ORLANDO, Fla. – August 4, 2025 – Marriott Vacations Worldwide Corporation (NYSE: VAC) (“MVW,” the “Company,” “we” or “our”) reported financial results for the second quarter of 2025.
Second Quarter 2025 Highlights
•Consolidated contract sales were $445 million in the quarter.
•Net income attributable to common stockholders was $69 million and diluted earnings per share was $1.77.
•Adjusted net income attributable to common stockholders was $77 million and adjusted diluted earnings per share was $1.96.
•Adjusted EBITDA was $203 million.
•The Company reiterates its full-year outlook.
“We delivered strong results in the quarter driving higher year-over-year first time buyer sales and reiterating our full year guidance, reflecting the resilience of our business model and the hard work of our associates,” said John Geller, president and chief executive officer. “Exiting the first half of the year, our business is well positioned. Leisure consumers continue to prioritize travel and timeshare remains a great value for many of them, and we remain on track to deliver $150 million to $200 million in annualized Adjusted EBITDA benefits from our modernization program by the end of next year.”
In the tables below “*” denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
Vacation Ownership
Three Months Ended
Change
(In millions, except volume per guest (“VPG”) and tours)
June 30, 2025
June 30, 2024
Revenues excluding cost reimbursements
$
775
$
694
12%
Total consolidated contract sales
$
445
$
449
(1%)
VPG
$
3,631
$
3,741
(3%)
Tours
114,402
111,752
2%
Segment financial results attributable to common stockholders
$
196
$
144
36%
Segment margin
25.3%
20.8%
450 bps
Segment Adjusted EBITDA*
$
231
$
181
28%
Segment Adjusted EBITDA margin*
29.8%
26.0%
380 bps
Consolidated contract sales declined less than 1% year-over-year with higher tours offset by lower VPG, with about a third of the VPG decline due to a higher mix of first time buyer sales. Segment
Adjusted EBITDA increased 28% compared to the prior year driven primarily by last year’s sales reserve adjustment, which reduced development profit by $57 million.
Exchange & Third-Party Management
(In millions, except total active Interval International members and average revenue per member)
Three Months Ended
Change
June 30, 2025
June 30, 2024
Revenues excluding cost reimbursements
$
51
$
55
(10%)
Total active Interval International members (000's)(1)
1,507
1,530
(2%)
Average revenue per Interval International member
$
37.40
$
38.30
(2%)
Segment financial results attributable to common stockholders
$
16
$
15
—%
Segment margin
31.2%
28.1%
310 bps
Segment Adjusted EBITDA*
$
23
$
25
(7%)
Segment Adjusted EBITDA margin*
45.9%
44.5%
140 bps
(1) Includes members at the end of each period.
Revenues excluding cost reimbursements and Segment Adjusted EBITDA decreased year-over-year primarily due to lower revenue at Interval International.
Corporate and Other
General and administrative costs increased 12% in the second quarter compared to the prior year due to lower prior year variable compensation related to the sales reserve adjustment.
Balance Sheet and Liquidity
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. The Company also had $1 billion of total inventory at the end of the quarter, including $323 million classified as a component of Property and equipment.
The Company had $3 billion of corporate debt and $2 billion of non-recourse debt related to its securitized vacation ownership notes receivable at the end of the second quarter.
Full Year 2025 Outlook
The Company provides full year 2025 guidance as reflected in the chart below.
(in millions, except per share amounts)
2025 Guidance
Previous
2025 Guidance
Contract sales
$1,740
to
$1,830
$1,740
to
$1,830
Adjusted EBITDA*
$750
to
$780
$750
to
$780
Adjusted net income attributable to common stockholders*
$250
to
$280
$250
to
$280
Adjusted earnings per share - diluted*
$6.40
to
$7.10
$6.40
to
$7.10
Adjusted free cash flow*
$270
to
$330
$270
to
$330
The guidance provided above excludes impacts from asset sales, foreign currency changes, restructuring costs, litigation charges, strategic modernization initiative costs, transaction and integration costs, and impairments, each of which the Company cannot forecast with sufficient accuracy to factor them into the guidance provided above and without unreasonable efforts, and which may be significant. As a result, the full year 2025 outlook is presented only on a non-GAAP basis and is not reconciled to the most comparable GAAP measures. Where one or more of the
currently unavailable items is applicable, some items could be material, individually or in the aggregate, to GAAP reported results.
