Travel + Leisure Raises 2026 Adjusted EBITDA Guidance Floor

The Tip Desk · November 8, 2026 · 3 min read

The leisure travel company lifted the low end of its full-year Adjusted EBITDA range to $1.070 billion after third-quarter Adjusted EBITDA of $283 million.

Travel + Leisure Co. (TNL) raised the floor of its 2026 Adjusted EBITDA outlook to $1.070 billion after a third quarter in which Vacation Ownership revenue accelerated and tour volume picked up, even as the Travel and Membership unit continued to shrink.

The leisure travel company now expects full-year Adjusted EBITDA of $1.070 billion to $1.085 billion, up from the $1,065 million to $1,085 million range it set after the second quarter. It also set full-year Gross VOI sales guidance of $2.625 billion to $2.675 billion and volume per guest of $3,325 to $3,375.

For the three months ended September 30, 2026, net revenue was $1.10 billion, up 5% from a year earlier. Net income was $108 million, or $1.73 a share. Adjusted EBITDA was $283 million, up 6% year-over-year. Adjusted diluted earnings per share were $2.21, up 23%.

Vacation Ownership, the larger of the two reportable segments, generated $953 million of revenue, up 9% from a year earlier, faster than the 6% year-over-year increase in the second quarter. Segment Adjusted EBITDA was $250 million, up 8%. The company said the EBITDA increase was driven primarily by revenue growth.

Gross VOI sales were $720 million, up 6% year-over-year, matching the second quarter’s 6% increase. Tours rose 7% to 213 thousand, accelerating from a 1% year-over-year increase in the second quarter. Volume per guest fell 1% to $3,286, reversing a 2% year-over-year increase in the second quarter. The company said the VPG decline reflected a mix impact from recent acquisitions that more than offset organic year-over-year growth. Net VOI sales rose 10% on a 6% increase in Gross VOI sales and a lower provision rate.

Property management revenue in Vacation Ownership was $248 million. Consumer financing revenue was $118 million.

Travel and Membership revenue declined 11% to $150 million, after a 5% year-over-year decline in the second quarter. Segment Adjusted EBITDA fell 12% to $51 million. The company said the revenue drop was driven primarily by a $17 million decrease in transaction revenue, as an increasing mix of exchange members with a club affiliation had a lower transaction propensity. Adjusted EBITDA declined on lower Exchange transaction volume and a higher mix of Travel Club transactions that generate lower margins, partially offset by lower operating costs.

Exchange transactions fell 16% year-over-year to 174 thousand. Travel Club transactions rose 4% to 226 thousand, with revenue per transaction down 17% to $178. Travel and Membership transaction revenue was $102 million. Subscription revenue was $41 million.

Covenant leverage was 3.3x as of September 30, 2026, up from below 3.2x as of March 31, 2026. The company said leverage increased from the prior period due to funding the Yes& Vacations and Spinnaker Resorts acquisitions, which closed during the third quarter. Corporate debt outstanding was $4.0 billion, excluding $2.0 billion of non-recourse debt related to securitized notes receivables.

The company incurred $2 million of inventory write-downs and impairments in the three months ended September 30, 2026, tied to its resort optimization initiative, which it said has generated and is expected to generate further savings attributable to developer obligations and is expected to result in a positive net impact to Adjusted EBITDA in 2026.

In the third quarter the company repurchased about 1.1 million shares for $75 million at a weighted average price of $71.45 a share. For the nine months ended September 30, 2026, it repurchased about 3.5 million shares for $250 million and paid $114 million in cash dividends. Remaining share-repurchase authorization was $671 million as of September 30, 2026. Management will recommend a fourth-quarter dividend of $0.60 a share for board approval in November 2026.

Subsequent to quarter-end, the company closed a $300 million term securitization with a weighted average coupon of 6.18% and a 98% advance rate.