What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-06 compared with 2025-05-08 · 253 added, 182 removed, 465 unchanged (48% of the section changed)

10 unchanged sentences

our expectations regarding average consumer financing interest rates and our financing profit margin;

our expectations regarding the objectives, costs and benefits of our Strategic Business Operations office including revenue growth, operational efficiencies and savings;

our expectations regarding the objectives, costs and benefits of our Strategic Business Operations office including revenue growth, operational efficiencies and savings, and benefits for our owners;

our ability to reduce our corporate debt, net of cash and equivalents, to Adjusted EBITDA ratio;

our expectations regarding inventory spending in 2025 and the impact of inventory repurchases;

our expectations regarding inventory spending in 2025, the impact of inventory repurchases and timing of payments for inventory;

our ability to securitize consumer loans;

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We caution 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 , a future health crisis and responses to a health crisis, including possible quarantines or other government imposed travel or health-related restrictions and the effects of a health crisis, including the short and longer-term impact on consumer confidence and demand for travel and the pace of recovery following a health crisis;

uncertainty in the current global macroeconomic environment created by rapid governmental policy and regulatory changes, including those affecting international trade;

a future health crisis and responses to a health crisis, including possible quarantines or other government imposed travel or health-related restrictions and the effects of a health crisis, including the short and longer-term impact on consumer confidence and demand for travel and the pace of recovery following a health crisis;

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;

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global supply chain disruptions;

volatility in the international and national economy and credit markets, including as a result of the ongoing conflicts between Russia and Ukraine, Israel and Gaza, and elsewhere in the world and related sanctions and other measures;

volatility in the international and national economy and credit markets, including as a result of the ongoing conflicts between Russia and Ukraine, Israel and Gaza, Israel and Iran, and elsewhere in the world and related sanctions and other measures;

our ability to attract and retain our global workforce;

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You should not put undue reliance on any forward-looking statements in this Quarterly Report.

The risk factors discussed in “Risk Factors” in our 2024 Annual Report and under Part II Item 1A of this report could cause actual results to differ materially from those expressed or implied in forward-looking statements in this Quarterly Report.

The risk factors discussed in “Risk Factors” in our 2024 Annual Report and under Item 1A of Part II of this Quarterly Report could cause actual results to differ materially from those expressed or implied in forward-looking statements in this Quarterly Report.

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.

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The financial information discussed below and included in this Quarterly Report may not, however, necessarily reflect what our financial condition, results of operations or cash flows may be in the future.

In order to make this report easier to read, we refer to (i) our Interim Consolidated Financial Statements as our “Financial Statements,” (ii) our Interim Consolidated Statements of Income as our “Income Statements,” (iii) our Interim Consolidated Balance Sheets as our “Balance Sheets” and (iv) our Interim Consolidated Statements of Cash Flows as our “Cash Flows.” References throughout to numbered “Footnotes” refer to the numbered Notes in the Interim Condensed Notes to Consolidated Financial Statements included in this Quarterly Report.

“Cash Flows.” References throughout to numbered “Footnotes” refer to the numbered Notes in the Interim Condensed Notes to Consolidated Financial Statements included in this Quarterly Report.

We routinely post important information, including news releases, announcements and other statements about our business and results of operations, that may be deemed material to investors on the Investor Relations section of our website, www.marriottvacationsworldwide.com.

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and capture significant savings from initiatives related to procurement and corporate overhead.

We believe that we can drive $150 million to $200 million of run-rate benefits from these initiatives by the end of 2026, with half of these benefits coming from cost savings and efficiencies and the balance from accelerating revenue growth.

We believe that we can drive $150 million to $200 million of annualized benefits from these initiatives by the end of 2026, with approximately half of these benefits coming from cost savings and efficiencies and the balance from accelerating revenue growth.

We also expect to realize additional savings that will benefit our owners’ maintenance fees.

We expect to incur one-time cash costs related to these modernization initiatives of approximately $100 million in each of 2025 and 2026.

We expect to incur non-recurring cash costs related to these modernization initiatives of approximately $100 million in each of 2025 and 2026.

Performance Measures

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Consolidated Results

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

Sale of vacation ownership products $ 370 $ 309 $ 725 $ 661

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Royalty fee 28 29 56 57

Impairment — 2 — 2

Cost reimbursements 407 378 780 769

TOTAL EXPENSES 1,134 1,038 2,205 2,096

Gains and other income, net 13 —

Gains (losses) and other income (expense), net 24 (7) 37 (7)

Interest expense, net (42) (43) (82) (83)

Transaction and integration costs — (3) — (18)

Other — (1) — (2)

INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 94 48 196 129

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NET INCOME 69 38 126 84

Net (income) loss attributable to noncontrolling interests (1) 1

Net income attributable to noncontrolling interests — (1) (1) —

NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $ 69 $ 37 $ 125 $ 84

Operating Statistics

Three Months Ended

(Contract sales $ in millions) March 31, 2025 March 31, 2024 Change

Three Months Ended Six Months Ended

(Contract sales $ in millions) June 30, 2025 June 30, 2024 Change

June 30, 2025 June 30, 2024 Change

Vacation Ownership

3 unchanged sentences

VPG $ 3,631 $ 3,741 $ (110) (3%) $ 3,791 $ 3,921 $ (130) (3%)

97,998 96,579 1,419 1%

Tours 114,402 111,752 2,650 2% 212,400 208,331 4,069 2%

Exchange & Third-Party Management

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Average revenue per member $ 37.40 $ 38.30 $ (0.90) (2%) $ 77.40 $ 80.14 $ (2.74) (3%)

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024 Change

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change

Vacation Ownership $ 1,188 $ 1,078 $ 110 10% $ 2,323 2,208 $ 115 5%

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Total Segment Revenues 1,241 1,136 105 9% 2,434 2,331 103 4%

Consolidated Property Owners’ Associations 7 — 7 NM

Consolidated Property Owners’ Associations 5 4 1 NM 12 4 8 NM

Total Revenues $ 1,246 $ 1,140 $ 106 9% 2,446 2,335 $ 111 5%

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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, are excluded for comparability purposes.

