Sep 16, 2025 11:05 AM Eastern Daylight Time Game On: Sports Illustrated Resorts Announces New Location in Sports-Loving Chicago Share Travel + Leisure Co. levels up lifestyle travel with a third sports-inspired resort Travel + Leisure Co. announced plans for a Sports Illustrated Resorts location in Chicago, Illinois, growing the brand's national footprint and adding to the previously announced locations in Tuscaloosa, Alabama, and Nashville, Tennessee. ORLANDO, Fla.--(BUSINESS WIRE)--Travel + Leisure Co. (N ...

Core Insights - TNL Mediagene has appointed TJ Park as General Counsel and Naoko Okumoto as an independent director to strengthen its international legal and governance framework [1][4][5] Group 1: Appointments - TJ Park joins from Morrison & Foerster LLP, where he specialized in cross-border capital markets and corporate governance, holding a J.D. from Georgetown University Law Center [2] - Naoko Okumoto, with two decades of experience in tech investment and business development, is the Founder and Managing Partner of NIREMIA Collective and CEO of Amber Bridge Partners [3] - The appointments are part of a broader strategy to enhance the leadership team with talents from top global enterprises, including those from Yahoo!, Wall Street Journal, and NBC Universal [4][5] Group 2: Company Background - TNL Mediagene was formed in May 2023 through the merger of Taiwan's The News Lens Co. and Japan's Mediagene Inc., focusing on digital media and data in Asia [9] - The company operates across various media brands in Japanese, Chinese, and English, covering diverse topics and offering AI-driven advertising services [9] - TNL Mediagene has approximately 500 employees across Asia, with offices in Japan, Taiwan, and Hong Kong [9]

Core Insights - H1 2025 was a transformative period for the company following its public listing on NASDAQ in December 2024, focusing on strategic growth through M&A and capital access [1][3] Group 1: Strategic Growth Initiatives - The company aims for strategic organic and inorganic growth opportunities, emphasizing an active M&A strategy as a key pillar for future development [1][3] - The merger of The News Lens and Mediagene in 2023 and nine other acquisitions since 2018 highlight the company's commitment to M&A [3] Group 2: Media Expansion - The company launched popular Japanese media properties into the global Mandarin language market, generating over 10 million monthly unique users in Japan [4] - Roomie International surpassed 1 million monthly pageviews within its first year, indicating strong market potential [4] Group 3: AI Technology Implementation - The rollout of the Ad2 AI Agent in March 2025 enhances advertising decisions through data-driven insights and automation, improving efficiency and accuracy [5] - Additional AI initiatives include an AI-powered content management system and cost reduction strategies that optimize both revenue and expenses [6][7] Group 4: Content Commerce Strategy - The company is increasing its focus on Content Commerce, which has proven effective in driving customer engagement and purchase behavior [8] - Strategic partnerships and new channels are being developed to enhance this initiative [8] Group 5: Talent Acquisition and Restructuring - Key C-Level hires and promotions were made to strengthen the leadership team, including a Chief Governance Officer and Chief Human Resources Officer [10] - The company is restructuring to streamline operations and better fit its new public company status [10] Group 6: Investor Relations and Public Visibility - The company initiated research coverage by prominent Wall Street firms, enhancing its visibility in the investment community [12] - Participation in major conferences, such as the 2025 Generative AI Conference, has expanded the company's presence in the AI ecosystem [12] Group 7: Future Outlook - The company plans to continue expanding media properties, promoting technology and AI offerings, and pursuing further M&A opportunities in H2 2025 [13]

Group 1 - Travel + Leisure Co. (NYSE: TNL) experienced a ~7% increase in stock price following its Q2 2025 earnings release on July 23, contributing to a year-to-date increase of over 25% [1] - The performance of TNL is notable given the overall weakness in consumer discretionary stocks this year [1] Group 2 - Manika, a macroeconomist with over 20 years of experience in investment management and related industries, runs the profile Long Term Tips (LTT), focusing on opportunities in the green economy [1] - The investing group Green Growth Giants, associated with Manika, delves deeper into opportunities within the green economy segment [1]

Group 1 - Travel + Leisure (NYSE: TNL) shares have increased approximately 40% over the past year [1] - The company reported strong Q2 results, leading to a new 52-week high for its shares [1]

Group 1 - Travel + Leisure Co. reported $1.02 billion in revenue for the quarter ended June 2025, a year-over-year increase of 3.4% [1] - The company's EPS for the same period was $1.65, compared to $1.52 a year ago, indicating growth [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.01 billion, resulting in a surprise of +0.98% [1] Group 2 - Travel + Leisure Co. shares returned +14.9% over the past month, outperforming the Zacks S&P 500 composite's +5.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Group 3 - Net Revenues from Travel and Membership were $166 million, below the five-analyst average estimate of $176.62 million, representing a year-over-year change of -6.2% [4] - Net Revenues from Vacation Ownership were $853 million, exceeding the $832.99 million average estimate, with a year-over-year change of +5.7% [4] - Adjusted EBITDA for Travel and Membership was $55 million, lower than the $61.67 million estimated by four analysts [4]

