Travel + Leisure lifts 2026 Adjusted EBITDA midpoint by $2.5 million, top of range unchanged

Travel + Leisure Co. reported third-quarter 2026 net revenue of $1.1 billion, net income of $108 million, down 3% from $111 million, and diluted earnings per share of $1.73, then raised the floor of its full-year Adjusted EBITDA range to $1.070 billion from $1.065 billion. The midpoint moves to $1.08 billion from $1.08 billion, a 0.23% increase, while the top of the range stays at $1.085 billion.

Guidance rises from the bottom of the range

Travel + Leisure now expects full-year 2026 Adjusted EBITDA of $1.070 billion to $1.085 billion, against $1.07 billion to $1.085 million in its July 22 release, so the midpoint moves to $1.08 billion from $1.08 billion while the ceiling is unchanged. Gross VOI sales guidance gains a higher floor at $2.625 billion to $2.675 billion, up from $2.600 billion, and the VPG range stays at $3,325 to $3,375.

Measured against its own July guidance for the third quarter, the period came in mixed. The company had projected Adjusted EBITDA of $275 million to $285 million, gross VOI sales of $700 million to $740 million and VPG of $3,300 to $3,350. Actual Adjusted EBITDA of $283 million and gross VOI sales of $720 million landed inside those ranges; VPG of $3,286 finished $14 below the floor. No analyst consensus figure was available for comparison, so the only yardstick is the company's own July guidance rather than Wall Street expectations.

Vacation ownership carries the quarter

Vacation Ownership revenue rose 8.79% to $953 million and segment Adjusted EBITDA reached $250 million against $231 million, as net VOI sales grew 10% on a 6% increase in gross VOI sales, 7% more tours and a lower loan-loss provision rate. On a consolidated basis, revenue rose 5.46% year over year to $1.1 billion and Adjusted EBITDA rose 6.39% year over year to $283 million. VPG slipped 1% year over year because mix from the Yes& Vacations and Spinnaker Resorts acquisitions, both closed in the quarter, more than offset organic growth. Adjusted diluted earnings per share of $2.21 rose 22.78% from $1.80, a faster gain than Adjusted EBITDA, helped by a smaller diluted share count and by acquisition costs sitting outside the adjusted measure.

Leverage for covenant purposes was 3.3 times, higher than the prior period after funding the two acquisitions, against $4.0 billion of corporate debt and $2.0 billion of non-recourse debt tied to securitized receivables. After quarter-end the company closed a $300 million term securitization at a 6.18% weighted average coupon and a 98% advance rate.

Exchange revenue and marketing costs pull the other way

Travel and Membership revenue was 11.24% lower at $150 million and segment Adjusted EBITDA dropped to $51 million, as a $17 million decline in transaction revenue reflected members holding a club affiliation, who transact less often, accounting for more of the base.

Consolidated GAAP results were weaker than the adjusted ones. Operating income was 8.88% lower at $195 million against $214 million a year earlier despite revenue growth, because marketing expense climbed 15.43% to $187 million and the quarter carried acquisition and restructuring costs that the adjusted measures strip out; adjusted net income of $138 million compared with GAAP net income of $108 million. Nine-month operating cash flow was $388 million against $516 million, down 24.81%, and adjusted free cash flow fell 22.09% to $254 million from $326 million, a measure that already adds back $33 million of acquisition transaction costs. Buybacks continued, leaving $671 million on the repurchase authorization, and the company paid a $0.60 quarterly dividend.

The fourth quarter has to carry the rest

At the $1.08 billion midpoint, full-year guidance sits $300.5 million above the $777 million of Adjusted EBITDA reported for the first nine months, so the plan requires a fourth quarter larger than the $283 million just posted. Chief Executive Michael D. Brown framed the outlook around owner demand: "Our owners continue to prioritize travel, demand remains healthy, and that strength is translating into growth in earnings and cash flow." He also cited "strong visibility into the balance of the year".

The release gives no quarterly guidance and no GAAP reconciliation for the forward figures, and it does not quantify how much of the 2026 benefit comes from the resort optimization program beyond identifying 17 resorts and $27 million of nine-month inventory write-downs. Management will recommend a fourth-quarter dividend of $0.60 per share to the board in November 2026; that board decision and the full-year filing are the next dated checkpoints.