Contract sales were down less than 1% for the quarter, with first-time buyer sales up 6% year-over-year and owner sales down 4% due to lower VPGs.
Development profit more than doubled year-over-year due to a prior year sales reserve adjustment, though excluding that, development profit declined 11%.
Leverage ended at 3.9x with $800 million in liquidity; $1 billion of inventory on the balance sheet with $310 million of inventory commitments over the next few years.
Loan delinquencies declined 110 basis points year-over-year to the lowest levels in two years, with a sales reserve of 13% of contract sales in the quarter.
Management and exchange profit increased 3% to $98 million, and financing profit increased 7% to $53 million.
Marriott Vacations Worldwide delivered $203 million in adjusted EBITDA in Q2 2025, a 29% increase with margins improving 360 basis points compared to last year.
Total company rental profit declined 16% to $35 million, driven by increased unsold maintenance fees and marketing expenses, partially offset by higher ADRs.
Adjusted EBITDA increased 7% to $88 million with an adjusted EBITDA margin of 29.5%.
Cash flow from operations was $188 million year-to-date, with free cash flow of $175 million after CapEx of $13 million.
Europe and Rest of World net sales increased 3% to $44 million with gross profit margins increasing 390 basis points sequentially to 38.9%.
Gross profit margins increased to a record 52.7%, representing the 10th consecutive quarter of year-over-year gross margin expansion.
Net leverage was significantly reduced to 2.1x, near the low end of the targeted range of 2 to 3x and the lowest level in over 3 years.
Net sales increased 5% to approximately $300 million, driven by a 5% increase in net price, 2% lower volumes, and a 2% contribution from the ChlorKing acquisition.
North American net sales increased 6% to $255 million with a 220 basis point increase in gross profit margin to 55.1%.
Consolidated adjusted EBITDA declined modestly to approximately $53 million, impacted by $9 million incremental loyalty and marketing investments and higher costs.
Domestic Company-owned restaurant segment EBITDA margins declined about 220 basis points due to labor inflation, aggregator fees, advertising, and food costs, partially offset by average ticket growth.
Global system-wide restaurant sales were $1.26 billion, up 4% in constant currency in Q2 2025.
International comparable sales grew 4%, reflecting progress in transformation initiatives.
Net cash provided by operating activities was approximately $67 million for the first half of 2025, with free cash flow of $37 million, up $24 million primarily due to timing and working capital improvements.
North America commissary segment adjusted EBITDA margins improved by 130 basis points to 7.3%.
North America comparable sales increased 1%, with transaction comps also up 1%, driven by strategic investments and initiatives.
Total available liquidity was approximately $500 million with a gross leverage ratio of 3.4x at quarter end.
Total revenues increased 4% to $529 million, driven by higher commissary revenues despite declines in Company-owned restaurant revenues due to refranchising.
Adjusted diluted EPS was $1.33, up 11% on a comparable basis, driven by EBITDA growth, share repurchases, and lower depreciation.
Adjusted EBITDA was $195 million, growing 5% on a comparable basis, partially offset by higher operating expenses.
Adjusted free cash flow was $88 million in Q2 and $168 million year-to-date, with a conversion rate of approximately 50%.
Ancillary fee streams increased nearly 20%, with continued expansion in U.S. and international royalty rates.
Comparable adjusted EBITDA grew by 5% and EPS increased by 11% despite a challenging RevPAR environment.
Net leverage ratio was 3.5x at quarter end, with $580 million in total liquidity.
Returned $109 million to shareholders in Q2 through $77 million in share repurchases and $32 million in dividends.
Second quarter fee-related and other revenues were $397 million, up $31 million year-over-year, driven by higher royalties, franchise fees, and ancillary fees.
Wyndham reported global system growth of 4% and sequential net room growth across every region.
Adjusted EBITDA declined to $15.3 million from $20.1 million, reflecting lower margins and higher noncash expenses related to self-insurance.
Bombshells segment revenues declined due to divestitures and same-store sales decline but returned to profitability with an operating income of $87,000 versus a loss of $8.9 million last year.
Free cash flow remained stable at $13.3 million, with a sequential increase in free cash flow margin to 19% of revenues.
GAAP EPS was $0.46 compared to a loss of $0.56 per share last year; non-GAAP EPS was $0.77 versus $1.35 year-over-year.
Net income attributable to common shareholders was $4.1 million, a significant improvement from a loss of $5.2 million in the prior year quarter.
Nightclub revenues were nearly flat with a slight decline in same-store sales offset by acquisitions; operating income increased to $17.8 million with a margin of 28.5%.
Total revenues for Q3 2025 were $71.1 million, down from $76.2 million year-over-year, primarily due to the sale and divestiture of underperforming Bombshells locations.
Core operating profit increased 2% to $646 million, with ex-special EPS up 7% year-over-year to $1.44; reported EPS was $1.33.
Digital sales grew 18% this quarter, pushing the digital mix to a record 57%, with KFC's digital sales growing 22% and Taco Bell U.S. digital orders at 41%.
Franchise and property expenses increased by $16 million, driven by global franchise convention spend and lapping prior year bad debt recoveries.
G&A expenses ex-special increased 7% year-over-year to $274 million, including incentive compensation lapses; reported G&A was $302 million including $28 million special expenses.
Gross new unit openings totaled 871 with 386 net new units, led by KFC (566 gross openings), Pizza Hut (254), and Taco Bell (50).
Total restaurant level margins were 16.3%, down approximately 150 basis points year-over-year due to commodity cost laps and margin impact from newly acquired U.K. stores.
Yum! Brands delivered 4% system sales growth in Q2, driven by 3% unit growth and 2% same-store sales growth despite a tough consumer environment.
Dafinchi
