Travel & Leisure Co.

This report includes “forward-looking statements” as that term is defined by the Securities and Exchange Commission (“SEC”). Forward-looking statements are any statements other than statements of historical fact, including statements regarding our expectations, beliefs, hopes, intentions or strategies regarding the future. In some cases, forward-looking statements can be identified by the use of words such as “may,” “will,” “expects,” “should,” “believes,” “plans,” “anticipates,” “estimates,” “predicts,” “potential,” “projects,” “continue,” “guidance,” “commitments,” “future,” “outlook,” or other words of similar meaning. Forward-looking statements are subject to risks and uncertainties that could cause actual results of Travel + Leisure Co. and its subsidiaries (“Travel + Leisure Co.” or “we”) to differ materially from those discussed in, or implied by, the forward-looking statements. Factors that might cause such a difference include, but are not limited to, risks associated with: the acquisition of the Travel + Leisure brand and the future prospects and plans for Travel + Leisure Co., including our ability to execute our strategies to grow our cornerstone timeshare and exchange businesses and expand into the broader leisure travel industry through travel clubs; our ability to compete in the highly competitive timeshare and leisure travel industries; uncertainties related to acquisitions, dispositions and other strategic transactions; the health of the travel industry and declines or disruptions caused by adverse economic conditions (including inflation, recent tariff actions and other trade restrictions, higher interest rates, recessionary pressures, and any potential adverse economic impacts resulting from the U.S. federal government shutdown), travel restrictions, terrorism or acts of gun violence, political strife, war (including hostilities in Ukraine and the Middle East), pandemics, and severe weather events and other natural disasters; adverse changes in consumer travel and vacation patterns, consumer preferences and demand for our products; increased or unanticipated operating costs and other inherent business risks; our ability to comply with financial and restrictive covenants under our indebtedness; our ability to access capital and insurance markets on reasonable terms, at a reasonable cost or at all; maintaining the integrity of internal or customer data and protecting our systems from cyber-attacks; the timing and amount of future dividends and share repurchases, if any; failure to obtain the necessary HOA, member and court approvals associated with our strategic resort restructuring; and those other factors disclosed as risks under “Risk Factors” in documents we have filed with the SEC, included in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 19, 2025. We caution readers that any such statements are based on currently available operational, financial and competitive information, and they should not place undue reliance on these forward-looking statements, which reflect management’s opinion only as of the date on which they were made. Except as required by law, we undertake no obligation to review or update these forward-looking statements to reflect events or circumstances as they occur.

BUSINESS AND OVERVIEW

We are a global provider of hospitality services and travel products and operate our business in the following two segments:

•Vacation Ownership— develops, markets and sells vacation ownership interests (“VOIs”) to individual consumers, provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts. This segment is wholly comprised of our Vacation Ownership business line.

•Travel and Membership— operates a variety of travel businesses, including vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment is comprised of our Exchange and Travel Club business lines.

Economic Conditions and Key Business Trends

During the three and nine months ended September 30, 2025, our business saw continued demand for leisure travel which resulted in higher Gross VOI sales and Adjusted EBITDA growth at our Vacation Ownership business, as compared to the prior year. Tours in the third quarter increased both sequentially and as compared to the prior year. We believe this tour increase, coupled with a significant increase in volume per guest (“VPGs”) as compared to the prior year, highlights consumers’ recognition of the value proposition of our products. Such value proposition becomes especially apparent during periods of inflation when the costs of other accommodation types are rising. Although consumer sentiment progressively declined in the early months of 2025, our Vacation Ownership business is benefited by the fact that the majority of our owners do not have loans and are therefore less dependent on economic conditions when making travel decisions, which provides opportunities for upgrade sales.

At our Travel and Membership business, the first nine months of 2025 continued to reflect the impacts of industry consolidation, which resulted in lower revenues. This decline was primarily attributed to a reduction in member counts and an increasing mix of exchange members with club affiliations. Exchange members with club affiliations have historically demonstrated a lower propensity to transact, which has contributed to a decline in exchange transactions. This decline was partially offset by continued growth in Travel Club transactions. Exchange revenue per transaction remained flat compared to the prior year, while Travel Club revenue per transaction declined. However, the overall improvement in Travel Club transactions outpaced the decline in revenue per transaction leading to increased revenue for this subset of the business, supporting this segment’s performance. Given recent declines in the number of exchange members, this business may be negatively impacted in the future if we are required to purchase additional inventory to supplement the inventory supplied by exchange members.

While we continue to benefit from the changes we made to our marketing criteria to strengthen sales efficiencies and improve the performance of our vacation ownership contract receivables (“VOCR”) portfolio, similar to a number of other companies, we are experiencing some pressure on our loan portfolio primarily due to delinquencies remaining elevated over historical levels.

