Marriott Vacations Worldwide Reports Second Quarter 2026 Financial Results

About this update from Marriott Vacations Worldwide Corporation

Marriott Vacations Worldwide Corporation (NYSE: VAC) (“MVW,” the “Company,” “we” or “our”) reported financial results for the second quarter of 2026. Second Quarter 2026 Highlights Contract sales increased 22% year over year to $545 million in the quarter. Net income attributable to common stockholders was $77 million compared to $69 million in the prior year and diluted earnings per share was $2.12 compared to $1.77 in the prior year. Adjusted net income attributable to common stockholders increased 9% to $84 million and adjusted diluted earnings per share increased 18% to $2.31. Adjusted EBITDA increased to $215 million compared to $203 million in the prior year. The Company raises its full-year Contract Sales, Adjusted EBITDA and Adjusted Free Cash Flow guidance. “Our second quarter results demonstrate the strong progress we have made this year, with VPG improving 23% year over year and contract sales growing 22%. This was driven by the power of our brands, our strategy, and the execution by our associates,” said Matt Avril, Chief Executive Officer. “Our raised guidance reflects our focus on driving continued contract sales growth and increasing Adjusted EBITDA. We also remain committed to delivering best-in-class hospitality experiences for our owners, members, and guests.” In the tables that follow “*” denotes Non-GAAP Financial Measures. Please see page A-17 for additional information about our reasons for providing these alternative financial measures and limitations on their use. Additionally, in the tables below “†” denotes prior year amounts that have been reclassified to conform with our current year presentation and “NM” means not meaningful. Vacation Ownership Three Months Ended   Change   (In millions, except volume per guest (“VPG”) and tours) June 30, 2026   June 30, 2025     Revenues excluding cost reimbursements $ 853   $ 775   10 %   Contract sales $ 545   $ 445   22 %   VPG $ 4,477   $ 3,631   23 %   Tours 112,721   114,402   (1 %)   Segment financial results attributable to common stockholders † $ 219   $ 197   12 %   Segment margin † 25.7%   25.4%   30 bps   Segment Adjusted EBITDA* $ 246   $ 231   7 %   Segment Adjusted EBITDA margin* 28.9%   29.8%   (90 bps)   Contract sales increased 22% compared to the prior year. VPG increased 23% year over year driven by higher average transaction size from product and operational enhancements. Tours in North America increased 3% year over year. The 1% decline in reported tours was attributable to the Company’s purposeful actions to prioritize higher profitability and cash flow in the Asia‑Pacific region. Segment Adjusted EBITDA increased primarily due to higher contract sales. Segment Adjusted EBITDA margin declined primarily due to higher marketing and sales costs and higher unsold maintenance fee expense, partially offset by lower product cost as a percentage of sale of vacation ownership products. Exchange & Third-Party Management (In millions, except total active Interval International members and average revenue per member) Three Months Ended   Change   June 30, 2026   June 30, 2025     Revenues excluding cost reimbursements $ 50   $ 51   (2 %)   Total active Interval International members (000's) (1)   1,475     1,507   (2 %)   Average revenue per Interval International member $ 36.83   $ 37.40   (2 %)   Segment financial results attributable to common stockholders $ 17   $ 16   2 %   Segment margin † 33.1%   32.0%   110 bps   Segment Adjusted EBITDA* $ 22   $ 23   (7 %)   Segment Adjusted EBITDA margin* 43.3%   45.9%   (260 bps)   (1) Includes members at the end of each period. Corporate and Other General and administrative costs increased $1 million in the second quarter compared to the prior year due to higher variable compensation, partly offset by other operational savings. Balance Sheet and Liquidity The Company ended the quarter with $928 million in liquidity, including $211 million of cash and cash equivalents and $650 million of available capacity under its revolving corporate credit facility. The Company had $3.1 billion of corporate debt and $2.4 billion of non-recourse debt related to its securitized vacation ownership notes receivable at the end of the second quarter. The Company’s net corporate leverage ratio declined to 4.0 times in the second quarter compared to 4.2 times at the end of the first quarter. The Company also had $902 million of inventory at the end of the