Travel + Leisure Co. (NYSE: TNL) has reported its fourth quarter and full-year 2025 financial results, revealing significant changes in various key metrics compared to the previous year.
For the fourth quarter of 2025, the company reported a net revenue of $1.03 billion, representing an 8% year-over-year increase in gross VOI (Vacation Ownership Interest) sales, totaling $638 million. However, the company also reported a net loss of $61 million, inclusive of $210 million in inventory write-downs and impairments related to the resort optimization initiative.
In contrast, the full-year 2025 net revenue amounted to $4.02 billion, with gross VOI sales reaching $2.49 billion, an 8% year-over-year increase. The company reported a net income of $230 million, inclusive of $216 million in inventory write-downs and impairments related to the resort optimization initiative.
Looking at the business segment results, the Vacation Ownership segment saw an 8% increase in revenue, reaching $875 million in the fourth quarter of 2025 compared to the same period in the prior year. Adjusted EBITDA for this segment also increased by 14% to $252 million.
In contrast, the Travel and Membership segment experienced a 6% decrease in revenue, amounting to $148 million in the fourth quarter of 2025, with adjusted EBITDA decreasing by 10% to $47 million.
The company's liquidity position as of December 31, 2025, revealed a leverage ratio for covenant purposes under 3.1x and $1.15 billion of liquidity in cash and cash equivalents and revolving credit facility availability.
Notably, the company's net cash provided by operating activities for the full-year 2025 was $640 million, compared to $464 million in the prior year, and adjusted free cash flow was $516 million in 2025, representing an increase from $446 million in the prior year.
Additionally, the company repurchased 5.4 million shares of common stock for $300 million in 2025 and had $165 million remaining in its share repurchase authorization as of December 31, 2025. The company's board of directors also approved a new $750 million share repurchase authorization.
Looking ahead, the company provided guidance for the 2026 full year, with adjusted EBITDA expected to range from $1,030 million to $1,055 million, gross VOI sales projected to be between $2.5 billion and $2.6 billion, and VPG (Volume per Guest) forecasted to range from $3,175 to $3,275.
Overall, the company's performance in 2025 demonstrated both positive and challenging aspects, and the outlook for 2026 indicates a focus on sustained, profitable long-term growth and strengthening the company's portfolio.
The market has reacted to these announcements by moving the company's shares -1.46% to a price of $72.41. If you want to know more, read the company's complete 8-K report here.
