Travel + Leisure’s second quarter results were received positively by the market, as the company’s revenue performance modestly surpassed Wall Street expectations and non-GAAP profits matched consensus. Management attributed this outcome to resilient demand in its core Vacation Ownership segment, which offset softness in its Travel and Membership business. CEO Michael Brown highlighted “continued strength in our Vacation Ownership business, which more than offset softer performance in travel and membership,” emphasizing gains in both tour flow and volume per guest. Investments in technology and customer engagement also contributed to year-over-year improvements in key operational metrics.
Is now the time to buy TNL? Find out in our full research report (it’s free).
Travel + Leisure (TNL) Q2 CY2025 Highlights:
- Revenue: $1.02 billion vs analyst estimates of $1.01 billion (3.4% year-on-year growth, 0.7% beat)
- Adjusted EPS: $1.65 vs analyst estimates of $1.66 (in line)
- Adjusted EBITDA: $250 million vs analyst estimates of $249.7 million (24.6% margin, in line)
- EBITDA guidance for the full year is $970 million at the midpoint, in line with analyst expectations
- Operating Margin: 20.2%, up from 19.2% in the same quarter last year
- Tours Conducted: 197,000, up 5,000 year on year
- Market Capitalization: $4.07 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Travel + Leisure’s Q2 Earnings Call
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Chris Woronka (Deutsche Bank) asked about visibility and strategic options in the challenged Travel and Membership segment. CEO Michael Brown acknowledged the segment’s structural headwinds and said management is exploring alternatives to restore growth.
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Elizabeth Dove (Goldman Sachs) inquired about the rationale behind raising volume per guest expectations without increasing total sales guidance. Brown clarified that tour growth is expected to accelerate in the second half, supporting confidence in hitting the higher end of the range.
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Elizabeth Dove (Goldman Sachs) also asked about delinquency trends and provision levels. CFO Erik Hoag reported moderation in delinquencies since the first quarter and pointed to strong underwriting and inventory recovery processes.
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Patrick Scholes (Truist Securities) questioned differences in customer behavior across income levels. Brown noted higher prepayment rates among higher-income owners and said new owner performance has remained strong across all segments.
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David Katz (Jefferies) focused on the international expansion potential of the Accor partnership. Brown described the opportunity as incremental, with profit margins expected to be similar to the U.S. business, but emphasized that the U.S. remains the primary growth driver.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace of new owner acquisition and engagement through expanded brand partnerships, (2) the company’s ability to stabilize and reposition the Travel and Membership segment amid industry changes, and (3) progress on digital platform rollouts, including the WorldMark app and AI-based personalization initiatives. Execution on these priorities will help determine whether Travel + Leisure delivers sustained growth across its business lines.
Travel + Leisure currently trades at $61.75, up from $57.87 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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