The Company’s 2025 guidance is based on the following supplemental estimates:
($ in millions)
2025 Guidance
Previous
2025 Guidance
Interest expense, net
$175
to
$172
$173
to
$168
Depreciation and amortization
$150
to
$148
$150
to
$148
Tax rate used to calculate adjusted net income attributable to common stockholders
34%
to
33%
36%
to
34%
Non-GAAP Financial Information
Non-GAAP financial measures are reconciled and adjustments are shown and described in further detail in the Financial Schedules that follow. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. In addition to the foregoing non-GAAP financial measures, we present certain key metrics as performance measures which are further described in our most recent Annual Report on Form 10-K, and which may be updated in our periodic filings with the U.S. Securities and Exchange Commission.
Second Quarter 2025 Financial Results Conference Call
The Company will hold a conference call on August 5, 2025 at 10:00 a.m. ET to discuss these financial results and provide an update on business conditions. Participants may access the call by dialing (877) 407-8289 or (201) 689-8341 for international callers. A live webcast of the call will also be available in the Investor Relations section of the Company's website at ir.mvwc.com. An audio replay of the conference call will be available for 30 days on the Company’s website.
About Marriott Vacations Worldwide Corporation
Marriott Vacations Worldwide Corporation is a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products, and services. The Company has approximately 120 vacation ownership resorts and approximately 700,000 owner families in a diverse portfolio that includes some of the most iconic vacation ownership brands. The Company also operates an exchange network and membership programs comprised of more than 3,200 affiliated resorts in over 90 countries and territories, and provides management services to other resorts and lodging properties. As a leader and innovator in the vacation industry, the Company upholds the highest standards of excellence in serving its customers, investors and associates while maintaining exclusive, long-term relationships with Marriott International, Inc. and an affiliate of Hyatt Hotels Corporation for the development, sales and marketing of vacation ownership products and services. For more information, please visit www.marriottvacationsworldwide.com.
The Company routinely posts important information, including news releases, announcements and other statements about its business and results of operations, that may be deemed material to investors on the Investor Relations section of the Company’s website, www.marriottvacationsworldwide.com. The Company uses its website as a means of disclosing material, nonpublic information and for complying with the Company’s disclosure obligations under Regulation FD. Investors should monitor the Investor Relations section of the Company’s website in addition to following the Company’s press releases, filings with the SEC, public conference calls and webcasts.
This press release and accompanying schedules contain “forward-looking statements” within the meaning of federal securities laws, including statements about opportunities for accelerated growth, enhanced operational efficiencies and cost savings, expected annualized benefits of the Company’s initiatives that the Company expects to realize by the end of 2026, full year 2025 outlook for contract sales, results of operations and cash flows and the Company’s beliefs regarding the power of its business model.
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. The Company cautions you that these statements are not guarantees of future performance and are subject to numerous and evolving risks and uncertainties that we may not be able to predict or assess, such as: uncertainty in the current global macroeconomic environment created by rapid governmental policy and regulatory changes, including those affecting international trade; a future health crisis and responses to a health crisis, including possible quarantines or other government imposed travel or health-related restrictions and the effects of a health crisis, including the short and longer-term impact on consumer confidence and demand for travel and the pace of recovery following a health crisis; variations in demand for vacation ownership and exchange products and services; failure of vendors and other third parties to timely comply with their contractual obligations; worker absenteeism; price inflation; difficulties associated with implementing new or maintaining existing technology; the ability to use artificial intelligence (“AI”) technologies successfully and potential business, compliance, or reputational risks associated with the use of AI technologies; changes in privacy laws; the impact of a future banking crisis; impacts from natural or man-made disasters and wildfires, including the Maui and Los Angeles area wildfires; delinquency and default rates; global supply chain disruptions; volatility in the international and national economy and credit markets, including as a result of the ongoing conflicts between Russia and Ukraine, Israel and Gaza, Israel and Iran, and elsewhere in the world and related sanctions and other measures; our ability to attract and retain our global workforce; competitive conditions; the availability of capital to finance growth; the impact of changes in interest rates; the effects of steps we have taken and may continue to take to reduce operating costs and accelerate growth and profitability; political or social strife; and other matters referred to under the heading “Risk Factors” in our most recent Annual Report on Form 10-K, and which may be updated in our future periodic filings with the U.S. Securities and Exchange Commission.
All forward-looking statements in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. There may be other risks and uncertainties that we cannot predict at this time or that we currently do not expect will have a material adverse effect on our financial position, results of operations or cash flows. Any such risks could cause our results to differ materially from those we express in forward-looking statements.
