Executive Summary

Q4 2024 delivered solid execution: net revenue $971M, diluted EPS $1.72, and Adjusted EBITDA $252M; Vacation Ownership revenue rose 5% and Adjusted EBITDA 7% YoY, while Travel & Membership was flat on EBITDA despite a 1% revenue decline .
The company guided 2025 Adjusted EBITDA to $955–$985M and Q1 2025 to $195–$205M; Q1 Gross VOI sales $495–$515M and VPG $3,150–$3,250; full-year tax rate 28–30% and Q1 tax 29–31% (call) .
Capital allocation remains a differentiator: Q4 buybacks $70M; FY24 buybacks $235M; leverage 3.3x; 12% dividend increase to $0.56 effective for March 31, 2025 (Board-approved) .
Stock-relevant catalysts: VPG and Q4 KPIs beat internal guidance, 2025 outlook implies continued profitable growth, and a dividend step-up; watch for ABS rate headwinds (CFO flagged 2025 interest expense more flat/slightly negative vs prior expectation of tailwind) and loan-loss provision near 20% .

What Went Well and What Went Wrong

What Went Well
- Vacation Ownership outperformed: Q4 VO revenue +5% YoY to $813M and Adjusted EBITDA +7% to $222M on higher VPG (+7%) and tours (+2%) .
- Execution and product/tech: CEO highlighted 40,000 downloads of the new Club Wyndham app with >80% positive reviews and ~30% higher booking conversion vs the website, supporting engagement and future sales funnel .
- Portfolio additions and partnerships: Accor Vacation Club exceeded year-1 expectations, contributing ~$6M Adj. EBITDA; signed national/regional partnerships (Allegiant, Live Nation) to expand tour generation opportunities .
What Went Wrong
- Travel & Membership revenue declined 1% YoY (+0% EBITDA), with structural headwinds in exchange partly offset by Travel Club growth; management running the segment for cash and mix quality .
- Loan-loss provision elevated (~20.1% FY) tied to higher delinquencies in H1; though the gap vs historical narrowed in H2; 2025 provision guided “around 20%” .
- Interest rate environment: ABS benchmarks up since 10/31; CFO now sees 2025 ABS interest expense closer to flat/slight headwind (≈$6M) vs prior tailwind assumption; a watch item for margins and FCF conversion .

Financial Results

Sequential trends (Q2 → Q3 → Q4 2024)

Metric	Q2 2024	Q3 2024	Q4 2024
Net Revenue ($M)	$985	$993	$971
Diluted EPS ($)	$1.81 (total)	$1.39 (total)	$1.72 (total)
Adjusted EBITDA ($M)	$244	$242	$252
Adjusted EBITDA Margin (%)	24.8%	24.4%	26.0%

YoY comparison (Q4 2023 vs Q4 2024)

Metric	Q4 2023	Q4 2024
Net Revenue ($M)	$935	$971
Diluted EPS ($)	$1.77 (total)	$1.72 (total)
Adjusted EBITDA ($M)	$240	$252
Adjusted EBITDA Margin (%)	25.7%	26.0%

Versus Company Guidance (for Q4 2024, set on 10/23/24)

Metric	Q4 Guidance (10/23/24)	Actual Q4 2024	Result
Adjusted EBITDA ($M)	$240–$260	$252	In line
Gross VOI Sales ($M)	$550–$600	$591	In line/high end
VPG ($)	$2,900–$3,000	$3,284	Strong beat
T&M Adj. EBITDA ($M)	$45–$50	$52	Beat

Segment performance (Q4 2024)

Segment	Revenue ($M)	YoY	Adj. EBITDA ($M)	YoY
Vacation Ownership	$813	+5%	$222	+7%
Travel & Membership	$157	-1%	$52	0%
Total	$971	+4%	$252	+5%

KPIs and operating drivers (sequential Q2 → Q3 → Q4 2024)

