Travel & Leisure Co.TNL

Travel & Leisure Co. Earnings Per Share Disclosure

10-KFiled Feb 18, 20263 min read
Earnings Per Share
The computations of basic and diluted earnings per share (“EPS”) are based on Net income attributable to Travel + Leisure Co. shareholders divided by the basic weighted average number of common shares and diluted weighted average number of common shares outstanding. The following table sets forth the computations of basic and diluted EPS (in millions, except per share data):
Year Ended December 31,
202520242023
Net income from continuing operations attributable to Travel + Leisure Co. shareholders$230 $378 $391 
Gain on disposal of discontinued business attributable to Travel + Leisure Co. shareholders, net of income taxes— 33 5 
Net income attributable to Travel + Leisure Co. shareholders$230 $411 $396 
Basic earnings per share (a)
Continuing operations$3.51 $5.39 $5.24 
Discontinued operations— 0.48 0.07 
$3.51 $5.87 $5.31 
Diluted earnings per share (a)
Continuing operations$3.44 $5.35 $5.21 
Discontinued operations— 0.47 0.07 
$3.44 $5.82 $5.28 
Basic weighted average shares outstanding65.6 70.1 74.5 
RSUs (b), PSUs (c) and NQs (d)
1.3 0.6 0.5 
Diluted weighted average shares outstanding (e)
66.9 70.7 75.0 
Dividends:
Cash dividends per share (f)
$2.24 $2.00 $1.80 
Aggregate dividends paid to shareholders$149 $142 $136 
(a)Earnings per share amounts are calculated using whole numbers.
(b)Excludes less than 0.1 million, 0.6 million and 1.1 million of restricted stock units (“RSUs”) that would have been anti-dilutive to EPS for the years 2025, 2024 and 2023. These shares could potentially dilute EPS in the future.
(c)Excludes performance-vested restricted stock units (“PSUs”) of 0.2 million, 0.7 million, and 0.7 million for the years 2025, 2024, and 2023, as the Company had not met the required performance metrics. These PSUs could potentially dilute EPS in the future.
(d)Excludes 0.1 million, 0.7 million, and 2.3 million of outstanding non-qualified stock options (“NQs”) that would have been anti-dilutive to EPS for the years 2025, 2024, and 2023. These outstanding NQs could potentially dilute EPS in the future.
(e)The dilutive impact of the Company’s potential common stock is computed utilizing the treasury stock method using average market prices during the period.
(f)The Company paid cash dividends of $0.56 per share for all four quarters of 2025, $0.50 per share for all four quarters of 2024, and $0.45 per share for all four quarters of 2023.
Share Repurchase Program
On August 20, 2007, the Company’s Board of Directors (“Board”) authorized a share repurchase program that enabled it to purchase its common stock. As of December 31, 2025, the Board has increased the capacity of the program 10 times, most recently in May 2024 by $500 million, bringing the total authorization under the current program to $7.0 billion. Proceeds received from stock option exercises have increased the repurchase capacity by $111 million since the inception of this program. As of December 31, 2025, the Company had $165 million of remaining availability in its program.
Subsequent to the end of the year, the Company’s Board of Directors increased the authorization for the Company’s share repurchase program by $750 million.
The following table summarizes stock repurchase activity under the current share repurchase program (in millions):
SharesCost
As of December 31, 2024133.0 $6,646 
Repurchases5.4 300 
As of December 31, 2025138.4 $6,946 
During both 2025 and 2024, the Company incurred $2 million of excise tax related to share repurchases, included within Treasury stock on the Consolidated Balance Sheets.

Historical Timeline

Fiscal YearFiled
2025Feb 18, 2026Showing above
2024Feb 19, 2025
2023Feb 21, 2024
2022Feb 22, 2023

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

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