Financial Schedules Follow
MARRIOTT VACATIONS WORLDWIDE CORPORATION
FINANCIAL SCHEDULES
QUARTER 2, 2025
TABLE OF CONTENTS
Summary Financial Information and Adjusted EBITDA by Segment
Income before income taxes and noncontrolling interests
$
94
$
48
98%
$
196
$
129
52%
Net income attributable to common stockholders
$
69
$
37
89%
$
125
$
84
50%
Diluted shares
41.7
42.2
(1%)
41.9
42.2
(1%)
Earnings per share - diluted
$
1.77
$
0.98
81%
$
3.23
$
2.20
47%
Non-GAAP Measures*
Adjusted EBITDA
$
203
$
158
29%
$
395
$
345
15%
Adjusted pretax income
$
110
$
70
57%
$
216
$
172
25%
Adjusted net income attributable to common stockholders
$
77
$
42
84%
$
142
$
113
25%
Adjusted earnings per share - diluted
$
1.96
$
1.10
78%
$
3.62
$
2.91
24%
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
** Prior year amounts have been reclassified to conform with our current year presentation. Please see “Non-GAAP Financial Measures” for additional information.
A-2
MARRIOTT VACATIONS WORLDWIDE CORPORATION
INTERIM CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
(Unaudited)
Three Months Ended
Six Months Ended
June 30, 2025
June 30, 2024
June 30, 2025
June 30, 2024
REVENUES
Sale of vacation ownership products
$
370
$
309
$
725
$
661
Management and exchange
219
215
434
426
Rental
160
153
329
311
Financing
90
85
178
168
Cost reimbursements
407
378
780
769
TOTAL REVENUES
1,246
1,140
2,446
2,335
EXPENSES
Cost of vacation ownership products
41
38
83
91
Marketing and sales
237
226
471
449
Management and exchange
121
119
238
235
Rental
125
111
248
218
Financing
37
35
73
69
General and administrative
61
54
122
117
Depreciation and amortization
38
35
76
73
Litigation charges
5
10
12
13
Restructuring
34
1
46
3
Royalty fee
28
29
56
57
Impairment
—
2
—
2
Cost reimbursements
407
378
780
769
TOTAL EXPENSES
1,134
1,038
2,205
2,096
Gains (losses) and other income (expense), net
24
(7)
37
(7)
Interest expense, net
(42)
(43)
(82)
(83)
Transaction and integration costs
—
(3)
—
(18)
Other
—
(1)
—
(2)
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS
94
48
196
129
Provision for income taxes
(25)
(10)
(70)
(45)
NET INCOME
69
38
126
84
Net income attributable to noncontrolling interests
—
(1)
(1)
—
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
$
69
$
37
$
125
$
84
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS
Basic shares
34.9
35.4
35.0
35.5
Basic
$
1.98
$
1.04
$
3.59
$
2.36
Diluted shares
41.7
42.2
41.9
42.2
Diluted
$
1.77
$
0.98
$
3.23
$
2.20
A-3
MARRIOTT VACATIONS WORLDWIDE CORPORATION
ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS AND
ADJUSTED EARNINGS PER SHARE - DILUTED
(In millions, except per share amounts)
(Unaudited)
Three Months Ended
Six Months Ended
June 30, 2025
June 30, 2024
June 30, 2025
June 30, 2024
Net income attributable to common stockholders
$
69
$
37
$
125
$
84
Provision for income taxes
25
10
70
45
Income before income taxes attributable to common stockholders
94
47
195
129
Certain items:
Gain on disposition of hotel, land, and other
—
(1)
—
(1)
Foreign currency translation
(18)
4
(21)
6
Insurance proceeds
(1)
—
(8)
—
Change in indemnification asset
(3)
4
(3)
2
Change in estimates relating to pre-acquisition contingencies
—
—
(2)
—
Other
(2)
—
(3)
—
(Gains) losses and other (income) expense, net
(24)
7
(37)
7
Transaction and integration costs
—
3
—
18
Purchase accounting adjustments
—
—
—
1
Litigation charges
5
10
12
13
Restructuring charges
34
1
46
3
Impairment charges
—
2
—
2
Other
1
—
—
(1)
Adjusted pretax income*
110
70
216
172
Provision for income taxes
(33)
(28)
(74)
(59)
Adjusted net income attributable to common stockholders*
$
77
$
42
$
142
$
113
Diluted shares
41.7
42.2
41.9
42.2