During the first quarter of 2025, we began excluding Amortization of cloud computing software implementation costs, which are not included in depreciation and amortization, from Adjusted EBITDA for comparability purposes to address the considerable variability among companies in the utilization of productive assets, and have reclassified prior year amounts to conform with our current year presentation.

For purposes of our EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin calculations, we do not adjust for consumer financing interest expense associated with term securitization transactions because we consider it to be an operating expense of our business.

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As a result, effective tax rates and provisions for income taxes can vary considerably among companies.

EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets.

EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin also exclude 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.

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The table below shows our EBITDA and Adjusted EBITDA calculation and reconciles these measures with net income attributable to common stockholders, which is the most directly comparable GAAP financial measure.

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024 Change

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change

Net income attributable to common stockholders

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Interest expense, net 42 43 (1) (2%) 82 83 (1) (1%)

Provision for income taxes 45 35 10 27%

Provision for income taxes 25 10 15 NM 70 45 25 53%

Depreciation and amortization 38 35 3 7% 76 73 3 4%

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Share-based compensation expense 12 9 3 38% 19 16 3 24%

Amortization of cloud computing software implementation costs 1 — 1 NM

Certain items 5 20 (15) NM

Amortization of cloud computing software implementation costs 1 1 — NM 2 1 1 NM

Certain items 16 23 (7) NM 21 43 (22) NM

Adjusted EBITDA $ 203 $ 158 $ 45 29% $ 395 $ 345 $ 50 15%

Adjusted EBITDA Margin 23.2% 23.2% — pts

Adjusted EBITDA Margin 24.3% 20.7% 360.0 pts 23.7% 22.0% 1.7 pts

During the first quarter of 2025, we began excluding Amortization of cloud computing software implementation costs, which are not included in Depreciation and amortization, from Adjusted EBITDA, and have reclassified prior year amounts to conform with our current year presentation.

The table below details the components of Certain items for the periods presented.

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

Gain on disposition of hotel, land, and other $ — $ (1) $ — $ (1)

Foreign currency translation (18) 4 (21) 6

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Change in estimates relating to pre-acquisition contingencies — — (2) —

Gains and other income, net (13) —

Other (2) — (3) —

(Gains) losses and other (income) expense, net (24) 7 (37) 7

Transaction and integration costs — 3 — 18

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Restructuring charges 34 1 46 3

Impairment charges — 2 — 2

Other 1 — — (1)

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Segment Adjusted EBITDA

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024 Change

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change

Vacation Ownership $ 231 $ 181 $ 50 28% $ 452 $ 394 $ 58 15%

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General and administrative (61) (54) (7) (12%) (122) (117) (5) (4%)

10 6 4 NM 14 11 3 NM

Adjusted EBITDA $ 203 $ 158 $ 45 29% $ 395 $ 345 $ 50 15%

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Vacation Ownership

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024 Change

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change

Segment financial results $ 196 $ 144 $ 52 36% $ 394 $ 326 $ 68 21%

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Share-based compensation expense 3 2 1 12% 4 4 — 10%

Amortization of cloud computing software implementation costs 1 — 1 NM

Certain items (5) 4 (9) NM

Amortization of cloud computing software implementation costs 1 1 — NM 2 1 1 NM

Certain items 3 9 (6) NM (2) 13 (15) NM

Segment adjusted EBITDA $ 231 $ 181 $ 50 28% $ 452 $ 394 $ 58 15%

Segment Adjusted EBITDA Margin

29.2% 29.2% — pts

29.8% 26.0% 3.8 pts 29.5% 27.7% 1.8 pts

The table below details the components of Certain items for Vacation Ownership segment financial results.

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

Gain on disposition of hotel, land, and other $ — $ (1) $ — $ (1)

Insurance proceeds — — (7) —

Change in estimates relating to pre-acquisition contingencies — — (2) —

Other (1) — (1) —

Gains and other income, net (1) (1) (10) (1)

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Litigation charges 3 10 7 13

Restructuring charges 1 — 1 —

Total Certain items $ 3 $ 9 $ (2) $ 13

Exchange & Third-Party Management

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024 Change

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change

Segment financial results $ 16 $ 15 $ 1 —% $ 34 $ 40 $ (6) (15%)

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Share-based compensation expense — 1 (1) 11% 1 1 — 7%

Certain items 2 — 2 NM

Certain items — 2 (2) NM 2 2 — NM

Segment adjusted EBITDA $ 23 $ 25 $ (2) (7%) $ 51 $ 57 $ (6) (11%)

Segment Adjusted EBITDA Margin

49.0% 51.3% (2.3 pts)

45.9% 44.5% 1.4 pts 47.5% 48.1% (0.6 pts)

The table below details the components of Certain items for Exchange and Third-Party Management segment financial results.