quarter, including $229 million classified as a component of Property and equipment. Full Year 2026 Outlook During the first quarter of 2026, the Company began including interest expense associated with its warehouse credit facility borrowings as a component of consumer financing interest expense. In the second quarter of 2026, interest expense on warehouse credit facility borrowings was $2 million. The Company provides full year 2026 guidance as reflected in the chart below. (in millions, except per share amounts) Current 2026 Guidance   Previous 2026 Guidance Contract sales $2,080 to $2,115   $1,815 to $1,885 Adjusted EBITDA* $805 to $830   $755 to $780 Adjusted net income attributable to common stockholders* $300 to $330   $255 to $285 Adjusted earnings per share - diluted* $8.25 to $9.05   $7.05 to $7.80 Adjusted free cash flow* $410 to $460   $375 to $425 The guidance provided above excludes impacts from certain asset sales, foreign currency changes, restructuring costs, litigation charges, modernization costs, transaction and integration costs, and impairments, each of which the Company cannot forecast with sufficient accuracy to factor them into the guidance provided above and without unreasonable efforts, and which may be significant. As a result, the full year 2026 outlook is presented only on a non-GAAP basis and is not reconciled to the most comparable GAAP measures. Where one or more of the currently unavailable items is applicable, some items could be material, individually or in the aggregate, to GAAP reported results. The Company’s 2026 guidance is based on the following supplemental estimates: ($ in millions) Current 2026 Guidance   Previous 2026 Guidance Interest expense, net $178 to $174   $184 to $179 Depreciation and amortization $140 to $138   $150 to $148 Tax rate used to calculate adjusted net income attributable to common stockholders 31% to 29%   31% to 29% 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 page A-17 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. Second Quarter 2026 Financial Results Conference Call The Company will hold a conference call on August 6, 2026, 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 (888) 396-8049 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 expectations, plans, objectives, outlook and prospects for future performance and growth; expected asset dispositions; and its full year 2026 outlook and guidance for contract sales, results of operations and cash flows. 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 or travel; future health crises and related governmental responses and their potential adverse effects; 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; our ability to attract and retain our global workforce; price inflation; difficulties associated with implementing new or maintaining existing technologies; the ability to integrate artificial intelligence (“AI”) technologies successfully while managing and mitigating related operational, legal, intellectual property, data security and reputational risks; changes in privacy and other laws and regulations affecting our business; instability, disruptions, or distress in the banking system or financial institutions; impacts of severe weather events, climate conditions or natural or man-made disasters; delinquency and default rates in our financing business; global supply chain disruptions; volatility in the international and national economies and credit markets; the impacts of ongoing global conflicts and related sanctions or geopolitical measures; 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 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 2, 2026 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 Adjusted Earnings Per Share - Diluted A-3 Adjusted EBITDA A-4 Segment Adjusted EBITDA   Vacation Ownership  A-5 Exchange & Third-Party Management   Contract Sales to Development Profit A-6 Supplemental Information A-7 to A-10 Interim Consolidated Balance Sheets A-11 Interim Consolidated Statements of Cash Flows A-12 Free Cash Flow and Adjusted Free Cash Flow A-14 2026 Outlook - Adjusted Free Cash Flow A-15 Quarterly Operating Metrics A-16 Non-GAAP Financial Measures A-17 A-1 MARRIOTT VACATIONS WORLDWIDE CORPORATION SUMMARY FINANCIAL INFORMATION (In millions, except per share amounts) (Unaudited)   Three Months Ended   Change %   Six Months Ended   Change %   June 30, 2026   June 30, 2025     June 30, 2026   June 30, 2025   GAAP Measures                       Revenues $ 1,320   $ 1,246   6%   $ 2,577   $ 2,446   5% Revenues excluding