What changed in this filing

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Item 1. Financial Statements

2026-08-06 compared with 2026-05-05 · 243 added, 156 removed, 722 unchanged (36% of the section changed)

3 unchanged sentences

(In millions, except per share amounts, and unaudited)

Three Months Ended

March 31, 2026 March 31, 2025

Three Months Ended Six Months Ended

June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

Sale of vacation ownership products $ 430 $ 370 $ 773 $ 725

18 unchanged sentences

TOTAL EXPENSES 1,159 1,134 2,328 2,205

Gains and other income, net 2 13

(Losses) gains and other (expense) income, net ( 4 ) 24 ( 2 ) 37

Interest expense, net ( 43 ) ( 42 ) ( 87 ) ( 82 )

13 unchanged sentences

(In millions and unaudited)

Three Months Ended

March 31, 2026 March 31, 2025

Three Months Ended Six Months Ended

June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

NET INCOME $ 77 $ 69 $ 99 $ 126

2 unchanged sentences

Derivative instrument adjustment, net of tax 1 1 2 1

OTHER COMPREHENSIVE LOSS, NET OF TAX ( 1 ) ( 1 )

OTHER COMPREHENSIVE GAIN (LOSS), NET OF TAX 2 ( 5 ) 1 ( 6 )

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

5 unchanged sentences

(In millions, except share and per share data)

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Cash and cash equivalents $ 211 $ 406

38 unchanged sentences

The abbreviation VIEs above means Variable Interest Entities.

See Interim Condensed Notes to Financial Statements

See Interim Condensed Notes to Consolidated Financial Statements

MARRIOTT VACATIONS WORLDWIDE CORPORATION

1 unchanged sentence

(In millions and unaudited)

Three Months Ended

March 31, 2026 March 31, 2025

Six 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 (used in) provided by operating activities:

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

18 unchanged sentences

Other, net ( 4 ) —

Net cash, cash equivalents and restricted cash (used in) provided by operating activities ( 4 ) 8

Net cash, cash equivalents and restricted cash provided by (used in) operating activities 76 ( 40 )

INVESTING ACTIVITIES

2 unchanged sentences

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 )

3 unchanged sentences

(In millions and unaudited)

Three Months Ended

March 31, 2026 March 31, 2025

Six Months Ended

June 30, 2026 June 30, 2025

FINANCING ACTIVITIES

8 unchanged sentences

Payment of withholding taxes on vesting of restricted stock units ( 6 ) ( 6 )

Net cash, cash equivalents and restricted cash used in financing activities ( 174 ) ( 32 )

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

4 unchanged sentences

Non-cash issuance of treasury stock for employee stock purchase plan $ 3 $ 4

Non-cash transfer from inventory to property and equipment 1 1

Non-cash transfer from property and equipment to inventory — 1

Non-cash transfer from other assets to property and equipment — 59

Interest paid, net of amounts capitalized 140 121

15 unchanged sentences

75.9 BALANCE AT MARCH 31, 2026 1 ( 2,415 ) 3,989 ( 12 ) 429 1,992 — 1,992

— Net income — — — — 77 77 — 77

— Foreign currency translation adjustments — — — 1 — 1 — 1

— Derivative instrument adjustment — — — 1 — 1 — 1

— Share-based compensation plans — 2 12 — — 14 — 14

— Dividends — — — — ( 28 ) ( 28 ) — ( 28 )

75.9 BALANCE AT JUNE 30, 2026 $ 1 $ ( 2,413 ) $ 4,001 $ ( 10 ) $ 478 $ 2,057 $ — $ 2,057

Issued Common

1 unchanged sentence

Stock Additional

Capital Accumulated Other Comprehensive Loss Retained Earnings Total MVW Stockholders' Equity Noncontrolling Interests Total Equity

Capital Accumulated Other Comprehensive (Loss) Income Retained Earnings Total MVW Stockholders' Equity Noncontrolling Interests Total Equity

75.9 BALANCE AT DECEMBER 31, 2024 $ 1 $ ( 2,378 ) $ 3,975 $ ( 8 ) $ 852 $ 2,442 $ ( 1 ) $ 2,441

5 unchanged sentences

75.9 BALANCE AT MARCH 31, 2025 1 ( 2,406 ) 3,968 ( 9 ) 881 2,435 — 2,435

— Net income — — — — 69 69 — 69

— Foreign currency translation adjustments — — — ( 6 ) — ( 6 ) — ( 6 )

— Derivative instrument adjustment — — — 1 — 1 — 1

— Share-based compensation plans — 2 11 — — 13 — 13

— Dividends — — — — ( 28 ) ( 28 ) — ( 28 )

75.9 BALANCE AT JUNE 30, 2025 $ 1 $ ( 2,404 ) $ 3,979 $ ( 14 ) $ 922 $ 2,484 $ — $ 2,484

See Interim Condensed Notes to Consolidated Financial Statements

19 unchanged sentences

Although we believe our footnote disclosures are adequate to make the information presented not misleading, the Financial Statements in this report should be read in conjunction with the consolidated financial statements and notes thereto in our 2025 Annual Report.

We refer to the business and brands that we acquired in the acquisition of ILG, LLC, formerly known as ILG, Inc.

(“ILG”), in 2018 (the “ILG Acquisition”) as “Legacy-ILG.” We refer to the business we conducted prior to the ILG Acquisition and the associated brands as “Legacy-MVW.” We refer to the business and brand that we acquired in the acquisition of Welk Hospitality Group, Inc.

(“Welk”) in 2021 (the “Welk Acquisition”) as “Legacy-Welk.” During 2023, we rebranded all Legacy-Welk resorts as Hyatt Vacation Club resorts.

Additionally, we use the term “Marriott Vacation Ownership” to refer to our Marriott, Sheraton, and Westin branded businesses and the term “Hyatt Vacation Ownership” to refer to our Hyatt branded business.

We use “Legacy-ILG” to refer to the business and brands acquired in our 2018 acquisition of ILG, Inc.

(the “ILG Acquisition”), and we use “Legacy-MVW” to refer to the business we conducted and our associated brands prior to the ILG Acquisition.

“Legacy-Welk” refers to the business and brand acquired in our 2021 acquisition of Welk Hospitality Group, Inc.

(the “Welk Acquisition”);

all of the Welk Acquisition resorts were rebranded as Hyatt Vacation Club resorts in 2023.

We use “Marriott Vacation Ownership” for our Marriott, Sheraton, and Westin branded businesses, and “Hyatt Vacation Ownership” for our Hyatt branded business.

Certain amounts from the prior fiscal year have been reclassified to conform to the current period presentation.

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 first quarter of 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 $ 3 million and $ 4 million for the three months ended March 31, 2026 and March 31, 2025, respectively.

Additionally, 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.

SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS

8 unchanged sentences

Under this expedient, entities may assume that conditions existing at the balance sheet date will persist for the remaining life of the asset, which simplifies the estimation process by eliminating the need to forecast future economic conditions for short-term assets.