[GLOSSARY OF TERMS](index=5&type=section&id=GLOSSARY%20OF%20TERMS) The glossary defines key terms and acronyms used throughout the report - The glossary defines key terms and acronyms used in the report, such as **Adjusted EBITDA**, **AOCL** (Accumulated Other Comprehensive Loss), **EPS** (Earnings Per Share), **VIE** (Variable Interest Entity), **VOCR** (Vacation Ownership Contract Receivable), and **VOI** (Vacation Ownership Interest)[9](index=9&type=chunk)[10](index=10&type=chunk) [PART I — FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for the periods ended June 30, 2025, and 2024 [Report of Independent Registered Public Accounting Firm](index=6&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) - Deloitte & Touche LLP reviewed the accompanying condensed consolidated interim financial information for the three-month and six-month periods ended June 30, 2025 and 2024[12](index=12&type=chunk) - Based on their reviews, they are not aware of any material modifications that should be made for the interim financial information to conform with GAAP[12](index=12&type=chunk) - They previously issued an unqualified opinion on the Company's consolidated financial statements as of December 31, 2024, and confirmed the accompanying condensed consolidated balance sheet as of December 31, 2024, is fairly stated[13](index=13&type=chunk) [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Condensed Consolidated Statements of Income (Unaudited, In millions, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net revenues | $1,018 | $985 | $1,951 | $1,900 | | Total expenses | $812 | $796 | $1,589 | $1,561 | | Operating income | $206 | $189 | $362 | $339 | | Income before income taxes | $152 | $133 | $253 | $225 | | Provision for income taxes | $44 | $36 | $72 | $62 | | Net income from continuing operations | $108 | $97 | $181 | $163 | | Gain on disposal of discontinued business, net of income taxes | $— | $32 | $— | $32 | | Net income attributable to Travel + Leisure Co. shareholders | $108 | $129 | $181 | $195 | | Basic earnings per share (Continuing operations) | $1.63 | $1.36 | $2.71 | $2.29 | | Basic earnings per share (Total) | $1.63 | $1.82 | $2.71 | $2.74 | | Diluted earnings per share (Continuing operations) | $1.62 | $1.36 | $2.68 | $2.28 | | Diluted earnings per share (Total) | $1.62 | $1.81 | $2.68 | $2.73 | [Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Condensed Consolidated Statements of Comprehensive Income (Unaudited, In millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income attributable to Travel + Leisure Co. shareholders | $108 | $129 | $181 | $195 | | Foreign currency translation adjustments, net of tax | $34 | $3 | $46 | $(12) | | Other comprehensive income/(loss), net of tax | $34 | $3 | $46 | $(12) | | Comprehensive income attributable to Travel + Leisure Co. shareholders | $142 | $132 | $227 | $183 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (Unaudited, In millions) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $212 | $167 | | Restricted cash | $175 | $162 | | Vacation ownership contract receivables, net | $2,568 | $2,619 | | Inventory | $1,252 | $1,227 | | Total assets | $6,809 | $6,735 | | **Liabilities and (deficit)** | | | | Non-recourse vacation ownership debt | $1,959 | $2,123 | | Debt | $3,628 | $3,468 | | Total liabilities | $7,662 | $7,615 | | Total stockholders' (deficit) | $(852) | $(881) | | Total (deficit) | $(853) | $(880) | | Total liabilities and (deficit) | $6,809 | $6,735 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (Unaudited, In millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income | $181 | $195 | | Net cash provided by operating activities | $353 | $221 | | Net cash used in investing activities | $(48) | $(81) | | Net cash used in financing activities | $(255) | $(261) | | Effect of changes in exchange rates on cash, cash equivalents and restricted cash | $8 | $(5) | | Net change in cash, cash equivalents and restricted cash | $58 | $(126) | | Cash, cash equivalents and restricted cash, end of period | $387 | $332 | | Cash and cash equivalents | $212 | $166 | [Condensed Consolidated Statements of Deficit](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Deficit) Changes in Total Deficit (Unaudited, In millions) | Metric | Balance as of Dec 31, 2024 | Six Months Ended June 30, 2025 Changes | Balance as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Total Deficit | $(880) | +$27 | $(853) | | Net income | | +$181 | | | Other comprehensive income | | +$46 | | | Repurchase of common stock | | $(140) | | | Dividends | | $(78) | | | Additional paid-in capital changes | | +$20 | | [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [Note 1 - Background and Basis of Presentation](index=14&type=section&id=Note%201%20-%20Background%20and%20Basis%20of%20Presentation) - Travel + Leisure Co. is a global provider of hospitality services and travel products, operating in two reportable segments: Vacation Ownership and Travel and Membership[31](index=31&type=chunk) - The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs), provides consumer financing, and property management services[32](index=32&type=chunk) - The Travel and Membership segment includes vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals[33](index=33&type=chunk) [Note 2 - New Accounting Pronouncements](index=14&type=section&id=Note%202%20-%20New%20Accounting%20Pronouncements) - Recently Issued Accounting Pronouncements include guidance on Disclosure Improvements (Oct 2023), Improvements to Income Tax Disclosures (Dec 2023, effective after Dec 15, 2024), Disaggregation of Disclosures About Income Statement Expenses (Nov 2024, effective after Dec 15, 2026), and Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity (May 2025, effective after Dec 15, 2026)[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) - Recently Adopted Accounting Pronouncements include Business Combinations—Joint Venture Formations (Aug 2023, effective Jan 1, 2025, no significant impact) and Segment Reporting (Nov 2023, effective after Dec 15, 2023, only affected disclosures)[42](index=42&type=chunk)[43](index=43&type=chunk) [Note 3 - Revenue Recognition](index=16&type=section&id=Note%203%20-%20Revenue%20Recognition) - Revenue from Vacation Ownership Interest (VOI) sales is recognized upon transfer of control, execution of financing, expiration of the statutory rescission period, and deemed collectibility[44](index=44&type=chunk) Property Management Fees and Reimbursable Revenues (In millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Management fee revenues | $114 | $113 | $228 | $227 | | Reimbursable revenues | $103 | $97 | $212 | $194 | | Property management fees and reimbursable revenues | $217 | $210 | $440 | $421 | - Travel and Membership segment revenues are primarily from membership dues (recognized straight-line over membership period) and fees for facilitating timeshare interval trading (recognized upon confirmed transactions)[51](index=51&type=chunk) Contract Liabilities (In millions) | Contract Liability | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Deferred subscription revenue | $155 | $151 | | Deferred VOI trial package revenue | $141 | $142 | | Deferred VOI incentive revenue | $85 | $86 | | Deferred exchange-related revenue | $61 | $58 | | Deferred co-branded credit card programs revenue | $38 | $21 | | Deferred other revenue | $4 | $1 | | Total | $484 | $459 | Disaggregation of Net Revenues by Segment (In millions) | Segment/Revenue Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Vacation Ownership** | | | | | | Vacation ownership interest sales | $474 | $441 | $858 | $810 | | Property management fees and reimbursable revenues | $217 | $210 | $440 | $421 | | Consumer financing | $112 | $111 | $224 | $221 | | Total Vacation Ownership | $853 | $807 | $1,609 | $1,533 | | **Travel and Membership** | | | | | | Transaction revenues | $117 | $126 | $246 | $266 | | Subscription revenues | $43 | $44 | $86 | $90 | | Total Travel and Membership | $166 | $177 | $345 | $370 | | **Net revenues** | **$1,018** | **$985** | **$1,951** | **$1,900** | [Note 4 - Earnings Per Share](index=21&type=section&id=Note%204%20-%20Earnings%20Per%20Share) Basic and Diluted Earnings Per Share (In millions, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income from continuing operations attributable to Travel + Leisure Co. Shareholders | $108 | $97 | $181 | $163 | | Basic earnings per share (Continuing operations) | $1.63 | $1.36 | $2.71 | $2.29 | | Basic earnings per share (Total) | $1.63 | $1.82 | $2.71 | $2.74 | | Diluted earnings per share (Continuing operations) | $1.62 | $1.36 | $2.68 | $2.28 | | Diluted earnings per share (Total) | $1.62 | $1.81 | $2.68 | $2.73 | | Basic weighted average shares outstanding | 66.1 | 70.8 | 66.6 | 71.2 | | Diluted weighted average shares outstanding | 66.5 | 71.0 | 67.3 | 71.5 | - The Board authorized a share repurchase program totaling **$7.0 billion**, with **$303 million** remaining availability as of June 30, 2025[65](index=65&type=chunk) - During the six months ended June 30, 2025, the Company repurchased **2.8 million shares** at a cost of **$140 million**[65](index=65&type=chunk) [Note 5 - Acquisitions](index=22&type=section&id=Note%205%20-%20Acquisitions) - During Q1 2025, the Company completed a business acquisition for **$3 million**, recognizing **$2 million** in definite-lived intangible assets and **$1 million** in Property and equipment within the Vacation Ownership segment[67](index=67&type=chunk) - On March 1, 2024, the Company acquired Accor Vacation Club for **$50 million** (**$44 million** net of cash acquired), expanding its international portfolio in the Asia Pacific region[68](index=68&type=chunk) - The Accor Vacation Club acquisition included **$23 million** of definite-lived intangible assets, **$9 million** of Inventory, **$8 million** of Trade receivables, **$6 million** of Goodwill, and **$6 million** of Property and equipment[69](index=69&type=chunk) [Note 6 - Discontinued Operations](index=22&type=section&id=Note%206%20-%20Discontinued%20Operations) - During the three and six months ended June 30, 2024, the Company recognized a **$32 million** Gain on disposal of discontinued business, net of income taxes[70](index=70&type=chunk) - This gain resulted from the expiration of certain guarantees made in connection with the 2018 sale of its European vacation rentals business[70](index=70&type=chunk) [Note 7 - Vacation Ownership Contract Receivables](index=23&type=section&id=Note%207%20-%20Vacation%20Ownership%20Contract%20Receivables) Vacation Ownership Contract Receivables, Net (In millions) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Securitized VOCRs | $2,105 | $2,293 | | Non-securitized VOCRs | $1,067 | $940 | | VOCRs, gross | $3,172 | $3,233 | | Less: allowance for loan losses | $604 | $614 | | VOCRs, net | $2,568 | $2,619 | - Securitized VOCRs generated interest income of **$166 million** for the six months ended June 30, 2025, up from **$159 million** in the prior year[71](index=71&type=chunk) Allowance for Loan Losses on VOCRs (In millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Beginning balance | $614 | $574 | | Provision for loan losses, net | $219 | $191 | | Contract receivables write-offs, net | $(229) | $(191) | | Ending balance | $604 | $574 | - The weighted average interest rate on outstanding VOCRs was **14.7%** as of both June 30, 2025, and December 31, 2024[72](index=72&type=chunk) [Note 8 - Inventory](index=25&type=section&id=Note%208%20-%20Inventory) Inventory Composition (In millions) | Inventory Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Completed VOI inventory | $996 | $970 | | Estimated VOI recoveries | $213 | $214 | | Land held for VOI development | $29 | $29 | | VOI construction in process | $12 | $10 | | Vacation exchange credits and other | $2 | $4 | | Total inventory | $1,252 | $1,227 | - The Company had net transfers of VOI inventory from property and equipment of **$8 million** during the six months ended June 30, 2025[79](index=79&type=chunk) - Inventory obligations related to third-party developers totaled **$5 million** as of June 30, 2025[81](index=81&type=chunk) [Note 9 - Property and Equipment](index=26&type=section&id=Note%209%20-%20Property%20and%20Equipment) Property and Equipment, Net (In millions) | Asset Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Capitalized software | $828 | $794 | | Building and leasehold improvements | $630 | $625 | | Furniture, fixtures and equipment | $144 | $144 | | Finance leases | $52 | $50 | | Land | $28 | $28 | | Construction in progress | $33 | $21 | | Total property and equipment | $1,715 | $1,662 | | Less: accumulated depreciation and amortization | $1,123 | $1,071 | | Property and equipment, net | $592 | $591 | [Note 10 - Debt](index=26&type=section&id=Note%2010%20-%20Debt) Company Indebtedness (In millions) | Debt Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-recourse vacation ownership debt | $1,959 | $2,123 | | Debt (Corporate) | $3,628 | $3,468 | | Total Indebtedness | $5,587 | $5,591 | - On March 19, 2025, the Company closed a **$350 million** placement of term notes (Sierra Timeshare 2025-1) secured by VOCRs, bearing a weighted average coupon rate of **5.20%**[84](index=84&type=chunk) - On April 17, 2025, the **$600 million** USD bank conduit facility was renewed, extending the commitment period to August 2027 and amending the advance rate[85](index=85&type=chunk) - On June 25, 2025, the **$1.0 billion** revolving credit facility was refinanced and extended to June 2030, reducing pricing spreads by **25 basis points**, eliminating the credit spread adjustment, reducing the Term SOFR floor to **0.00%**, and lowering the minimum interest coverage ratio to **2.00 to 1.00**[86](index=86&type=chunk)[88](index=88&type=chunk) - As of June 30, 2025, the Company was in compliance with financial covenants, with an interest coverage ratio of **4.57 to 1.0** and a first lien leverage ratio of **3.44 to 1.0**[91](index=91&type=chunk) Interest Expense (In millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Corporate Interest expense | $57 | $63 | $115 | $127 | | Non-recourse vacation ownership debt interest expense | $34 | $33 | $68 | $66 | [Note 11 - Variable Interest Entities](index=28&type=section&id=Note%2011%20-%20Variable%20Interest%20Entities) - The Company