the results as a sign of sustained operational strength in the leisure travel sector.

Business Segment Highlights

The company's results were primarily fueled by its Vacation Ownership segment, which demonstrated robust health and growth.

Vacation Ownership Segment:

• Revenue increased 6% year-over-year to $876 million.
• Adjusted EBITDA for the segment grew 14% to $231 million.
• The performance was driven by a 10% increase in VPG and a 2% increase in tours.

Travel and Membership Segment:

• Revenue saw a modest 1% increase to $169 million.
• Adjusted EBITDA decreased 6% to $58 million, attributed to a higher mix of lower-margin travel club transactions.

Capital Management and Shareholder Returns

Travel + Leisure Co. continued its commitment to returning capital to shareholders. During the quarter, the company returned a total of $106 million through:

• $70 million in share repurchases
• $36 million in dividend payments

The company also maintained a solid liquidity position, ending the quarter with $253 million remaining in its share repurchase authorization.

Updated Outlook and Comparison to Estimates

Management provided an updated, more optimistic outlook for the full year 2025. The company raised the midpoint of its Adjusted EBITDA guidance to a new range of $965 million to $985 million, up from the prior range of $955 million to $985 million. This updated guidance appears to align with or potentially exceed the broader market expectations for the company's full-year performance, contributing to the positive market sentiment.

For a detailed view of future earnings estimates and historical performance, review the earnings and estimates data for Travel + Leisure Co.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information provided should not be used as the sole basis for making any investment decision. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.