UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to WASHINGTON, D.C. 20549 _________________________ FORM 10-Q ___________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR Commission file number 001-35219 _________________________ Marriott Vacations Worldwid ...

Core Viewpoint - Marriott Vacations Worldwide Corporation held its Q2 2025 earnings call, discussing financial performance and future outlook [1][2][3]. Group 1: Company Overview - The earnings call featured key executives including John Geller, the President and CEO, and Jason Marino, the Executive VP and CFO [3][5]. - The call was hosted by Neal Goldner, Vice President of Investor Relations, indicating a structured approach to investor communication [2][3]. Group 2: Financial Information - The company emphasized that many comments made during the call are forward-looking statements, which are subject to risks and uncertainties [4]. - References to non-GAAP financial information were made, with reconciliations available in the press release and on the company's website [4].

Marriott Vacations Worldwide (VAC) Q2 2025 Earnings Call August 05, 2025 10:00 AM ET Company ParticipantsNeal Goldner - VP - IRJohn Geller - CEO, President & DirectorJason Marino - EVP & CFOC. Patrick Scholes - Managing Director - Lodging & Leisure Equity ResearchBrandt Montour - Director - Equity ResearchDavid Katz - Managing DirectorConference Call ParticipantsBenjamin Chaiken - Equity AnalystStephen Grambling - MD & Senior Equity Research AnalystOperatorGreetings, and welcome to the Marriott Vacations Wo ...

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $203 million for the quarter, reflecting a 29% increase year-over-year with margins improving by 360 basis points [4][18] - Contract sales were down less than 1% for the quarter, an improvement compared to Q1, with first-time buyer sales up 6% year-over-year [6][15] - Delinquencies declined by 50 basis points sequentially and 110 basis points year-over-year, reaching the lowest levels in two years [15][29] Business Line Data and Key Metrics Changes - Owner sales declined by 4% due to lower VPGs, while owner tours remained flat [15] - Total company rental profit decreased by $7 million or 16% to $35 million, driven by increased unsold maintenance fees and marketing expenses [17] - Management exchange profit increased by 3% to $98 million, attributed to increased revenue in the vacation ownership segment [17] Market Data and Key Metrics Changes - The company achieved nearly 90% resort occupancy, with strong performance in Maui, Coastal Florida, and The Caribbean, while Las Vegas showed relative weakness [5] - First-time buyers represented a third of total contract sales in the quarter, up 200 basis points from a year ago [7] Company Strategy and Development Direction - The company is focused on modernization initiatives expected to deliver $150 million to $200 million in run rate benefits by the end of 2026, with half from revenue initiatives and half from cost savings [6][11] - The modernization program aims to enhance decision-making speed, optimize IT platforms, and drive growth in the leisure-focused business [7][12] - The company plans to restrict inventory spending to low-cost reacquired inventory and capital-efficient arrangements [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model and the continued prioritization of leisure travel by consumers [4][13] - Despite external uncertainties, the company expects high occupancy rates to continue and anticipates strong owner keys for the second half of the year [12][14] - The long-term financial model remains unchanged, with expectations for high single-digit to low double-digit EPS growth over time [14] Other Important Information - The company ended the quarter with $800 million in liquidity and a leverage ratio of 3.9 times [18] - Adjusted free cash flow is expected to be between $270 million and $330 million for the year, excluding one-time cash costs related to modernization initiatives [20] Q&A Session Summary Question: Contract sales trends in June and July - Management confirmed that July contract sales were up slightly from June, with June showing a 3% year-over-year increase [26][27] Question: Loan loss provision expectations - The loan loss provision guidance increased to 12.5%, which is about half a point higher than previous expectations, reflecting ongoing improvements in delinquencies [28][29] Question: Expanded owner benefits and EBITDA impact - The expanded owner benefit provides more options for owners but is not expected to significantly impact EBITDA growth [33][34] Question: Share buyback restrictions - Management indicated that there were blackout periods preventing share buybacks, but they plan to be opportunistic in the future [36][37] Question: Inventory efficiency and cost implications - The company aims to reduce inventory levels to one to two years on hand, with a slight increase in product costs expected over the next few years [45][46] Question: Loan loss provision increase despite improving delinquencies - Management explained that while delinquencies are improving, they are still higher than desired, prompting a conservative approach to the loan loss provision [53][54] Question: Sales performance in Maui - Maui showed strong year-over-year performance, with contract sales and occupancy rates improving, although some challenges remain [59]

