Operating margins remain inconsistent, fluctuating between 3.8% and 21.2% over the last ten quarters, reflecting the sensitivity of the cost structure to seasonal resort development cycles.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 |
|---|
| Sales/Revenue | 4.05B | 4.02B | 3.86B | 3.75B | 3.57B | 3.13B | 2.16B | 4.04B | 3.93B | 5.08B | 5.6B | 5.54B | 5.28B | 5.01B | 4.53B | 4.25B | 3.85B | 3.75B | 4.28B | 4.36B | 3.84B | 3.33B |
| Revenue Growth % | 4.28% | 4.06% | 3.04% | 5.13% | 13.82% | 45.09% | -46.56% | 2.82% | -22.56% | -9.34% | 1.14% | 4.83% | 5.43% | 10.48% | 6.58% | 10.46% | 2.69% | -12.4% | -1.81% | 13.48% | 15.2% | - |
| Cost of Goods Sold | 2.3B | 2.93B | 1.97B | 1.93B | 1.84B | 1.56B | 1.23B | 1.94B | 1.91B | 1.86B | 1.83B | 2.33B | 2.5B | 2.39B | 2.09B | 2.02B | 1.88B | 1.82B | 2.03B | 2.12B | 1.79B | 1.54B |
| COGS % of Revenue | - | 72.82% | 51.04% | 51.44% | 51.56% | 49.9% | 56.85% | 48% | 48.66% | 36.64% | 32.65% | 42.18% | 47.42% | 47.75% | 46.16% | 47.6% | 48.71% | 48.61% | 47.44% | 48.58% | 46.62% | 46.18% |
| Gross Profit | 1.75B | 1.09B | 1.89B | 1.82B | 1.73B | 1.57B | 932M | 2.1B | 2.02B | 1.95B | 1.86B | 2.54B | 2.78B | 2.62B | 2.44B | 2.23B | 1.98B | 1.93B | 2.25B | 2.24B | 2.05B | 1.79B |
| Gross Margin % | 43.22% | 27.18% | 48.96% | 48.56% | 48.44% | 50.1% | 43.15% | 52% | 51.34% | 38.34% | 33.29% | 45.94% | 52.58% | 52.25% | 53.84% | 52.4% | 51.29% | 51.39% | 52.56% | 51.42% | 53.38% | 53.82% |
| Gross Profit Growth % | - | -42.23% | 3.9% | 5.38% | 10.06% | 68.45% | -55.66% | 4.16% | 3.7% | 4.4% | -26.7% | -8.43% | 6.11% | 7.21% | 9.51% | 12.86% | 2.49% | -14.36% | 0.36% | 9.31% | 14.26% | - |
| Operating Expenses | 1.13B | 376M | 1.16B | 1.1B | 1.07B | 952M | 1.04B | 1.29B | 1.5B | 1.51B | 1.21B | 1.61B | 1.84B | 1.81B | 1.69B | 3.24B | 2.84B | 1.27B | 3.08B | 1.53B | 1.47B | 1.18B |
| OpEx % of Revenue | - | 9.35% | 29.99% | 29.36% | 30.14% | 30.38% | 48.01% | 31.91% | 38.03% | 29.69% | 21.54% | 29.05% | 34.77% | 36.17% | 37.25% | 76.23% | 73.85% | 33.89% | 71.95% | 35.14% | 38.37% | 35.23% |
| Selling, General & Admin | 1.1B | 1.08B | 1.02B | 961M | 930M | 797M | 727M | 1.16B | 1.12B | 1.13B | 1.07B | 1.41B | 1.56B | 1.47B | 1.39B | 1.22B | 1.07B | 1.09B | 1.39B | 1.35B | 1.23B | 1.18B |
| SG&A % of Revenue | - | 26.93% | 26.53% | 25.63% | 26.07% | 25.43% | 33.66% | 28.62% | 28.54% | 22.18% | 19.06% | 25.43% | 29.48% | 29.37% | 30.64% | 28.7% | 27.81% | 29.15% | 32.49% | 30.96% | 31.94% | 35.38% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | -707M | 134M | 140M | 145M | 155M | 310M | 136M | 373M | 381M | 139M | 200M | 279M | 0 | 0 | 2.02B | 1.77B | 178M | 1.69B | 182M | 247M | -5M |
