Cash conversion efficiency is frequently decoupled from earnings, evidenced by an operating cash flow to net income ratio that ranged from 0.48 in 2026Q1 to 4.65 in 2025Q3.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 |
|---|
| Cash from Operations | 910M | 640M | 464M | 350M | 442M | 568M | 374M | 452M | 442M | 987M | 973M | 991M | 984M | 1.01B | 1B | 1B | 635M | 689M | 109M | 10M | 165M | 488M |
| Operating CF Margin % | - | 15.92% | 12.01% | 9.33% | 12.39% | 18.12% | 17.31% | 11.18% | 11.24% | 19.44% | 17.38% | 17.9% | 18.63% | 20.12% | 22.14% | 23.58% | 16.49% | 18.37% | 2.55% | 0.23% | 4.29% | 14.63% |
| Operating CF Growth % | 247.13% | 37.93% | 32.57% | -20.81% | -22.18% | 51.87% | -17.26% | 2.26% | -55.22% | 1.44% | -1.82% | 0.71% | -2.38% | 0.4% | 0.1% | 57.95% | -7.84% | 532.11% | 990% | -93.94% | -66.19% | - |
| Net Income | 237M | 230M | 378M | 391M | 356M | 313M | -253M | 489M | 266M | 872M | 612M | 612M | 529M | 433M | 399M | 417M | 379M | 293M | -1.07B | 403M | 287M | 431M |
| Depreciation & Amortization | 187M | 124M | 115M | 112M | 119M | 124M | 126M | 121M | 138M | 213M | 252M | 234M | 233M | 216M | 185M | 178M | 173M | 178M | 184M | 166M | 148M | 131M |
| Stock-Based Compensation | 63M | 57M | 41M | 38M | 45M | 32M | 20M | 24M | 129M | 70M | 68M | 58M | 57M | 53M | 41M | 42M | 39M | 37M | 35M | 26M | 0 | 0 |
| Deferred Taxes | 59M | -21M | 26M | 8M | -4M | -39M | -88M | 79M | 122M | -404M | 93M | 40M | 47M | 64M | 62M | 70M | 76M | 90M | 110M | 156M | 103M | 236M |
| Other Non-Cash Items | 968M | 840M | 471M | 385M | 355M | 164M | 504M | 507M | 638M | 758M | 336M | 260M | 278M | 474M | 530M | 408M | 407M | 530M | 1.84B | 280M | 335M | 133M |
| Working Capital Changes | -841M | -590M | -567M | -584M | -429M | -26M | 65M | -768M | -851M | -522M | -388M | -213M | -160M | -232M | -213M | -112M | -439M | -439M | -989M | -1.02B | -688M | -443M |
| Change in Receivables | -319M | -500M | -514M | -522M | -401M | 20M | 267M | -577M | -642M | -529M | -429M | -341M | -250M | -318M | -322M | 20M | 14M | 92M | 3M | -17M | -35M | 0 |
| Change in Inventory | -168M | -68M | -16M | 25M | 31M | -6M | -119M | 13M | -27M | -71M | -27M | -25M | -17M | 32M | 95M | 79M | 54M | -9M | -147M | -322M | -280M | -21M |
| Change in Payables | -9M | 96M | -19M | -70M | -71M | 24M | 15M | -64M | -146M | 92M | 39M | 109M | 84M | 46M | 18M | 41M | -52M | -231M | -932M | 146M | 277M | 0 |
| Cash from Investing | -103M | -107M | -124M | -80M | -50M | -93M | -65M | -66M | -725M | -394M | -353M | -302M | -276M | -401M | -519M | -256M | -418M | -109M | -319M | -255M | -471M | -692M |
| Capital Expenditures | -115M | -117M | -81M | -74M | -52M | -57M | -69M | -108M | -99M | -153M | -191M | -222M | -235M | -238M | -208M | -239M | -167M | -135M | -187M | -194M | -191M | -134M |
| CapEx % of Revenue | 2.84% | 2.91% | 2.1% | 1.97% | 1.46% | 1.82% | 3.19% | 2.67% | 2.52% | 3.01% | 3.41% | 4.01% | 4.45% | 4.75% | 4.59% | 5.62% | 4.34% | 3.6% | 4.37% | 4.45% | 4.97% | 4.02% |
| Acquisitions | 0 | -1M | -44M | -6M | -2M | -37M | 0 | 55M | -5M | -18M | -10M | 12M | 3M | -3M | -42M | -27M | -236M | 5M | -135M | -16M | -105M | -552M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 3M | 9M | 1M | 0 | 4M | 1M | 4M | -13M | -621M | -223M | -152M | -92M | -44M | -160M | -269M | -11M | -25M | 12M | 9M | -25M | -151M | -6M |
| Cash from Financing | -628M | -443M | -458M | -500M | -196M | -1.29B | 502M | -289M | 280M | -559M | -586M | -675M | -701M | -605M | -431M | -753M | -219M | -561M | 166M | 177M | 473M | 221M |
| Debt Issued (Net) | -155M | -11M | -59M | -34M | 331M | -1.11B | 810M | 313M | -710M | 399M | 300M | 179M | 154M | 64M | 330M | 225M | 34M | -501M | 231M | 682M | 1.36B | 285M |
| Equity Issued (Net) | -436M | -301M | -219M | -300M | -341M | -14M | -121M | -329M | -330M | -599M | -619M | -658M | -646M | -593M | -631M | -893M | -235M | 0 | -10M | -526M | -316M | 0 |
| Dividends Paid | -227M | -149M | -142M | -136M | -135M | -109M | -138M | -166M | -194M | -242M | -223M | -202M | -179M | -156M | -134M | -99M | -86M | -29M | -28M | -14M | -1.36B | 0 |
| Share Repurchases | -472M | -301M | -234M | -309M | -351M | -25M | -128M | -340M | -330M | -599M | -619M | -658M | -646M | -593M | -631M | -893M | -235M | 0 | -15M | -526M | -329M | 0 |
| Other Financing | 190M | 18M | -38M | -30M | -51M | -59M | -49M | -107M | 1.51B | -116M | -44M | 6M | -30M | 80M | 4M | 14M | 68M | -31M | -27M | 35M | 792M | -5M |