consolidates bankruptcy-remote Special Purpose Entities (SPEs) used for securitizing Vacation Ownership Contract Receivables (VOCRs)[98](index=98&type=chunk) Assets and Liabilities of Vacation Ownership SPEs (In millions) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Securitized contract receivables, gross | $2,105 | $2,293 | | Total SPE assets | $2,213 | $2,412 | | Non-recourse term notes | $1,576 | $1,746 | | Non-recourse conduit facilities | $383 | $377 | | Total SPE liabilities | $1,961 | $2,126 | | SPE assets in excess of SPE liabilities | $252 | $286 | - The receivables held by these SPEs are not available to creditors of the Company, and the non-recourse debt is not a liability of the Company[98](index=98&type=chunk) [Note 12 - Fair Value](index=30&type=section&id=Note%2012%20-%20Fair%20Value) - The Company classifies financial assets and liabilities into a fair value hierarchy: **Level 1** (quoted prices in active markets), **Level 2** (observable inputs), and **Level 3** (unobservable inputs)[101](index=101&type=chunk)[102](index=102&type=chunk) - Derivative instruments, consisting of foreign exchange forward contracts, are measured at estimated fair value (all **Level 2**)[104](index=104&type=chunk)[105](index=105&type=chunk) Carrying Amounts and Estimated Fair Values of Financial Instruments (In millions) | Financial Instrument | June 30, 2025 Carrying Amount | June 30, 2025 Estimated Fair Value | December 31, 2024 Carrying Amount | December 31, 2024 Estimated Fair Value | | :--- | :--- | :--- | :--- | :--- | | Vacation ownership contract receivables, net (Level 3) | $2,568 | $2,867 | $2,619 | $2,900 | | Debt (Level 2) | $5,587 | $5,570 | $5,591 | $5,537 | [Note 13 - Derivative Instruments and Hedging Activities](index=31&type=section&id=Note%2013%20-%20Derivative%20Instruments%20and%20Hedging%20Activities) - The Company uses freestanding foreign currency forward contracts to manage exposure to foreign currency exchange rate fluctuations, particularly for the Euro, British pound sterling, Australian and Canadian dollars, and Mexican peso[111](index=111&type=chunk)[112](index=112&type=chunk) - Interest rate risk is managed through financial derivatives, including interest rate swaps (fair value hedges) and interest rate caps (undesignated hedges), to adjust the mix of fixed to floating rate debt[113](index=113&type=chunk) - As of June 30, 2025 and 2024, there were no interest rate derivatives designated as fair value or cash flow hedges, and no losses on derivatives recognized in Accumulated Other Comprehensive Loss (AOCL)[113](index=113&type=chunk)[114](index=114&type=chunk) [Note 14 - Income Taxes](index=32&type=section&id=Note%2014%20-%20Income%20Taxes) Effective Tax Rates | Period | Effective Tax Rate | | :--- | :--- | | Three Months Ended June 30, 2025 | 28.9% | | Three Months Ended June 30, 2024 | 27.4% | | Six Months Ended June 30, 2025 | 28.5% | | Six Months Ended June 30, 2024 | 27.9% | - The effective tax rate for Q2 2025 was primarily impacted by an increase in unrecognized tax benefits. For H1 2025, it was impacted by Pillar Two taxes and increased unrecognized tax benefits, offset by decreased state taxes[116](index=116&type=chunk) - Income tax payments, net of refunds, were **$57 million** for the six months ended June 30, 2025, compared to **$47 million** in the prior year[117](index=117&type=chunk) [Note 15 - Leases](index=32&type=section&id=Note%2015%20-%20Leases) Lease Costs (In millions) | Lease Cost Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating lease cost | $5 | $5 | $10 | $10 | | Short-term lease cost | $3 | $4 | $7 | $7 | | Total finance lease cost | $3 | $3 | $6 | $6 | Lease-Related Assets and Liabilities (In millions) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Operating lease right-of-use assets | $52 | $47 | | Operating lease liabilities | $82 | $79 | | Finance lease assets | $18 | $21 | | Finance lease liabilities | $17 | $21 | | Weighted average remaining lease term (Operating) | 5.4 years | 4.9 years | | Weighted average remaining lease term (Finance) | 2.4 years | 2.6 years | - A new 15-year lease agreement for the corporate headquarters, with estimated average annual payments of **$7 million**, will commence in Q3 2025[121](index=121&type=chunk) [Note 16 - Commitments and Contingencies](index=34&type=section&id=Note%2016%20-%20Commitments%20and%20Contingencies) - The Company is involved in various claims, legal and regulatory proceedings, and governmental inquiries, none of which are expected to have a material effect on results of operations or financial condition[122](index=122&type=chunk) - Accruals for legal contingencies were **$3 million** as of June 30, 2025, with a potential exposure ranging up to **$23 million** in excess of recorded accruals[124](index=124&type=chunk) - The Company enters into standard guarantees and indemnities in the ordinary course of business, for which the maximum potential amount of future payments is not estimable[127](index=127&type=chunk) [Note 17 - Accumulated Other Comprehensive Loss](index=36&type=section&id=Note%2017%20-%20Accumulated%20Other%20Comprehensive%20Loss) Components of Accumulated Other Comprehensive Loss (Net of Tax, In millions) | Metric | December 31, 2024 | Other Comprehensive Income/(Loss) H1 2025 | June 30, 2025 | | :--- | :--- | :--- | :--- | | Foreign Currency Translation Adjustments | $(113) | $46 | $(67) | | Defined Benefit Pension Plans | $1 | $— | $1 | | Total Accumulated Other Comprehensive Loss | $(112) | $46 | $(66) | - The net Accumulated Other Comprehensive Loss improved from **$(112) million** at December 31, 2024, to **$(66) million** at June 30, 2025, primarily due to **$46 million** in foreign currency translation adjustments[129](index=129&type=chunk) [Note 18 - Stock-Based Compensation](index=37&type=section&id=Note%2018%20-%20Stock-Based%20Compensation) - During the six months ended June 30, 2025, the Company granted **$38 million** in RSUs and **$10 million** in PSUs to key employees and senior officers[133](index=133&type=chunk) - As of June 30, 2025, aggregate unrecognized compensation expense for RSUs was **$66 million** (expected over 2.8 years) and for PSUs was **$15 million** (probable, over 2.3 years), with a maximum potential of **$41 million** for non-probable PSUs[135](index=135&type=chunk) Stock-Based Compensation Expense (In millions) | Period | Stock-Based Compensation Expense | | :--- | :--- | | Three Months Ended June 30, 2025 | $12 | | Three Months Ended June 30, 2024 | $11 | | Six Months Ended June 30, 2025 | $26 | | Six Months Ended June 30, 2024 | $20 | - The Employee Stock Purchase Plan issued **0.1 million shares** during the six months ended June 30, 2025 and 