We have seen an improvement in interest rates on our variable rate corporate borrowings which positively impacted our interest expense during the three and nine months ended September 30, 2025, and we anticipate continued savings following the refinancing of our revolving credit facility at the end of the second quarter, which reduced the associated interest rate spread on borrowings by 25 basis points at all pricing levels, along with anticipated savings resulting from the refinancing of our $350 million notes with a nearly 50 basis point interest rate reduction (see Note 10—Debtto the Condensed Consolidated Financial Statements for additional details on these refinancings). Additionally, we were able to close on two term securitizations during the first nine months of 2025 with comparable terms to our previous term transactions in 2024, and subsequent to the end of the third quarter we closed on a third securitization with the lowest coupon rate since 2022. These transactions demonstrate the strength of our business, even during times of market volatility.

While overall we have benefited from positive demand trends through the first nine months of the year, the sustained effects of inflationary pressures over time, high interest rates and risk of recession inherently result in uncertainty in business trends and consumer behavior. Recent tariff actions and other trade restrictions have increased this uncertainty.

Our Vacation Ownership and Travel and Membership businesses are highly dependent on the health of the travel industry and declines in, or disruptions to, the industry such as those caused by adverse economic conditions may adversely affect us. We are also subject to the other risks and uncertainties discussed in “Risk Factors” contained in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 19, 2025.

In order to promote the long-term strength of our portfolio of vacation ownership resorts, we recently undertook a strategic review with the intent of optimizing the overall quality of the portfolio, maintaining the affordability of maintenance fees, and mitigating the need for costly special assessments in the future. This review identified fourteen resorts requiring substantial upgrades or that are located in markets that no longer align with owner preferences. As a result of this review, during the third quarter of 2025, we proposed to the boards of the respective homeowners’ associations (“HOAs”) a court-supervised restructuring plan to remove select resorts from our portfolio and to reduce the number of units at certain other resorts.

When completed, these actions are expected to result in significant annual savings attributable to the maintenance fees we incur on unsold VOIs at the identified resorts. Such savings would be partially offset by the loss of, or reduction in, the associated resort management fees earned at the impacted resorts.

Based on third-party valuation reviews of the resorts that have obtained HOA board and required member approvals for the proposed actions through September 30, 2025, we incurred $6 million of inventory impairment charges, which are included within Cost of vacation ownership interests on the Condensed Consolidated Statements of Income. The required member votes for the remaining eleven resorts identified by the review were scheduled to occur during the fourth quarter of 2025, with certain votes having already occurred subsequent to the end of the quarter. If all actions are approved for these remaining eleven resorts, it is estimated that we would incur additional inventory impairment charges of approximately $22 million.

In conjunction with these actions, we are expecting to also offer impacted owners holding interests in the identified resorts, including our vacation ownership clubs, the option to exchange their ownership interests in the identified resorts for an equivalent ownership interest in one of our other vacation ownership products. If such offers are made and accepted, we could incur additional impairment or other related charges that could be significant.

Additionally, we incurred $1 million of other charges in connection with this initiative consisting primarily of employee costs.

Pillar Two

The Organization for Economic Co-operation and Development (“OECD”), continues to put forth various initiatives, including Pillar Two rules which include the introduction of a global minimum tax at a rate of 15%. European Union member states agreed to implement the OECD’s Pillar Two rules with effective dates of January 1, 2024 and January 1, 2025, for different aspects of the directive and most have already enacted legislation. A number of other countries are also implementing similar legislation. As of September 30, 2025, based on the countries in which we do business that have enacted legislation effective

January 1, 2025, the impact of these rules did increase our effective tax rate but overall the impact to our financial statements was not material. This may change as other countries enact similar legislation and further guidance is released. We continue to closely monitor regulatory developments to assess potential impacts, including the G7 Statement on Global Minimum Tax to effectively exempt U.S. multinationals from certain provisions of Pillar Two.

Recent Legislation

On July 4, 2025, the bill commonly referred to as the “One Big Beautiful Bill Act” was signed into law. Among other provisions, the bill extends permanently, with modifications, tax provisions enacted as part of the 2017 Tax Cuts and Jobs Act and restores and makes permanent many business provisions, such as full expensing for research and development and capital investments. In addition, the bill contains other new tax relief measures and various revenue raising measures. The legislation has multiple effective dates. For the provisions effective in 2025, there was no material impact to our effective tax rate for the quarter ended September 30, 2025, and we do not expect the impact to be material to our full year 2025 effective tax rate. For the provisions, effective in 2026, we are currently assessing the potential impact of these law changes on our business and financial results.