Travel & Leisure Co. Revenue Rises 3% to $961M in Q1 2026
Travel & Leisure Co. (NYSE: TNL), a vacation ownership and travel membership company, reported net revenue of $961 million for the three months ended March 31, 2026, up from $934 million in the same period last year. Net income climbed to $79 million.
Travel & Leisure Co. (NYSE: TNL), a vacation ownership and travel membership company, reported net revenue of $961 million for the three months ended March 31, 2026, up from $934 million in the same period last year. Net income climbed to $79 million from $73 million. Read more earnings reports.
Vacation ownership interest sales drove the top-line gain, rising 11% to $427 million from $384 million. Service and membership fees fell 5% to $396 million from $417 million, while consumer financing revenue held nearly flat at $113 million compared to $112 million.
Operating income edged up to $159 million from $156 million. Total expenses increased to $802 million from $778 million, with marketing costs jumping 15% to $142 million from $124 million. Operating expenses dipped to $441 million from $445 million.
Cost of vacation ownership interests rose to $35 million from $23 million. Consumer financing interest expense declined slightly to $33 million from $34 million.
Segment Performance
The Vacation Ownership segment generated $798 million in revenue versus $755 million in the prior-year quarter. Travel and Membership segment revenue fell to $165 million from $180 million, driven by lower transaction revenues of $117 million compared to $130 million.
Property management fees and reimbursable revenues remained unchanged at $223 million for both periods. Fee-for-service commissions declined to $11 million from $16 million.
Earnings and Capital Allocation
Diluted earnings per share reached $1.22, up from $1.07 in the first quarter of 2025. Basic earnings per share came in at $1.25 versus $1.09. Diluted weighted average shares outstanding decreased to 64.4 million from 68.2 million.
The company paid $41 million in aggregate dividends to shareholders, unchanged from the prior year. The quarterly dividend stood at $0.60 per share, up from $0.56 per share. Travel & Leisure repurchased $87 million of common stock during the quarter compared to $70 million in the year-ago period.
Balance Sheet and Cash Flow
Total assets increased to $6.84 billion as of March 31, 2026, from $6.76 billion at December 31, 2025. Vacation ownership contract receivables net declined to $2.61 billion from $2.64 billion. Inventory rose to $1.18 billion from $1.13 billion.
Debt climbed to $3.65 billion from $3.47 billion. Non-recourse vacation ownership debt decreased to $2.11 billion from $2.12 billion. Cash and cash equivalents stood at $254 million, essentially flat from $253 million at year-end.
Operating activities generated $38 million in cash for the quarter ended March 31, 2026, down from $121 million in the same period last year. The provision for loan losses totaled $100 million versus $91 million.
Key Financials
| Metric ($ millions) | Q1 2026 | Q1 2025 |
|---|---|---|
| Net revenues | $961 | $934 |
| Operating income | $159 | $156 |
| Net income | $79 | $73 |
| Diluted EPS | $1.22 | $1.07 |
| Total expenses | $802 | $778 |
Total stockholders' deficit widened to $1.02 billion from $981 million at December 31, 2025. The company reported 62.4 million common shares outstanding at quarter-end, down from 63.1 million.