| Net Change in Cash | 147M | 97M | -129M | -230M | 191M | -820M | 815M | 98M | -12M | 48M | 14M | -12M | -11M | -1M | 53M | -14M | 1M | 19M | -74M | -59M | 170M | 5M |
| Free Cash Flow | 737M | 523M | 383M | 276M | 390M | 511M | 305M | 344M | 343M | 834M | 782M | 769M | 749M | 770M | 796M | 764M | 468M | 554M | -78M | -184M | -26M | 354M |
| FCF Margin % | 18.2% | 13.01% | 9.91% | 7.36% | 10.93% | 16.3% | 14.12% | 8.51% | 8.73% | 16.43% | 13.97% | 13.89% | 14.18% | 15.37% | 17.56% | 17.96% | 12.15% | 14.77% | -1.82% | -4.22% | -0.68% | 10.61% |
| FCF Growth % | 62.69% | 36.55% | 38.77% | -29.23% | -23.68% | 67.54% | -11.34% | 0.29% | -58.87% | 6.65% | 1.69% | 2.67% | -2.73% | -3.27% | 4.19% | 63.25% | -15.52% | 810.26% | 57.61% | -607.69% | -107.34% | - |
| FCF per Share | 11.38 | 7.82 | 5.42 | 3.68 | 4.63 | 5.91 | 3.54 | 3.72 | 3.46 | 8.02 | 7.05 | 6.46 | 5.90 | 5.70 | 5.49 | 4.60 | 2.53 | 3.04 | -0.44 | -1.01 | -0.13 | 1.77 |
| FCF Conversion (FCF/Net Income) | 3.11x | 2.78x | 1.13x | 0.88x | 1.24x | 1.84x | -1.48x | 0.89x | 0.66x | 1.16x | 1.59x | 1.62x | 1.86x | 2.33x | 2.51x | 2.41x | 1.68x | 2.35x | -0.10x | 0.02x | 0.57x | 1.13x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Consumer credit portfolio volatility
As reported in recent financial statements, TNL's operating cash flow to net income ratio has exhibited extreme volatility, ranging from 0.48 in 2026Q1 to 4.65 in 2025Q3, suggesting that reported earnings are frequently decoupled from actual cash generation due to significant working capital and accrual adjustments.
The wide variance between net income and operating cash flow indicates that accounting estimates, particularly regarding loan loss provisions and revenue recognition timing, play a disproportionate role in bottom-line results. Investors should monitor whether this divergence reflects genuine operational timing differences or a structural reliance on non-cash accounting to smooth earnings performance.
Based on quarterly filings, TNL has consistently recorded negative working capital changes over the last ten quarters, with a peak outflow of $345.0M in 2025Q3, highlighting a structural cash drag inherent in the company's inventory-heavy vacation ownership business model and its associated consumer financing operations.
The recurring nature of these outflows suggests that the company is continuously reinvesting cash into its loan portfolio and inventory development, which limits the conversion of sales into immediate liquidity. This persistent pressure on cash flow warrants further investigation into the efficiency of the company's collection cycles and the sustainability of its current financing terms.
According to historical cash flow data, TNL has maintained a consistent pattern of shareholder returns, with combined dividends and buybacks often exceeding quarterly free cash flow, as evidenced by the $131.0M total return in 2026Q1 despite generating only $19.0M in free cash flow during that same period.
This aggressive capital allocation strategy appears to prioritize shareholder payouts even when operational cash generation is constrained, which may indicate a reliance on debt or balance sheet liquidity to fund these distributions. Such a policy warrants caution, as it leaves the company with less flexibility to navigate potential downturns in the vacation ownership market.
As reported in financial statements, TNL's free cash flow margins have fluctuated significantly, reaching a high of 41.3% in 2025Q3 before compressing to 2.0% in 2026Q1, reflecting the highly seasonal and cyclical nature of the company's vacation ownership sales and the associated capital intensity of resort operations.
The sharp contraction in FCF margins suggests that the company's cash generation is highly sensitive to seasonal demand shifts and the timing of resort development expenditures. Analysts should interpret these swings as a reflection of the business's inherent cyclicality rather than a permanent shift in the underlying profitability of the membership model.
Quick answers to the most common questions about buying TNL stock.
Travel + Leisure Co. (TNL) generated $640.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Travel + Leisure Co. (TNL) generated $523.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Travel + Leisure Co. (TNL) spent $117.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Travel + Leisure Co. (TNL) returned $149.0M to shareholders via cash dividends and spent $301.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.