KPI	Q2 2024	Q3 2024	Q4 2024
Tours (000s)	192	195	175
VPG ($)	3,051	3,012	3,284
Gross VOI Sales ($M)	607	606	591
Net VOI Sales ($M)	441	455	456
T&M Transactions (000s)	399	378	339
T&M Revenue/Transaction ($)	315	306	311
Avg. Exchange Members (000s)	3,450	3,386	3,377

Notes: Loan-loss provision FY24 ~20.1%; weighted average origination FICO 744 (slide deck), pointing to high credit quality on new originations despite elevated portfolio delinquencies earlier in the year .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA	FY 2025	N/A	$955–$985M	Initial FY25 outlook
Gross VOI Sales	FY 2025	N/A	$2.4–$2.5B	Initial FY25 outlook
VPG	FY 2025	N/A	$3,050–$3,150	Initial FY25 outlook
T&M Adj. EBITDA Growth	FY 2025	N/A	Flat to +2%	Initial FY25 outlook
Adjusted EBITDA	Q1 2025	N/A	$195–$205M	Initial Q1 guide
Gross VOI Sales	Q1 2025	N/A	$495–$515M	Initial Q1 guide
VPG	Q1 2025	N/A	$3,150–$3,250	Initial Q1 guide
Effective Tax Rate	FY 2025	N/A	28–30% (call)	Initial FY25 guide
Effective Tax Rate	Q1 2025	N/A	29–31% (call)	Initial Q1 guide
Quarterly Dividend	Q1 2025	$0.50	$0.56 (+12%) (recommended/approved)	Raised

Reference (for delivery vs prior guidance): Q4 2024 actuals were in line to above the Q4 guide issued on 10/23/24 (see “Versus Company Guidance” table above) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 and Q3 2024)	Current Period (Q4 2024)	Trend
VPG and tour mix	VPG consistently >$3,000; tours +13% in Q2, +4% in Q3; new owner tours +22% in Q2; mix shift pressured VPG modestly in Q2–Q3 .	Q4 VPG $3,284 (above high end); tours +2% YoY; management culled low-performing channels late Q4; expects seasonal VPG deceleration mid-year 2025 as tours accelerate .	Healthy; mix-managed to maximize margins; seasonal cadence expected.
Consumer/credit	Portfolio delinquencies elevated in H1; provision raised to ~20% (Q2/Q3 context) .	H2 saw improvement vs historical gap; FY provision ~20.1%; 2025 around 20%; origination quality high (avg FICO 744) .	Stabilizing but still elevated vs historical; watch provision trajectory.
Interest rates/ABS	Anticipated easing of rate headwinds into 2025 (Q3 outlook) .	Benchmarks up since 10/31; 2025 ABS interest expense now closer to flat/slight headwind (~$6M) vs prior tailwind assumption .	Slightly more cautious on interest expense.
Travel & Membership	Revenues down modestly; tight cost control; mix shift to Travel Clubs with higher rev/transaction; Q2/Q3 EBITDA flat YoY .	Q4 revenue -1% YoY; EBITDA flat; first YoY transaction growth across T&M in ~18 months; aiming for organic growth in 2025 .	Gradual improvement via Travel Clubs; disciplined footprint and costs.
Strategic growth vectors	2024 actions included Accor Vacation Club integration; Sports Illustrated Resorts investment; partnerships ramp .	Accor delivered $6M vs $3–$5M expectation; Sports Illustrated sales targeted to begin in 2025; additional conversion opportunities expected; new partnerships (Allegiant, Live Nation) .	Execution momentum; near-term revenue small, but building pipeline.

Management Commentary

Strategy and 2024 performance: “2024 was a tremendous year… delivering strong top and bottom-line growth, while executing on our multi-brand strategy with the acquisition of Accor Vacation Club.” (CEO) .
2025 outlook and priorities: “We expect to see continued profitable growth in our expanding vacation ownership business… focus on growing earnings and free cash flow to benefit our shareholders.” (CEO) .
Product/engagement: “We launched the new Club Wyndham app… ~40,000 downloads… >80% positive reviews… ~30% higher booking conversion vs owner website.” (CEO) .
Capital allocation: “We repurchased $235 million of stock and paid dividends totaling $142 million… leverage 3.3x… expect to recommend a $0.56 dividend (+12%).” (CFO) .
Credit quality: “Average FICO for 2024 was 744, the highest in the history of the company.” (CFO) .
ABS/interest: “Benchmarks are up ~~20 bps since 10/31… 2025 ABS interest expense likely closer to flat for the year, maybe a slight headwind (~~$6M).” (CFO) .

