Marriott Vacations Worldwide Reports Third Quarter 2025 Financial Results

ORLANDO, Fla.--(BUSINESS WIRE)-- Marriott Vacations Worldwide Corporation (NYSE: VAC) (“MVW,” the “Company,” “we” or “our”) reported financial results for the third quarter of 2025.

Third Quarter 2025 Highlights

• Consolidated contract sales were $439 million in the quarter.
• Net loss attributable to common stockholders was $2 million and diluted loss per share was $0.07.
• Adjusted net income attributable to common stockholders was $66 million and adjusted diluted earnings per share was $1.69.
• Adjusted EBITDA was $170 million.
• The Company updates its full-year outlook.

Contract sales in the quarter declined 4% compared to the prior year period, driven by a 1% decline in tours and a 5% decline in VPG.

“We are not satisfied with this performance and are taking concrete actions to return to growth, including realigning sales and marketing field incentives to drive strong productivity, curbing third-party commercial rental activity to drive higher owner arrivals and satisfaction, and implementing FICO-based screening to enhance lead quality and drive improved VPGs. We continue to expect a $150 million to $200 million Adjusted EBITDA benefit from our modernization program by the end of 2026,” said John Geller, president and chief executive officer.

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)	September 30, 2025			September 30, 2024(1)
Revenues excluding cost reimbursements	$	748		$	766		(2%)
Consolidated contract sales	$	439		$	459		(4%)
VPG	$	3,700		$	3,888		(5%)
Tours		109,609			110,557		(1%)
Segment financial results attributable to common stockholders	$	138		$	205		(33%)
Segment margin	18.4%			26.8%			(840 bps)
Segment Adjusted EBITDA*(1)	$	195		$	232		(16%)
Segment Adjusted EBITDA margin*(1)	26.1%			30.2%			(410 bps)
(1) Prior year amounts have been reclassified to conform with our current year presentation. Please see "Non-GAAP Financial Measures" for additional information.

Consolidated contract sales declined 4% year-over-year due to lower tours and VPG. Sales reserve was 13% of contract sales, net of resales, largely reflecting higher than expected financing propensity in the quarter. Delinquencies declined on a year-over-year basis for the third quarter in a row. Segment Adjusted EBITDA declined 16% compared to the prior year driven primarily by lower development and rental profit, partially offset by higher resort management and financing profit.

Exchange & Third-Party Management

(In millions, except total active Interval International members and average revenue per member)	Three Months Ended						Change
	September 30, 2025			September 30, 2024(1)
Revenues excluding cost reimbursements	$	51		$	55		(6%)
Total active Interval International members (000's)(2)		1,499			1,545		(3%)
Average revenue per Interval International member	$	37.91		$	38.93		(3%)
Segment financial results attributable to common stockholders	$	15		$	15		(3%)
Segment margin	28.6%			27.9%			70 bps
Segment Adjusted EBITDA*	$	21		$	23		(8%)
Segment Adjusted EBITDA margin*(1)	42.3%			43.3%			(100 bps)
(1) Prior year amounts have been reclassified to conform with our current year presentation. Please see "Non-GAAP Financial Measures" for additional information.
(2) Includes members at the end of each period.

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

Corporate and Other
General and administrative costs decreased 12% in the third quarter compared to the prior year.

Balance Sheet and Liquidity
The Company ended the quarter with $1,428 million in liquidity. Our liquidity includes $474 million of cash and cash equivalents and $786 million of available capacity under its revolving corporate credit facility. The Company had $4 billion of corporate debt and $2 billion of non-recourse debt related to its securitized vacation ownership notes receivable at the end of the third quarter. During the third quarter, the Company issued $575 million of 6.5% senior notes due 2033 and terminated its Delayed-Draw Term Loan, which was undrawn. The Company intends to use the proceeds from the offering to pay its maturing 2026 Convertible Notes.

The Company also had approximately $1 billion of total inventory at the end of the quarter, including $398 million classified as a component of Property and equipment.