cost reimbursements $ 920   $ 839   10%   $ 1,747   $ 1,666   5% Income before income taxes and noncontrolling interests $ 114   $ 94   21%   $ 159   $ 196   (19%) Net income attributable to common stockholders $ 77   $ 69   11%   $ 99   $ 125   (21%) Diluted shares   38.2     41.7   (8%)     38.0     41.9   (9%) Earnings per share - diluted $ 2.12   $ 1.77   20%   $ 2.82   $ 3.23   (13%)                         Non-GAAP Measures*                       Adjusted EBITDA $ 215   $ 203   6%   $ 376   $ 395   (5%) Adjusted pretax income $ 126   $ 110   14%   $ 198   $ 216   (9%) Adjusted net income attributable to common stockholders $ 84   $ 77   9%   $ 127   $ 142   (10%) Adjusted earnings per share - diluted $ 2.31   $ 1.96   18%   $ 3.56   $ 3.62   (2%) * 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-2 MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) (Unaudited)   Three Months Ended   Six Months Ended   June 30, 2026   June 30, 2025   June 30, 2026   June 30, 2025 REVENUES               Sale of vacation ownership products $ 430     $ 370     $ 773     $ 725   Management and exchange   225       219       441       434   Rental   173       160       349       329   Financing   92       90       184       178   Cost reimbursements   400       407       830       780   TOTAL REVENUES   1,320       1,246       2,577       2,446   EXPENSES               Cost of vacation ownership products   43       41       89       83   Marketing and sales   281       237       523       471   Management and exchange   121       121       241       238   Rental   140       125       280       248   Financing   42       37       83       73   Royalty fee   29       28       57       56   General and administrative   62       61       126       122   Depreciation and amortization   32       38       66       76   Litigation charges   (1 )     5       1       12   Modernization †   10       34       26       44   Restructuring †   —       —       6       —   Impairment †   —       —       —       2   Cost reimbursements   400       407       830       780   TOTAL EXPENSES   1,159       1,134       2,328       2,205   (Losses) gains and other (expense) income, net   (4 )     24       (2 )     37   Interest expense, net   (43 )     (42 )     (87 )     (82 ) Other   —       —       (1 )     —   INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS   114       94       159       196   Provision for income taxes   (37 )     (25 )     (60 )     (70 ) NET INCOME   77       69       99       126   Net income attributable to noncontrolling interests   —       —       —       (1 ) NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $ 77     $ 69     $ 99     $ 125   EARNINGS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS             Basic shares   34.8       34.9       34.7       35.0   Basic $ 2.21     $ 1.98     $ 2.86     $ 3.59   Diluted shares   38.2       41.7       38.0       41.9   Diluted $ 2.12     $ 1.77     $ 2.82     $ 3.23   † 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   Six Months Ended   June 30, 2026   June 30, 2025   June 30, 2026   June 30, 2025 Net income attributable to common stockholders $ 77     $ 69     $ 99     $ 125   Provision for income taxes   37       25       60       70   Income before income taxes attributable to common stockholders   114       94       159       195   Certain items:               Loss (gain) on disposition of hotel, land, and other   1       —       (2 )     —   Foreign currency   2       (18 )     5       (21 ) Insurance proceeds   —       (1 )     —       (8 ) Change in indemnification asset   2       (3 )     5       (3 ) Change in estimates relating to pre-acquisition contingencies   —       —       (4 )     (2 ) Other   (1 )     (2 )     (2 )     (3 ) Losses (gains) and other expense (income), net   4       (24 )     2       (37 ) Litigation charges   (1 )     5       1       12   Modernization †   10       34       26       44   Restructuring †   —       —       6       —   Impairment †   —       —       —       2   Other   (1 )     1       4       —   Adjusted pretax income*   126       110       198       216   Provision for income taxes   (42 )     (33 )     (71 )     (74 ) Adjusted net income attributable to common stockholders* $ 84     $ 77     $ 127     $ 142                   Diluted shares   38.2       41.7       38.0       41.9   Adjusted earnings per share - Diluted* $ 2.31     $ 1.96     $ 3.56     $ 3.62     * 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. † 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   