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

Restructuring charges $ — $ — 2 —

Impairment charges — 2 — 2

Total Certain items $ — $ 2 $ 2 $ 2

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Vacation Ownership

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

Sale of vacation ownership products $ 370 $ 309 $ 725 $ 661

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Litigation charges 3 10 7 13

Restructuring 1 — 1 —

Royalty fee 28 29 56 57

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Gains and other income, net 1 1 10 1

Other — (2) — (3)

SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON STOCKHOLDERS $ 196 $ 144 $ 394 $ 326

Sale of Vacation Ownership Products

First Quarter

Three Months Ended

($ in millions) March 31, 2025 % of Consolidated Contract Sales, Net of Resales March 31, 2024 % of Consolidated Contract Sales, Net of Resales Change

Second Quarter and First Half

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 % of Consolidated Contract Sales, Net of Resales June 30, 2024 % of Consolidated Contract Sales, Net of Resales Change

June 30, 2025 % of Consolidated Contract Sales, Net of Resales June 30, 2024 % of Consolidated Contract Sales, Net of Resales Change

Consolidated contract sales $ 445 $ 449 $ (4) (1%) $ 865 $ 877 $ (12) (1%)

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Tours 114,402 111,752 2,650 2% 212,400 208,331 4,069 2%

Financing propensity 54.2% 53.4% 0.8 pts

Financing propensity 56.2% 54.5% 1.7 pts 55.2% 54.0% 1.2 pts

Average FICO Score (2)

742 737 741 738

(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.

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and Canadian residents.

First Quarter

The increase in Sale of vacation ownership products was due to the following:

• Contract sales decreased during the first quarter of 2025 due to a 4% decrease in VPG, partially offset by a 1% increase in tours.

• Approximately half of the VPG decrease was due to a larger percentage mix of first time buyer sales, which carry a lower VPG than existing owners.

• Both first time buyer and owner VPG decreased due to lower closing efficiencies.

• An increase in revenue reportability due to timing differences in the expiration of contractual rescission periods;

• An increase in our sales reserve to reflect higher expected cumulative losses on new originations, consistent with the increase in our sales reserve rate in the latter half of 2024.

Second Quarter and First Half

The increase in Sale of vacation ownership products was primarily due to a decrease in our sales reserve reflecting last year’s $70 million sales reserve adjustment (the “additional sales reserve”) recorded in the second quarter of 2024, partially offset by higher financing propensity and defaults in Asia Pacific in both the second quarter and first half of 2025.

Excluding the impact of last year’s additional sales reserve, our sales reserve as a percent of contract sales in the second quarter and first half of 2025 increased 140 basis points and 130 basis points, respectively, compared to the prior year comparative period.

Contract sales decreased during the second quarter and first half of 2025 due to a 3% decrease in VPG, partially offset by a 2% increase in tours, in each period.

• The decreases in VPG in each period were due to a larger percentage mix of first time buyer and international tours, which carry a lower VPG than existing owner tours, and lower Owner VPG.

• Second Quarter 2025 compared to Second Quarter 2024

• First time buyer contract sales increased 6% on higher VPG and tours

• Owner contract sales declined 4% on lower VPG and flat tours

• First Half 2025 compared to First Half 2024

• First time buyer contract sales increased 6% on higher tours

• Owner contract sales declined 5% on lower VPG and tours

While delinquency rates have declined, we plan to continue to assume an increased sales reserve for new originations until we have sufficient evidence of continued improvement in delinquency and default rates.

Development Profit

First Quarter

Second Quarter

Three Months Ended

($ in millions) March 31, 2025 % of Revenue March 31, 2024 % of Revenue Change

($ in millions) June 30, 2025 % of Revenue June 30, 2024 % of Revenue Change

Sale of vacation ownership products $ 370 $ 309 $ 61 20%

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The increase in Development profit was due to the following:

• higher sales of vacation ownership products (discussed above);

• lower cost of vacation ownership products due to the sale of lower average cost inventory, including product cost true-up activity, slightly offset by higher revenue reportability.

These changes were partially offset by higher marketing and sales costs due to:

• $3 million of higher preview costs, which were evenly split between higher keys and higher rate;

• $5 million increase in tour generation costs, including $1 million associated with the higher tour volume;

• higher sales of vacation ownership products (discussed above), partially offset by:

• higher cost of vacation ownership products due to the $13 million favorable impact of the additional sales reserve in the second quarter of 2024 and the sale of lower average cost inventory.

• Excluding the impact of the additional sales reserve, cost of vacation ownership products decreased $10 million and cost of vacation ownership products as a percentage of sales decreased approximately 230 basis points in the second quarter of 2025.

• higher marketing and sales costs due to:

• $6 million of higher wages and benefits, including variable compensation;

• $5 million of higher marketing costs.

Excluding the impact of the additional sales reserve, Development profit decreased $10 million and Development profit margin decreased approximately 230 basis points in the second quarter of 2025.

Six Months Ended

($ in millions) June 30, 2025 % of Revenue June 30, 2024 % of Revenue Change

Sale of vacation ownership products $ 725 $ 661 $ 64 10%

Cost of vacation ownership products (83) 12% (91) 14% 8 8%

Marketing and sales (471) 65% (449) 68% (22) (5%)

Development profit $ 171 $ 121 $ 50 41%

Development profit margin 23.5% 18.3% 5.2 pts

The increase in Development profit was due to the following:

• higher sales of vacation ownership products (discussed above), partially offset by:

• lower cost of vacation ownership products due to the sale of lower average cost inventory, including $8 million of favorable product cost true-up activity, slightly offset by $2 million of higher revenue reportability.