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	$1,760	to	$1,780		$1,740	to	$1,830
Adjusted EBITDA*	$740	to	$755		$750	to	$780
Adjusted net income attributable to common stockholders*	$262	to	$279		$250	to	$280
Adjusted earnings per share - diluted*	$6.70	to	$7.10		$6.40	to	$7.10
Adjusted free cash flow*	$235	to	$270		$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	$172	to	$170		$175	to	$172
Depreciation and amortization	$150	to	$149		$150	to	$148
Tax rate used to calculate adjusted net income attributable to common stockholders	30%	to	29%		34%	to	33%

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.

Third Quarter 2025 Financial Results Conference Call
The Company will hold a conference call on November 6, 2025 at 8:30 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, enhanced operational efficiencies and cost savings, expected annualized benefits of the Company’s initiatives that the Company expects to realize, use of proceeds from senior notes due 2033, full year 2025 outlook for contract sales, results of operations and cash flow 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 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 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 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 quarterly report for the quarter ended June 30, 2025, 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 3, 2025   TABLE OF CONTENTS
Summary Financial Information and Adjusted EBITDA by Segment	A-1
Interim Consolidated Statements of Income	A-2
Adjusted Net Income Attributable to Common Stockholders	A-3
Adjusted Earnings Per Share - Diluted
Adjusted EBITDA	A-4
Segment Adjusted EBITDA
Vacation Ownership	A-5
Exchange & Third-Party Management
Consolidated Contract Sales to Development Profit	A-6
Supplemental Information	A-7	to	A-10
Interim Balance Sheet Items and Summary Cash Flow	A-11
2025 Outlook - Adjusted Free Cash Flow	A-12
Quarterly Operating Metrics	A-13
Non-GAAP Financial Measures	A-14

A-1
MARRIOTT VACATIONS WORLDWIDE CORPORATION SUMMARY FINANCIAL INFORMATION (In millions, except per share amounts) (Unaudited)
	Three Months Ended						Change %		Nine Months Ended						Change %
	September 30, 2025			September 30, 2024(1)					September 30, 2025			September 30, 2024(1)
GAAP Measures
Revenues	$	1,263		$	1,305		(3%)		$	3,709		$	3,640		2%
Revenues excluding cost reimbursements	$	812		$	832		(2%)		$	2,478		$	2,398		3%
Income before income taxes and noncontrolling interests	$	1		$	118		(99%)		$	197		$	247		(20%)
Net (loss) income attributable to common stockholders	$	(2)		$	84		(103%)		$	123		$	168		(27%)
Diluted shares		34.9			42.1		(17%)			41.9			42.1		(1%)
(Loss) earnings per share - diluted	$	(0.07)		$	2.12		(103%)		$	3.27		$	4.31		(24%)
Non-GAAP Measures*
Adjusted EBITDA(1)	$	170		$	200		(15%)		$	565		$	545		4%
Adjusted pretax income(1)	$	78		$	115		(32%)		$	294		$	287		2%
Adjusted net income attributable to common stockholders(1)	$	66		$	73		(8%)		$	208		$	186		12%
Adjusted earnings per share - diluted(1)	$	1.69		$	1.83		(8%)		$	5.31		$	4.74		12%

OPERATING METRICS (Contract sales in millions)
	Three Months Ended						Change %		Nine Months Ended						Change %
	September 30, 2025			September 30, 2024					September 30, 2025			September 30, 2024
Vacation Ownership
Consolidated contract sales	$	439		$	459		(4%)		$	1,304		$	1,336		(2%)
VPG	$	3,700		$	3,888		(5%)		$	3,760		$	3,910		(4%)
Tours		109,609			110,557		(1%)			322,009			318,888		1%
Exchange & Third-Party Management
Total active Interval International members (000's)(2)		1,499			1,545		(3%)			1,499			1,545		(3%)
Average revenue per Interval International member	$	37.91		$	38.93		(3%)		$	115.27		$	118.98		(3%)

* 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.

(1) Prior year amounts have been reclassified to conform with our current year presentation. Please see “Non-GAAP Financial Measures” for additional information.

(2) Includes members at the end of each period.