Six Months Ended   June 30, 2026   June 30, 2025   June 30, 2026   June 30, 2025 Net income attributable to common stockholders $ 77     $ 69     $ 99     $ 125   Interest expense, net   43       42       87       82   Provision for income taxes   37       25       60       70   Depreciation and amortization   32       38       66       76   Share-based compensation   12       12       22       19   Amortization of cloud computing software implementation costs   2       1       3       2   Certain items:               Loss (gain) on disposition of hotel, land, and other   1       —       (2 )     —   Foreign currency   2       (18 )     5       (21 ) Insurance proceeds   —       (1 )     —       (8 ) Change in indemnification asset   2       (3 )     5       (3 ) Change in estimates relating to pre-acquisition contingencies   —       —       (4 )     (2 ) Other   (1 )     (2 )     (2 )     (3 ) Losses (gains) and other expense (income), net   4       (24 )     2       (37 ) Litigation charges   (1 )     5       1       12   Modernization †   10       34       26       44   Restructuring †   —       —       6       —   Impairment †   —       —       —       2   Other   (1 )     1       4       —   Adjusted EBITDA* $ 215     $ 203     $ 376     $ 395   Adjusted EBITDA Margin* 23.4%   24.3%   21.5%   23.7%   * 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.   † 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   Six Months Ended   June 30, 2026   June 30, 2025   June 30, 2026   June 30, 2025 Segment financial results attributable to common stockholders † $ 219     $ 197     $ 386     $ 395   Depreciation and amortization   22       28       46       54   Share-based compensation   2       3       4       4   Amortization of cloud computing software implementation costs   2       1       3       2   Certain items:               Loss (gain) on disposition of hotel, land, and other   1       —       (2 )     —   Insurance proceeds   —       —       —       (7 ) Change in estimates relating to pre-acquisition contingencies   —       —       (4 )     (2 ) Other   —       (1 )     —       (1 ) Losses (gains) and other expense (income), net   1       (1 )     (6 )     (10 ) Litigation charges   —       3       1       7   Segment Adjusted EBITDA* $ 246     $ 231     $ 434     $ 452   Segment Adjusted EBITDA Margin* 28.9%   29.8%   27.0%   29.5% EXCHANGE & THIRD-PARTY MANAGEMENT SEGMENT ADJUSTED EBITDA   Three Months Ended   Six Months Ended   June 30, 2026   June 30, 2025   June 30, 2026   June 30, 2025 Segment financial results attributable to common stockholders $ 17     $ 16     $ 36     $ 34   Depreciation and amortization   5       7       10       14   Share-based compensation   —       —       1       1   Certain items:               Impairment †   —       —       —       2   Other   —       —       (1 )     —   Segment Adjusted EBITDA* $ 22     $ 23     $ 46     $ 51   Segment Adjusted EBITDA Margin* 43.3%   45.9%   44.1%   47.5%   * 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.   † 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 CONTRACT SALES TO DEVELOPMENT PROFIT (In millions) (Unaudited)   Three Months Ended   Six Months Ended   June 30, 2026   June 30, 2025   June 30, 2026   June 30, 2025 Contract sales $ 545     $ 445     $ 956     $ 865   Less resales contract sales   (10 )     (7 )     (16 )     (16 ) Contract sales, net of resales   535       438       940       849   Plus:               Settlement revenue   12       11       22       20   Resales revenue   4       5       6       9   Revenue recognition adjustments:               Reportability   (20 )     2       (22 )     7   Sales reserve   (72 )     (58 )     (122 )     (108 ) Other (1)   (29 )     (28 )     (51 )     (52 ) Sale of vacation ownership products   430       370       773       725   Less:               Cost of vacation ownership products   (43 )     (41 )     (89 )     (83 ) Marketing and sales   (281 )     (237 )     (523 )     (471 ) Development Profit $ 106     $ 92       161       171   Development Profit Margin 24.6%   24.7%   20.8%   23.5%   (1) 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. A-7 MARRIOTT VACATIONS WORLDWIDE CORPORATION SUPPLEMENTAL INFORMATION (In millions and Unaudited)   Three Months Ended       June 30, 2026   June 30, 2025   Change DEVELOPMENT PROFIT           Sale of vacation ownership products revenue $ 430     $ 370     16% Cost of vacation ownership products expense   (43 )     (41 )   (2%) Marketing and sales expense   (281 )     (237 )   (19%) Development