Travel & Leisure Co. filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $4.2 billion, rising 4.6% on the year before. That growth rate was up 0.1 percentage points on the rate a quarter earlier.
Source: SEC EDGAR XBRL company facts. Latest period shown: FY26 Q3.
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| Period | Revenue growth, TTM YoY | Operating margin (TTM) | FCF margin (TTM) |
|---|---|---|---|
| FY24 Q4 | 3.1% | 19.0% | 9.9% |
| FY25 Q1 | 2.5% | 19.1% | 11.7% |
| FY25 Q2 | 2.4% | 19.3% | 12.6% |
| FY25 Q3 | 3.6% | 19.7% | 12.8% |
| FY25 Q4 | 4.0% | 13.8% | 13.0% |
| FY26 Q1 | 4.2% | 13.7% | 10.9% |
| FY26 Q2 | 4.5% | 13.7% | 10.8% |
| FY26 Q3 | 4.6% | 13.0% | 10.0% |
What stands out in the filings
Net income fell 42.8% over the year while free cash flow fell 17.6%, indicating reported profit and cash are moving at different speeds.
Profitability
Profit and cash tell different stories, with cash flow falling far less than earnings. The trailing gross margin was 92.7%. The trailing operating margin was 13.0%, down 6.7 percentage points from a year earlier. Alongside that, the trailing net margin was 5.7%. Net income over the twelve months was $235.0 million, which fell 42.8% on the year before.
Cash flow
Cash generation weakened during this period. Operating cash flow over the twelve months was $512.0 million, down 16.6% on the year before. Capital spending was $95.0 million, or 2.3% of revenue. Free cash flow, operating cash flow less capital spending, was $417.0 million, down 17.6% on the year before. The free-cash-flow margin stood at 10.0% of revenue, down 2.7 percentage points from a year earlier.
Share count
The average diluted share count fell 4.9% over the year.
In context
Measured against its own history: today’s free-cash-flow margin of 10.0% is higher than 23% of the company’s own past quarterly readings, which have ranged from 6.7% to 23.1%. Today’s operating margin of 13.0% is higher than 17% of past readings (−4.9% to 20.1%). Today’s twelve-month revenue growth rate of 4.6% is higher than 53% of past readings (−46.6% to 48.7%).
Guidance
The company gave its third quarter 2026 guidance for adjusted EBITDA of $275.0 million to $285.0 million, for gross VOI sales (adjusted) for Vacation Ownership of $700.0 million to $740.0 million, and for VPG (adjusted) for Vacation Ownership of $3,300.0 to $3,350.0. The company raised its 2026 full year guidance for adjusted EBITDA to a range of $1,065.0 million to $1,085.0 million.
What it means for value
For valuation, the figures matter through our model. In our model, growth 5 percentage points lower would lower the value by 50.1%, and 5 percentage points higher would raise it by 65.6%. A free-cash-flow margin 1 percentage point lower would lower it by 13.9%.
Next to watch
The next filing will show whether the trends above continue, slow or reverse.
