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Travel + Leisure TNL Travel and Membership — Capitalized contract costs

Other segment segments

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$50M+4.2%

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Other financials

Income statement

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Revenue$1.1B+4.4%
Gross profit$1.0B+3.7%
Operating income$210.0M+1.9%
Net income$109.0M+0.9%
EPS (diluted)$1.72+6.2%

Balance sheet

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Cash & equivalents$471.0M+21.7%
Total debt$4.5B+4.4%
Total equity-$1.0B-19.6%
Total assets$6.9B+1.3%

Cash flow

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Operating cash flow$220.0M-5.2%
CapEx$25.0M-32.4%
Free cash flow$195.0M0.0%

Valuation

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Market cap$4.74B+22.5%
Enterprise value$8.78B+12.5%
P/E11.6×+2.1×
P/S1.2×+0.2×

Profitability

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Gross margin92.9%-5.1pp
Operating margin14.2%-5.1pp
Net margin10.4%-0.6pp
FCF margin10.8%-1.8pp

Returns & leverage

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Return on equity122.1%
Debt / equity6.6×
Current ratio1.2×

Where this comes from

Reported directly by Travel + Leisure in its filing.

Tagged under the XBRL concept us-gaap:CapitalizedContractCostNet.

The source filing: Travel + Leisure’s 10-Q, filed July 22, 2026.

Filed
Jul 22, 2026, 11:22 AM EDT
Fiscal quarter
Q3 FY2026
Calendar quarter
Q3 2026
Accession
0001361658-26-000053

The Travel and Membership segment incurs certain direct and incremental selling costs to obtain contracts with customers in connection with subscription revenues and exchange–related revenues. Such costs, which are primarily comprised of commissions paid to internal and external parties and credit card processing fees, are deferred at the inception of the contract and recognized when the benefit is transferred to the customer. As of June 30, 2026, the capitalized costs were $19 million, of which $7 million was included in Prepaid expenses and $12 million was included in Other assets on the Condensed Consolidated Balance Sheets. As of December 31, 2025, these capitalized costs were $16 million, of which $9 million was included in Prepaid expenses and $7 million was included in Other assets on the Condensed Consolidated Balance Sheets.

Item 1. Financial Statements (Unaudited).

FAQ

What is Travel + Leisure's travel and membership — capitalized contract costs?
Travel + Leisure (TNL) reported travel and membership — capitalized contract costs of $19M in Q2 2026.
How has Travel + Leisure's travel and membership — capitalized contract costs changed year-over-year?
Travel + Leisure's travel and membership — capitalized contract costs increased by 26.7% year-over-year, from $15M to $19M.
What is the long-term trend for Travel + Leisure's travel and membership — capitalized contract costs?
Over 4 years (2021 to 2025), Travel + Leisure's travel and membership — capitalized contract costs has grown at a -3.0% compound annual growth rate (CAGR), from $70M to $62M.
What does travel and membership — capitalized contract costs mean?
Represents the incremental costs of obtaining a contract with a customer that are recognized as an asset and amortized over the expected benefit period. This metric reflects the company's investment in acquiring long-term membership or service agreements. Monitoring this helps investors understand the efficiency of customer acquisition strategies and the timing of expense recognition.

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