We adopted ASU 2025-05 on a prospective basis on January 1, 2026, with no material impact to our financial statements or disclosures.

We adopted ASU 2025-05 and elected the practical expedient on a prospective basis on January 1, 2026, with no material impact to our financial statements or disclosures.

Accounting Standards Update 2025-11 - “Interim Reporting (Topic 270):

Narrow-Scope Improvements” (“ASU 2025-11”)

In December 2025, the FASB issued ASU 2025-11, which updates ASC 270 to improve clarity and consistency, without fundamentally altering the nature or scope of interim reporting requirements.

In December 2025, the FASB issued ASU 2025-11, which updates Accounting Standards Codification (“ASC”) 270 to improve clarity and consistency, without fundamentally altering the nature or scope of interim reporting requirements.

The guidance provides a comprehensive list of interim disclosures required by GAAP and incorporates a disclosure principle that requires disclosures at interim periods when an event or change that has a material effect on an entity has occurred since the last annual reporting period.

9 unchanged sentences

Hedge Accounting Improvements” (“ASU 2025-09”)

In November 2025, the FASB issued ASU 2025-09, which amends certain aspects of hedge accounting guidance under Accounting Standards Codification (“ASC”) 815.

In November 2025, the FASB issued ASU 2025-09, which amends certain aspects of hedge accounting guidance under ASC 815.

The amendments clarify the assessment of risk for cash flow hedges;

5 unchanged sentences

We are evaluating the impact that the adoption of this update, including the timing of implementation, will have on our financial statements and disclosures.

ACQUISITIONS AND DISPOSITIONS

Cancun, Mexico

1 unchanged sentence

The net carrying value of the entity disposed of, as of the date of the disposition, was $ 50 million, the majority of which was comprised of property and equipment that was recorded in Other Assets on our balance sheet.

As a result of this disposition, we recorded a gain of $ 2 million in Gains and other income, net on our Income Statements for the three months ended March 31, 2026, which related to the realization of cumulative foreign currency translation gains.

As a result of this disposition, we recorded a gain of $ 2 million in (Losses) gains and other (expense) income, net on our Income Statements for the six months ended June 30, 2026, which related to the realization of cumulative foreign currency translation gains.

Khao Lak, Thailand

During the second quarter of 2025, we acquired 52 completed vacation ownership units located in Khao Lak, Thailand for $ 50 million and included them in Property and equipment, net.

We paid $ 43 million in cash consideration for these units during the second quarter of 2025.

Additionally, during the second quarter of 2025, we reclassified $ 7 million of deposits paid in 2024 in connection with the project from Other assets to Property and equipment, net.

REVENUE AND RECEIVABLES

Sources of Revenue by Segment

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total

9 unchanged sentences

Total Revenues $ 1,260 $ 54 $ 6 $ 1,320

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total

9 unchanged sentences

Total Revenues $ 1,188 $ 53 $ 5 $ 1,246

Six Months Ended June 30, 2026

($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total

Sale of vacation ownership products $ 773 $ — $ — $ 773

Ancillary revenues 139 2 — 141

Management fee revenues 112 4 ( 1 ) 115

Exchange and other services revenues 71 80 34 185

Management and exchange 322 86 33 441

Rental 332 17 — 349

Cost reimbursements 842 8 ( 20 ) 830

Revenue from contracts with customers 2,269 111 13 2,393

Financing 184 — — 184

Total Revenues $ 2,453 $ 111 $ 13 $ 2,577

Six Months Ended June 30, 2025

($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total

Sale of vacation ownership products $ 725 $ — $ — $ 725

Ancillary revenues 140 2 — 142

Management fee revenues 110 4 ( 1 ) 113

Exchange and other services revenues 70 81 28 179

Management and exchange 320 87 27 434

Rental 309 20 — 329

Cost reimbursements 791 4 ( 15 ) 780

Revenue from contracts with customers 2,145 111 12 2,268

Financing 178 — — 178

Total Revenues $ 2,323 $ 111 $ 12 $ 2,446

Timing of Revenue from Contracts with Customers by Segment

The following tables detail the timing of revenue from contracts with customers by segment for the time periods presented.

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total

2 unchanged sentences

Revenue from contracts with customers $ 1,168 $ 54 $ 6 $ 1,228

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total

2 unchanged sentences

Revenue from contracts with customers $ 1,098 $ 53 $ 5 $ 1,156

Six Months Ended June 30, 2026

($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total

Services transferred over time $ 1,345 $ 44 $ 13 $ 1,402

Goods or services transferred at a point in time 924 67 — 991

Revenue from contracts with customers $ 2,269 $ 111 $ 13 $ 2,393

Six Months Ended June 30, 2025

($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total

Services transferred over time $ 1,268 $ 41 $ 12 $ 1,321

Goods or services transferred at a point in time 877 70 — 947

Revenue from contracts with customers $ 2,145 $ 111 $ 12 $ 2,268

Sale of Vacation Ownership Products

Revenues were reduced during the first quarter of 2026 by $ 4 million due to changes in our estimates of variable consideration for performance obligations that were satisfied in prior periods.

Revenues were reduced during the second quarter and first half of 2026 by $ 7 million and $ 11 million, respectively, due to changes in our estimates of variable consideration for performance obligations that were satisfied in prior periods.

Receivables from Contracts with Customers, Contract Assets, & Contract Liabilities

The following table shows the composition of our receivables from contracts with customers and contract liabilities.

We had no contract assets at either March 31, 2026 or December 31, 2025.

($ in millions) At March 31, 2026 At December 31, 2025

We had no contract assets at either June 30, 2026 or December 31, 2025.

($ in millions) At June 30, 2026 At December 31, 2025

Receivables from Contracts with Customers

5 unchanged sentences

Deferred revenue and other

(1) Includes $ 108 million and $ 99 million of other refundable deposits at March 31, 2026 and December 31, 2025, respectively.

Revenue recognized during the first quarter of 2026 that was included in our contract liabilities balance at December 31, 2025 was $ 120 million.

(1) Includes $ 105 million and $ 99 million of other refundable deposits at June 30, 2026 and December 31, 2025, respectively.

Revenue recognized during the second quarter and first half of 2026 that was included in our contract liabilities balance at December 31, 2025 was $ 94 million and $ 214 million, respectively.

Remaining Performance Obligations

Our recorded contract liabilities (excluding other refundable deposits) represent the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2026.

At March 31, 2026, approximately 90 % of the recorded contract liabilities are expected to be recognized as revenue over the next two years .

At June 30, 2026, approximately 90 % of the recorded contract liabilities are expected to be recognized as revenue over the next two years .

Accounts and Contracts Receivable

1 unchanged sentence

The following table shows the composition of our accounts and contracts receivable balances:

($ in millions) At March 31, 2026 At December 31, 2025

($ in millions) At June 30, 2026 At December 31, 2025

Receivables from contracts with customers, net $ 290 $ 271

5 unchanged sentences

Certain items that do not relate directly to ordinary income are excluded from the AETR and are recognized in the period in which they occur.

Our effective tax rate was 50.3 % and 43.6 % for the three months ended March 31, 2026 and March 31, 2025, respectively.

