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Sep 30, 2025
Marriott Vacations Q3 2025 Earnings Report
Marriott Vacations reported its third quarter 2025 financial results, with a net loss attributable to common stockholders of $2 million and diluted loss per share of $0.07. Adjusted net income was $66 million, and adjusted diluted EPS was $1.69. Consolidated contract sales declined 4% year-over-year.
Key Takeaways
Marriott Vacations Worldwide experienced a challenging third quarter in 2025, reporting a net loss and a decline in consolidated contract sales, VPG, and tours compared to the prior year. Despite these setbacks, the company achieved positive adjusted net income and adjusted diluted EPS, and management is implementing strategic actions to return to growth and expects significant Adjusted EBITDA benefits from its modernization program by the end of 2026.
Consolidated contract sales were $439 million, a 4% decline compared to the prior year, driven by a 1% decline in tours and a 5% decline in VPG.
The company reported a net loss attributable to common stockholders of $2 million and a diluted loss per share of $0.07.
Adjusted net income attributable to common stockholders was $66 million, and adjusted diluted earnings per share was $1.69.
Adjusted EBITDA for the quarter was $170 million, a 15% decrease from the prior year.
Management is taking concrete actions to return to growth, including realigning sales and marketing incentives, curbing third-party commercial rental activity, and implementing FICO-based screening to enhance lead quality.
Revenue by Segment
Forward Guidance
Marriott Vacations Worldwide has updated its full-year 2025 outlook, with revised guidance for contract sales, Adjusted EBITDA, Adjusted net income, Adjusted diluted EPS, and Adjusted free cash flow. The company expects to see a $150 million to $200 million Adjusted EBITDA benefit from its modernization program by the end of 2026.
Positive Outlook
- The company expects a $150 million to $200 million Adjusted EBITDA benefit from its modernization program by the end of 2026.
- Adjusted net income attributable to common stockholders guidance for 2025 has a lower bound of $262 million, an increase from the previous guidance's lower bound of $250 million.
- Adjusted earnings per share - diluted guidance for 2025 has a lower bound of $6.70, an increase from the previous guidance's lower bound of $6.40.
- The company is implementing concrete actions to return to growth, including realigning sales and marketing field incentives.
- FICO-based screening is being implemented to enhance lead quality and drive improved VPGs.
Challenges Ahead
- The high end of the 2025 contract sales guidance has been lowered to $1,780 million from $1,830 million.
Historical Earnings Impact
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