A-2
MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) (Unaudited)
	Three Months Ended								Nine Months Ended
	September 30, 2025				September 30, 2024(1)				September 30, 2025				September 30, 2024(1)
REVENUES
Sale of vacation ownership products	$	358			$	387			$	1,083			$	1,048
Management and exchange		214				207				648				633
Rental		150				151				479				462
Financing		90				87				268				255
Cost reimbursements		451				473				1,231				1,242
TOTAL REVENUES		1,263				1,305				3,709				3,640
EXPENSES
Cost of vacation ownership products		52				54				135				145
Marketing and sales		234				228				705				677
Management and exchange		118				123				356				358
Rental		129				113				377				331
Financing		38				37				111				106
General and administrative(1)		53				61				175				178
Depreciation and amortization		38				36				114				109
Litigation charges(1)		4				3				16				16
Modernization		53				—				97				—
Restructuring		—				1				2				4
Royalty fee		29				28				85				85
Impairment		31				—				31				2
Cost reimbursements		451				473				1,231				1,242
TOTAL EXPENSES		1,230				1,157				3,435				3,253
Gains and other income, net		11				9				48				2
Interest expense, net		(43	)			(40	)			(125	)			(123	)
Transaction and integration costs		—				—				—				(18	)
Other		—				1				—				(1	)
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS		1				118				197				247
Provision for income taxes		(3	)			(34	)			(73	)			(79	)
NET (LOSS) INCOME		(2	)			84				124				168
Net income attributable to noncontrolling interests		—				—				(1	)			—
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	(2	)		$	84			$	123			$	168
(LOSS) EARNINGS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS
Basic shares		34.9				35.3				35.0				35.4
Basic	$	(0.07	)		$	2.38			$	3.52			$	4.74
Diluted shares		34.9				42.1				41.9				42.1
Diluted	$	(0.07	)		$	2.12			$	3.27			$	4.31
(1) Prior year amounts have been reclassified to conform with our current year presentation. Please see “Non-GAAP Financial Measures” for additional information.

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								Nine Months Ended
	September 30, 2025				September 30, 2024(1)				September 30, 2025				September 30, 2024(1)
Net (loss) income attributable to common stockholders	$	(2	)		$	84			$	123			$	168
Provision for income taxes		3				34				73				79
Income before income taxes attributable to common stockholders		1				118				196				247
Certain items:
Gain on disposition of hotel, land, and other		—				(1	)			—				(2	)
Foreign currency translation		(2	)			(6	)			(23	)			—
Insurance proceeds		(8	)			—				(16	)			—
Change in indemnification asset		(1	)			2				(4	)			4
Change in estimates relating to pre-acquisition contingencies		—				(4	)			(2	)			(4	)
Other		—				—				(3	)			—
Gains and other income, net		(11	)			(9	)			(48	)			(2	)
Transaction and integration costs		—				—				—				18
Purchase accounting adjustments		—				—				—				1
Litigation charges(1)		4				3				16				16
Modernization		53				—				97				—
Restructuring		—				1				2				4
Impairment		31				—				31				2
Other		—				2				—				1
Adjusted pretax income*(1)		78				115				294				287
Provision for income taxes		(12	)			(42	)			(86	)			(101	)
Adjusted net income attributable to common stockholders*(1)	$	66			$	73			$	208			$	186
Diluted shares		42.0				42.1				41.9				42.1
Adjusted earnings per share - Diluted*(1)	$	1.69			$	1.83			$	5.31			$	4.74

* 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.

(1) Prior year amounts have been reclassified to conform with our current year presentation. Please see “Non-GAAP Financial Measures” for additional information.