The effective tax rate for the three months ended March 31, 2026 differed from the blended U.S.

federal and state statutory tax rate primarily due to a permanent adjustment related to interest on installment sales, higher projected foreign losses, for which a valuation allowance was recorded, and discrete income tax adjustments, primarily associated with foreign operations, including a $ 6 million cumulative adjustment related to a foreign tax provision, and share-based compensation.

The effective tax rate for the three months ended March 31, 2025 differed from the blended U.S.

federal and state statutory tax rate primarily due to lower pre-tax book income forecast at that time for the year 2025, which was largely driven by our modernization efforts and related costs expected to be incurred, higher expected foreign losses, for which a valuation allowance was recorded, and discrete income tax adjustments, primarily related to share-based compensation.

Our income tax returns remain subject to examination by the relevant tax authorities.

Certain returns are currently under audit in various jurisdictions for tax years 2007 through 2024.

The amount of the unrecognized tax benefits may change within the next twelve months as a result of audits or resolution of audit-related matters.

During the third quarter of 2025, the One Big Beautiful Bill Act was signed into law, making several provisions of the Tax Cuts and Jobs Act permanent.

Under ASC 740, “ Income Taxes ,” the effects of changes in tax laws must be recognized in the period of enactment.

The provisions effective during the first quarter of 2026, did not have a material impact on our effective tax rate for the quarter ended March 31, 2026, but we continue to assess the potential impact of these legal changes, including provisions that become effective later in 2026, on our business and financial results.

Our effective tax rate was 32.4 % and 26.8 % for the three months ended June 30, 2026 and June 30, 2025, respectively, and 37.5 % and 35.5 % for the six months ended June 30, 2026 and June 30, 2025, respectively .

The effective tax rate for the three months ended June 30, 2026 differed from the blended U.S.

federal and state statutory tax rate primarily due to projected losses in certain foreign jurisdictions for which no tax benefit was recognized as a result of valuation allowances with respect to such foreign jurisdictions, as well as discrete tax benefits related to uncertain tax positions and the effective settlement of a domestic tax audit, partially offset by penalties accrued for foreign tax matters.

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 six months ended June 30, 2026 differed from the blended U.S.

federal and state statutory tax rate primarily due to projected losses in certain foreign jurisdictions for which no tax benefit was recognized as a result of valuation allowances with respect to such foreign jurisdictions, as well as discrete tax benefits related to uncertain tax positions, partially offset by a $ 6 million cumulative adjustment related to a foreign tax provision and penalties accrued for foreign tax matters.

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 contributed to the variance from the statutory rate.

Our income tax returns remain subject to examination by the relevant tax authorities in various jurisdictions for tax years 2007 through 2025.

The amount of the unrecognized tax benefits may change within the next twelve months as a result of audits, settlements with tax authorities, or the expiration of statutes of limitations.

During the third quarter of 2025, the One Big Beautiful Bill Act (Public Law 119-21) was signed into law, making several provisions of the Tax Cuts and Jobs Act permanent.

Under ASC 740, “ Income Taxes ,” the effects of changes in tax laws are recognized in the period of enactment.

The provisions effective during the first six months of 2026 did not have a material impact on our effective tax rate for the three months or six months ended June 30, 2026, but we continue to assess the potential impact of these legal changes, including provisions that become effective later in 2026, on our business and financial results.

VACATION OWNERSHIP NOTES RECEIVABLE

2 unchanged sentences

Acquired vacation ownership notes receivable represent vacation ownership notes receivable acquired as part of the ILG Acquisition and the Welk Acquisition.

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

($ in millions) Originated Acquired Total Originated Acquired Total

7 unchanged sentences

(1) Refer to Footnote 7 “Financial Instruments” for discussion of eligibility of our vacation ownership notes receivable for securitization.

The following table shows future principal payments, net of reserves, and interest rates for our vacation ownership notes receivable at March 31, 2026.

The following table shows future principal payments, net of reserves, and interest rates for our vacation ownership notes receivable at June 30, 2026.

($ in millions) Non-Securitized Securitized Total

5 unchanged sentences

Thereafter 211 1,264 1,475

Balance at March 31, 2026 $ 497 $ 2,070 $ 2,567

Balance at June 30, 2026 $ 505 $ 2,082 $ 2,587

Weighted average stated interest rate 11.5 % 13.4 % 13.0 %

4 unchanged sentences

We use the origination of vacation ownership notes receivable and the FICO scores of the customer by brand as the primary credit quality indicators, as historical performance indicates that there is a relationship between the default behavior of borrowers by FICO score and the brand associated with the vacation ownership interest (“VOI”) they have acquired.

The weighted average FICO score within our consolidated vacation ownership notes receivable pool was 730 and 729 , at March 31, 2026 and December 31, 2025, respectively, based upon the FICO score of the borrower at the time of origination.

The weighted average FICO score within our consolidated vacation ownership notes receivable pool was 731 and 729 , at June 30, 2026 and December 31, 2025, respectively, based upon the FICO score of the borrower at the time of origination.

The following tables show vacation ownership notes receivable, before reserves, by brand and borrower FICO score at origination.

Vacation Ownership Notes Receivable as of March 31, 2026

Vacation Ownership Notes Receivable as of June 30, 2026

($ in millions) 700 + 600 - 699 < 600 No Score Total

7 unchanged sentences

$ 1,878 $ 740 $ 64 $ 418 $ 3,100

The following tables detail the origination year of our vacation ownership notes receivable, before reserves, by brand and borrower FICO score at origination as of March 31, 2026, and gross write-offs by brand for the first quarter of 2026.

The following tables detail the origination year of our vacation ownership notes receivable, before reserves, by brand and borrower FICO score at origination as of June 30, 2026, and gross write-offs by brand for the first half of 2026.

Vacation Ownership Notes Receivable - Marriott Vacation Ownership

16 unchanged sentences

The following table summarizes interest income associated with vacation ownership notes receivable.

Three Months Ended

($ in millions) March 31, 2026 March 31, 2025

Three Months Ended Six Months Ended

($ in millions) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

Interest income - securitized vacation ownership notes receivable

$ 79 $ 73 $ 157 $ 147

Interest income - non-securitized vacation ownership notes receivable

3 unchanged sentences

For originated vacation ownership notes receivable, we record the difference between the vacation ownership note receivable and the variable consideration included in the transaction price for the sale of the related vacation ownership product as a reserve on our vacation ownership notes receivable.

The following table summarizes the activity related to our originated vacation ownership notes receivable reserve during the first quarter of 2026.

The following table summarizes the activity related to our originated vacation ownership notes receivable reserve during the first half of 2026.

Originated Vacation Ownership Notes Receivable Reserve

3 unchanged sentences

Securitizations ( 144 ) 144 —

Clean-up call 56 ( 56 ) —

Write-offs ( 99 ) — ( 99 )

Defaulted vacation ownership notes receivable repurchase activity (1)

Balance at March 31, 2026 $ 226 $ 308 $ 534

Balance at June 30, 2026 $ 226 $ 317 $ 543

(1) Reflects the change attributable to the transfer of the reserve from the securitized vacation ownership notes receivable reserve to the non-securitized vacation ownership notes receivable reserve when we voluntarily repurchased securitized vacation ownership notes receivable.