Profit   106       92     16% Development Profit Margin 24.6%   24.7%   (10 bps)             MANAGEMENT AND EXCHANGE PROFIT           Vacation Ownership Segment   166       165     1% Exchange & Third-Party Management Segment   42       41     2% Corporate and Other (1)   17       13     31% Management and Exchange Revenue   225       219     3% Vacation Ownership Segment   (73 )     (76 )   3% Exchange & Third-Party Management Segment   (28 )     (29 )   1% Corporate and Other (1)   (20 )     (16 )   (21%) Management and Exchange Expense   (121 )     (121 )   (1%) Management and Exchange Profit   104       98     6% Management and Exchange Profit Margin 46.1%   44.9%   120 bps             RENTAL PROFIT           Vacation Ownership Segment   165       150     9% Exchange & Third-Party Management Segment   8       10     (16%) Corporate and Other (1)   —       —     NM Rental Revenue   173       160     7% Vacation Ownership Segment   (143 )     (129 )   (11%) Exchange & Third-Party Management Segment   —       —     NM Corporate and Other (1)   3       4     (19%) Rental Expense   (140 )     (125 )   (11%) Rental Profit   33       35     (7%) Rental Profit Margin 19.4%   22.3%   (290 bps)             FINANCING PROFIT           Financing Revenue   92       90     3% Financing Expense   (42 )     (37 )   (14%) Financing Profit   50       53     (5%) Financing Profit Margin 54.3%   58.8%   (450 bps)             OTHER           General and administrative   (62 )     (61 )   (3%) Royalty fee   (29 )     (28 )   —% Other (2)   13       14     (14%) ADJUSTED EBITDA* $ 215     $ 203     6% Adjusted EBITDA Margin 23.4%   24.3%   (90 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) 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. (2) 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)   Six Months Ended       June 30, 2026   June 30, 2025   Change DEVELOPMENT PROFIT           Sale of vacation ownership products revenue $ 773     $ 725     7% Cost of vacation ownership products expense   (89 )     (83 )   (6%) Marketing and sales expense   (523 )     (471 )   (11%) Development Profit   161       171     (5%) Development Profit Margin 20.8%   23.5%   (270 bps)             MANAGEMENT AND EXCHANGE PROFIT           Vacation Ownership Segment   322       320     1% Exchange & Third-Party Management Segment   86       87     (2%) Corporate and Other (1)   33       27     20% Management and Exchange Revenue   441       434     1% Vacation Ownership Segment   (145 )     (148 )   2% Exchange & Third-Party Management Segment   (58 )     (58 )   —% Corporate and Other (1)   (38 )     (32 )   (18%) Management and Exchange Expense   (241 )     (238 )   (1%) Management and Exchange Profit   200       196     2% Management and Exchange Profit Margin 45.4%   45.3%   10 bps             RENTAL PROFIT           Vacation Ownership Segment   332       309     7% Exchange & Third-Party Management Segment   17       20     (14%) Corporate and Other (1)   —       —     NM Rental Revenue   349       329     6% Vacation Ownership Segment   (286 )     (255 )   (12%) Exchange & Third-Party Management Segment   —       —     NM Corporate and Other (1)   6       7     (14%) Rental Expense   (280 )     (248 )   (13%) Rental Profit   69       81     (15%) Rental Profit Margin 19.8%   24.7%   (490 bps)             FINANCING PROFIT           Financing Revenue   184       178     4% Financing Expense   (83 )     (73 )   (14%) Financing Profit   101       105     (3%) Financing Profit Margin 55.0%   59.0%   (400 bps)             OTHER           General and administrative   (126 )     (122 )   (4%) Royalty fee   (57 )     (56 )   (1%) Other (2)   28       20     37% ADJUSTED EBITDA* $ 376     $ 395     (5%) Adjusted EBITDA Margin 21.5%   23.7%   (220 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) 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. (2) 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-9 MARRIOTT VACATIONS WORLDWIDE CORPORATION SUPPLEMENTAL INFORMATION - MANAGEMENT AND EXCHANGE REVENUE (In millions and Unaudited)   Three Months Ended       June 30, 2026   June 30, 2025   Change ANCILLARY REVENUE           Vacation Ownership Segment $ 74   $ 75   (2%) Exchange & Third-Party Management Segment   1       1     16% Corporate and Other (1)   —       —     NM Ancillary Revenue   75       76     (1%)             MANAGEMENT FEE REVENUE           Vacation Ownership Segment   56       55     1% Exchange & Third-Party Management Segment   2       1     84% Corporate and Other (1)   —       —     NM