• Excluding the favorable impact of the additional sales reserve in the first half of 2024, cost of vacation ownership products decreased $21 million and cost of vacation ownership products as a percentage of sales decreased approximately 280 basis points in the first half of 2025.

These were partially offset by:

• higher marketing and sales costs due to:

• $9 million of higher wages and benefits, including variable compensation;

• $7 million of higher marketing costs;

• $6 million of higher preview costs.

Excluding the impact of the additional sales reserve, Development profit decreased $7 million and Development profit margin decreased approximately 80 basis points.

Resort Management and Other Services Revenues, Expenses and Profit

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024 Change

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change

Management fee revenues $ 55 $ 51 $ 4 7% $ 110 $ 103 $ 7 7%

Ancillary revenues 65 65 — NM

Ancillary revenues 75 72 3 5% 140 137 3 3%

Other management and exchange revenues 35 34 1 3% 70 65 5 6%

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Resort management and other services profit $ 89 $ 84 $ 5 5% $ 172 $ 161 $ 11 7%

Resort management and other services profit margin 53.6% 51.8% 1.8 pts

Resort management and other services profit margin 54.1% 53.9% 0.2 pts 53.9% 52.9% 1.0 pts

Resort occupancy (1)

90.3% 90.2% 0.1 pts

89.5% 90.1% (0.6 pts) 89.9% 90.1% (0.2 pts)

(1) Resort occupancy represents all transient, preview, and owner keys divided by total keys available, net of keys out of service.

The increase in Resort management and other services profit reflects higher management fees and higher club dues, partially offset by $1 million of higher wages and benefits.

Second Quarter

The increase in Resort management and other services profit reflects $3 million of higher management profit and $2 million of higher ancillary profit.

The increase in Resort management and other services profit reflects $7 million of higher management profit, $2 million of higher ancillary profit and $2 million of higher exchange profit.

Rental Revenues, Expenses and Profit

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024 Change

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change

Rental revenues $ 150 $ 143 $ 7 6% $ 309 $ 290 $ 19 7%

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Rental profit $ 21 $ 30 $ (9) (23%) $ 54 $ 67 $ (13) (17%)

Rental profit margin 20.4% 25.3% (4.9 pts)

Rental profit margin 15.0% 20.7% (5.7 pts) 17.8% 23.0% (5.2 pts)

Transient keys rented (1)

587,670 575,704 11,966 2% 1,157,140 1,118,674 38,466 3%

Average transient key rate

$ 284 $ 286 $ (2) (1%)

Average transient rate $ 255 $ 245 $ 10 4% $ 269 $ 265 $ 4 1%

Rental occupancy (2)

74.3% 72.7% 1.6 pts

73.8% 74.4% (0.6 pts) 74.1% 73.6% 0.5 pts

(1) Transient keys rented exclude plus points and preview stays.

(2) Rental occupancy represents transient and preview keys divided by keys available to rent, which is total available keys excluding owner usage.

First Quarter

Rental profit, excluding profit from owned hotels, declined due to:

• $5 million of higher unsold maintenance fees associated with increased developer-owned inventory;

• $4 million of lower plus points revenue;

• $2 million of higher tidy and variable costs on higher keys rented;

• $2 million of increased costs associated with higher owner utilization of third-party vacation and other offerings.

These changes were partially offset by:

• $6 million of higher transient rental revenue;

• a $3 million increase in costs allocated to marketing and sales expense for occupancy used for previews.

Rental profit for our owned hotels remained in-line with the first quarter of 2024.

Second Quarter and First Half

Rental profit, excluding profit from owned hotels, declined due to lower plus points revenue attributed to the non-recurring impact of sales incentive programs put in place during COVID, which increased the amount of plus points issued and lengthened the use period in the prior year comparable period, and higher marketing, variable and other costs, partially offset by an increase in costs allocated to marketing and sales expense for occupancy used for previews.

Rental profit for our owned hotels remained in-line with the prior year comparable period.

Financing Revenues, Expenses and Profit

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024 Change

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change

Financing revenues $ 90 $ 85 $ 5 5% 178 168 10 6%

Financing expenses (10) (8) (2) (20%) (21) (17) (4) (18%)

Consumer financing interest expense (25) (25) — NM

Consumer financing interest expense (27) (27) — NM (52) (52) — NM

Financing profit $ 53 $ 50 $ 3 7% $ 105 $ 99 $ 6 6%

Financing profit margin 59.3% 59.5% (0.2 pts)

Financing propensity 54.2% 53.4% 0.8 pts

First Quarter

• Financing revenues reflect higher interest income as a result of a higher average notes receivable balance and a slightly higher average interest rate for the three months ended March 31, 2025.

Financing profit margin 58.8% 58.0% 0.8 pts 59.0% 58.7% 0.3 pts

Financing propensity 56.2% 54.5% 1.7 pts 55.2% 54.0% 1.2 pts

Second Quarter and First Half

• Financing revenues reflect higher interest income as a result of a higher average notes receivable balance, partially offset by a slightly lower average interest rate for the three and six months ended June 30, 2025.

• The increase in financing expense is primarily attributed to higher credit card fees and other operating costs.

• Consumer financing interest expense was flat due to lower average securitized debt at a slightly higher average interest rate for our more recent term securitization transactions.

We expect our average interest rate to continue to increase slightly as the current interest rate environment for new securitization transactions exceeds the average interest rate on our existing securitized debt.