2024, recognizing **$1 million** of compensation expense for each period[140](index=140&type=chunk) [Note 19 - Segment Information](index=39&type=section&id=Note%2019%20-%20Segment%20Information) - The Company operates in two reportable segments: Vacation Ownership and Travel and Membership, with Adjusted EBITDA used as the primary profitability measure by the Chief Operating Decision Maker (CODM)[141](index=141&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk) Adjusted EBITDA by Segment (In millions) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Vacation Ownership | $218 | $206 | $378 | $340 | | Travel and Membership | $55 | $62 | $123 | $137 | | Total reportable segments | $273 | $268 | $501 | $477 | | Corporate and other | $(23) | $(24) | $(49) | $(42) | | Total Company Adjusted EBITDA | $250 | $244 | $452 | $435 | Capital Expenditures by Segment (In millions) | Segment | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Vacation Ownership | $28 | $25 | | Travel and Membership | $8 | $10 | | Total reportable segments | $36 | $35 | | Corporate and other | $22 | $3 | | Total Company | $58 | $38 | Segment Assets (In millions) | Segment | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Vacation Ownership | $5,141 | $5,112 | | Travel and Membership | $1,343 | $1,325 | | Total reportable segments | $6,484 | $6,437 | | Corporate and other | $325 | $298 | | Total Company | $6,809 | $6,735 | [Note 20 - Restructuring](index=45&type=section&id=Note%2020%20-%20Restructuring) - The 2024 restructuring plan incurred **$15 million** in charges, primarily personnel-related from a reduction of approximately 300 employees, focused on enhancing organizational efficiency[158](index=158&type=chunk) - As of June 30, 2025, the remaining liability for the 2024 restructuring plan was **$2 million**, expected to be paid by the end of 2026[158](index=158&type=chunk)[160](index=160&type=chunk) - A remaining **$13 million** liability from prior restructuring plans, related to leased facilities, is expected to be paid by the end of 2029[159](index=159&type=chunk)[160](index=160&type=chunk) [Note 21 - Transactions with Former Parent and Former Subsidiaries](index=45&type=section&id=Note%2021-%20Transactions%20with%20Former%20Parent%20and%20Former%20Subsidiaries) - The Company is responsible for **25%** of certain contingent liabilities related to its former parent, ABG, and paid **$24 million** for a legacy tax matter in May 2025, reimbursed **$8 million** by Wyndham Hotels[163](index=163&type=chunk)[164](index=164&type=chunk) - In connection with the Spin-off, Travel + Leisure Co. assumed two-thirds and Wyndham Hotels assumed one-third of certain contingent corporate liabilities incurred prior to the Spin-off[168](index=168&type=chunk) - A **$32 million** Gain on disposal of discontinued business, net of income taxes, was recognized in Q2 2024 due to the expiration of indemnifications related to the sale of the European vacation rentals business[171](index=171&type=chunk) - As of June 30, 2025, the estimated fair value of guarantees and indemnifications for which Travel + Leisure Co. is responsible related to the European vacation rentals business totaled **$48 million**[173](index=173&type=chunk) [Note 22 - Related Party Transactions](index=48&type=section&id=Note%2022%20-%20Related%20Party%20Transactions) - The Company incurred less than **$1 million** of expenses during the six months ended June 30, 2025 and 2024, for subletting an aircraft from its former CEO and current Chairman of the Board for business travel[175](index=175&type=chunk) [Note 23 - Subsequent Event](index=48&type=section&id=Note%2023%20-%20Subsequent%20Event) - On July 22, 2025, the Company closed on a placement of **$300 million** in term notes (Sierra Timeshare 2025-2 Receivables Funding LLC), secured by VOCRs and bearing a weighted average coupon rate of **5.10%**[176](index=176&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations [Forward-Looking Statements](index=49&type=section&id=Forward-Looking%20Statements) - The report contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially[178](index=178&type=chunk) - Key risks include adverse economic conditions (inflation, interest rates, recession), travel disruptions (war, pandemics, natural disasters), changes in consumer patterns, operating costs, debt covenants, and cyber-attacks[178](index=178&type=chunk) - The Company undertakes no obligation to update these statements unless required by law[178](index=178&type=chunk) [Business and Overview](index=49&type=section&id=Business%20and%20Overview) - The Company operates in two segments: Vacation Ownership (VOIs, consumer financing, property management) and Travel and Membership (vacation exchange, travel technology, memberships, rentals)[181](index=181&type=chunk) - The Vacation Ownership business saw continued demand for leisure travel, resulting in **higher Gross VOI sales** and **Adjusted EBITDA growth** in H1 2025, with increased tours and Volume Per Guest (VPGs)[179](index=179&type=chunk) - The Travel and Membership business experienced **lower revenues** in H1 2025 due to industry consolidation, lower member counts, and an increasing mix of exchange members with club affiliations, despite an overall improvement in exchange revenue per transaction[180](index=180&type=chunk) - The Company is experiencing pressure on its loan portfolio due to **elevated delinquencies** but has benefited from improved interest rates on variable rate corporate borrowings and successful securitization closings[182](index=182&type=chunk)[183](index=183&type=chunk) [Pillar Two and Recent Legislation](index=50&type=section&id=Pillar%20Two%20and%20Recent%20Legislation) - The OECD's Pillar Two global minimum tax rules increased the Company's effective tax rate, but the overall impact to financial statements was **not material** as of June 30, 2025[186](index=186&type=chunk) - The recently signed 'One Big Beautiful Bill Act' extends tax provisions and restores full expensing for R&D and capital investments; the Company is currently assessing its potential impact[187](index=187&type=chunk) [Results of Operations](index=50&type=section&id=Results%20of%20Operations) Consolidated Results (In millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net revenues | $1,018 | $985 | $1,951 | $1,900 | | Expenses | $812 | $796 | $1,589 | $1,561 | | Operating income | $206 | $189 | $362 | $339 | | Net income from continuing operations | $108 | $97 | $181 | $163 | | Net income attributable to Travel + Leisure Co. shareholders | $108 | $129 | $181 | $195 | Operating Statistics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Vacation Ownership Gross VOI sales (in millions) | $654 | $607 | 7.8% | | Vacation