Forward-Looking Statements Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," "plan," "intend," "anticipate," "estimate," "predict," "potential," "continue," "may," "might," "should," "could" or the negative of these terms or similar expressions. We caution you that these statements are not guarantees of future performance and are subject to numerous and evolving risks and unce ...

Core Insights - Marriott Vacations Worldwide reported $1.25 billion in revenue for the quarter ended June 2025, marking a year-over-year increase of 9.3% and an EPS of $1.96 compared to $1.10 a year ago, with revenue exceeding Zacks Consensus Estimate by 1.85% [1] - The company’s EPS also surpassed the consensus estimate of $1.72 by 13.95% [1] Revenue Breakdown - Cost reimbursements revenue was $407 million, exceeding the average estimate of $391.55 million by analysts, representing a year-over-year change of +7.7% [4] - Rental revenue reached $160 million, slightly above the average estimate of $157.54 million, with a year-over-year increase of +4.6% [4] - Management and exchange revenue was reported at $219 million, in line with the average estimate of $218.79 million, reflecting a +1.9% year-over-year change [4] - Sales of vacation ownership products generated $370 million, surpassing the estimated $360.33 million, with a significant year-over-year increase of +19.7% [4] - Financing revenue amounted to $90 million, exceeding the average estimate of $88.4 million, with a year-over-year change of +5.9% [4] Stock Performance - Shares of Marriott Vacations Worldwide have returned -8.3% over the past month, contrasting with the Zacks S&P 500 composite's +0.6% change, indicating underperformance relative to the broader market [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3]

Marriott Vacations Worldwide (VAC) came out with quarterly earnings of $1.96 per share, beating the Zacks Consensus Estimate of $1.72 per share. This compares to earnings of $1.1 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +13.95%. A quarter ago, it was expected that this timeshare company would post earnings of $1.56 per share when it actually produced earnings of $1.66, delivering a surprise of +6.41%.Over the last four ...

[Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) The company reported strong Q2 2025 results, with **$69 million** net income and **$203 million** Adjusted EBITDA, reiterating its full-year outlook and modernization program progress - Management highlighted the resilience of the business model, strong first-time buyer sales, and confirmed that its modernization program is on track to deliver **$150 million to $200 million** in annualized Adjusted EBITDA benefits by the end of next year[4](index=4&type=chunk) Q2 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Net income attributable to common stockholders | $69 million | | Diluted earnings per share (EPS) | $1.77 | | Adjusted net income attributable to common stockholders | $77 million | | Adjusted diluted EPS | $1.96 | | Adjusted EBITDA | $203 million | [Segment Performance](index=1&type=section&id=Segment%20Performance) The Vacation Ownership segment's Adjusted EBITDA increased **28%** due to a prior-year adjustment, while Exchange & Third-Party Management saw declines in revenue and Adjusted EBITDA [Vacation Ownership](index=1&type=section&id=Vacation%20Ownership) Vacation Ownership revenue grew **12%** to **$775 million** and Adjusted EBITDA increased **28%** to **$231 million**, despite a **1%** dip in contract sales and **3%** VPG decline Vacation Ownership Performance - Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues (ex-cost reimbursements) | $775M | $694M | +12% | | Total consolidated contract sales | $445M | $449M | -1% | | VPG | $3,631 | $3,741 | -3% | | Tours | 114,402 | 111,752 | +2% | | Segment Adjusted EBITDA* | $231M | $181M | +28% | - The **28%** increase in Segment Adjusted EBITDA was primarily driven by a **$57 million** sales reserve adjustment in the prior year, which had reduced development profit in Q2 2024[8](index=8&type=chunk) [Exchange & Third-Party Management](index=2&type=section&id=Exchange%20%26%20Third-Party%20Management) Exchange & Third-Party Management revenue decreased **10%** to **$51 million** and Adjusted EBITDA fell **7%** to **$23 million**, primarily due to lower Interval International performance Exchange & Third-Party Management Performance - Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues (ex-cost reimbursements) | $51M | $55M | -10% | | Total active Interval International members | 1,507k | 1,530k | -2% | | Avg. revenue per member | $37.40 | $38.30 | -2% | | Segment Adjusted EBITDA* | $23M | $25M | -7% | [Corporate and Other](index=2&type=section&id=Corporate%20and%20Other) General and administrative costs rose **12%** year-over-year, mainly due to lower variable compensation in the prior year tied to the sales reserve adjustment - General and administrative costs increased **12%** compared to the prior year due to lower variable compensation in the prior year tied to the sales reserve adjustment[10](index=10&type=chunk) [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) The company ended Q2 with **$799 million** in liquidity, including **$205 million** cash, and total debt of **$5 billion** split between corporate and non-recourse obligations - The company ended the quarter with **$799 million** in liquidity, including **$205 million** of cash and cash equivalents and **$539 million** of available capacity under its revolving corporate credit facility[11](index=11&type=chunk) - Total debt at the end of Q2 was composed of **$3 billion** in corporate debt and **$2 billion** in non-recourse debt related to securitized vacation ownership notes receivable[12](index=12&type=chunk) [Full Year 2025 Outlook](index=2&type=section&id=Full%20Year%202025%20Outlook) The company reiterated its full-year 2025 guidance, projecting contract sales between **$1,740 million** and **$1,830 million** and Adjusted EBITDA between **$750 million** and **$780 million** Full Year 2025 Guidance (Reiterated) | Metric | 2025 Guidance Range | | :--- | :--- | | Contract sales | $1,740M to $1,830M | | Adjusted EBITDA* | $750M to $780M | | Adjusted net income* | $250M to $280M | | Adjusted diluted EPS* | $6.40 to $7.10 | | Adjusted free cash flow* | $270M to $330M | 2025 Supplemental Estimates | Metric | 2025 Guidance Range | | :--- | :--- | | Interest expense, net | $175M to $172M | | Depreciation and amortization | $150M to $148M | | Tax rate (for adjusted net income) | 34% to 33% | [Financial Schedules](index=6&type=section&id=Financial%20Schedules) [Summary Financial Information (A-1)](index=7&type=section&id=Summary%20Financial%20Information%20(A-1)) Q2 2025 saw total revenues increase **9%** to **$1.246 billion** and net income rise **89%** to **$69 million**, with