We expect our average interest rate to continue to increase as the current interest rate environment for new securitization transactions exceeds the average interest rate on our existing securitized debt.

We do not adjust interest rates on consumer financing offerings at the same pace as, or in lock-step with, broader market interest rates;

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Litigation Charges

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024 Change

Litigation charges $ 4 $ 3 $ 1 28%

First Quarter

Litigation charges during the first quarter of 2025 as well as the first quarter of 2024, relate primarily to certain resorts in Europe.

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change

Litigation charges $ 3 $ 10 $ (7) NM $ 7 $ 13 $ (6) NM

Second Quarter and First Half

Litigation charges during the second quarters of 2025 and 2024, as well as the first halves of 2025 and 2024, relate primarily to certain resorts in Europe.

Gains and Other Income

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024 Change

Gains and other income, net $ 9 $ — $ 9 NM

First Quarter

During the first quarter of 2025, we recorded $7 million related to the receipt of service interruption insurance proceeds from the Maui wildfires and a $2 million reduction in certain pre-acquisition contingencies associated with the ILG Acquisition.

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change

Gains and other income, net $ 1 $ 1 $ — NM $ 10 $ 1 $ 9 NM

During the first half of 2025, we recorded $7 million related to the receipt of service interruption insurance proceeds from the Maui wildfires, a $2 million reduction in certain pre-acquisition contingencies associated with the ILG Acquisition, and $1 million of other gains.

Exchange & Third-Party Management

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

Management and exchange $ 41 $ 45 $ 87 $ 97

Rental 10 10 20 21

Cost reimbursements 2 3 4 5

3 unchanged sentences

Restructuring — — 2 —

Impairment — 2 — 2

Cost reimbursements 2 3 4 5

TOTAL EXPENSES 38 43 78 83

Other 1 — 1 —

SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON STOCKHOLDERS $ 16 $ 15 $ 34 $ 40

Management and Exchange Profit

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024 Change

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change

Management and exchange revenue $ 41 $ 45 $ (4) (11%) $ 87 $ 97 $ (10) (10%)

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Management and exchange profit $ 12 $ 14 $ (2) (15%) $ 29 $ 35 $ (6) (17%)

Management and exchange profit margin 37.1% 40.6% (3.5 pts)

First Quarter

Management and exchange profit margin 29.2% 30.6% (1.4 pts) 33.4% 35.9% (2.5 pts)

Second Quarter

• Interval International management and exchange revenues declined $1 million, or 4%, primarily due to 8% lower exchange transaction volume, partially offset by a 5% increase in average exchange fees.

• Management and exchange revenue reflects a $2 million decline in Aqua-Aston management revenues resulting from fewer available nights for rent, lower occupancy, and a lower average daily rate in the Hawaii market due to changes in demand.

• The decrease in management and exchange profit was primarily attributable to lower revenues, partially offset by lower wages and benefits and other costs.

• Management and exchange revenue declined $1 million, attributed to the sale of an immaterial subsidiary in the second quarter of 2024.

• The remaining decrease in management and exchange profit was primarily attributable to lower wages and benefits and other costs.

• Interval International management and exchange revenues declined $4 million, or 5%, primarily due to 10% lower exchange transaction volume, partially offset by a 4% increase in average exchange fees.

• Management and exchange revenue reflects a $4 million decline in Aqua-Aston management revenues resulting from fewer available nights for rent, lower occupancy, and a lower average daily rate in the Hawaii market.

• Management and exchange revenue declined $2 million, attributed to the sale of an immaterial subsidiary in the second quarter of 2024.

• The remaining decrease in management and exchange profit was primarily attributable to lower wages and benefits and other costs.

Restructuring

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024 Change

Restructuring $ 2 $ — $ 2 NM

First Quarter

During the first quarter of 2025, we recorded a $2 million impairment related to an operating lease and related assets.

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change

Restructuring $ — $ — $ — NM $ 2 $ — $ 2 NM

Second Quarter and First Half

During the first half of 2025, we recorded a $2 million impairment related to an operating lease and related assets.

Corporate and Other

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In addition, Corporate and Other includes the revenues and expenses from Consolidated Property Owners’ Associations.

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

Resort management and other services $ 13 $ 13 $ 27 $ 24

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TOTAL EXPENSES 103 62 188 133

Gains and other income, net 4 —

Gains (losses) and other income (expense), net 23 (8) 27 (8)

Interest expense, net (42) (43) (82) (83)

Transaction and integration costs — (3) — (18)

Other (1) 1 (1) 1

FINANCIAL RESULTS BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS (118) (111) (232) (237)

Provision for income taxes (25) (10) (70) (45)

Net (income) loss attributable to noncontrolling interests (1) 1

Net income attributable to noncontrolling interests — (1) (1) —

FINANCIAL RESULTS ATTRIBUTABLE TO COMMON STOCKHOLDERS $ (143) $ (122) $ (303) $ (282)

General and Administrative

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change

General and administrative $ 61 $ 54 $ 7 12% $ 122 $ 117 $ 5 4%

Second Quarter

General and administrative expenses for the second quarter of 2025 increased primarily due to $14 million of higher compensation and benefits expense, driven by lower variable compensation expense due to the sales reserve adjustment in the prior year comparable period, partially offset by $4 million of lower insurance expense and $3 million of lower other costs.

General and administrative expenses for the first half of 2025 increased primarily due to $14 million of higher compensation and benefits expense, driven by lower variable compensation expense due to the sales reserve adjustment in the prior year comparable period, partially offset by $3 million of lower insurance expense, $3 million of lower consulting and $3 million of lower other costs.