| Operating Income | 618M | 717M | 733M | 720M | 653M | 618M | -105M | 812M | 523M | 439M | 658M | 935M | 941M | 910M | 852M | 767M | 718M | 594M | -830M | 710M | 577M | 620M |
| Operating Margin % | 15.26% | 17.83% | 18.97% | 19.2% | 18.31% | 19.72% | -4.86% | 20.09% | 13.3% | 8.65% | 11.75% | 16.89% | 17.82% | 18.17% | 18.79% | 18.03% | 18.64% | 15.84% | -19.39% | 16.28% | 15.02% | 18.59% |
| Operating Income Growth % | - | -2.18% | 1.81% | 10.26% | 5.66% | 688.57% | -112.93% | 55.26% | 19.13% | -33.28% | -29.63% | -0.64% | 3.41% | 6.81% | 11.08% | 6.82% | 20.88% | 171.57% | -216.9% | 23.05% | -6.94% | - |
| EBITDA | 744M | 841M | 848M | 832M | 772M | 742M | 21M | 933M | 661M | 575M | 785M | 1.12B | 1.17B | 1.13B | 1.04B | 945M | 891M | 772M | -646M | 876M | 725M | 751M |
| EBITDA Margin % | 18.37% | 20.92% | 21.95% | 22.19% | 21.64% | 23.68% | 0.97% | 23.08% | 16.82% | 11.33% | 14.02% | 20.27% | 22.23% | 22.48% | 22.87% | 22.21% | 23.14% | 20.59% | -15.09% | 20.09% | 18.87% | 22.52% |
| EBITDA Growth % | -13.19% | -0.83% | 1.92% | 7.77% | 4.04% | 3433.33% | -97.75% | 41.15% | 14.96% | -26.75% | -30.04% | -4.43% | 4.26% | 8.58% | 9.74% | 6.06% | 15.41% | 219.5% | -173.74% | 20.83% | -3.46% | - |
| D&A (Non-Cash Add-back) | 126M | 124M | 115M | 112M | 119M | 124M | 126M | 121M | 138M | 136M | 127M | 187M | 233M | 216M | 185M | 178M | 173M | 178M | 184M | 166M | 148M | 131M |
| EBIT | 570M | 704M | 762M | 736M | 681M | 627M | -84M | 842M | 566M | 473M | 675M | 959M | 958M | 814M | 760M | 790M | 700M | 607M | -807M | 728M | 577M | 620M |
| Net Interest Income | 98M | 96M | -235M | -238M | -189M | -195M | -185M | -155M | -165M | -149M | -126M | -114M | -103M | -122M | -124M | -116M | -132M | -107M | -68M | -62M | -35M | 6M |
| Interest Income | 464M | 463M | 14M | 13M | 6M | 3M | 7M | 7M | 5M | 7M | 7M | 8M | 10M | 9M | 8M | 24M | 5M | 7M | 12M | 11M | 32M | 6M |
| Interest Expense | 366M | 367M | 249M | 251M | 195M | 198M | 192M | 162M | 170M | 156M | 133M | 122M | 113M | 131M | 132M | 152M | 167M | 114M | 80M | 73M | 67M | 0 |
| Other Income/Expense | -273M | -380M | -220M | -235M | -167M | -189M | -171M | -132M | -127M | -121M | -116M | -98M | -96M | -227M | -224M | -117M | -155M | -101M | -57M | -55M | -35M | 6M |
| Pretax Income | 345M | 337M | 513M | 485M | 486M | 429M | -276M | 680M | 396M | 590M | 940M | 916M | 845M | 683M | 628M | 650M | 563M | 493M | -887M | 655M | 542M | 626M |
| Pretax Margin % | 8.52% | 8.38% | 13.28% | 12.93% | 13.62% | 13.69% | -12.78% | 16.82% | 10.07% | 11.62% | 16.79% | 16.55% | 16% | 13.64% | 13.85% | 15.28% | 14.62% | 13.15% | -20.72% | 15.02% | 14.11% | 18.77% |
| Income Tax | 108M | 107M | 135M | 94M | 130M | 116M | -23M | 191M | 130M | -229M | 328M | 304M | 316M | 250M | 229M | 233M | 184M | 200M | 187M | 252M | 190M | 195M |