Adjusted earnings per share - Diluted*
$
1.96
$
1.10
$
3.62
$
2.91
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
A-4
MARRIOTT VACATIONS WORLDWIDE CORPORATION
ADJUSTED EBITDA
(In millions)
(Unaudited)
Three Months Ended
Six Months Ended
June 30, 2025
June 30, 2024**
June 30, 2025
June 30, 2024**
Net income attributable to common stockholders
$
69
$
37
$
125
$
84
Interest expense, net
42
43
82
83
Provision for income taxes
25
10
70
45
Depreciation and amortization
38
35
76
73
Share-based compensation
12
9
19
16
Amortization of cloud computing software implementation costs
1
1
2
1
Certain items:
Gain on disposition of hotel, land, and other
—
(1)
—
(1)
Foreign currency translation
(18)
4
(21)
6
Insurance proceeds
(1)
—
(8)
—
Change in indemnification asset
(3)
4
(3)
2
Change in estimates relating to pre-acquisition contingencies
—
—
(2)
—
Other
(2)
—
(3)
—
(Gains) losses and other (income) expense, net
(24)
7
(37)
7
Transaction and integration costs
—
3
—
18
Purchase accounting adjustments
—
—
—
1
Litigation charges
5
10
12
13
Restructuring charges
34
1
46
3
Impairment charges
—
2
—
2
Other
1
—
—
(1)
Adjusted EBITDA*
$
203
$
158
$
395
$
345
Adjusted EBITDA Margin*
24.3%
20.7%
23.7%
22.0%
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
** Prior year amounts have been reclassified to conform with our current year presentation. Please see “Non-GAAP Financial Measures” for additional information.
A-5
MARRIOTT VACATIONS WORLDWIDE CORPORATION
(In millions)
(Unaudited)
VACATION OWNERSHIP SEGMENT ADJUSTED EBITDA
Three Months Ended
Six Months Ended
June 30, 2025
June 30, 2024**
June 30, 2025
June 30, 2024**
Segment financial results attributable to common stockholders
$
196
$
144
$
394
$
326
Depreciation and amortization
28
25
54
50
Share-based compensation
3
2
4
4
Amortization of cloud computing software implementation costs
1
1
2
1
Certain items:
Gain on disposition of hotel, land, and other
—
(1)
—
(1)
Insurance proceeds
—
—
(7)
—
Change in estimates relating to pre-acquisition contingencies
Segment financial results attributable to common stockholders
$
16
$
15
$
34
$
40
Depreciation and amortization
7
7
14
14
Share-based compensation
—
1
1
1
Certain items:
Restructuring charges
—
—
2
—
Impairment charges
—
2
—
2
Segment Adjusted EBITDA*
$
23
$
25
$
51
$
57
Segment Adjusted EBITDA Margin*
45.9%
44.5%
47.5%
48.1%
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
** Prior year amounts have been reclassified to conform with our current year presentation. Please see “Non-GAAP Financial Measures” for additional information.
A-6
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED CONTRACT SALES TO DEVELOPMENT PROFIT
(In millions)
(Unaudited)
Three Months Ended
Six Months Ended
June 30, 2025
June 30, 2024
June 30, 2025
June 30, 2024
Consolidated contract sales
$
445
$
449
$
865
$
877
Less resales contract sales
(7)
(9)
(16)
(21)
Consolidated contract sales, net of resales
438
440
849
856
Plus:
Settlement revenue
11
10
20
18
Resales revenue
5
6
9
11
Revenue recognition adjustments:
Reportability
2
1
7
(8)
Sales reserve(1)
(58)
(122)
(108)
(168)
Other(2)
(28)
(26)
(52)
(48)
Sale of vacation ownership products
370
309
725
661
Less:
Cost of vacation ownership products(3)
(41)
(38)
(83)
(91)
Marketing and sales
(237)
(226)
(471)
(449)
Development Profit
$
92
$
45
171
121
Development Profit Margin
24.7%
14.7%
23.5%
18.3%
(1) Reflects the increase in the Company’s sales reserve of $70 million recorded in the second quarter of 2024.
(2) Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue.
(3) Reflects $13 million of lower product cost associated with the additional sales reserve recorded in the second quarter of 2024.