Q&A Highlights

VPG strength drivers: Mix helped in Q4 (more owner); even excluding mix, VPG would be >$3,000; price/transaction more than close-rate drove the outperformance .
Tour flow cadence: Culling lower-performing channels late Q4/Q1 will weigh early, but partnerships/regional marketing should support acceleration through the year; confidence in mid-single-digit tour growth for 2025 (full year) .
Credit/provision path: Long-term provision aspiration 18–19%, but management may flex down payments to grow portfolio NII; 2025 provision “around 20%” as delinquencies normalize slowly .
T&M transformation: First YoY transaction growth in ~18 months; focus is organic growth and quality/mix (not large M&A) while balancing exchange headwinds with Travel Club expansion .
Sports Illustrated Resorts: Expect announcements in 2025 focusing on property conversions; sales start targeted for 2025; limited P&L impact in year one as product-market fit is refined .

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 revenue, EPS, and EBITDA could not be retrieved at the time of analysis due to an SPGI request limit. As a result, we cannot quantify beats/misses vs consensus for Q4. Values would normally be sourced from S&P Global; data was unavailable via the tool during this session.
Company delivered vs its own guidance (see “Versus Company Guidance” table), with notable beats on VPG and T&M Adj. EBITDA and in-line/high-end on Gross VOI and consolidated Adj. EBITDA .

Key Takeaways for Investors

Core VO engine remains healthy: VPG sustained >$3,000 and beat guidance in Q4; 2025 outlook embeds continued profitable growth with VPG and tours set up for seasonal cadence (strong Q1 VPG, summer tour ramp) .
Credit headwinds moderating but not gone: Provision steadied ~20% with H2 improvements vs historical; origination FICO at record levels; 2025 guided around 20%—watch delinquency trajectory for positive optionality .
Rate sensitivity is a swing factor: ABS cost tailwind likely deferred; CFO now sees 2025 interest expense flat/slight headwind (~$6M) vs prior tailwind assumption—affects FCF conversion and EPS leverage .
T&M inflecting at the margin: First YoY transaction growth in ~18 months; growth to come from Travel Clubs and disciplined costs—small absolute dollars but helps mix/EBITDA quality .
Capital returns remain robust: 12% dividend increase to $0.56, ongoing buybacks ($70M Q4; $235M FY24), leverage at 3.3x—supports TSR while funding inventory and targeted brand initiatives .
Early-stage growth vectors (Accor, Sports Illustrated) are progressing: Accor beat year-1 plan; Sports Illustrated sales to start in 2025—limited near-term P&L but builds multiyear tour channels .
Trading lens: Q1 guidance is seasonally strong on VPG; watch Q2–Q3 cadence as tours ramp and VPG normalizes; catalysts include additional partnership activations, SI conversion announcements, and any easing in credit/ABS costs .

Appendix: Additional Context and Data

Balance sheet and liquidity: Corporate debt $3.5B; non-recourse VO debt $2.1B; cash and cash equivalents $167M; total liquidity $970M; leverage ratio 3.3x at 12/31/24 .
Shareholder returns: Q4 repurchases $70M (~1.4M shares at $50.91 average); FY24 repurchases $235M (~5.2M shares at $45.73 average); $441M remaining authorization at 12/31/24 .
Securitization markets: Oct-2024 term deal $325M at 5.18% coupon, 98% advance; Mar-2025 term deal $350M at 5.20% coupon, 98% advance—access and terms remain supportive .

Non-GAAP notes: Adjusted EBITDA, Adjusted EPS, Adjusted FCF and Gross VOI sales are non-GAAP; see press release tables for definitions and reconciliations .

Travel & Leisure Co. (TNL)·Q4 2024 Earnings Summary