Ownership Tours (in 000s) | 197 | 192 | 2.7% | | Vacation Ownership Volume per guest | $3,251 | $3,051 | 6.5% | | Travel and Membership Total transactions (in 000s) | 388 | 399 | (2.7%) | | Travel and Membership Total revenue per transaction | $300 | $315 | (4.6%) | | Travel and Membership Average number of exchange members (in 000s) | 3,329 | 3,450 | (3.5%) | - Q2 2025 Net revenues increased **$33 million** YoY, primarily driven by a **$47 million** increase in Vacation Ownership offset by an **$11 million** decrease in Travel and Membership[194](index=194&type=chunk)[197](index=197&type=chunk) - H1 2025 Net revenues increased **$51 million** YoY, primarily due to an **$80 million** increase in Vacation Ownership offset by a **$23 million** decrease in Travel and Membership[207](index=207&type=chunk)[209](index=209&type=chunk) [RESTRUCTURING PLANS](index=60&type=section&id=RESTRUCTURING%20PLANS) - The 2024 restructuring plan, focused on organizational efficiency and rationalizing operations, incurred **$15 million** in charges, including personnel-related costs from approximately 300 employee reductions[221](index=221&type=chunk) - During the six months ended June 30, 2025, **$6 million** in cash payments reduced the 2024 restructuring liability to **$2 million**, expected to be paid by the end of 2026[221](index=221&type=chunk) - For prior restructuring plans, **$2 million** in cash payments were made in H1 2025, leaving a remaining liability of **$13 million**, primarily related to leased facilities, expected by the end of 2029[222](index=222&type=chunk) [FINANCIAL CONDITION](index=60&type=section&id=FINANCIAL%20CONDITION) Financial Condition Summary (In millions) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total assets | $6,809 | $6,735 | +$74 | | Total liabilities | $7,662 | $7,615 | +$47 | | Total (deficit) | $(853) | $(880) | +$27 | - Total assets increased by **$74 million**, driven by increases in Cash and cash equivalents (+$45M), Prepaid expenses (+$30M), Inventory (+$25M), and Trade receivables (+$20M), partially offset by a **$51 million** decrease in Vacation ownership contract receivables, net[223](index=223&type=chunk)[226](index=226&type=chunk) - Total liabilities increased by **$47 million**, primarily due to increases in Debt (+$160M), Deferred income (+$26M), and Deferred income taxes (+$23M), partially offset by a **$164 million** decrease in Non-recourse vacation ownership debt[226](index=226&type=chunk) - Total deficit decreased by **$27 million**, primarily due to Net income (+$181M), favorable currency translation adjustments (+$46M), and increased additional paid-in capital (+$20M), partially offset by share repurchases (-$140M) and dividends (-$78M)[227](index=227&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=61&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) - The Company believes it has sufficient liquidity from net cash from operations, cash and cash equivalents, revolving credit facility, bank conduit facilities, and debt markets to meet short-term and long-term cash needs[228](index=228&type=chunk) - As of June 30, 2025, the **$1.0 billion** revolving credit facility had **$596 million** of available capacity, and non-recourse conduit facilities had a combined capacity of **$747 million** (**$364 million** available)[230](index=230&type=chunk)[235](index=235&type=chunk) - The Company closed **$350 million** in securitization financings in H1 2025 and an additional **$300 million** subsequent to quarter-end, demonstrating continued access to debt markets[236](index=236&type=chunk) - Capital deployment focuses on business growth, optimizing cash flow and Adjusted EBITDA, with anticipated full-year spending of **$150-$180 million** for vacation ownership development and **$125-$135 million** for capital expenditures in 2025[249](index=249&type=chunk)[250](index=250&type=chunk)[251](index=251&type=chunk) - The share repurchase program had **$303 million** remaining availability as of June 30, 2025, after repurchasing **$140 million** in H1 2025[255](index=255&type=chunk) - Dividends paid were **$78 million** in H1 2025 (**$0.56** per share per quarter), with a long-term plan to grow dividends at least at the rate of earnings growth[257](index=257&type=chunk) [CASH FLOW](index=64&type=section&id=CASH%20FLOW) Changes in Cash, Cash Equivalents, and Restricted Cash (In millions) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Operating activities | $353 | $221 | +$132 | | Investing activities | $(48) | $(81) | +$33 | | Financing activities | $(255) | $(261) | +$6 | | Effects of changes in exchange rates on cash and cash equivalents | $8 | $(5) | +$13 | | Net change in cash, cash equivalents and restricted cash | $58 | $(126) | +$184 | - Net cash provided by operating activities increased by **$132 million**, primarily due to a **$75 million** decrease in cash utilized for working capital and a **$71 million** increase in non-cash addbacks[246](index=246&type=chunk) - Net cash used in investing activities decreased by **$33 million**, mainly due to the **$44 million** acquisition of Accor Vacation Club in 2024 and **$15 million** from investment sales in 2025, partially offset by a **$20 million** increase in capital expenditures[247](index=247&type=chunk) - Net cash used in financing activities decreased by **$6 million**, driven by a **$159 million** increase in net proceeds from corporate debt, partially offset by a **$101 million** increase in net payments on non-recourse debt and a **$46 million** increase in share repurchases[248](index=248&type=chunk) [SEASONALITY](index=66&type=section&id=SEASONALITY) - The Company experiences seasonal fluctuations, with revenues from VOI sales generally higher in the third quarter due to increased leisure travel[258](index=258&type=chunk) - Revenues from vacation exchange fees are typically highest in the first quarter, when members usually book their annual vacations[258](index=258&type=chunk) [COMMITMENTS AND CONTINGENCIES](index=66&type=section&id=COMMITMENTS%20AND%20CONTINGENCIES) - The Company refers to Note 16 and Note 21 of the Condensed Consolidated Financial Statements for details on claims, legal actions, guarantees, and indemnifications[260](index=260&type=chunk) [CRITICAL ACCOUNTING ESTIMATES](index=66&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) - There have been no material changes to the critical accounting estimates since the filing of the Annual Report on Form 10-K for the year ended December 31, 2024[262](index=262&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risks](index=67&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) This section assesses the company's exposure to market risks, primarily from changes in interest and foreign currency exchange rates - A hypothetical **10% change** in interest rates would result in a **$2 million** change in annual consumer financing interest expense and a **$5 million** change in annual debt interest expense for the six months ended June 30, 2025[264](index=264&type=chunk) - A hypothetical **10% change** in foreign currency exchange rates would result in a **$6 million** change to the fair value of outstanding forward foreign currency exchange contracts, generally offset by the underlying exposure[264](index=264&type=chunk) - A **100 basis point change** in underlying interest rates on variable rate borrowings would result in a **$4 million** change in annual consumer financing interest expense and a **$12 million** change in annual debt interest expense[265](index=265&type=chunk) [Item 4. Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025 - The principal executive and principal financial officers concluded that disclosure controls and procedures were designed and functioning effectively as of June 30, 2025[266](index=266&type=chunk) - There have been no material changes in internal control over financial reporting during the period covered by the report[266](index=266&type=chunk) [PART II — OTHER INFORMATION](index=68&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=68&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to disclosures in Note 16 and Note 21 regarding claims and lawsuits arising in the ordinary course of business - The Company is involved in various claims and lawsuits arising in the ordinary course of business, none of which are expected to have a material adverse effect on its results of operations or financial condition[267](index=267&type=chunk) - Further details are provided in Note 16 (Commitments and Contingencies) and Note 21 (Transactions with Former Parent and Former Subsidiaries) of the financial statements[267](index=267&type=chunk) [Item 1A. Risk Factors](index=68&type=section&id=Item%201A.%20Risk%20Factors) This section states there have been no material changes to the risk factors previously disclosed in the company's Annual Report - As of June 30, 2025, there have been no material changes to the risk factors set forth in Part I, Item 1A of the Annual Report on Form 10-K for the fiscal year ended December 31, 2024[268](index=268&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=68&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section summarizes the company's common stock repurchase activity for the quarter ended June 30, 2025 Common Stock Repurchases (Quarter Ended June 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan | Approximate Dollar Value of Shares that May Yet Be Purchased Under Plan | | :--- | :--- | :--- | :--- | :--- | | April 2025 | 531,121 | $42.32 | 531,121 | $350,625,404 | | May 2025 | 496,366 | $48.63 | 496,366 | $326,485,754 | | June 2025 | 469,985 | $49.76 | 469,985 | $303,099,697 | | **Total** | **1,497,472** | **$46.75** | **1,497,472** | **$303,099,697** | - The Share Repurchase Program, authorized on August 20, 2007, has a total authorization of **$7.0 billion**, with **$303 million** remaining availability as of June 30, 2025[271](index=271&type=chunk) [Item 3. Defaults Upon Senior Securities](index=68&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities during the reporting period - None[272](index=272&type=chunk) [Item 4. Mine Safety Disclosures](index=68&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that the disclosure requirements for mine safety are not applicable to the company - Not applicable[273](index=273&type=chunk) [Item 5. Other Information](index=68&type=section&id=Item%205.%20Other%20Information) This section states that there is no other information to report under this item - None[274](index=274&type=chunk) [Item 6. Exhibits](index=70&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q - Key exhibits include the Third Amended and Restated Certificate of Incorporation, Fourth Amended and Restated Bylaws, Thirteenth Amendment to the Amended and Restated Indenture and Servicing Agreement, and the Seventh Amendment to the Credit Agreement[275](index=275&type=chunk) - Certifications from the President and Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) and 18 U.S.C. Section 1350 are also filed[275](index=275&type=chunk)

Financial Data and Key Metrics Changes - The company generated over $1 billion in revenue, $250 million in adjusted EBITDA, and $1.65 in adjusted earnings per share, all showing year-over-year increases [6][19] - Adjusted EBITDA grew 2% year-over-year, translating to a 4% adjusted EBITDA growth for the first half of the year [19] - The average FICO score of new originations is 746, reflecting a more than 20-point increase since the company updated its credit quality standards [10] Business Line Data and Key Metrics Changes - The Vacation Ownership segment saw revenue grow 6% to $853 million, driven by a 3% increase in tours and a VPG of $3,251, which is up 7% from last year [20] - The Travel and Membership segment's revenue was $166 million for the quarter, down 6% year-over-year, with adjusted EBITDA declining 11% to $55 million [22] Market Data and Key Metrics Changes - Demand remains strong across the core timeshare business, with tour growth improving sequentially from the first quarter and 3% compared to 2024 [7] - The company serves more than 800,000 owner families with an average tenure of 17 years, indicating a stable customer base [9] Company Strategy and Development Direction - The company is focused on growing its core vacation ownership business while leveraging data and technology to enhance customer experience [13] - New brand expansions include a new sales location in Nashville and the launch of the Accor Vacation Club in Asia, indicating a strategy of geographic expansion [14][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of leisure travel and the health of consumers, with spending on leisure travel expected to grow mid-single digits per year over the next five years [7] - The company anticipates continued strength in the vacation ownership business, which is expected to cover any weakness in the travel and membership segment [26] Other Important Information - The company returned $107 million of adjusted free cash flow to shareholders during the quarter, with $37 million through dividends and $70 million in share repurchases [23] - The liquidity position remains strong, ending the quarter with over $800 million, including $212 million in cash and cash equivalents [25] Q&A Session Summary Question: Visibility in the Travel and Membership segment - Management acknowledged challenges in the travel membership segment due to industry consolidation and unanticipated impacts from M&A activity, but emphasized proactive measures to address these issues [31][32] Question: Average transaction size and financing - Management noted that the increase in average transaction size is due to measured price increases and greater owner engagement, with no significant change in the propensity to finance [35][38] Question: Delinquency trends and provisions - Delinquencies moderated through the second quarter and into July, with a full-year provision of 21% expected, and management is confident in the portfolio's strength [46][47] Question: Consumer health and income stratification - Management indicated that higher household incomes correlate with better performance and lower delinquencies, while new owner performance remains strong despite economic uncertainties [56][58] Question: International opportunities with Accor - Management expressed optimism about the international market potential but emphasized that the U.S. market remains the primary focus, with expectations for similar profitability margins internationally [74][78] Question: New projects and brand launches - Management highlighted the strategic importance of new brands like Margaritaville and Sports Illustrated, which are expected to contribute significantly to sales growth [90][91]

Financial Data and Key Metrics Changes - The company generated over $1 billion in revenue, $250 million in adjusted EBITDA, and $1.65 in adjusted earnings per share, all showing year-over-year increases [6][19] - Adjusted EBITDA grew 2% year-over-year, translating to a 4% adjusted EBITDA growth for the first half of the year [19] - The company returned $107 million of capital to shareholders in the quarter [5][23] Business Line Data and Key Metrics Changes - The Vacation Ownership segment saw revenue grow 6% to $853 million, driven by a 3% increase in tours and a VPG of $3,251, which is up 7% from last year [20] - The Travel and Membership segment's revenue was $166 million, down 6% year-over-year, with adjusted EBITDA declining 11% to $55 million [22] Market Data and Key Metrics Changes - Demand remains strong across the core timeshare business, with tour growth improving sequentially from the first quarter and up 3% compared to 2024 [7] - The average household income for owners is approximately $118,000, with an average FICO score above 720 [10] Company Strategy and Development Direction - The company is focused on growing the core vacation ownership business while leveraging data and technology to enhance customer experience [13] - New brand expansions include a new sales location in Nashville and the launch of the Accor Vacation Club in Asia [14][15] - The company aims to maintain a resilient balance sheet while returning excess cash to shareholders [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the business and the resilience of the customer base, noting that spending on leisure travel is expected to grow mid-single digits per year over the next five years [7][8] - The company anticipates continued challenges in the Travel and Membership segment but remains committed to executing on core business strategies [25] Other Important Information - The company ended the quarter with over $800 million in liquidity, including $212 million in cash and cash equivalents [24] - The company is preparing for the launch of the WorldMark app in Q4 and has invested in AI for personalized experiences [12] Q&A Session Summary Question: Visibility in the Travel and Membership segment - Management acknowledged challenges in the Travel and Membership segment due to industry consolidation and M&A activity impacting transaction volumes [30][31] Question: Average transaction size and financing - The increase in average transaction size is attributed to measured price increases and strong consumer demand, with no significant change in the propensity to finance [35][37] Question: VPG guidance and gross VOI sales - Management raised VPG guidance for the year but did not increase gross VOI sales due to expectations of continued tour growth [41][42] Question: Delinquency trends - Delinquency trends have moderated, and management is confident in the portfolio's strength, with a full-year provision of 21% [43][45] Question: Consumer health and income stratification - Management noted that higher household incomes correlate with better performance and lower delinquencies, with strong engagement from existing owners [52][56] Question: International opportunities with Accor - Management expressed optimism about the international market but emphasized that the U.S. remains the strongest market for timeshare [71][73] Question: New projects and their strategic importance - New projects like Margaritaville and Sports Illustrated are seen as opportunities to reach new customer segments and enhance overall sales [86][88]

Core Achievements - TNL Mediagene has achieved significant milestones in its AI initiatives for 2025, focusing on multilingual content translation, workflow automation, and AI behavior monitoring to enhance operational efficiency and monetization capabilities [1] - The company has successfully implemented a multilingualization strategy, adapting popular media properties to new language markets using AI-assisted translation, resulting in over 5,000 articles published since 2024, with 1,200 articles produced in Q2 2025 alone [2][3] - The workflow automation strategy has integrated AI tools to improve productivity across various communication formats, leading to a 5% reduction in human capital intensity from May 2024 to May 2025 [3] AI Monitoring and Traffic Management - TNL Mediagene is enhancing its monitoring of AI-driven traffic through "pay per crawl" technology and analytics tools to optimize content performance and monetization strategies [4] - The company collaborates with third-party intermediaries for legal licensing and monetization of content, aligning with emerging practices in the AI ecosystem [4] Public Engagement and Advocacy - The company co-hosted the 2025 Generative AI Conference, attracting over 1,000 attendees, and is planning the "INSIDE Future Day" for October 2025, focusing on AI technology trends and expected to attract over 1,000 attendees [5] - TNL Mediagene aims to build an Asia-based content ecosystem enhanced by AI systems, targeting younger audiences and global partners [6] Financial Performance - In FY2024, TNL Mediagene reported consolidated revenue of $48.5 million, with a gross profit of $17.7 million and an adjusted EPS of -$0.035 [7] - The Technology business unit contributed $14.2 million to consolidated revenue in 2024, representing a 34% annual growth and accounting for approximately 29% of total group revenue [8]