For our acquired vacation ownership notes receivable, the remaining reserve was $ 7 million as of March 31, 2026, and we recorded $ 2 million of write-offs for the three months ended March 31, 2026.

For our acquired vacation ownership notes receivable, the remaining reserve was $ 6 million as of June 30, 2026, and we recorded $ 3 million of write-offs for the six months ended June 30, 2026.

Vacation Ownership Notes Receivable on Non-Accrual Status

For both non-securitized and securitized vacation ownership notes receivable, we estimated the average remaining default rates of 13.36 % as of March 31, 2026 and 13.51 % as of December 31, 2025.

A 0.5 percentage point increase in the estimated default rate would have resulted in an increase in the related vacation ownership notes receivable reserve of $ 15 million as of both March 31, 2026 and December 31, 2025.

For both non-securitized and securitized vacation ownership notes receivable, we estimated the average remaining default rates of 13.05 % as of June 30, 2026 and 13.51 % as of December 31, 2025.

The following table shows our recorded investment in non-accrual vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due.

1 unchanged sentence

($ in millions) Non-Securitized Securitized Total

Investment in vacation ownership notes receivable on non-accrual status at March 31, 2026

Investment in vacation ownership notes receivable on non-accrual status at June 30, 2026

$ 192 $ 19 $ 211

1 unchanged sentence

$ 165 $ 20 $ 185

The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of March 31, 2026 and December 31, 2025.

As of March 31, 2026 As of December 31, 2025

The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of June 30, 2026 and December 31, 2025.

As of June 30, 2026 As of December 31, 2025

($ in millions) Non-Securitized Securitized Total Non-Securitized Securitized Total

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The table excludes Cash and cash equivalents, Restricted cash, Accounts and contracts receivable (excluding contracts receivable for financed VOI sales, net), deposits included in Other assets, Accounts payable, Advance deposits, Accrued liabilities, and derivative instruments, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments.

At March 31, 2026 At December 31, 2025

At June 30, 2026 At December 31, 2025

($ in millions) Carrying Amount

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Vacation Ownership Notes Receivable

At March 31, 2026 At December 31, 2025

At June 30, 2026 At December 31, 2025

($ in millions) Carrying Amount

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We concluded that this fair value measurement should be categorized within Level 3.

Other assets include $ 165 million and $ 168 million of company owned insurance policies (the “COLI policies”) acquired on the lives of certain participants in the Marriott Vacations Worldwide Deferred Compensation Plan (the “Deferred Compensation Plan”) at March 31, 2026 and December 31, 2025, respectively, that are held in a rabbi trust.

Other assets include $ 188 million and $ 168 million of company owned insurance policies (the “COLI policies”) acquired on the lives of certain participants in the Marriott Vacations Worldwide Deferred Compensation Plan (the “Deferred Compensation Plan”) at June 30, 2026 and December 31, 2025, respectively, that are held in a rabbi trust.

The rabbi trust is considered a VIE, which we consolidate because we are the primary beneficiary as we direct the activities of the trust and are the beneficiary of the trust.

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EARNINGS PER SHARE

Basic earnings or loss per share attributable to common stockholders is calculated by dividing net income or loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the reporting period.

Diluted earnings or loss per share attributable to common stockholders is calculated to give effect to all potentially dilutive common shares that were outstanding during the reporting period, except in periods when there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect.

The dilutive effect of outstanding equity-based compensation awards is reflected in diluted earnings or loss per share applicable to common stockholders by application of the treasury stock method.

Basic earnings per share attributable to common stockholders is calculated by dividing net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the reporting period.

Diluted earnings per share attributable to common stockholders is calculated to give effect to all potentially dilutive common shares that were outstanding during the reporting period.

The dilutive effect of outstanding equity-based compensation awards is reflected in diluted earnings per share applicable to common stockholders by application of the treasury stock method.

The tables below illustrate the reconciliation of the earnings or loss and number of shares used in our calculation of basic and diluted earnings or loss per share attributable to common stockholders.

Three Months Ended

(in millions, except per share amounts) March 31, 2026 March 31, 2025

Three Months Ended Six Months Ended

(in millions, except per share amounts) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

Net income attributable to common stockholders $ 77 $ 69 $ 99 $ 125

Shares for basic earnings per share

34.8 34.9 34.7 35.0

Basic earnings per share

$ 2.21 $ 1.98 $ 2.86 $ 3.59

Three Months Ended

(in millions, except per share amounts) March 31, 2026 March 31, 2025

Three Months Ended Six Months Ended

(in millions, except per share amounts) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

Net income attributable to common stockholders $ 77 $ 69 $ 99 $ 125

1 unchanged sentence

Numerator used to calculate diluted earnings per share

$ 81 $ 74 $ 107 $ 135

Shares for basic earnings per share

34.8 34.9 34.7 35.0

Effect of dilutive shares outstanding

2 unchanged sentences

2027 Convertible Notes

3.0 3.1 3.0 3.1

Shares for diluted earnings per share

38.2 41.7 38.0 41.9

Diluted earnings per share

$ 2.12 $ 1.77 $ 2.82 $ 3.23

We excluded $ 4 million of interest expense, net of tax, and 3.1 million of potentially dilutive securities related to convertible notes from the above calculation of diluted earnings per share attributable to common stockholders for the three months ended March 31, 2026, as the effects would have been anti-dilutive.

The computations of diluted earnings per share attributable to common stockholders above exclude approximately 890,000 and 529,000 shares of common stock, the maximum number of shares issuable as of March 31, 2026 and March 31, 2025, respectively, upon the vesting of certain performance-based and market-based awards, because the performance or market conditions required to be met for the shares subject to such awards to vest were not achieved by the end of the reporting period.

In accordance with the applicable accounting guidance for calculating earnings per share, for the first quarter of 2026, we excluded from our calculation of diluted earnings per share 1,195,884 shares underlying stock appreciation rights (“SARs”) that may settle in shares of common stock because the exercise prices of such SARs, which ranged from $ 68.03 to $ 173.88 , were greater than the average market price of our common stock for the applicable period.

For the first quarter of 2025, we excluded from our calculation of diluted earnings per share 788,607 shares underlying SARs that may settle in shares of common stock because the exercise prices of such SARs, which ranged from $ 71.17 to $ 173.88 , were greater than the average market price of our common stock for the applicable period.

The computations of diluted earnings per share attributable to common stockholders above exclude approximately 873,000 and 645,000 shares of common stock, the maximum number of shares issuable as of June 30, 2026 and June 30, 2025, respectively, upon the vesting of certain performance-based and market-based awards, because the performance or market conditions required to be met for the shares subject to such awards to vest were not achieved by the end of the reporting period.

