Travel Leisure | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 1.044 B

LB filings
2025.10.22 13:20
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Revenue: As of FY2025 Q3, the actual value is USD 1.044 B, beating the estimate of USD 1.033 B.

EPS: As of FY2025 Q3, the actual value is USD 1.67, missing the estimate of USD 1.7317.

EBIT: As of FY2025 Q3, the actual value is USD 271 M.

Vacation Ownership Segment

  • Net Revenues: Increased by $52 million for the three months ended September 30, 2025, primarily due to an increase in net VOI sales resulting from a higher owner upgrade transaction mix and an increase in tours.
  • Adjusted EBITDA: Increased by $29 million for the three months ended September 30, 2025, driven by higher gross VOI sales, net of Fee-for-Service sales, and increased property management revenues.
  • Provision for Loan Losses: Increased by $21 million primarily due to increased Gross VOI sales, net of Fee-for-Service sales, and a higher provision rate associated with increased defaults.
  • Inventory Impairment: $6 million of inventory impairment charges related to strategic resort restructuring.

Travel and Membership Segment

  • Net Revenues: Increased by $1 million for the three months ended September 30, 2025, primarily due to an increase in transaction revenue as a result of higher Travel Club transactions.
  • Adjusted EBITDA: Decreased by $4 million for the three months ended September 30, 2025, impacted by a $7 million increase in cost of sales due to the increase in Travel Clubs transactions and a heavier weighting of rentals.

Corporate and Other

  • Net Revenue: Decreased by $1 million due to higher intersegment eliminations.
  • Adjusted EBITDA: Decreased by $1 million driven by higher advertising expenses.

Cash Flow

  • Net Cash Provided by Operating Activities: Increased by $150 million for the nine months ended September 30, 2025, primarily due to a $137 million increase in non-cash addbacks and a $14 million decrease in working capital deductions.
  • Net Cash Used in Investing Activities: Decreased by $23 million, primarily due to $44 million paid for the acquisition of Accor Vacation Club during 2024 and $8 million of net proceeds from the sale of investments during the current year.
  • Net Cash Used in Financing Activities: Decreased by $14 million, primarily due to a $120 million increase in net proceeds from corporate debt, partially offset by a $63 million increase in net payments on non-recourse debt and $49 million increase in share repurchases.

Future Outlook and Strategy

  • Strategic Resort Restructuring: The company is undertaking a strategic review to optimize the quality of its resort portfolio, which includes removing select resorts and reducing the number of units at certain other resorts. This is expected to result in significant annual savings attributable to maintenance fees on unsold VOIs.
  • Capital Expenditures: The company anticipates spending between $120 million and $130 million on capital expenditures in 2025, primarily for information technology, sales center facility enhancements, resort improvements, and a new corporate office.
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