Litigation Charges

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024 Change

Litigation charges $ 3 $ — $ 3 NM

First Quarter

Litigation charges during the first quarter of 2025 relate to a dispute with a service provider.

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change

Litigation charges $ 2 $ — $ 2 NM $ 5 $ — $ 5 NM

Second Quarter and First Half

Litigation charges during the second quarter and first half of 2025 relate to a dispute with a service provider.

Restructuring

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024 Change

Restructuring $ 10 $ 2 $ 8 NM

First Quarter

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change

Restructuring $ 33 $ 1 $ 32 NM $ 43 $ 3 $ 40 NM

Second Quarter and First Half

In November 2024, we announced the creation of a Strategic Business Operations office focused on accelerating our growth and driving operating efficiencies in all areas of our business while increasing organizational agility.

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and capture significant savings from initiatives related to procurement and corporate overhead.

During the first quarter of 2025, we incurred $10 million of restructuring charges associated with these efforts.

During the first quarter of 2024, we incurred $2 million of restructuring charges associated with the elimination of certain positions as a result of the realignment of our management structure and headcount reductions in 2023.

Gains and Other Income

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024 Change

Gains and other income, net $ 4 $ — $ 4 NM

First Quarter

In the first quarter of 2025, we recorded $3 million of foreign currency translation gains and $1 million of other gains.

In the first quarter of 2024, we recorded $2 million of foreign currency translation losses, offset by $2 million of tax related adjustments to the receivable from Marriott International for indemnified tax matters.

2025 First Quarter

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024 Change

Provision for income taxes $ (45) $ (35) $ (10) (27%)

First Quarter

Our effective tax rate was 43.6% and 43.0% for the three months ended March 31, 2025 and March 31, 2024, respectively.

The effective tax rate for the three months ended March 31, 2025 differed from the blended statutory tax rate for the same period due to lower pre-tax book income forecast for the current year, which is largely driven by our modernization efforts and related costs expected to be incurred, higher expected foreign losses, for which a valuation allowance will be recorded, and income tax adjustments for discrete items, primarily related to share-based compensation.

The effective tax rate for the three months ended March 31, 2024 differed from the blended statutory tax rate for the same period due to income tax adjustments for discrete items, including $11 million primarily related to a $20 million increase to remove the permanent reinvestment assertion for certain non-U.S.

entities offset by a $9 million decrease for the expiration of statutes of limitation on certain unrecognized tax benefits.

See “Strategic Business Operations” section above for further information.

During the second quarter and first half of 2025, we incurred $32 million and $43 million, respectively, of restructuring charges associated with these efforts, the majority of which related to advisory services.

See Footnote 17 “Restructuring” to our Financial Statements for further information related to our restructuring charges.

During the second quarter and first half of 2024, we incurred $1 million and $3 million, respectively, of restructuring charges associated with the elimination of certain positions as a result of the realignment of our management structure and headcount reductions in 2023.

Gains (Losses) and Other Income (Expense)

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change

Gains (losses) and other income (expense), net $ 23 $ (8) $ 31 NM $ 27 $ (8) $ 35 NM

Second Quarter

In the second quarter of 2025, we recorded $18 million of foreign currency translation gains, $3 million of tax related adjustments to the receivable from Marriott International for indemnified tax matters, $1 million of insurance proceeds, and $1 million of other gains.

In the second quarter of 2024, we recorded $4 million of foreign currency translation losses and $4 million of tax related adjustments to the receivable from Marriott International for indemnified tax matters.

In the first half of 2025, we recorded $21 million of foreign currency translation gains, $3 million of tax related adjustments to the receivable from Marriott International for indemnified tax matters, $2 million of other gains, and $1 million of insurance proceeds.

In the first half of 2024, we recorded $6 million of foreign currency translation losses and $2 million net of tax related adjustments to the receivable from Marriott International for indemnified tax matters.

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change

Provision for income taxes $ (25) $ (10) $ (15) NM $ (70) $ (45) $ (25) (53%)

Second Quarter

Our effective tax rate was 26.8% and 22.0% for the three months ended June 30, 2025 and June 30, 2024, respectively.

The effective tax rate for the three months ended June 30, 2025 was generally consistent with the blended U.S.

federal and state statutory tax rate, with no significant variances.

The effective tax rate for the three months ended June 30, 2024 differed from the blended U.S.

federal and state statutory tax rate primarily due to discrete income tax adjustments.

These included a $13 million decrease as a result of the expiration of statutes of limitation on certain unrecognized tax benefits, partially offset by a $4 million increase related to prior year true-up adjustments in non-U.S.

jurisdictions.

Our effective tax rate was 35.5% and 35.2% for the six months ended June 30, 2025 and June 30, 2024, respectively.

The effective tax rate for the six months ended June 30, 2025 differed from the blended U.S.

federal and state statutory tax rate primarily due to the effect of losses incurred in certain non-U.S.

jurisdictions for which no tax benefit was recognized.

Additionally, permanent differences between the book and tax treatment further contributed to the variance from the statutory rate.

The effective tax rate for the six months ended June 30, 2024 differed from the blended U.S.

federal and state statutory tax rate primarily due to discrete income tax adjustments.

These adjustments included a $20 million increase related to the removal of the permanent reinvestment assertion for certain non-U.S.

entities and a $5 million increase from prior year true-up adjustments in non-U.S.

jurisdictions.