Management Fee Revenue   58       56     3%             EXCHANGE AND OTHER SERVICES REVENUE           Vacation Ownership Segment   36       35     5% Exchange & Third-Party Management Segment   39       39     (1%) Corporate and Other (1)   17       13     29% Exchange and Other Services Revenue   92       87     6%             TOTAL MANAGEMENT AND EXCHANGE REVENUE $ 225     $ 219     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)   Six Months Ended       June 30, 2026   June 30, 2025   Change ANCILLARY REVENUE           Vacation Ownership Segment $ 139     $ 140     (1%) Exchange & Third-Party Management Segment   2       2     8% Corporate and Other (1)   —       —     NM Ancillary Revenue   141       142     (1%)             MANAGEMENT FEE REVENUE           Vacation Ownership Segment   112       110     1% Exchange & Third-Party Management Segment   4       4     (9%) Corporate and Other (1)   (1 )     (1 )   (1%) Management Fee Revenue   115       113     1%             EXCHANGE AND OTHER SERVICES REVENUE           Vacation Ownership Segment   71       70     3% Exchange & Third-Party Management Segment   80       81     (2%) Corporate and Other (1)   34       28     19% Exchange and Other Services Revenue   185       179     4%             TOTAL MANAGEMENT AND EXCHANGE REVENUE $ 441     $ 434     1%   (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 INTERIM CONSOLIDATED BALANCE SHEETS (In millions, except share and per share data)           Unaudited June 30, 2026   December 31, 2025 ASSETS       Cash and cash equivalents $ 211     $ 406   Restricted cash (including $87 and $81 from VIEs, respectively)   302       327   Accounts and contracts receivable, net (including $17 and $15 from VIEs, respectively)   428       428   Vacation ownership notes receivable, net (including $2,082 and $1,900 from VIEs, respectively)   2,587       2,565   Inventory   673       692   Property and equipment, net (1)   940       950   Goodwill   2,958       2,958   Intangibles, net   681       711   Other (including $188 and $168 from VIEs, respectively)   699       720   TOTAL ASSETS $ 9,479     $ 9,757           LIABILITIES AND EQUITY       Accounts payable $ 227     $ 358   Advance deposits   166       163   Accrued liabilities (including $4 and $4 from VIEs, respectively)   372       376   Deferred revenue and other   416       371   Payroll and benefits liability   215       218   Deferred compensation liability   240       225   Securitized debt, net (including $2,381 and $2,173 from VIEs, respectively)   2,353       2,146   Debt, net   3,100       3,534   Other   119       142   Deferred taxes   214       231   TOTAL LIABILITIES   7,422       7,764   Preferred stock — $0.01 par value; 2,000,000 shares authorized; none issued or outstanding   —       —   Common stock — $0.01 par value; 100,000,000 shares authorized; 75,919,908 and 75,891,531 shares issued, respectively   1       1   Treasury stock — at cost; 41,525,622 and 41,767,498 shares, respectively   (2,413 )     (2,427 ) Additional paid-in capital   4,001       3,996   Accumulated other comprehensive loss   (10 )     (11 ) Retained earnings   478       434   TOTAL MVW STOCKHOLDERS' EQUITY   2,057       1,993   Noncontrolling interests   —       —   TOTAL EQUITY   2,057       1,993   TOTAL LIABILITIES AND EQUITY $ 9,479     $ 9,757   The abbreviation VIEs above means Variable Interest Entities.   (1) Includes $229 million and $224 million at June 30, 2026, and December 31, 2025, 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. A-12 MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions and unaudited)   Three Months Ended   June 30, 2026   June 30, 2025 OPERATING ACTIVITIES       Net income $ 99     $ 126   Adjustments to reconcile net income to net cash, cash equivalents and restricted cash provided by (used in) operating activities:       Depreciation and amortization of intangibles   66       76   Amortization of debt discount and issuance costs   11       12   Vacation ownership notes and contracts receivable reserve   122       108   Share-based compensation   22       19   Impairment   —       2   Foreign currency remeasurement loss (gain)   5       (21 ) Deferred income taxes   (16 )     (4 ) Net change in assets and liabilities:       Accounts and contracts receivable   (3 )     8   Vacation ownership notes receivable originations   (512 )     (488 ) Vacation ownership notes receivable collections   371       341   Inventory   16       (1 ) Other assets   (17 )     (49 ) Accounts payable, advance deposits and accrued