Adjusted EBITDA growing **29%** to **$203 million** Q2 2025 Financial Summary (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **GAAP Measures** | | | | | Revenues | $1,246M | $1,140M | +9% | | Net Income | $69M | $37M | +89% | | Diluted EPS | $1.77 | $0.98 | +81% | | **Non-GAAP Measures** | | | | | Adjusted EBITDA* | $203M | $158M | +29% | | Adjusted Net Income* | $77M | $42M | +84% | | Adjusted Diluted EPS* | $1.96 | $1.10 | +78% | [Interim Consolidated Statements of Income (A-2)](index=8&type=section&id=Interim%20Consolidated%20Statements%20of%20Income%20(A-2)) Q2 2025 income statement shows total revenues of **$1.246 billion**, driven by increased vacation ownership product sales, resulting in **$69 million** net income Q2 2025 Income Statement Highlights (vs. Q2 2024) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Sale of vacation ownership products | $370M | $309M | | Total Revenues | $1,246M | $1,140M | | Total Expenses | $1,134M | $1,038M | | Net Income Attributable to Common Stockholders | $69M | $37M | [Non-GAAP Reconciliations (A-3 to A-6)](index=9&type=section&id=Non-GAAP%20Reconciliations%20(A-3%20to%20A-6)) This section details reconciliations from GAAP to non-GAAP metrics, with Q2 2025 adjustments bridging **$69 million** GAAP Net Income to **$77 million** Adjusted Net Income and **$203 million** Adjusted EBITDA [Adjusted Net Income and EPS (A-3)](index=9&type=section&id=Adjusted%20Net%20Income%20and%20EPS%20(A-3)) GAAP net income of **$69 million** was adjusted for items like a **$34 million** restructuring charge, resulting in **$77 million** Adjusted Net Income and **$1.96** Adjusted Diluted EPS for Q2 2025 Q2 2025 Reconciliation to Adjusted Net Income | Line Item | Amount | | :--- | :--- | | Net income attributable to common stockholders (GAAP) | $69M | | Add: Provision for income taxes | $25M | | Add/Subtract: Certain items (Restructuring, Gains, etc.) | $8M | | **Adjusted pretax income*** | **$110M** | | Less: Provision for income taxes (adjusted) | ($33M) | | **Adjusted net income attributable to common stockholders*** | **$77M** | [Adjusted EBITDA (A-4 & A-5)](index=10&type=section&id=Adjusted%20EBITDA%20(A-4%20%26%20A-5)) Q2 2025 Adjusted EBITDA reached **$203 million**, reconciled from **$69 million** GAAP net income, with Vacation Ownership contributing **$231 million** and Exchange & Third-Party Management **$23 million** Q2 2025 Reconciliation to Adjusted EBITDA | Line Item | Amount | | :--- | :--- | | Net income attributable to common stockholders (GAAP) | $69M | | Add: Interest expense, net | $42M | | Add: Provision for income taxes | $25M | | Add: Depreciation and amortization | $38M | | Add/Subtract: Other adjustments | $29M | | **Adjusted EBITDA*** | **$203M** | - On a segment basis for Q2 2025, Vacation Ownership generated **$231 million** in Adjusted EBITDA, while Exchange & Third-Party Management generated **$23 million**[38](index=38&type=chunk)[39](index=39&type=chunk) [Consolidated Contract Sales to Development Profit (A-6)](index=12&type=section&id=Consolidated%20Contract%20Sales%20to%20Development%20Profit%20(A-6)) Consolidated contract sales of **$445 million** in Q2 2025 reconciled to **$92 million** Development Profit, with a **24.7%** margin, significantly up from **14.7%** in the prior year Q2 2025 Reconciliation to Development Profit | Line Item | Amount | | :--- | :--- | | Consolidated contract sales | $445M | | Adjustments (resales, reserves, etc.) | ($75M) | | **Sale of vacation ownership products** | **$370M** | | Less: Cost of products | ($41M) | | Less: Marketing and sales | ($237M) | | **Development Profit** | **$92M** | | Development Profit Margin | 24.7% | [Supplemental Information (A-7 to A-10)](index=13&type=section&id=Supplemental%20Information%20(A-7%20to%20A-10)) This section details profitability by business line and revenue sources, with Q2 2025 Development Profit more than doubling to **$92 million** and Rental Profit decreasing **16%** [Profitability by Business Line (A-7 & A-8)](index=13&type=section&id=Profitability%20by%20Business%20Line%20(A-7%20%26%20A-8)) In Q2 2025, Development Profit surged **101%** to **$92 million**, Financing Profit grew **7%** to **$53 million**, while Rental Profit declined **16%** to **$35 million** Q2 2025 Profit by Line (vs. Q2 2024) | Profit Line | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Development Profit | $92M | $45M | +101% | | Management and Exchange Profit | $98M | $96M | +3% | | Rental Profit | $35M | $42M | -16% | | Financing Profit | $53M | $50M | +7% | [Management and Exchange Revenue Breakdown (A-9 & A-10)](index=15&type=section&id=Management%20and%20Exchange%20Revenue%20Breakdown%20(A-9%20%26%20A-10)) Total Management and Exchange revenue for Q2 2025 increased **2%** to **$219 million**, driven by **5%** growth in Ancillary Revenue and **4%** in Management Fee Revenue Q2 2025 Management & Exchange Revenue (vs. Q2 2024) | Revenue Source | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Ancillary Revenue | $76M | $73M | +5% | | Management Fee Revenue | $56M | $52M | +4% | | Exchange and Other Services Revenue | $87M | $90M | -2% | | **Total** | **$219M** | **$215M** | **+2%** | [Balance Sheet and Cash Flow (A-11)](index=17&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20(A-11)) As of June 30, 2025, the company held **$205 million** in cash and **$3.197 billion** in net debt, with **$40 million** cash used in operating activities for the first six months Key Balance Sheet Items (June 30, 2025) | Item | Amount | | :--- | :--- | | Cash and cash equivalents | $205M | | Vacation ownership notes receivable, net | $2,485M | | Debt, net | $3,197M | | Stockholders' equity | $2,484M | Summary Cash Flow - Six Months Ended June 30 | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Operating activities | ($40M) | $33M | | Investing activities | ($43M) | ($88M) | | Financing activities | $19M | ($59M) | | **Net change in cash** | **($60M)** | **($117M)** | [2025 Outlook - Adjusted Free Cash Flow (A-12)](index=18&type=section&id=2025%20Outlook%20-%20Adjusted%20Free%20Cash%20Flow%20(A-12)) The company reiterated its full-year 2025 Adjusted Free Cash Flow guidance of **$270 million** to **$330 million**, derived from an Adjusted EBITDA range of **$750 million** to **$780 million** 2025 Adjusted Free Cash Flow Outlook | Component | Low | High | | :--- | :--- | :--- | | Adjusted EBITDA* | $750M | $780M | | Cash interest | ($150M) | ($145M) | | Cash taxes | ($150M) | ($155M) | | Corporate capital expenditures | ($65M) | ($65M) | | Inventory | ($75M) | ($60M) | | Financing activity and other | ($40M) | ($25M) | | **Adjusted free cash flow*** | **$270M** | **$330M** | [Quarterly Operating Metrics (A-13)](index=19&type=section&id=Quarterly%20Operating%20Metrics%20(A-13)) Q2 2025 operating metrics show a **2%** increase in tours to **114,402**, but Volume Per Guest (VPG) declined to **$3,631**, and active Interval International members decreased to **1.507 million** Key Operating Metrics - Q2 2025 vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Consolidated contract sales | $445M | $449M | | VPG | $3,631 | $3,741 | | Tours | 114,402 | 111,752 | | Total active Interval International members | 1,507,051 | 1,530,490 | [Non-GAAP Financial Measures (A-14)](index=20&type=section&id=Non-GAAP%20Financial%20Measures%20(A-14)) This section explains the rationale for using non-GAAP financial measures like Adjusted EBITDA, Adjusted Net Income, and Adjusted Free Cash Flow for clearer period-over-period comparisons of core operations - The company reports non-GAAP financial measures to allow for period-over-period comparisons of its on-going core operations before the impact of certain excluded items[67](index=67&type=chunk) - Definitions and rationale are provided for key non-GAAP metrics including Adjusted EBITDA, Adjusted Net Income Attributable to Common Stockholders, and Adjusted Free Cash Flow[69](index=69&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk)

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Marriott Vacations Worldwide (VAC) , which belongs to the Zacks Leisure and Recreation Services industry.When looking at the last two reports, this timeshare company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 14.79%, on average, in the last two quarters.For the most recent quarter, Marriott Vacations Wor ...

Group 1 - The logistics sector has seen significant engagement from investors, with a focus on stock investing and macroeconomic analysis over the past decade [1] - The ASEAN and NYSE/NASDAQ markets are highlighted as key areas of investment, particularly in banks, telecommunications, logistics, and hotels [1] - The popularity of insurance companies in the Philippines has influenced investment strategies, leading to diversification beyond traditional savings in banks and properties [1] Group 2 - Initial investments were made in blue-chip companies, but the portfolio has since expanded to include various industries and market capitalizations [1] - The US market was entered in 2020, following a period of learning and engagement through a relative's trading account [1] - The use of analyses from platforms like Seeking Alpha has enhanced comparative insights between the US and Philippine markets [1]