A-7
MARRIOTT VACATIONS WORLDWIDE CORPORATION
SUPPLEMENTAL INFORMATION
(In millions and Unaudited)
Three Months Ended
June 30, 2025
June 30, 2024**
Change
DEVELOPMENT PROFIT
Sale of vacation ownership products revenue
$
370
$
309
20%
Cost of vacation ownership products expense
(41)
(38)
(10%)
Marketing and sales expense
(237)
(226)
(5%)
Development Profit
92
45
101%
Development Profit Margin
24.7%
14.7%
1,000 bps
0
MANAGEMENT AND EXCHANGE PROFIT
Vacation Ownership Segment
165
157
5%
Exchange & Third-Party Management Segment
41
45
(11%)
Corporate and Other(1)
13
13
9%
Management and Exchange Revenue
219
215
2%
Vacation Ownership Segment
(76)
(73)
(4%)
Exchange & Third-Party Management Segment
(29)
(31)
9%
Corporate and Other(1)
(16)
(15)
(6%)
Management and Exchange Expense
(121)
(119)
(1%)
Management and Exchange Profit
98
96
3%
Management and Exchange Profit Margin
44.9%
44.5%
40 bps
0
RENTAL PROFIT
Vacation Ownership Segment
150
143
6%
Exchange & Third-Party Management Segment
10
10
(7%)
Corporate and Other(1)
—
—
NM
Rental Revenue
160
153
5%
Vacation Ownership Segment
(129)
(113)
(13%)
Exchange & Third-Party Management Segment
—
—
NM
Corporate and Other(1)
4
2
38%
Rental Expense
(125)
(111)
(13%)
Rental Profit
35
42
(16%)
Rental Profit Margin
22.3%
27.7%
(540 bps)
FINANCING PROFIT
Financing Revenue
90
85
5%
Financing Expense
(37)
(35)
(3%)
Financing Profit
53
50
7%
Financing Profit Margin
58.8%
58.0%
80 bps
OTHER
General and administrative
(61)
(54)
(12%)
Royalty fee
(28)
(29)
1%
Other(2)
14
8
87%
ADJUSTED EBITDA*
$
203
$
158
29%
Adjusted EBITDA Margin
24.3%
20.7%
360 bps
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
** Prior year amounts have been reclassified to conform with our current year presentation. Please see “Non-GAAP Financial Measures” for additional information.
(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the Financial Accounting Standards Board Accounting Standard Codification Topic 810, “Consolidation,” and represents the portion attributable to individual or third-party vacation ownership interest owners.
(2) Includes share-based compensation, amortization of cloud computing software implementation costs, net income or loss attributable to noncontrolling interests, and other.
NM = Not meaningful
A-8
MARRIOTT VACATIONS WORLDWIDE CORPORATION
SUPPLEMENTAL INFORMATION
(In millions and Unaudited)
Six Months Ended
June 30, 2025
June 30, 2024**
Change
DEVELOPMENT PROFIT
Sale of vacation ownership products revenue
$
725
$
661
10%
Cost of vacation ownership products expense
(83)
(91)
8%
Marketing and sales expense
(471)
(449)
(5%)
Development Profit
171
121
41%
Development Profit Margin
23.5%
18.3%
520 bps
0
MANAGEMENT AND EXCHANGE PROFIT
Vacation Ownership Segment
320
305
5%
Exchange & Third-Party Management Segment
87
97
(10%)
Corporate and Other(1)
27
24
16%
Management and Exchange Revenue
434
426
2%
Vacation Ownership Segment
(148)
(144)
(3%)
Exchange & Third-Party Management Segment
(58)
(62)
7%
Corporate and Other(1)
(32)
(29)
(9%)
Management and Exchange Expense
(238)
(235)
(1%)
Management and Exchange Profit
196
191
3%
Management and Exchange Profit Margin
45.3%
44.7%
60 bps
0
RENTAL PROFIT
Vacation Ownership Segment
309
290
7%
Exchange & Third-Party Management Segment
20
21
(7%)
Corporate and Other(1)
—
—
NM
Rental Revenue
329
311
6%
Vacation Ownership Segment
(255)
(223)
(14%)
Exchange & Third-Party Management Segment
—
—
NM
Corporate and Other(1)
7
5
24%
Rental Expense
(248)
(218)
(14%)
Rental Profit
81
93
(13%)
Rental Profit Margin
24.7%
30.0%
(530 bps)
FINANCING PROFIT
Financing Revenue
178
168
6%
Financing Expense
(73)
(69)
(5%)
Financing Profit
105
99
6%
Financing Profit Margin
59.0%
58.7%
30 bps
OTHER
General and administrative
(122)
(117)
(4%)
Royalty fee
(56)
(57)
1%
Other(2)
20
15
37%
ADJUSTED EBITDA*
$
395
$
345
15%
Adjusted EBITDA Margin
23.7%
22.0%
170 bps
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
** Prior year amounts have been reclassified to conform with our current year presentation. Please see “Non-GAAP Financial Measures” for additional information.
