Financial Data and Key Metrics Changes - The company generated approximately $4 billion in revenue, with EBITDA of nearly $1 billion, reflecting a revenue growth of about 4% and EBITDA growth of roughly 6% year-to-date [2][3] - Earnings per share (EPS) increased by 14%, and free cash flow per share rose by over 20% [3] - The company raised its guidance for gross vacation ownership interest sales, volume per guest, and Adjusted EBITDA, with a modest increase in free cash flow outlook [3] Business Line Data and Key Metrics Changes - The vacation ownership segment constitutes about three-quarters of the company, characterized by predictable revenue and strong cash flows [2] - The travel and membership segment, making up roughly a quarter of the company, has a member base of about 3 million, with high recurring revenue from multi-year contracts [2] - Approximately two-thirds of transactions come from existing owners, indicating strong repeat business [6][9] Market Data and Key Metrics Changes - The consumer base is primarily composed of individuals in their early 50s with an average household income of around $120,000, with 70% of buyers being Gen X, Gen Z, or millennials [6] - There are no significant fluctuations noted in consumer behavior across different geographies [7] Company Strategy and Development Direction - The company aims to focus on upgrading existing owners and attracting new owners, with a long-term target mix of 35% new owners and 65% existing owners [9] - New brands such as Sports Illustrated and Eddie Bauer are being introduced, with expectations for growth in 2026 [12][20] - The company is also looking to improve its consumer finance portfolio and expects a decline in loan loss provisions moving into 2026 [12][14] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the durability of the consumer base, noting consistent trends in key performance indicators [4] - There is an expectation for lower loan loss provisions in 2026 compared to 2025, with improvements in credit quality and collection capabilities [14][17] - The company is focused on capital allocation, balancing investments in growth with shareholder returns through dividends and share buybacks [49][50] Other Important Information - The company is currently operating with a leverage ratio of approximately 3.3, with a target to reduce it to around 2.25 to 3 over time [41] - The optimal inventory level is between two to three years, but the current inventory stands at four to five years due to new brand requirements and inventory recycling [42][43] Q&A Session Summary Question: How is the consumer sentiment in the travel and leisure sector? - The management noted that the consumer remains strong, with predictable characteristics and a focus on improving credit quality [6][9] Question: What are the expectations for new brands in 2026? - The company is optimistic about the growth of new brands like Eddie Bauer and Sports Illustrated, focusing on establishing a network and scaling operations [20][21] Question: How does the company view the competitive landscape and potential M&A opportunities? - The management acknowledged a narrowing universe of potential acquisition targets in the timeshare space but emphasized a focus on driving shareholder returns through internal investments [39][40]