A-4
MARRIOTT VACATIONS WORLDWIDE CORPORATION ADJUSTED EBITDA (In millions) (Unaudited)
	Three Months Ended								Nine Months Ended
	September 30, 2025				September 30, 2024(1)				September 30, 2025				September 30, 2024(1)
Net (loss) income attributable to common stockholders	$	(2	)		$	84			$	123			$	168
Interest expense, net		43				40				125				123
Provision for income taxes		3				34				73				79
Depreciation and amortization		38				36				114				109
Share-based compensation		9				8				28				24
Amortization of cloud computing software implementation costs(1)		2				1				4				2
Certain items:
Gain on disposition of hotel, land, and other		—				(1	)			—				(2	)
Foreign currency translation		(2	)			(6	)			(23	)			—
Insurance proceeds		(8	)			—				(16	)			—
Change in indemnification asset		(1	)			2				(4	)			4
Change in estimates relating to pre-acquisition contingencies		—				(4	)			(2	)			(4	)
Other		—				—				(3	)			—
Gains and other income, net		(11	)			(9	)			(48	)			(2	)
Transaction and integration costs		—				—				—				18
Purchase accounting adjustments		—				—				—				1
Litigation charges(1)		4				3				16				16
Modernization		53				—				97				—
Restructuring		—				1				2				4
Impairment		31				—				31				2
Other		—				2				—				1
Adjusted EBITDA*(1)	$	170			$	200			$	565			$	545
Adjusted EBITDA Margin*(1)	20.9%				24.1%				22.8%				22.7%

* 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.

(1) 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								Nine Months Ended
	September 30, 2025				September 30, 2024(1)				September 30, 2025				September 30, 2024(1)
Segment financial results attributable to common stockholders	$	138			$	205			$	532			$	531
Depreciation and amortization		26				25				80				75
Share-based compensation		3				2				7				6
Amortization of cloud computing software implementation costs(1)		1				1				3				2
Certain items:
Gain on disposition of hotel, land, and other		—				—				—				(1	)
Insurance proceeds		(8	)			—				(15	)			—
Change in estimates relating to pre-acquisition contingencies		—				(4	)			(2	)			(4	)
Other		—				—				(1	)			—
Gains and other income, net		(8	)			(4	)			(18	)			(5	)
Purchase accounting adjustments		—				—				—				1
Litigation charges(1)		3				2				10				15
Modernization		1				—				2				—
Restructuring		—				1				—				1
Impairment		31				—				31				—
Segment Adjusted EBITDA*(1)	$	195			$	232			$	647			$	626
Segment Adjusted EBITDA Margin*(1)	26.1%				30.2%				28.4%				28.6%

EXCHANGE & THIRD-PARTY MANAGEMENT SEGMENT ADJUSTED EBITDA
	Three Months Ended								Nine Months Ended
	September 30, 2025				September 30, 2024(1)				September 30, 2025				September 30, 2024(1)
Segment financial results attributable to common stockholders	$	15			$	15			$	49			$	55
Depreciation and amortization		6				7				20				21
Share-based compensation		—				1				1				2
Certain items:
Gain on disposition of hotel, land, and other		—				(1	)			—				(1	)
Modernization		1				—				1				—
Restructuring		—				1				2				1
Impairment		—				—				—				2
Other		(1	)			—				(1	)			—
Segment Adjusted EBITDA*	$	21			$	23			$	72			$	80
Segment Adjusted EBITDA Margin*(1)	42.3%				43.3%				45.8%				46.6%

* 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.

(1) 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								Nine Months Ended
	September 30, 2025				September 30, 2024				September 30, 2025				September 30, 2024
Consolidated contract sales	$	439			$	459			$	1,304			$	1,336
Less resales contract sales		(7	)			(8	)			(23	)			(29	)
Consolidated contract sales, net of resales		432				451				1,281				1,307
Plus:
Settlement revenue		10				9				30				27
Resales revenue		4				5				13				16
Revenue recognition adjustments:
Reportability		(5	)			4				2				(4	)
Sales reserve(1)		(57	)			(54	)			(165	)			(222	)
Other(2)		(26	)			(28	)			(78	)			(76	)
Sale of vacation ownership products		358				387				1,083				1,048
Less:
Cost of vacation ownership products(3)		(52	)			(54	)			(135	)			(145	)
Marketing and sales		(234	)			(228	)			(705	)			(677	)
Development Profit	$	72			$	105				243				226
Development Profit Margin	20.2%				27.2%				22.4%				21.6%