(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the Financial Accounting Standards Board Accounting Standard Codification Topic 810, “Consolidation,” and represents the portion attributable to individual or third-party vacation ownership interest owners.
(2) Includes share-based compensation, amortization of cloud computing software implementation costs, net income or loss attributable to noncontrolling interests, and other.
A-9
MARRIOTT VACATIONS WORLDWIDE CORPORATION
SUPPLEMENTAL INFORMATION - MANAGEMENT AND EXCHANGE REVENUE
(In millions and Unaudited)
Three Months Ended
June 30, 2025
June 30, 2024
Change
ANCILLARY REVENUE
Vacation Ownership Segment
$
75
$
72
5%
Exchange & Third-Party Management Segment
1
1
(5%)
Corporate and Other(1)
—
—
NM
Ancillary Revenue
76
73
5%
MANAGEMENT FEE REVENUE
Vacation Ownership Segment
55
51
7%
Exchange & Third-Party Management Segment
1
2
(58%)
Corporate and Other(1)
—
(1)
19%
Management Fee Revenue
56
52
4%
EXCHANGE AND OTHER SERVICES REVENUE
Vacation Ownership Segment
35
34
3%
Exchange & Third-Party Management Segment
39
42
(8%)
Corporate and Other(1)
13
14
7%
Exchange and Other Services Revenue
87
90
(2%)
TOTAL MANAGEMENT AND EXCHANGE REVENUE
$
219
$
215
2%
(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the Financial Accounting Standards Board Accounting Standard Codification Topic 810, “Consolidation,” and represents the portion attributable to individual or third-party vacation ownership interest owners.
A-10
MARRIOTT VACATIONS WORLDWIDE CORPORATION
SUPPLEMENTAL INFORMATION - MANAGEMENT AND EXCHANGE REVENUE
(In millions and Unaudited)
Six Months Ended
June 30, 2025
June 30, 2024
Change
ANCILLARY REVENUE
Vacation Ownership Segment
$
140
$
137
3%
Exchange & Third-Party Management Segment
2
2
(21%)
Corporate and Other(1)
—
—
NM
Ancillary Revenue
142
139
2%
MANAGEMENT FEE REVENUE
Vacation Ownership Segment
110
103
7%
Exchange & Third-Party Management Segment
4
7
(41%)
Corporate and Other(1)
(1)
(2)
21%
Management Fee Revenue
113
108
4%
EXCHANGE AND OTHER SERVICES REVENUE
Vacation Ownership Segment
70
65
6%
Exchange & Third-Party Management Segment
81
88
(8%)
Corporate and Other(1)
28
26
14%
Exchange and Other Services Revenue
179
179
—%
TOTAL MANAGEMENT AND EXCHANGE REVENUE
$
434
$
426
2%
(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the Financial Accounting Standards Board Accounting Standard Codification Topic 810, “Consolidation,” and represents the portion attributable to individual or third-party vacation ownership interest owners.
A-11
MARRIOTT VACATIONS WORLDWIDE CORPORATION
(In millions)
(Unaudited)
INTERIM BALANCE SHEET ITEMS
June 30, 2025
December 31, 2024
Cash and cash equivalents
$
205
$
197
Vacation ownership notes receivable, net
$
2,485
$
2,440
Inventory
$
744
$
735
Property and equipment, net(1)
$
1,284
$
1,170
Goodwill
$
3,117
$
3,117
Intangibles, net
$
762
$
790
Debt, net
$
3,197
$
3,089
Stockholders’ equity
$
2,484
$
2,442
(1) Includes $323 million and $271 million at June 30, 2025 and December 31, 2024, respectively, of completed vacation ownership units which are classified as a component of Property and equipment, net until the time at which they are available and legally registered for sale as vacation ownership products.
