Marriott Vacations Worldwide Reports Fourth Quarter and Full Year 2025 Financial Results

Marriott Vacations Worldwide Corporation (NYSE:VAC) ("MVW," the "Company," "we" or "our") reported financial results for the fourth quarter and full year 2025 and provided guidance for full year 2026.

Fourth Quarter 2025 Highlights

• Consolidated contract sales were $458 million in the quarter.
• Net loss attributable to common stockholders was $431 million and diluted loss per share was $12.43. Results reflect restructuring costs, modernization expenses, and $546 million of non‑cash impairment charges.
• Adjusted net income attributable to common stockholders was $68 million and adjusted diluted earnings per share was $1.86.
• Adjusted EBITDA was $186 million.

Full Year 2025 Results

• Consolidated contract sales were $1.8 billion.
• Net loss attributable to common stockholders was $308 million and diluted loss per share was $8.84. Results reflect full year modernization expenses, restructuring costs, and $577 million of non-cash impairment charges.
• Adjusted net income attributable to common stockholders was $276 million and adjusted diluted earnings per share was $7.16.
• Adjusted EBITDA was $751 million.
• Returned $171 million to shareholders in dividends and share repurchases.
• The Company provides full year 2026 guidance.

"Our fourth quarter Adjusted EBITDA was towards the high end of our guidance," said Matt Avril, Chief Executive Officer. "We have great hospitality brands, exceptional resorts in premier locations, and substantial recurring revenue. As we enter 2026, we have a clear focus on profitability, cost discipline, capital allocation, inventory reduction, and improved cash flow generation from operations and dispositions. We are moving with urgency, making the required difficult decisions to strengthen the long‑term trajectory of the business. With the recent addition of Mike Flaskey as President and Chief Operating Officer, we expect to accelerate the focus and ultimately the results in our operations."

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. Additionally, in the tables below "†" denotes prior year amounts that have been reclassified to conform with our current year presentation and "NM" means not meaningful. Please see "Non-GAAP Financial Measures" for additional information.

Vacation Ownership

Consolidated contract sales declined year-over-year due to lower tours and a 60 basis point decline in VPG. Sales reserve was 12.7% of contract sales, net of resales, and delinquencies declined on a year-over-year basis for the fourth quarter in a row. Segment Adjusted EBITDA decreased compared to the prior year driven by lower development and rental profit partially offset by higher resort management and financing profit.

Exchange & Third-Party Management

Revenues excluding cost reimbursements and Segment Adjusted EBITDA decreased year-over-year due to lower exchange and Getaway revenue at Interval International.

Corporate and Other

General and administrative costs increased $8 million in the fourth quarter of 2025 compared to the prior year.

Balance Sheet and Liquidity

The Company had $3.5 billion of corporate debt and $2.1 billion of non-recourse debt related to its securitized vacation ownership notes receivable at the end of 2025. Liquidity was $1.4 billion including $406 million of cash and cash equivalents and $787 million of available capacity under the Company's revolving corporate credit facility. Pro-forma for the repayment of $575 million of convertible debt in January 2026, liquidity was $794 million. The Company also had $916 million of inventory at the end of the quarter, including $224 million classified as a component of Property and equipment.

During the fourth quarter of 2025, the Company completed its second securitization of 2025, issuing $470 million of vacation ownership notes with a gross advance rate of 98% and a blended interest rate of 4.62%.

Impairment

During the fourth quarter, the Company performed a comprehensive review of its business and recorded a $546 million non‑cash impairment charge:

• $175 million related to inventory, property and equipment, and other assets associated with future phases of existing projects in North America the Company does not expect to build, as well as inventory associated with its Legacy-Welk business, and $27 million for the impairment of vacation ownership units in Khao Lak, Thailand due to the strategy change in Asia Pacific;
• $160 million to write down the value of real estate assets identified for disposition; and
• $184 million primarily to write down goodwill and intangibles related to its previous acquisition of ILG.

Subsequent Events

In January 2026, the Company repaid $575 million of maturing convertible debt using available cash and revolver borrowings. The Company also sold the Westin Resort & Spa in Cancun in January 2026 for $50 million. In connection with the sale, the Company agreed to acquire 64 timeshare units co-located with the Marriott Puerto Vallarta Resort & Spa in late 2028.

Full Year 2026 Outlook

During the first quarter of 2026, the Company began including interest expense associated with its warehouse credit facility borrowings as a component of consumer financing interest expense. The change will not impact the Company's 2026 reported net income attributable to common stockholders but will reduce its Adjusted EBITDA by $10 to $15 million. The change will not have an impact on Adjusted net income attributable to common stockholders or Adjusted free cash flow.

The Company is providing guidance for the full year 2026 as reflected in the chart below.

The guidance provided above excludes impacts from asset sales, foreign currency changes, restructuring costs, litigation charges, modernization 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 2026 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 2026 guidance is based on the following supplemental estimates:

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.

Fourth Quarter 2025 Financial Results Conference Call

The Company will hold a conference call on February 26, 2026 at 8:00 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 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.

Note on Forward-Looking Statements

This press release and accompanying schedules contain "forward-looking statements" within the meaning of federal securities laws, including statements about opportunities for growth, increased profitability, enhanced operational efficiencies, inventory, cash flows, estimated impacts of change in accounting for borrowings under the Company's warehouse credit facility and cost savings and full year 2026 outlook for contract sales, results of operations and cash flow.

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 or travel; 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 technologies; 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 and other laws and regulations affecting our business; the impact of a future banking crisis; impacts from natural or man-made disasters; 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 Hamas, 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