In accordance with the applicable accounting guidance for calculating earnings per share, for the second quarter of 2026, we excluded from our calculation of diluted earnings per share 635,060 shares underlying stock appreciation rights (“SARs”) that may settle in shares of common stock because the exercise prices of such SARs, which ranged from $ 93.73 to $ 173.88 , were greater than the average market price of our common stock for the applicable period.

For the first half of 2026, we excluded from our calculation of diluted earnings per share 763,659 shares underlying SARs that may settle in shares of common stock because the exercise prices of such SARs, which ranged from $ 71.17 to $ 173.88 , were greater than the average market price of our common stock for the applicable period.

For the second quarter and first half of 2025, we excluded from our calculation of diluted earnings per share 788,607 shares underlying SARs that may settle in shares of common stock because the exercise prices of such SARs, which ranged from $ 71.17 to $ 173.88 , were greater than the average market price of our common stock for the applicable period.

The following table shows the composition of our inventory balances:

($ in millions) At March 31, 2026 At December 31, 2025

($ in millions) At June 30, 2026 At December 31, 2025

Real estate inventory (1)

(1) Represents completed inventory that is registered for sale as VOIs and vacation ownership inventory expected to be reacquired pursuant to estimated future defaults on originated vacation ownership notes receivable.

Product cost true-up activity relating to vacation ownership products increased carrying values of inventory by $ 5 million during the first quarter of 2026 and $ 13 million during the first quarter of 2025.

In addition to the above, at March 31, 2026 and December 31, 2025, we had $ 230 million and $ 224 million, 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.

We also had deposits on future purchases of inventory of $ 34 million at March 31, 2026, of which $ 25 million was included in Other assets and $ 9 million was included in Accounts and contracts receivable, net on our Balance Sheet, and $ 31 million at December 31, 2025, of which $ 26 million was included in Other assets and $ 5 million was included in Accounts and contracts receivable, net on our Balance Sheet .

Product cost true-up activity relating to vacation ownership products increased carrying values of inventory by $ 17 million during the first half of 2026 and $ 28 million during the first half of 2025.

In addition to the above, at June 30, 2026 and December 31, 2025, we had $ 229 million and $ 224 million, 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.

We also had deposits on future purchases of inventory of $ 34 million at June 30, 2026, of which $ 25 million was included in Other assets and $ 9 million was included in Accounts and contracts receivable, net on our Balance Sheet, and $ 31 million at December 31, 2025, of which $ 26 million was included in Other assets and $ 5 million was included in Accounts and contracts receivable, net on our Balance Sheet .

CONTINGENCIES AND COMMITMENTS

Commitments and Letters of Credit

As of March 31, 2026, we had the following commitments outstanding:

As of June 30, 2026, we had the following commitments outstanding:

• We have various agreements for cloud computing and outsourcing of development, maintenance and support related to information technology that we use in the normal course of business.

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$ 4 million in 2027, and $ 33 million in 2028.

• In connection with our recent sale of a hotel in Cancun, we entered into a commitment to purchase vacation ownership units located in Puerto Vallarta, Mexico, contingent upon completion of construction to agreed-upon standards within specified timeframes, for use in our Vacation Ownership segment.

We expect to complete the acquisition of 64 vacation ownership units in 2028, and we expect to make payments of $ 46 million in 2028.

See Footnote 3 “Dispositions” for further details on our sale of a hotel in Cancun in the first quarter of 2026.

• In connection with our recent sale of an entity that owned and operated a hotel in Cancun, we entered into a commitment to purchase vacation ownership units located in Puerto Vallarta, Mexico, contingent upon completion of construction to agreed-upon standards within specified timeframes, for use in our Vacation Ownership segment.

Presuming all construction milestones are achieved, we will acquire 64 vacation ownership units for $ 46 million in 2028.

See Footnote 3 “Acquisitions and Dispositions” for further details on our sale of and entity that owned and operated a hotel in Cancun in the first quarter of 2026.

• We have a remaining commitment of $ 11 million to purchase 32 vacation ownership units located in Bali, Indonesia, contingent upon completion of construction to agreed-upon standards within specified timeframes, for use in our Vacation Ownership segment.

We expect to complete the acquisition of these vacation ownership units in 2026, and we expect to make remaining payments with respect to these units when specific construction milestones are completed as follows:

$ 10 million in the remainder of 2026 and $ 1 million in 2027.

Subsequent to the end of the second quarter of 2026, we completed the acquisition of these vacation ownership units and made the remaining payments of $ 11 million.

• We have a commitment to acquire real estate in Waikiki, Hawaii for use in our Vacation Ownership segment via our involvement with a VIE.

Refer to Footnote 15 “Variable Interest Entities” for additional information and our activities relating to the VIE involved in this commitment.

As of March 31, 2026, we had $ 12 million of letters of credit outstanding under our Revolving Corporate Credit Facility (as defined in Footnote 12 “Debt”), of which $ 11 million were related to and in lieu of reserves required for certain of our outstanding securitization transactions.

In addition, as of March 31, 2026, we had $ 13 million in letters of credit outstanding that were related to and in lieu of reserves required for certain other outstanding securitization transactions, which were not issued pursuant to, nor do they impact our borrowing capacity under, the Revolving Corporate Credit Facility.

Surety bonds issued as of March 31, 2026 totaled $ 140 million, the majority of which were requested by federal, state or local governments in connection with our operations.

As of June 30, 2026, we had $ 5 million of letters of credit outstanding under our Revolving Corporate Credit Facility (as defined in Footnote 12 “Debt”), of which $ 4 million were related to and in lieu of reserves required for certain of our outstanding securitization transactions.

In addition, as of June 30, 2026, we had $ 34 million in letters of credit outstanding that were related to and in lieu of reserves required for certain other outstanding securitization transactions, which were not issued pursuant to, nor do they impact our borrowing capacity under, the Revolving Corporate Credit Facility.

Surety bonds issued as of June 30, 2026 totaled $ 140 million, the majority of which were requested by federal, state or local governments in connection with our operations.

We have a commitment to an owners’ association that we manage to pay for any shortfall between the actual expenses incurred by the owners’ association and the income received by the owners’ association, in lieu of our payment of maintenance fees for unsold inventory.

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or 2) written notification of termination by either party.

At March 31, 2026, our expected commitment for the remainder of 2026 is $ 22 million, which will ultimately be recorded as a component of rental expense on our income statement.

At June 30, 2026, our expected commitment for the remainder of 2026 is $ 13 million, which will ultimately be recorded as a component of rental expense on our income statement.

Loss Contingencies

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The following table provides detail on our securitized debt, net of unamortized debt discount and issuance costs.

($ in millions) At March 31, 2026 At December 31, 2025

($ in millions) At June 30, 2026 At December 31, 2025

Vacation ownership notes receivable securitizations, gross (1)

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$ 2,353 $ 2,146

(1) Interest rates as of March 31, 2026 range from 1.5 % to 6.6 %, with a weighted average interest rate of 4.8 %.

(2) Effective interest rate as of March 31, 2026 was 4.8 %.