SUMMARY CASH FLOW
Six Months Ended
CASH FLOW
June 30, 2025
June 30, 2024
Cash, cash equivalents, and restricted cash (used in) provided by:
Operating activities
$
(40)
$
33
Investing activities
(43)
(88)
Financing activities
19
(59)
Effect of changes in exchange rates on cash, cash equivalents, and restricted cash
4
(3)
Net change in cash, cash equivalents, and restricted cash
$
(60)
$
(117)
A-12
MARRIOTT VACATIONS WORLDWIDE CORPORATION
2025 ADJUSTED FREE CASH FLOW OUTLOOK
(In millions)
Fiscal Year 2025 Guidance
Previous Fiscal Year 2025 Guidance
Low
High
Low
High
Adjusted EBITDA*
$
750
$
780
$
750
$
780
Cash interest
(150)
(145)
(150)
(145)
Cash taxes
(150)
(155)
(150)
(155)
Corporate capital expenditures
(65)
(65)
(60)
(60)
Inventory
(75)
(60)
(85)
(70)
Financing activity and other
(40)
(25)
(35)
(20)
Adjusted free cash flow*
$
270
$
330
$
270
$
330
The guidance provided above excludes impacts from asset sales, foreign currency changes, restructuring costs, litigation charges, strategic modernization initiative costs, transaction and integration costs, and impairments, each of which the Company cannot forecast with sufficient accuracy to factor them into the guidance provided above and without unreasonable efforts, and which may be significant. As a result, the full year 2025 adjusted free cash flow is presented only on a non-GAAP basis and is not reconciled to the most comparable GAAP measures. Where one or more of the currently unavailable items is applicable, some items could be material, individually or in the aggregate, to GAAP reported results.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
A-13
MARRIOTT VACATIONS WORLDWIDE CORPORATION
QUARTERLY OPERATING METRICS
(Contract sales in millions)
Year
Quarter Ended
Full Year
March 31
June 30
September 30
December 31
Vacation Ownership
Consolidated contract sales
2025
$
420
$
445
2024
$
428
$
449
$
459
$
477
$
1,813
2023
$
434
$
453
$
438
$
447
$
1,772
VPG
2025
$
3,979
$
3,631
2024
$
4,129
$
3,741
$
3,888
$
3,916
$
3,911
2023
$
4,358
$
3,968
$
4,055
$
4,002
$
4,088
Tours
2025
97,998
114,402
2024
96,579
111,752
110,557
113,828
432,716
2023
92,890
106,746
100,609
105,580
405,825
Exchange & Third-Party Management
Total active Interval International members(1)
2025
1,537,561
1,507,051
2024
1,565,558
1,530,490
1,544,835
1,545,638
1,545,638
2023
1,567,630
1,565,965
1,571,334
1,563,849
1,563,849
Average revenue per Interval International member
2025
$
39.94
$
37.40
2024
$
41.74
$
38.30
$
38.93
$
35.36
$
154.34
2023
$
42.07
$
39.30
$
39.15
$
36.16
$
156.65
(1) Includes members at the end of each period.
A-14
MARRIOTT VACATIONS WORLDWIDE CORPORATION
NON-GAAP FINANCIAL MEASURES
In our press release and schedules, and on the related conference call, we report certain financial measures that are not prescribed by GAAP. We discuss our reasons for reporting these non-GAAP financial measures below, and the financial schedules included herein reconcile the most directly comparable GAAP financial measure to each non-GAAP financial measure that we report (identified by an asterisk (“*”) on the preceding pages). Although we evaluate and present these non-GAAP financial measures for the reasons described below, please be aware that these non-GAAP financial measures have limitations and should not be considered in isolation or as a substitute for revenues, net income attributable to common stockholders, earnings per share or any other comparable operating measure prescribed by GAAP. In addition, other companies in our industry may calculate these non-GAAP financial measures differently than we do or may not calculate them at all, limiting their usefulness as comparative measures.
Certain Items Excluded from Non-GAAP Financial Measures
We evaluate non-GAAP financial measures, including those identified by an asterisk (“*”) on the preceding pages, that exclude certain items as further described in the financial schedules included herein, and believe these measures provide useful information to investors because these non-GAAP financial measures allow for period-over-period comparisons of our on-going core operations before the impact of these items. These non-GAAP financial measures also facilitate the comparison of results from our on-going core operations before these items with results from other companies.
Adjusted Development Profit and Adjusted Development Profit Margin
We evaluate Adjusted development profit (Adjusted sale of vacation ownership products, net of expenses) and Adjusted development profit margin as indicators of operating performance. Adjusted development profit margin is calculated by dividing Adjusted development profit by revenues from the Sale of vacation ownership products. Adjusted development profit and Adjusted development profit margin adjust Sale of vacation ownership products revenues for the impact of revenue reportability, include corresponding adjustments to Cost of vacation ownership products associated with the change in revenues from the Sale of vacation ownership products, and may include adjustments for certain items as necessary. We evaluate Adjusted development profit and Adjusted development profit margin and believe they provide useful information to investors because they allow for period-over-period comparisons of our on-going core operations before the impact of revenue reportability and certain items to our Development profit and Development profit margin.
