Hospitality company Travel + Leisure (NYSE: TNL) reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 5.7% year on year to $1.03 billion. Its non-GAAP profit of $1.83 per share was 0.6% above analysts’ consensus estimates.
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Travel + Leisure (TNL) Q4 CY2025 Highlights:
- Revenue: $1.03 billion vs analyst estimates of $996.2 million (5.7% year-on-year growth, 3% beat)
- Adjusted EPS: $1.83 vs analyst estimates of $1.82 (0.6% beat)
- Adjusted EBITDA: $272 million vs analyst estimates of $258.3 million (26.5% margin, 5.3% beat)
- EBITDA guidance for the upcoming financial year 2026 is $1.04 billion at the midpoint, above analyst estimates of $1.03 billion
- Operating Margin: -2.1%, down from 21.2% in the same quarter last year
- Free Cash Flow Margin: 18.5%, up from 7.7% in the same quarter last year
- Tours Conducted: 184,000, up 9,000 year on year
- Market Capitalization: $4.69 billion
President and Chief Executive Officer Michael D. Brown commented, “Travel + Leisure Co.’s 2025 results demonstrate the consistency and resilience of our performance, led by sustained momentum in our core Vacation Ownership business. We exceeded our full-year outlook, delivering solid revenue growth, margin expansion and meaningful returns for our shareholders. As we begin 2026, leisure travel demand remains strong, reinforcing our confidence in the durability of our business. "
Company Overview
Formerly known as Wyndham Destinations, Travel + Leisure (NYSE: TNL) is a global vacation company that provides travelers with vacation ownership, exchange, and travel services.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Travel + Leisure grew its sales at a 13.2% annual rate. Though this growth is acceptable on an absolute basis, we need to see more than just topline growth for the consumer discretionary sector, which can display significant earnings volatility. This means our bar for the sector is particularly high, reflecting the non-essential and hit-driven nature of the products and services offered. Additionally, five-year CAGR starts around Covid, when revenue was depressed then rebounded.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new property or trend. Travel + Leisure’s recent performance shows its demand has slowed as its annualized revenue growth of 3.6% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
We can dig further into the company’s revenue dynamics by analyzing its number of tours conducted, which reached 184,000 in the latest quarter. Over the last two years, Travel + Leisure’s tours conducted averaged 2.2% year-on-year growth. Because this number aligns with its revenue growth during the same period, we can see the company’s monetization was fairly consistent. 
This quarter, Travel + Leisure reported year-on-year revenue growth of 5.7%, and its $1.03 billion of revenue exceeded Wall Street’s estimates by 3%.
Looking ahead, sell-side analysts expect revenue to grow 3.4% over the next 12 months, similar to its two-year rate. This projection is underwhelming and implies its newer products and services will not catalyze better top-line performance yet.
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Operating Margin
Travel + Leisure’s operating margin has shrunk over the last 12 months and averaged 16.3% over the last two years. The company’s profitability was mediocre for a consumer discretionary business and shows it couldn’t pass its higher operating expenses onto its customers.
This quarter, Travel + Leisure generated an operating margin profit margin of negative 2.1%, down 23.4 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
Travel + Leisure’s full-year EPS flipped from negative to positive over the last five years. This is encouraging and shows it’s at a critical moment in its life.
In Q4, Travel + Leisure reported adjusted EPS of $1.83, up from $1.72 in the same quarter last year. This print was close to analysts’ estimates. Over the next 12 months, Wall Street expects Travel + Leisure’s full-year EPS of $6.39 to grow 14.9%.
Key Takeaways from Travel + Leisure’s Q4 Results
It was great to see Travel + Leisure’s EBITDA guidance for next quarter top analysts’ expectations. We were also happy its revenue outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $72.57 immediately after reporting.
Should you buy the stock or not? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