| Effective Tax Rate % | 31.3% | 31.75% | 26.32% | 19.38% | 26.75% | 27.04% | 8.33% | 28.09% | 32.83% | -38.81% | 34.89% | 33.19% | 37.4% | 36.6% | 36.46% | 35.85% | 32.68% | 40.57% | -21.08% | 38.47% | 35.06% | 31.15% |
| Net Income | 237M | 230M | 411M | 396M | 357M | 308M | -253M | 507M | 672M | 854M | 611M | 612M | 529M | 432M | 400M | 417M | 379M | 293M | -1.07B | 403M | 287M | 431M |
| Net Margin % | 5.85% | 5.72% | 10.64% | 10.56% | 10.01% | 9.83% | -11.71% | 12.54% | 17.09% | 16.82% | 10.91% | 11.05% | 10.02% | 8.62% | 8.82% | 9.8% | 9.84% | 7.81% | -25.09% | 9.24% | 7.47% | 12.92% |
| Net Income Growth % | -43.3% | -44.04% | 3.79% | 10.92% | 15.91% | 221.74% | -149.9% | -24.55% | -21.31% | 39.77% | -0.16% | 15.69% | 22.45% | 8% | -4.08% | 10.03% | 29.35% | 127.28% | -366.5% | 40.42% | -33.41% | - |
| Net Income (Continuing) | 237M | 230M | 378M | 391M | 356M | 313M | -253M | 489M | 266M | 646M | 545M | 612M | 529M | 433M | 399M | 417M | 379M | 293M | -1.07B | 403M | 352M | 431M |
| Discontinued Operations | 0 | 0 | 33M | 5M | 1M | -5M | 0 | 18M | 406M | 209M | 260M | 60M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -1M | -1M | 1M | 1M | 9M | 7M | 7M | 6M | 5M | 5M | 4M | 3M | 2M | 2M | 1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.66 | 3.44 | 5.35 | 5.28 | 4.23 | 3.62 | -2.94 | 5.29 | 6.77 | 8.40 | 5.53 | 5.14 | 4.18 | 3.21 | 2.75 | 2.51 | 2.05 | 1.61 | -6.03 | 2.20 | 1.44 | 2.15 |
| EPS Growth % | -35.74% | -35.7% | 1.33% | 24.82% | 16.85% | 223.13% | -155.58% | -21.86% | -19.4% | 51.9% | 7.59% | 22.97% | 30.22% | 16.73% | 9.56% | 22.44% | 27.33% | 126.7% | -374.09% | 52.78% | -33.02% | - |
| EPS (Basic) | - | 3.51 | 5.39 | 5.32 | 4.27 | 3.62 | -2.94 | 5.31 | 6.79 | 8.46 | 5.56 | 5.18 | 4.22 | 3.25 | 2.80 | 2.57 | 2.13 | 1.64 | -6.03 | 2.22 | 1.45 | 2.15 |
| Diluted Shares Outstanding | 64.75M | 66.9M | 70.7M | 75M | 84.2M | 86.5M | 86.1M | 92.4M | 99.2M | 104M | 111M | 119M | 127M | 135M | 145M | 166M | 185M | 182M | 178M | 183M | 199.31M | 200.47M |
| Basic Shares Outstanding | 63.2M | 65.6M | 70.1M | 74.5M | 83.4M | 86.5M | 86.1M | 92.1M | 98.9M | 103M | 110M | 118M | 125M | 133M | 143M | 162M | 178M | 179M | 178M | 181M | 197.93M | 200.47M |
| Dividend Payout Ratio | - | 64.78% | 34.55% | 34.34% | 37.82% | 35.39% | - | 32.74% | 28.87% | 28.34% | 36.5% | 33.01% | 33.84% | 36.11% | 33.5% | 23.74% | 22.69% | 9.9% | - | 3.47% | 473.87% | 13.69% |
Consumer credit quality sensitivity
As indicated by the most recent quarterly filings, Travel + Leisure Co. has maintained a consistent revenue growth trajectory, with the 2026Q1 figure of $961.0M representing a 2.9% year-over-year increase, suggesting that the company's core vacation ownership and membership model continues to capture steady demand despite macroeconomic headwinds.