(1) Interest rates as of June 30, 2026 range from 1.5 % to 6.6 %, with a weighted average interest rate of 4.8 %.

(2) Effective interest rate as of June 30, 2026 was 4.8 %.

(3) Excludes $ 2 million of unamortized debt issuance costs classified as a component of Other Assets on our Balance Sheet as of December 31, 2025, as no cash borrowings were outstanding under the Warehouse Credit Facility at that time.

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See Footnote 15 “Variable Interest Entities” for a discussion of the collateral for the non-recourse debt associated with our securitized debt.

The following table shows anticipated future principal payments for our securitized debt as of March 31, 2026.

The following table shows anticipated future principal payments for our securitized debt as of June 30, 2026.

Vacation Ownership

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If a pool of securitized vacation ownership notes receivable fails to perform within the pool’s established parameters (default or delinquency thresholds vary by transaction), transaction provisions effectively redirect the monthly excess spread we would otherwise receive from that pool (attributable to the interests we retained) to accelerate the principal payments to investors (taking into account the subordination of the different tranches to the extent there are multiple tranches) until the performance trigger is cured.

During the first quarter of 2026, and as of March 31, 2026, we had 12 securitized vacation ownership notes receivable pools outstanding, none of which were out of compliance with their respective established parameters.

During the second quarter of 2026, and as of June 30, 2026, we had 12 securitized vacation ownership notes receivable pools outstanding, none of which were out of compliance with their respective established parameters.

As the contractual terms of the underlying securitized vacation ownership notes receivable determine the maturities of the non-recourse debt associated with them, actual maturities may occur earlier than shown above due to prepayments by the vacation ownership notes receivable obligors.

Subsequent to the end of the first quarter of 2026, we securitized a pool of $ 470 million of vacation ownership notes receivable.

During the second quarter of 2026, we securitized a pool of $ 470 million of vacation ownership notes receivable.

In connection with the securitization, $ 460 million in vacation ownership loan backed notes were issued by MVW 2026-1 LLC (the “2026-1 LLC”) in a private placement.

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Warehouse Credit Facility

Our warehouse credit facility (the “Warehouse Credit Facility”), allows for the securitization of vacation ownership notes receivable on a revolving non-recourse basis, has a borrowing capacity of $ 500 million, and expires on June 11, 2027.

The Warehouse Amendment extended the revolving period from June 11, 2027 to June 12, 2028 and made certain other non-material changes.

The credit spread for the Warehouse Credit Facility is 110 basis points over the Secured Overnight Financing Rate (“SOFR”).

The following table provides detail on our debt balances, net of unamortized debt discount and issuance costs.

($ in millions) At March 31, 2026 At December 31, 2025

($ in millions) At June 30, 2026 At December 31, 2025

Corporate Credit Facility

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$ 3,100 $ 3,534

(1) The effective interest rate as of March 31, 2026 was 5.9 %.

(2) The effective interest rate as of March 31, 2026 was 5.3 %.

(1) The effective interest rate as of June 30, 2026 was 5.9 %.

(2) The effective interest rate as of June 30, 2026 was 5.1 %.

(3) Excludes $ 4 million of unamortized debt issuance costs classified as a component of Other Assets on our Balance Sheet as of December 31, 2025, as no cash borrowings were outstanding under the Revolving Corporate Credit Facility at that time.

The following table shows scheduled principal payments for our debt, excluding finance leases, as of March 31, 2026.

The following table shows scheduled principal payments for our debt, excluding finance leases, as of June 30, 2026.

Payments Year

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During the second quarter of 2025, we entered into a $ 300 million interest rate swap pursuant to which we pay interest at a fixed rate of 3.344 % and receive interest at a floating rate (SOFR) through May 2027 to hedge a portion of our interest rate risk on the Term Loan.

This interest rate swap has been designated and qualifies as a cash flow hedge of interest rate risk and is recorded in Other Assets on our Balance Sheet as of March 31, 2026 and in Other Liabilities on our Balance Sheet as of December 31, 2025.

This interest rate swap has been designated and qualifies as a cash flow hedge of interest rate risk and is recorded in Other Assets on our Balance Sheet as of June 30, 2026 and in Other Liabilities on our Balance Sheet as of December 31, 2025.

We characterize payments we make or receive in connection with this derivative instrument as interest expense and a reclassification of accumulated other comprehensive income or loss for presentation purposes.

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The 2026 Convertible Notes matured at par on January 15, 2026, at which time none of the 2026 Convertible Notes were converted and all were settled in cash, and the deferred financing costs were fully amortized.

Amortization of debt issuance costs related to the 2026 Convertible Notes was less than $ 1 million during the first quarter of 2026 and $ 1 million for the first quarter of 2025.

Amortization of debt issuance costs related to the 2026 Convertible Notes was less than $ 1 million during the first half of 2026, and $ 1 million and $ 2 million for the second quarter and first half of 2025, respectively.

2026 Convertible Note Hedges and Warrants

In connection with the offering of the 2026 Convertible Notes, we concurrently entered into the following privately-negotiated separate transactions:

convertible note hedge transactions with respect to our common stock (the “2026 Convertible Note Hedges”), covering shares of our common stock, and warrant transactions (the “2026 Warrants”), whereby we sold to the counterparties to the 2026 Convertible Note Hedges warrants to acquire 3.9 million shares of our common stock.

The 2026 Convertible Note Hedges expired upon the maturity of the 2026 Convertible Notes on January 15, 2026, and none were exercised.

The 2026 Warrants expire in ratable portions over the 70 trading day period commencing on April 15, 2026.

As of March 31, 2026, the strike price of the 2026 Warrants was subject to adjustment to approximately $ 184.74 as a result of the dividends we declared since the issuance of the 2026 Warrants that were greater than the

quarterly dividend we paid when the 2026 Warrants were issued.

As of March 31, 2026, no 2026 Warrants have been exercised.

The 2026 Warrants expired subsequent to the end of the second quarter of 2026, and none were exercised.

2027 Convertible Notes

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The 2027 Convertible Notes mature on December 15, 2027, unless earlier repurchased or converted in accordance with their terms prior to that date.

The conversion rate of the 2027 Convertible Notes is subject to adjustment for certain events as described in the indenture governing the notes and was subject to adjustment as of March 31, 2026 to 5.3162 shares of common stock per $1,000 principal amount of 2027 Convertible Notes (equivalent to a conversion price of $ 188.10 per share of our common stock), as a result of the dividends we declared since issuance of the 2027 Convertible Notes that were greater than the quarterly dividend we paid when the 2027 Convertible notes were issued.

The conversion rate of the 2027 Convertible Notes is subject to adjustment for certain events as described in the indenture governing the notes and was subject to adjustment as of June 30, 2026 to 5.3216 shares of common stock per $1,000 principal amount of 2027 Convertible Notes (equivalent to a conversion price of $ 187.91 per share of our common stock), as a result of the dividends we declared since issuance of the 2027 Convertible Notes that were greater than the quarterly dividend we paid when the 2027 Convertible notes were issued.

Upon conversion, we will pay or deliver, as the case may be, cash, shares of our common stock, or a combination of cash and shares of our common stock, at our election.

As of March 31, 2026, the effective interest rate was 3.88 %.

As of June 30, 2026, the effective interest rate was 3.88 %.

The following table provides the components of interest expense related to the 2027 Convertible Notes.

Three Months Ended

($ in millions) March 31, 2026 March 31, 2025

Three Months Ended Six Months Ended

($ in millions) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

Contractual interest expense $ 5 $ 5 $ 9 $ 9

Amortization of debt issuance costs 1 1 2 2

$ 6 $ 6 $ 11 $ 11

2027 Convertible Note Hedges and Warrants

In connection with the offering of the 2027 Convertible Notes, we concurrently entered into the following privately-negotiated separate transactions:

convertible note hedge transactions with respect to our common stock (the “2027 Convertible Note Hedges”), covering a total of 3.1 million shares of our common stock, and warrant transactions (the “2027 Warrants”), whereby we sold to the counterparties to the 2027 Convertible Note Hedges warrants to acquire 3.1 million shares of our common stock, in each case, as of March 31, 2026.

The strike prices of the 2027 Convertible Note Hedges and the 2027 Warrants were subject to adjustment to $ 188.10 and $ 283.92 , respectively, as of March 31, 2026, and no 2027 Convertible Note Hedges or 2027 Warrants have been exercised.

The strike prices of the 2027 Convertible Note Hedges and the 2027 Warrants were subject to adjustment to $ 187.91 and $ 283.63 , respectively, as of June 30, 2026, and no 2027 Convertible Note Hedges or 2027 Warrants have been exercised.

Security and Guarantees

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Marriott Vacations Worldwide has 100,000,000 authorized shares of common stock, par value of $ 0.01 per share.

At March 31, 2026, there were 75,897,059 shares of Marriott Vacations Worldwide common stock issued, of which 34,335,139 shares were outstanding and 41,561,920 shares were held as treasury stock.

At June 30, 2026, there were 75,919,908 shares of Marriott Vacations Worldwide common stock issued, of which 34,394,286 shares were outstanding and 41,525,622 shares were held as treasury stock.

At December 31, 2025, there were 75,891,531 shares of Marriott Vacations Worldwide common stock issued, of which 34,124,033 shares were outstanding and 41,767,498 shares were held as treasury stock.

Marriott Vacations Worldwide has 2,000,000 authorized shares of preferred stock, par value of $ 0.01 per share, none of which were issued or outstanding as of March 31, 2026 or December 31, 2025.

Marriott Vacations Worldwide has 2,000,000 authorized shares of preferred stock, par value of $ 0.01 per share, none of which were issued or outstanding as of June 30, 2026 or December 31, 2025.

Share Repurchase Program

From time to time, with the approval of our Board of Directors, we may undertake programs to purchase shares of our common stock (each, a “Share Repurchase Program”).

As of March 31, 2026, approximately $ 322 million remained available for share repurchases under the current Share Repurchase Program, which authorizes share repurchases through December 31, 2026.

As of June 30, 2026, approximately $ 322 million remained available for share repurchases under the current Share Repurchase Program, which authorizes share repurchases through December 31, 2026.

Share repurchases may be made through open market purchases, privately negotiated transactions, block transactions, tender offers, or otherwise.

The specific timing, amount and other terms of the repurchases will depend on market conditions, corporate and regulatory requirements, contractual restrictions, and other factors.

In connection with the current Share Repurchase Program, we are authorized to adopt one or more plans pursuant to the provisions of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.

In connection with the current Share Repurchase Program, we are authorized to adopt one or more plans pursuant to the provisions of Rule

10b5-1 under the Securities Exchange Act of 1934, as amended.

The authorization for the current Share Repurchase Program may be suspended, terminated, increased or decreased by our Board of Directors at any time without prior notice.

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As of December 31, 2025 26,795,163 $ 2,522 $ 94.12

For the first quarter of 2026 — — $ —

As of March 31, 2026 26,795,163 $ 2,522 $ 94.12

We declared cash dividends to holders of our common stock during the first quarter of 2026 as follows.

For the first half of 2026 — — $ —

As of June 30, 2026 26,795,163 $ 2,522 $ 94.12

We declared cash dividends to holders of our common stock during the first half of 2026 as follows.

Any future dividend payments will be subject to the restrictions imposed under the agreements covering our debt and approval of our Board of Directors.

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February 19, 2026 March 4, 2026 March 18, 2026 $ 0.80

May 14, 2026 May 27, 2026 June 10, 2026 $ 0.80

SHARE-BASED COMPENSATION

We maintain the Marriott Vacations Worldwide Corporation 2020 Equity Incentive Plan (the “MVW Equity Plan”) for the benefit of our officers, directors, and employees.

During the second quarter of 2026, our stockholders approved the Second Amended and Restated Marriott Vacations Worldwide Corporation 2020 Equity Incentive Plan (the “MVW Equity Plan”), which increased the aggregate number of authorized shares of our common stock that may be issued pursuant to grants under the plan by 2.5 million shares.

The MVW Equity Plan is maintained for the benefit of our officers, directors, and employees.

Under the MVW Equity Plan, we are authorized to award:

(1) restricted stock and restricted stock units (“RSUs”) of our common stock, (2) stock appreciation rights (“SARs”) relating to our common stock, and (3) stock options to purchase our common stock.

A total of approximately 3 million shares were authorized for issuance pursuant to grants under the MVW Equity Plan.

As of March 31, 2026, less than 1 million shares were available for grants under the MVW Equity Plan.

As of June 30, 2026, approximately 3 million shares were available for grants under the MVW Equity Plan.

The following table details our share-based compensation expense related to award grants to our officers, directors, and employees:

Three Months Ended

($ in millions) March 31, 2026 March 31, 2025

Three Months Ended Six Months Ended

($ in millions) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

Service-based RSUs $ 9 $ 10 $ 18 $ 16

Performance-based RSUs 1 2 1 2

Market-based RSUs 1 — 1 —

$ 12 $ 12 $ 22 $ 19

The following table details our deferred compensation costs related to unvested awards:

($ in millions) At March 31, 2026 At December 31, 2025

($ in millions) At June 30, 2026 At December 31, 2025

Service-based RSUs $ 42 $ 26

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Restricted Stock Units

We granted 581,550 service-based RSUs, which are subject to time-based vesting conditions, with a weighted average grant-date fair value of $ 61.39 , to our employees and non-employee directors during the first quarter of 2026.

During the first quarter of 2026, we also granted one-time performance-based RSUs (the “PSUs”), which are subject to performance-based vesting conditions, to certain executives.

A maximum of 300,000 RSUs may be earned under the performance-based RSU awards granted during the first quarter of 2026.

We granted 610,856 service-based RSUs, which are subject to time-based vesting conditions, with a weighted average grant-date fair value of $ 61.82 , to our employees and non-employee directors during the first half of 2026.

During the first half of 2026, we also granted one-time performance-based RSUs (the “PSUs”), which are subject to performance-based vesting conditions, to certain executives.

A maximum of 300,000 RSUs may be earned under the PSU awards granted during the first half of 2026.

The PSUs vest over a three-year performance period beginning January 1, 2026 subject to continuous service, and are earned based on the achievement of the highest cumulative performance metric achieved during any four consecutive quarters relative to specified performance thresholds.

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Stock Appreciation Rights

We granted 473,405 SARs, with a weighted average grant-date fair value of $ 23.59 and a weighted average exercise price of $ 68.21 , to members of management during the first quarter of 2026.

We granted 474,423 SARs, with a weighted average grant-date fair value of $ 23.59 and a weighted average exercise price of $ 68.20 , to members of management during the first half of 2026.

We use the Black-Scholes model to estimate the fair value of the SARs granted.

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The dividend yield assumption listed below is based on the expectation of future payouts.

The following table outlines the assumptions used to estimate the fair value of grants during the first quarter of 2026:

The following table outlines the assumptions used to estimate the fair value of grants during the first half of 2026:

Expected volatility 50.41 % - 50.73 %

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Variable Interest Entities Related to Our Vacation Ownership Notes Receivable Securitizations

The following table shows consolidated assets, which are collateral for the obligations of the VIEs related to our vacation ownership notes receivable securitizations, and consolidated liabilities included on our Balance Sheet at March 31, 2026:

($ in millions) Vacation Ownership

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Total $ 2,219 $ 166 $ 2,385

The following table shows the interest income and expense recognized as a result of our involvement with these VIEs during the first quarter of 2026:

($ in millions) Vacation Ownership

Notes Receivable

Securitizations Warehouse

The following table shows the interest income and expense recognized as a result of our involvement with these VIEs during the second quarter of 2026:

($ in millions) Vacation Ownership Notes Receivable Securitizations Warehouse

Credit Facility Total

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Debt issuance cost amortization $ 3 $ — $ 3

The following table shows the interest income and expense recognized as a result of our involvement with these VIEs during the first half of 2026:

($ in millions) Vacation Ownership Notes Receivable Securitizations Warehouse

Credit Facility Total

Interest income $ 143 $ 14 $ 157

Interest expense $ 52 $ 5 $ 57

Debt issuance cost amortization $ 6 $ — $ 6

The following table shows cash flows between us and the vacation ownership notes receivable securitization VIEs:

Three Months Ended

($ in millions) March 31, 2026 March 31, 2025

Six Months Ended

($ in millions) June 30, 2026 June 30, 2025

Net proceeds from vacation ownership notes receivable securitizations $ 455 $ 445

Principal receipts 318 293

Interest receipts 142 135

Reserve release 1 105

Total 916 978

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Voluntary repurchases of defaulted vacation ownership notes receivable ( 87 ) ( 83 )

Voluntary clean-up call ( 28 ) ( 64 )

Interest payments ( 52 ) ( 47 )

Funding of restricted cash — ( 103 )

Total ( 469 ) ( 581 )

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The following table shows cash flows between us and the Warehouse Credit Facility VIE:

Three Months Ended

($ in millions) March 31, 2026 March 31, 2025

Six Months Ended

($ in millions) June 30, 2026 June 30, 2025

Proceeds from vacation ownership notes receivable securitizations $ 522 $ 364

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Interest receipts 11 14

Reserve release 2 11

Total 560 414

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Principal payments ( 13 ) ( 21 )

Voluntary repurchases of defaulted vacation ownership notes receivable — ( 1 )

Repayment of Warehouse Credit Facility ( 344 ) ( 308 )

Interest payments ( 4 ) ( 6 )

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Accordingly, we have not consolidated the VIE.

As of March 31, 2026, our Balance Sheet reflected $ 1 million in Accounts and contracts receivable, net, including a note receivable of less than $ 1 million, and $ 4 million in Property and equipment, net.

We believe that our maximum exposure to loss as a result of our involvement with this VIE is approximately $ 5 million as of March 31, 2026.

As of June 30, 2026, our Balance Sheet reflected $ 1 million in Accounts and contracts receivable, net, including a note receivable of less than $ 1 million, and $ 4 million in Property and equipment, net.

We believe that our maximum exposure to loss as a result of our involvement with this VIE is approximately $ 5 million as of June 30, 2026.

BUSINESS SEGMENTS

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and segment Adjusted EBITDA reconciled to Net income attributable to common stockholders.

Three Months Ended

March 31, 2026 March 31, 2025

Three Months Ended Six Months Ended

June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

($ in millions) Vacation

Exchange & Third-Party Management Total Vacation Ownership Exchange & Third-Party Management Total

Exchange & Third-Party Management Total Vacation Ownership Exchange & Third-Party Management Total Vacation Ownership Exchange & Third-Party Management Total Vacation Ownership Exchange & Third-Party Management Total

Revenues from external customers $ 1,260 $ 54 $ 1,314 $ 1,188 $ 53 $ 1,241 $ 2,453 $ 111 $ 2,564 $ 2,323 $ 111 $ 2,434

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Amortization of cloud computing software implementation costs

( 2 ) ( 1 ) ( 3 ) ( 2 )

Certain items

( 12 ) ( 16 ) ( 39 ) ( 21 )

Provision for income taxes ( 37 ) ( 25 ) ( 60 ) ( 70 )

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(2) 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 first quarter of 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 $ 3 million and $ 4 million for the three months ended March 31, 2026 and March 31, 2025, respectively.

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.

(3) Other segment items include cost reimbursements, share-based compensation, amortization of cloud computing software implementation costs, and other.

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The following table shows the composition of our Modernization expense.

Three Months Ended

($ in millions) March 31, 2026 March 31, 2025

Three Months Ended Six Months Ended

($ in millions) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

Advisory services

$ ( 1 ) $ 22 $ ( 1 ) $ 31

Consulting (implementation)

Transition costs

$ 10 $ 34 $ 26 $ 44

The following table presents the activity for this accrual on our Balance Sheet related to our Modernization efforts.

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Cash payments ( 27 )

Balance at March 31, 2026

Balance at June 30, 2026

During the third quarter of 2025, we entered into outsourced service arrangements and completed the transition of a portion of certain corporate overhead functions to outsourced service providers.

The arrangements are for terms of five to six years , and are cancellable for convenience by us subject to a termination penalty.

As of March 31, 2026, our aggregate expected obligation under these arrangements is $ 131 million, of which $ 31 million, $ 27 million, $ 26 million, $ 26 million, $ 18 million, and $ 3 million is expected to be paid in the remainder of 2026, 2027, 2028, 2029, 2030, and thereafter, respectively, and the total penalties for early termination are $ 25 million.

As of June 30, 2026, our aggregate expected obligation under these arrangements is $ 121 million, of which $ 21 million, $ 27 million, $ 26 million, $ 26 million, $ 18 million, and $ 3 million is expected to be paid in the remainder of 2026, 2027, 2028, 2029, 2030, and thereafter, respectively, and the total penalties for early termination are $ 27 million, if cancelled.

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 1. Financial Statements