Earnings Before Interest Expense, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA
EBITDA, a financial measure that is not prescribed by GAAP, is defined as earnings, or net income attributable to common stockholders, before interest expense, net (excluding consumer financing interest expense associated with term securitization transactions), income taxes, depreciation and amortization. Adjusted EBITDA reflects additional adjustments for certain items and excludes share-based compensation expense and amortization of cloud computing software implementation costs. Share-based compensation expense is excluded to address considerable variability among companies in recording compensation expense because companies use share-based payment awards differently, both in the type and quantity of awards granted. During the first quarter of 2025, we began excluding Amortization of cloud computing software implementation costs, which are not included in depreciation and amortization expense, from Adjusted EBITDA for comparability purposes to address the considerable variability among companies in the utilization of productive assets, and have reclassified prior year amounts to conform with our current year presentation.
For purposes of our EBITDA and Adjusted EBITDA calculations, we do not adjust for consumer financing interest expense associated with term securitization transactions because we consider it to be an operating expense of our business. We consider Adjusted EBITDA to be an indicator of operating performance, which we use to measure our ability to service debt, fund capital expenditures, expand our business, and return
A-15
cash to stockholders. We also use Adjusted EBITDA, as do analysts, lenders, investors and others, because this measure excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company’s capital structure, debt levels and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provisions for income taxes can vary considerably among companies. EBITDA and Adjusted EBITDA also exclude depreciation and amortization, as well as amortization of cloud computing software implementation costs because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We believe Adjusted EBITDA is useful as an indicator of operating performance because it allows for period-over-period comparisons of our on-going core operations before the impact of the excluded items. Adjusted EBITDA also facilitates comparison by us, analysts, investors, and others, of results from our on-going core operations before the impact of these items with results from other companies.
Adjusted EBITDA Margin and Segment Adjusted EBITDA Margin
We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin as indicators of operating profitability. Adjusted EBITDA margin represents Adjusted EBITDA divided by the Company’s total revenues less cost reimbursement revenues. Segment Adjusted EBITDA margin represents Segment Adjusted EBITDA divided by the applicable segment’s total revenues less cost reimbursement revenues. We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin and believe it provides useful information to investors because it allows for period-over-period comparisons of our on-going core operations before the impact of excluded items.
Adjusted Pretax Income, Adjusted Net Income Attributable to Common Stockholders, and Adjusted Earnings per Share - Diluted
We evaluate Adjusted pretax income, Adjusted net income attributable to common stockholders, and Adjusted earnings per share - diluted as indicators of operating performance. Adjusted pretax income is calculated as Adjusted EBITDA less depreciation and amortization and interest expense, net of interest income. Adjusted net income attributable to common stockholders is calculated as Adjusted pretax income less provision for income tax adjusted for certain items and Adjusted earnings per share - diluted equals adjusted net income attributable to common stockholders divided by diluted shares. We evaluate these measures because we believe they provide useful information to investors because they allow for period-over-period comparisons of our on-going core operations before the impact of certain non-recurring items such as impacts from asset sales, restructuring costs, litigation charges, strategic modernization initiative costs, transaction and integration costs, and impairments, and also facilitate the comparison of results from our on-going core operations before these items with results from other companies.
Free Cash Flow and Adjusted Free Cash Flow
We evaluate Free Cash Flow and Adjusted Free Cash Flow as liquidity measures that provide useful information to management and investors about the amount of cash provided by operating activities after capital expenditures for property and equipment and the borrowing and repayment activity related to our term securitizations, which cash can be used for, among other purposes, strategic opportunities, including acquisitions and strengthening the balance sheet. Adjusted Free Cash Flow, which reflects additional adjustments to Free Cash Flow for the impact of transaction, integration and restructuring charges, litigation charges, insurance proceeds, impact of borrowings available from the securitization of eligible vacation ownership notes receivable, and changes in restricted cash and other items, allows for period-over-period comparisons of the cash generated by our business before the impact of these items. Analysis of Free Cash Flow and Adjusted Free Cash Flow also facilitates management’s comparison of our results with our competitors’ results.