(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
	September 30, 2025				September 30, 2024(1)				Change
DEVELOPMENT PROFIT
Sale of vacation ownership products revenue	$	358			$	387			(8%)
Cost of vacation ownership products expense		(52	)			(54	)		5%
Marketing and sales expense		(234	)			(228	)		(3%)
Development Profit		72				105			(32%)
Development Profit Margin	20.2%				27.2%				(700 bps)
MANAGEMENT AND EXCHANGE PROFIT
Vacation Ownership Segment		158				152			4%
Exchange & Third-Party Management Segment		43				44			(2%)
Corporate and Other(2)		13				11			14%
Management and Exchange Revenue		214				207			3%
Vacation Ownership Segment		(72	)			(72	)		—%
Exchange & Third-Party Management Segment		(30	)			(33	)		4%
Corporate and Other(2)		(16	)			(18	)		11%
Management and Exchange Expense		(118	)			(123	)		2%
Management and Exchange Profit		96				84			12%
Management and Exchange Profit Margin	44.3%				41.0%				330 bps
RENTAL PROFIT
Vacation Ownership Segment		142				140			1%
Exchange & Third-Party Management Segment		8				11			(21%)
Corporate and Other(2)		—				—			NM
Rental Revenue		150				151			(1%)
Vacation Ownership Segment		(132	)			(120	)		(10%)
Exchange & Third-Party Management Segment		—				—			NM
Corporate and Other(2)		3				7			(44%)
Rental Expense		(129	)			(113	)		(13%)
Rental Profit		21				38			(43%)
Rental Profit Margin	14.3%				24.9%				(1,060 bps)
FINANCING PROFIT
Financing Revenue		90				87			5%
Financing Expense		(38	)			(37	)		(5%)
Financing Profit		52				50			5%
Financing Profit Margin	57.8%				57.9%				(10 bps)
OTHER
General and administrative		(53	)			(61	)		12%
Royalty fee		(29	)			(28	)		1%
Other(1)(3)		11				12			(5%)
ADJUSTED EBITDA*(1)	$	170			$	200			(15%)
Adjusted EBITDA Margin(1)	20.9%				24.1%				(320 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.

(1) Prior year amounts have been reclassified to conform with our current year presentation. Please see “Non-GAAP Financial Measures” for additional information.

(2) 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.

(3) 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)
	Nine Months Ended
	September 30, 2025				September 30, 2024(1)				Change
DEVELOPMENT PROFIT
Sale of vacation ownership products revenue	$	1,083			$	1,048			3%
Cost of vacation ownership products expense		(135	)			(145	)		7%
Marketing and sales expense		(705	)			(677	)		(4%)
Development Profit		243				226			7%
Development Profit Margin	22.4%				21.6%				80 bps
MANAGEMENT AND EXCHANGE PROFIT
Vacation Ownership Segment		478				457			4%
Exchange & Third-Party Management Segment		130				141			(8%)
Corporate and Other(2)		40				35			15%
Management and Exchange Revenue		648				633			2%
Vacation Ownership Segment		(220	)			(216	)		(2%)
Exchange & Third-Party Management Segment		(88	)			(95	)		6%
Corporate and Other(2)		(48	)			(47	)		(2%)
Management and Exchange Expense		(356	)			(358	)		—%
Management and Exchange Profit		292				275			6%
Management and Exchange Profit Margin	45.0%				43.5%				150 bps
RENTAL PROFIT
Vacation Ownership Segment		451				430			5%
Exchange & Third-Party Management Segment		28				32			(12%)
Corporate and Other(2)		—				—			NM
Rental Revenue		479				462			4%
Vacation Ownership Segment		(387	)			(343	)		(13%)
Exchange & Third-Party Management Segment		—				—			NM
Corporate and Other(2)		10				12			(13%)
Rental Expense		(377	)			(331	)		(14%)
Rental Profit		102				131			(21%)
Rental Profit Margin	21.4%				28.3%				(690 bps)
FINANCING PROFIT
Financing Revenue		268				255			5%
Financing Expense		(111	)			(106	)		(5%)
Financing Profit		157				149			6%
Financing Profit Margin	58.6%				58.4%				20 bps
OTHER
General and administrative		(175	)			(178	)		1%
Royalty fee		(85	)			(85	)		1%
Other(1)(3)		31				27			19%
ADJUSTED EBITDA*(1)	$	565			$	545			4%
Adjusted EBITDA Margin(1)	22.8%				22.7%				10 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.

(1) Prior year amounts have been reclassified to conform with our current year presentation. Please see “Non-GAAP Financial Measures” for additional information.