These impacts were partially offset by a $22 million decrease as a result of the expiration of statutes of limitation on certain unrecognized tax benefits.

Consolidated Property Owners’ Associations

The following table illustrates the impact of certain Consolidated Property Owners’ Associations under the relevant accounting guidance.

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024

Three Months Ended Six Months Ended

($ in millions) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

Resort management and other services $ 13 $ 13 $ 27 $ 24

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TOTAL EXPENSES 4 4 10 4

Interest expense, net — 1 — 1

FINANCIAL RESULTS BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 1 1 2 1

Net (income) loss attributable to noncontrolling interests (1) 1

Provision for income taxes (1) (1) (1) (1)

Net income attributable to noncontrolling interests — (1) (1) —

FINANCIAL RESULTS ATTRIBUTABLE TO COMMON STOCKHOLDERS $ — $ (1) $ — $ —

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We continuously monitor the capital markets to evaluate the effect that changes in market conditions may have on our ability to fund our liquidity needs.

At March 31, 2025, our corporate debt, net of cash and equivalents, to Adjusted EBITDA ratio was 4.1, above our targeted range of 2.5 to 3.0, and we remain focused on reducing this ratio over time.

We have no material principal payment obligations on our debt prior to 2026.

At June 30, 2025, our corporate debt, net of cash and equivalents, to Adjusted EBITDA ratio was 3.9, above our targeted range of 2.5 to 3.0, and we remain focused on reducing this ratio over time.

We have no material principal payment obligations for the remainder of 2025.

See Footnote 12 “Debt” to our Financial Statements for further information related to maturities of our debt.

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At the recent level of defaults, there is no impact to cash whether we repurchase defaulted vacation ownership notes receivable from a securitization VIE and pursue foreclosure or foreclose on behalf of a securitization VIE.

During the first quarter of 2025, and as of March 31, 2025, we had 12 term securitization transactions outstanding, all of which were in compliance with their respective required parameters.

During the second quarter of 2025, and as of June 30, 2025, no securitized vacation ownership notes receivable pools were out of compliance with their respective required parameters.

As of June 30, 2025, we had 11 term securitization transactions outstanding.

Since 2000, we have issued approximately $10.3 billion of debt securities in securitization transactions in the term ABS market, excluding amounts securitized through warehouse credit facilities or private bank transactions.

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Those loans may later be transferred to term securitization transactions in the ABS market, which typically occur twice a year.

At March 31, 2025, we had $315 million of borrowings outstanding on our Warehouse Credit Facility.

As of March 31, 2025, $70 million of gross vacation ownership notes receivable were eligible for securitization.

During the second quarter of 2025, we amended certain agreements associated with our Warehouse Credit Facility, which, among other things, extended the revolving period from June 11, 2026 to June 11, 2027.

At June 30, 2025, we had $158 million of borrowings outstanding on our Warehouse Credit Facility.

See Footnote 11 “Securitized Debt’ to our Financial Statement for further information on our Warehouse Amendment.

As of June 30, 2025, $55 million of gross vacation ownership notes receivable were eligible for securitization.

Corporate Credit Facility

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The Amendment also extended the termination date from March 31, 2027 to March 24, 2030, reduced certain fees and interest costs, and increased the letter of credit sub-facility of the Revolving Corporate Credit Facility from $75 million to $150 million.

At March 31, 2025, $190 million of borrowings and $11 million of letters of credit were outstanding under our Revolving Corporate Credit Facility.

At June 30, 2025, $235 million of borrowings and $26 million of letters of credit were outstanding under our Revolving Corporate Credit Facility.

Additionally, the Amendment provided for a new $450 million senior secured Delayed-Draw Term Loan with a maturity date of December 31, 2027.

The Delayed-Draw Term Loan is only available to finance the redemption or repurchase of our 2026 Convertible Notes, which are due January 15, 2026.

As of March 31, 2025, there were no outstanding borrowings on the Delayed-Draw Term Loan.

As of June 30, 2025, there were no outstanding borrowings on the Delayed-Draw Term Loan.

See Footnote 12 “Debt” to our Financial Statements for further information.

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Our working capital needs fluctuate throughout the year given the timing of annual maintenance fees on unsold inventory we pay to owners’ associations and certain annual compensation-related outflows.

In addition, our cash from operations varies due to the timing of repayment by owners of vacation ownership notes receivable, the closing or recording of sales contracts for vacation ownership products, financing propensity, and cash outlays for inventory acquisitions and development.

In addition, our cash from operations varies due to the timing of repayment by owners of vacation ownership notes receivable, timing and amount of voluntary repurchases of defaulted vacation ownership notes receivable, the closing or recording of sales contracts for vacation ownership products, financing propensity, and cash outlays for inventory acquisitions and development.

Our cash flow from operations fluctuates during the year due to the timing of certain receipts and contractual and compensation-related payments.

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Generally, cash outflows related to our payment of maintenance fees associated with unsold inventory occurs in the fourth quarter for our points-based products, and in the first quarter for our weeks-based products.

In addition, during the first quarter of each year, we generally have significant variable compensation-related cash outflows associated with payment of annual bonuses.

In addition, during the first quarter of each year, we generally have variable compensation-related cash outflows associated with payment of annual bonuses.

Timing of Estimated Tax Payments

The Internal Revenue Service provided for the deferral of federal income tax payments as tax relief for businesses in parts of Florida affected by the hurricanes that occurred during the third and fourth quarters of 2024.

This relief allows us to delay making certain estimated tax payments, without interest or penalty.