liabilities   (102 )     (108 ) Deferred revenue and other   46       42   Payroll and benefit liabilities   (3 )     (46 ) Deferred compensation liability   (5 )     (1 ) Other liabilities   (20 )     (7 ) Purchase and development of property for future transfer to inventory   —       (49 ) Other, net   (4 )     —   Net cash, cash equivalents and restricted cash provided by (used in) operating activities   76       (40 ) INVESTING ACTIVITIES       Proceeds from disposition of entity   50       —   Capital expenditures for property and equipment (excluding inventory)   (22 )     (34 ) Purchase of company owned life insurance   —       (10 ) Other dispositions, net   —       1   Net cash, cash equivalents and restricted cash provided by (used in) investing activities   28       (43 ) A-13 MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (In millions and unaudited)   Six Months Ended   June 30, 2026   June 30, 2025 FINANCING ACTIVITIES       Borrowings from securitization transactions   982       814   Repayment of debt related to securitization transactions   (774 )     (761 ) Proceeds from debt   1,410       805   Repayments of debt   (1,844 )     (699 ) Finance lease payment   (3 )     (3 ) Payment of debt and securitized debt issuance costs   (6 )     (12 ) Repurchase of common stock   —       (36 ) Payment of dividends   (82 )     (83 ) Payment of withholding taxes on vesting of restricted stock units   (6 )     (6 ) Net cash, cash equivalents and restricted cash (used in) provided by financing activities   (323 )     19   Effect of changes in exchange rates on cash, cash equivalents and restricted cash   (1 )     4   Change in cash, cash equivalents and restricted cash   (220 )     (60 ) Cash, cash equivalents and restricted cash, beginning of period   733       528   Cash, cash equivalents and restricted cash, end of period $ 513     $ 468   A-14 MARRIOTT VACATIONS WORLDWIDE CORPORATION FREE CASH FLOW AND ADJUSTED FREE CASH FLOW (In millions and unaudited)   Six Months Ended CASH FLOW June 30, 2026   June 30, 2025 Cash, cash equivalents, and restricted cash provided by (used in) operating activities $ 76     $ (40 ) Capital expenditures for property and equipment (excluding inventory)   (22 )     (34 ) Borrowings from securitizations, net of repayments   208       53   Securitized debt issuance costs   (6 )     (7 ) Free cash flow*   256       (28 ) Adjustments:       Proceeds from Cancun disposition   50       —   Net change in borrowings available from the securitization of eligible vacation ownership notes receivable (1)   (160 )     (48 ) Other (2)   55       98   Adjusted free cash flow* $ 201     $ 22     * 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) Represents the net change in borrowings available from the securitization of eligible vacation ownership notes receivable compared to the prior year end. (2) Includes the after-tax impact of Modernization costs, restructuring costs, and other, as well as the changes in restricted cash. A-15 MARRIOTT VACATIONS WORLDWIDE CORPORATION 2026 ADJUSTED FREE CASH FLOW OUTLOOK (In millions)   Current Fiscal Year 2026 Guidance   Previous Fiscal Year 2026 Guidance   Low   High   Low   High Adjusted EBITDA* $ 805     $ 830     $ 755     $ 780   Cash interest   (170 )     (165 )     (170 )     (165 ) Cash taxes   (150 )     (160 )     (115 )     (120 ) Corporate capital expenditures   (60 )     (70 )     (65 )     (80 ) Inventory   20       30       —       15   Financing activity and other   (35 )     (5 )     (30 )     (5 ) Adjusted free cash flow* $ 410     $ 460     $ 375     $ 425     The guidance provided above excludes impacts from certain asset sales, foreign currency changes, restructuring costs, litigation charges, modernization 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 2026 adjusted free cash flow 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.   * 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-16 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 Contract sales                         2026   $ 411   $ 545               2025   $ 420   $ 445   $ 439   $ 458   $ 1,762   2024   $ 428   $ 449   $ 459   $ 477   $ 1,813                         VPG                         2026   $ 4,016   $ 4,477               2025   $ 3,979   $ 3,631   $ 3,700   $ 3,894   $ 3,794   2024   $ 4,129   $ 3,741   $ 3,888   $ 3,916   $ 3,911                         Tours                         2026     95,250     112,721               2025     97,998     114,402     109,609     109,965     431,974   2024     96,579     111,752     110,557     113,828     432,716                         Exchange & Third-Party Management Total active Interval International members (1)               2026     1,507,043     1,474,816               2025     1,537,561     1,507,051     1,499,208     1,507,345     1,507,345   2024     1,565,558     1,530,490     1,544,835     1,545,638     1,545,638                         Average revenue per Interval International member               2026   $ 39.13   $ 36.83               2025   $ 39.94   $ 37.40   $ 37.91   $ 35.30   $ 150.51   2024   $ 41.74   $ 38.30   $ 38.93   $ 35.36   $ 154.34   (1) Includes members at the end of each period. 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. Reclassifications Beginning in the third quarter of 2025, we began separately presenting Modernization expense in our Income Statements. As a result, prior year amounts for the three and six months ended June 30, 2025, were reclassified from Restructuring expense to conform with our current year presentation. Additionally, for the six months ended June 30, 2025, we reclassified $2 million related to the impairment of an operating lease and related assets from Restructuring expense to Impairment expense to conform with our current year presentation. 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 ongoing core operations before the impact of these items. These non-GAAP financial measures also facilitate the comparison of results from our ongoing 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 ongoing 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), 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. Amortization of cloud computing software implementation costs, which are not included in depreciation and amortization expense, are excluded from Adjusted EBITDA for comparability purposes to address the considerable variability among companies in the utilization of productive assets. For purposes of our EBITDA and Adjusted EBITDA calculations, we do not adjust for consumer financing interest expense 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. Adjusted EBITDA also excludes 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 or amortizing 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 ongoing core operations before the impact of the excluded items. Adjusted EBITDA also facilitates comparison by us, analysts, investors, and others, of results from our ongoing core operations before the impact of these items with results from other companies. Commencing in the first quarter of 2026, interest expense associated with our Warehouse Credit Facility is included as a component of Consumer financing interest expense within Financing expense. For the three and six months ended June 30, 2025, interest expense associated with our Warehouse Credit Facility is included as a component of Interest expense, net. Interest expense on our Warehouse Credit Facility was $2 million and $5 million for the three and six months ended June 30, 2026, respectively, and $3 million and $7 million for the three and six months ended June 30, 2025, respectively. 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 ongoing 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, interest expense, net of interest income, share-based compensation expense and amortization of cloud computing software implementation costs. 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 ongoing core operations before the impact of certain non-recurring items such as impacts from asset sales, foreign currency changes, restructuring costs, litigation charges, modernization costs, transaction and integration costs, and impairments, and also facilitate the comparison of results from our ongoing 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. Net Corporate Leverage Net corporate leverage ratio represents gross corporate debt, less cash and cash equivalents, divided by Adjusted EBITDA realized over the last twelve months. The Company's corporate debt is composed of its corporate credit facility, senior unsecured notes, convertible notes, and finance leases. Management uses this measure to evaluate balance sheet strength, financial flexibility, and progress toward its leverage objectives. We believe net corporate leverage is an important measure of financial strength because it provides insight into our ability to invest in growth and return capital to shareholders. View source version on businesswire.com: https://www.businesswire.com/news/home/20260731144760/en/

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