(2) 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.

(3) 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
	September 30, 2025				September 30, 2024				Change
ANCILLARY REVENUE
Vacation Ownership Segment	$	69			$	66			4%
Exchange & Third-Party Management Segment		1				1			5%
Corporate and Other(1)		—				—			NM
Ancillary Revenue		70				67			4%
MANAGEMENT FEE REVENUE
Vacation Ownership Segment		56				52			7%
Exchange & Third-Party Management Segment		2				3			(7%)
Corporate and Other(1)		(1	)			(1	)		40%
Management Fee Revenue		57				54			8%
EXCHANGE AND OTHER SERVICES REVENUE
Vacation Ownership Segment		33				34			(1%)
Exchange & Third-Party Management Segment		40				40			(1%)
Corporate and Other(1)		14				12			8%
Exchange and Other Services Revenue		87				86			—%
TOTAL MANAGEMENT AND EXCHANGE REVENUE	$	214			$	207			3%

(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)
	Nine Months Ended
	September 30, 2025				September 30, 2024				Change
ANCILLARY REVENUE
Vacation Ownership Segment	$	209			$	203			3%
Exchange & Third-Party Management Segment		3				3			(14%)
Corporate and Other(1)		—				—			NM
Ancillary Revenue		212				206			3%
MANAGEMENT FEE REVENUE
Vacation Ownership Segment		166				155			7%
Exchange & Third-Party Management Segment		6				10			(33%)
Corporate and Other(1)		(2	)			(3	)		29%
Management Fee Revenue		170				162			5%
EXCHANGE AND OTHER SERVICES REVENUE
Vacation Ownership Segment		103				99			4%
Exchange & Third-Party Management Segment		121				128			(6%)
Corporate and Other(1)		42				38			12%
Exchange and Other Services Revenue		266				265			—%
TOTAL MANAGEMENT AND EXCHANGE REVENUE	$	648			$	633			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
	September 30, 2025			December 31, 2024
Cash and cash equivalents	$	474		$	197
Vacation ownership notes receivable, net	$	2,522		$	2,440
Inventory	$	727		$	735
Property and equipment, net(1)	$	1,325		$	1,170
Goodwill	$	3,117		$	3,117
Intangibles, net	$	747		$	790
Debt, net	$	3,533		$	3,089
Stockholders’ equity	$	2,465		$	2,442

(1) Includes $398 million and $271 million at September 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
	Nine Months Ended
CASH FLOW	September 30, 2025				September 30, 2024
Cash, cash equivalents, and restricted cash provided by (used in):
Operating activities	$	22			$	105
Investing activities		(57	)			(106	)
Financing activities		236				(26	)
Effect of changes in exchange rates on cash, cash equivalents, and restricted cash		4				—
Net change in cash, cash equivalents, and restricted cash	$	205			$	(27	)

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*		$	740			$	755			$	750			$	780
Cash interest			(140	)			(135	)			(150	)			(145	)
Cash taxes			(150	)			(155	)			(150	)			(155	)
Corporate capital expenditures			(65	)			(65	)			(60	)			(60	)
Inventory			(60	)			(55	)			(85	)			(70	)
Financing activity and other			(90	)			(75	)			(35	)			(20	)
Adjusted free cash flow*		$	235			$	270			$	270			$	330

The guidance provided above excludes impacts from asset sales, foreign currency changes, modernization 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		$	439
	2024		$	428		$	449		$	459		$	477		$	1,813
	2023		$	434		$	453		$	438		$	447		$	1,772
VPG
	2025		$	3,979		$	3,631		$	3,700
	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			109,609
	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			1,499,208
	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		$	37.91
	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 or loss attributable to common stockholders, earnings or loss 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, or loss 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. Additionally, during the third quarter of 2025, we reclassified $1 million of certain prior year amounts related to ongoing litigation from General and administrative expense to Litigation charges in order 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 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, restructuring, and modernization costs, 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.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20251103143242/en/

Neal Goldner

Investor Relations

407-206-6149

IR@mvwc.com



Cameron Klaus

Global Communications

407-206-6300

media@mvwc.com

Source: Marriott Vacations Worldwide Corporation