The company's revenue growth appears to be stabilizing in the low-single digits, reflecting a mature business model that relies heavily on existing owner retention and recurring membership fees. While the growth is not explosive, the consistency suggests that the RCI exchange network provides a necessary defensive floor against broader travel industry volatility.
According to the provided income statement data, TNL experienced significant gross margin fluctuations, notably dropping to 14.4% in 2025Q4 before rebounding to 54.1% in 2026Q1, which highlights the inherent sensitivity of the company's cost structure to seasonal resort development cycles and variable sales and marketing expenditures.
The sharp contraction in 2025Q4 suggests that the company's profitability is highly susceptible to the timing of resort inventory recognition and potential spikes in acquisition costs. Investors should monitor whether the recent recovery in margins is sustainable or merely a reflection of temporary accounting shifts in the percentage-of-completion revenue model.
Based on reported financial figures, TNL's operating margin has struggled to maintain consistency, fluctuating between 3.8% and 21.2% over the last ten quarters, which implies that the company's high fixed-cost base for resort operations limits its ability to scale operating income efficiently during periods of revenue stagnation.
The lack of consistent operating leverage suggests that management's efforts to control SG&A expenses are frequently offset by the capital-intensive nature of the timeshare business. This indicates that significant revenue growth is required to drive meaningful expansion in operating income, leaving the bottom line vulnerable to even minor operational inefficiencies.
As evidenced by the 2025Q4 net loss of $61.0M followed by a return to profitability in 2026Q1, the quality of TNL's reported net income appears sensitive to non-operating items and management estimates, such as the provision for loan losses, which can significantly distort quarterly earnings performance for shareholders.
The wide variance in quarterly EPS, ranging from a loss of $0.95 to a high of $1.77, suggests that investors should look past headline net income to understand the underlying cash-generating capacity of the business. The reliance on consumer financing income introduces a layer of credit risk that may not be fully captured in standard GAAP earnings metrics.
Financial data suggests that the company's pivot toward a broader travel membership model, while strategically intended to reduce reliance on VOI sales, faces significant execution risk as evidenced by the inconsistent profitability and the ongoing need for high sales and marketing spend to maintain current revenue levels.
Short-term observers may argue that the company's reliance on the consumer loan portfolio creates a hidden vulnerability to rising interest rates and potential credit deterioration among its middle-market customer base. If the rebranding strategy fails to lower customer acquisition costs, the company may find itself trapped in a cycle of high marketing spend with diminishing returns on invested capital.
Quick answers to the most common questions about buying TNL stock.
For fiscal year 2025, Travel + Leisure Co. (TNL) reported total revenue of $4.02B. This represents a 20.6% increase compared to $3.33B in 2005.
Travel + Leisure Co. (TNL) is profitable, generating $230.0M in net income for the fiscal year ending 2025 with a net profit margin of 5.7%.
Travel + Leisure Co. (TNL) reported an operating income of $717.0M, resulting in an operating profit margin of 17.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Travel + Leisure Co. (TNL) generated $1.09B in gross profit for the year, representing a gross profit margin of 27.2%. This demonstrates the company's core pricing power and production efficiency.