As part of the federal tax relief provided by the Internal Revenue Service for businesses in areas of Florida affected by hurricanes during the third and fourth quarters of 2024, we were permitted to defer certain federal income tax payments without incurring interest or penalties.

As a result, we deferred $38 million of estimated tax payments from the third and fourth quarters of 2024 to the second quarter of 2025.

Similarly, in the prior

year, as tax relief for businesses in parts of Florida affected by the hurricanes that occurred in 2023, we were able to defer $32 million of estimated tax payments from the third and fourth quarters of 2023 to the first quarter of 2024.

Similarly, in the prior year, under comparable relief measures related to hurricanes in 2023, we deferred $32 million of estimated tax payments from the third and fourth quarters of 2023 to the first quarter of 2024.

In addition to net income and adjustments for non-cash items, the following are key drivers of our cash flow from operating activities:

Inventory Spending (In Excess of) Less Than Cost of Sales

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024

Six Months Ended

($ in millions) June 30, 2025 June 30, 2024

Inventory spending $ (60) $ (63)

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Among other reasons for repurchasing inventory, we expect these repurchases will help stabilize the future cost of our vacation ownership products.

We expect inventory spending to continue to exceed cost of sales for the remainder of 2025 due to our remaining commitments to acquire property as disclosed in Footnote 9 “Contingencies and Commitments” to our Financial Statements.

We expect inventory spending to continue to exceed cost of sales for the remainder of 2025.

Vacation Ownership Notes Receivable Collections Less Than Originations

Three Months Ended

($ in millions) March 31, 2025 March 31, 2024

Six Months Ended

($ in millions) June 30, 2025 June 30, 2024

Vacation ownership notes receivable collections — non-securitized $ 80 $ 67

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Vacation ownership notes receivable collections less than originations $ (147) $ (135)

Vacation ownership notes receivable collections were less than originations in the first quarters of 2025 and 2024 due to the growth of our vacation ownership notes receivable portfolio .

Vacation ownership notes receivable collections were less than originations in the first half of 2025 and 2024 due to the growth of our vacation ownership notes receivable portfolio.

Repurchase of Common Stock

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As of December 31, 2024 25,790,550 $ 2,461 $ 95.40

For the first quarter of 2025 496,484 36 $ 73.21

As of March 31, 2025 26,287,034 $ 2,497 $ 94.98

For the first half of 2025 496,484 36 $ 73.10

As of June 30, 2025 26,287,034 $ 2,497 $ 94.98

See Footnote 13 “Stockholders' Equity” to our Financial Statements for further information related to our current share repurchase program.

Payment of Dividends to Common Stockholders

We distributed cash dividends to holders of common stock during the first quarter of 2025 as follows:

We distributed cash dividends to holders of common stock during the first half of 2025 as follows:

Declaration Date Stockholder Record Date Distribution Date Dividend per Share

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February 20, 2025 March 5, 2025 March 19, 2025 $0.79

May 12, 2025 May 23, 2025 June 6, 2025 $0.79

We currently expect to pay quarterly dividends in the future, but any future dividend payments will be subject to the approval of our Board of Directors, which will depend on our financial condition, results of operations and capital requirements at the time, as well as applicable law, regulatory constraints, industry practice, and other business considerations that our Board of Directors considers relevant.

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Material Cash Requirements

The following table summarizes our future material cash requirements from known contractual or other obligations as of March 31, 2025:

The following table summarizes our future material cash requirements from known contractual or other obligations as of June 30, 2025:

Payments Due by Period

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(1) Includes principal as well as interest payments and excludes unamortized debt discount and issuance costs.

(2) Excludes the Delayed-Draw Term Loan as there were no outstanding borrowings at March 31, 2025.

(2) Excludes the Delayed-Draw Term Loan as there were no outstanding borrowings at June 30, 2025.

See Footnote 12 “Debt” to our Financial Statements for further information.

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The guarantees of the Senior Notes Guarantors are subject to release in limited circumstances only upon the occurrence of certain customary conditions.

The following tables present consolidating financial information as of March 31, 2025 and December 31, 2024, and for the three months ended March 31, 2025 for MVWC and MORI on a stand-alone basis (collectively, the “Issuers”), the Senior Notes Guarantors, the combined non-guarantor subsidiaries of MVWC, and MVW on a consolidated basis.

The following tables present consolidating financial information as of June 30, 2025 and December 31, 2024, and for the six months ended June 30, 2025 for MVWC and MORI on a stand-alone basis (collectively, the “Issuers”), the Senior Notes Guarantors, the combined non-guarantor subsidiaries of MVWC, and MVW on a consolidated basis.

Condensed Consolidating Statement of Income

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Issuers Senior Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated

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Benefit from (provision for) income taxes 6 34 (53) (57) — (70)

Equity in net income (loss) of subsidiaries 63 107 — — (170) —

Net income (loss) 56 83 52 36 (170) 57

Equity in net income of subsidiaries 139 242 — — (381) —

Net income 125 169 115 98 (381) 126

Net income attributable to noncontrolling interests — — — (1) — (1)

Net income (loss) attributable to common stockholders $ 56 $ 83 $ 52 $ 35 $ (170) $ 56

Net income attributable to common stockholders $ 125 $ 169 $ 115 $ 97 $ (381) $ 125

Condensed Consolidating Balance Sheet

As of March 31, 2025 As of December 31, 2024

As of June 30, 2025 As of December 31, 2024

Issuers Senior Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated Issuers Senior Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis