Core Points - Rasmussen University has formed a corporate alliance with Hilton Grand Vacations (HGV) to provide educational benefits to HGV team members, including up to 100% tuition coverage for select online programs [1][3] - The alliance aims to enhance career growth opportunities for HGV employees by reducing financial barriers to education [3][4] - Eligible HGV team members can also receive up to a 20% tuition reduction for other qualified programs at Rasmussen University [2] Company Overview - Rasmussen University is an accredited institution committed to providing innovative, career-ready higher education and healthcare education, with a history of 125 years in transforming lives and strengthening communities [7][9] - The university offers a range of undergraduate and graduate programs both online and in-person across 20 campuses in the U.S. [7] Educational Programs - The programs offered by Rasmussen University are designed to help working adults advance their skills and careers through flexible, career-focused education [3][6] - The curriculum is developed with input from industry professionals, ensuring relevance to current job market needs [6] Employee Development - HGV emphasizes the importance of personal and professional growth for its team members, and the partnership with Rasmussen University is seen as a way to enhance employee development and retention [3][4] - The alliance is expected to attract significant interest from HGV employees, indicating a strong demand for educational opportunities [3]

Core Insights - U.S. small/mid-cap equities showed solid performance in Q3 2025, with Aristotle Capital's strategy returning 2.57% net of fees, underperforming the Russell 2500 Index's 9.00% total return [1] Company Overview - Hilton Grand Vacations Inc. (NYSE:HGV) is a leading global timeshare company that develops and operates high-quality vacation ownership resorts under various brand names [3] - The company has a proprietary relationship with Hilton Worldwide Holdings, allowing it to market to Hilton Honors members, which enhances its growth potential in the travel sector [3] Financial Performance - Hilton Grand Vacations Inc. reported a total revenue growth of 12% in Q3 2025, reaching $1.3 billion [4] - The stock experienced a one-month return of -5.47% but gained 10.44% over the last 52 weeks, closing at $41.45 per share on October 31, 2025, with a market capitalization of $3.546 billion [2][4] Investment Sentiment - Hilton Grand Vacations Inc. was held by 32 hedge fund portfolios at the end of Q2 2025, indicating a slight increase from 31 in the previous quarter [4] - Despite its potential, the company is viewed as having less upside compared to certain AI stocks, which are considered to carry greater upside potential and less downside risk [4]

Financial Performance - Total revenues for the three months ended September 30, 2025, were $1,300 million, a decrease of $6 million (0.5%) compared to $1,306 million in 2024[174]. - Net income attributable to stockholders for the three months ended September 30, 2025, was $25 million, a decrease of $4 million (13.8%) from $29 million in 2024, while for the nine months, it increased by $6 million (22.2%) to $33 million from $27 million[195]. - Adjusted EBITDA for the three months ended September 30, 2025, was $249 million, a decrease of $58 million (18.9%) from $307 million in 2024, and for the nine months, it was $672 million, down $177 million (20.8%) from $849 million[195]. - The company reported a decrease in real estate profit of 27.5% to $121 million in Q3 2025 from $167 million in Q3 2024[197]. - Total Adjusted EBITDA attributable to stockholders for the nine months ended September 30, 2025, was $658 million, down 21.5% from $838 million in the same period of 2024[198]. Sales and Contract Performance - Contract sales increased by $130 million (16.7%) for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to a 14.7% increase in VPG and new inventory available for sale[169]. - For the nine months ended September 30, 2025, contract sales increased by $297 million (13.4%) compared to the same period in 2024, driven by a similar increase in VPG and new inventory[170]. - 73% of contract sales for the nine months ended September 30, 2025, were to existing owners, an increase from 70% in the same period of 2024[149]. - Sales of VOIs, net decreased by $77 million (14.0%) for the three months ended September 30, 2025, and by $139 million (9.5%) for the nine months ended September 30, 2025[169]. - Net Sales of VOIs recognitions dropped by $148 million for the three months ended September 30, 2025, compared to an increase of $49 million in 2024[172]. Membership and Market Presence - The company had over 720,000 members across its Club offerings as of September 30, 2025, providing access to approximately 9,000 properties[140]. - The company completed the acquisition of Bluegreen Vacations Holding Corporation on January 17, 2024, expanding its market presence[137]. - The company operates approximately 100 sales distribution centers in various domestic and international locations[147]. - The company has entered into exclusive marketing agreements with brands like Bass Pro and Choice Hotels to enhance its marketing and sales activities[148]. Financing and Debt Management - Financing propensity for the nine months ended September 30, 2025, was 66%, down from 69% in the same period of 2024[150]. - The weighted-average FICO score for loans to U.S. and Canadian borrowers was 734 for the nine months ended September 30, 2025, compared to 740 in 2024[151]. - Interest expense decreased by $5 million (6.0%) for the three months and $15 million (6.0%) for the nine months ended September 30, 2025, due to a reduction in overall debt balance and interest rates[193]. - The company had $632 million remaining borrowing capacity under the revolver facility as of September 30, 2025[205]. - The company completed a securitization of approximately $300 million of gross timeshare financing receivables in June 2025[205]. Revenue and Expense Analysis - Real estate profit margin decreased to 21.3% for the three months ended September 30, 2025, down from 26.4% in 2024[175]. - Financing revenue increased by $23 million (21.9%) for the three months ended September 30, 2025, compared to $105 million in 2024[182]. - General and administrative expenses rose by $14 million (31.8%) for the three months and $15 million (10.2%) for the nine months ended September 30, 2025, mainly due to employee-related costs[191]. - Rental revenues for the three months ended September 30, 2025, were $173 million, a 1.2% increase from $171 million in 2024, while for the nine months, revenues were $527 million, also a 1.2% increase from $521 million[188]. - Rental and ancillary services expenses increased by $12 million for the three months and $60 million for the nine months ended September 30, 2025, primarily due to maintenance fees[190]. Cash Flow and Shareholder Returns - Operating activities generated $133 million in net cash for the nine months ended September 30, 2025, a decrease of $71 million compared to $204 million in the same period of 2024[203]. - The company reported a total of $234 million in inventory-related purchase commitments to be fulfilled over the next 10 years as of September 30, 2025[202]. - During the nine months ended September 30, 2025, the company repurchased 11 million shares for $450 million[205]. - The company approved a new share repurchase program for up to $600 million over two years, with $578 million remaining under this plan as of September 30, 2025[210]. - As of September 30, 2025, total cash and cash equivalents were $215 million, with restricted cash of $328 million[205].

Financial Data and Key Metrics Changes - Contract sales increased by 17% to a record $907 million, driving significant improvements in real estate business profitability [4][6][20] - Adjusted EBITDA reached $302 million with margins excluding reimbursements at 24%, consistent with the prior year [20][24] - Total revenue before cost reimbursement grew by 12% to $1.3 billion [20] Business Line Data and Key Metrics Changes - Real estate profit was $178 million with margins of 27%, up 300 basis points year-over-year [23] - Financing business revenue was $128 million with a profit of $75 million, resulting in margins of 59% [23] - Member count reached nearly 722,000, reflecting increased recapture rates [9][24] Market Data and Key Metrics Changes - VPG (Volume Per Guest) increased by 15% year-over-year to $3,900, with broad strength across both owner and new buyer channels [21][24] - Consolidated tour growth was up 2% year-over-year, with 232,000 tours conducted [20][24] - Occupancy remained stable at 83%, with fourth-quarter arrivals ahead of the prior year [8][20] Company Strategy and Development Direction - The company is focused on enhancing its value proposition and improving cost efficiencies while continuing to invest in long-term capabilities [5][17] - Strategic initiatives include growing lead flow, improving execution, and enhancing the customer experience through technology and partnerships [10][16] - The integration of Bluegreen Vacations is progressing well, with $94 million in run-rate cost synergies achieved [14][20] Management's Comments on Operating Environment and Future Outlook - The consumer environment remains stable, with healthy travel demand indicated by forward indicators and member surveys [5][6] - The company expects to maintain high single-digit contract sales growth and reiterated its existing EBITDA guidance for the year [6][28] - Management expressed confidence in the investments made, which are anticipated to drive sustainable value creation [5][17] Other Important Information - The company repurchased 3.3 million shares for $150 million during the quarter, with a total of 12.4 million shares repurchased year-to-date [10][28] - The liquidity position as of September 30 included $215 million in unrestricted cash and $632 million available under a revolving credit facility [28][29] Q&A Session Summary Question: Expectations for 2026 and financing profit - Management indicated strong momentum heading into 2026, expecting good tour flow growth driven by investments made [33][40] - Financing profitability may face headwinds but is expected to hold steady due to a growing portfolio and optimization efforts [56][57] Question: Strong VPG results compared to the travel industry - The company attributed the 15% VPG growth to effective execution, innovative membership programs, and high satisfaction rates among members [62][66] Question: Flow through and marketing package expenses - Higher marketing package expenses of approximately $7 million were incurred, which will convert to revenue in future periods [72][81] - Reportability issues were noted, with an $8 million increase in contract sales during the last 10 days of the quarter [82] Question: Rental business recovery - Recovery in the rental business is expected to be gradual, driven by contract sales and recaptured inventory [102][104] Question: Delinquency rates and consumer stability - Delinquency rates for subprime loans remain stable, attributed to strong consumer engagement and satisfaction [147][150]

Core Insights - Hilton Grand Vacations (HGV) reported $1.3 billion in revenue for Q3 2025, reflecting a year-over-year decline of 0.5% and an EPS of $0.60, down from $0.67 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $1.36 billion by 4.23%, and the EPS was 40.59% below the consensus estimate of $1.01 [1] Revenue Breakdown - Resort and club management revenues were $193 million, exceeding the estimated $180.77 million [4] - Cost reimbursements generated $132 million, slightly above the $130 million estimate, marking a year-over-year increase of 1.5% [4] - Rental and ancillary services revenues reached $186 million, surpassing the $184.59 million estimate, with a year-over-year change of 1.6% [4] - Fee-for-service commissions, package sales, and other fees totaled $188 million, significantly above the $163.19 million estimate, representing an 18.2% year-over-year increase [4] - Financing revenues were $128 million, slightly below the $132.81 million estimate, but showed a year-over-year increase of 21.9% [4] - Sales of VOIs, net, were $473 million, falling short of the $567.88 million estimate, reflecting a 14% year-over-year decline [4] Stock Performance - Shares of Hilton Grand Vacations have returned +4.6% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

分组1 - Hilton Grand Vacations (HGV) reported quarterly earnings of $0.6 per share, missing the Zacks Consensus Estimate of $1.01 per share, and down from $0.67 per share a year ago, representing an earnings surprise of -40.59% [1][2] - The company posted revenues of $1.3 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 4.23%, and compared to year-ago revenues of $1.31 billion [2] - Over the last four quarters, Hilton Grand Vacations has not surpassed consensus EPS or revenue estimates [2][6] 分组2 - The stock has added about 13.4% since the beginning of the year, underperforming the S&P 500's gain of 17.2% [3] - The current consensus EPS estimate for the coming quarter is $1.16 on $1.39 billion in revenues, and for the current fiscal year, it is $2.69 on $5.25 billion in revenues [7] - The Zacks Industry Rank for Hotels and Motels is currently in the bottom 25% of over 250 Zacks industries, indicating a challenging outlook for the industry [8]

Financial Performance - Total revenues for Q3 2025 were $1.300 billion, impacted by a net deferral of $99 million[4] - Net income attributable to stockholders was $25 million, with diluted EPS at $0.28, while adjusted net income was $54 million and adjusted diluted EPS was $0.60[4] - Adjusted EBITDA for Q3 2025 was $249 million, down 18.9% from $307 million in Q3 2024[72] - Net income attributable to stockholders for Q3 2025 was $25 million, down from $29 million in Q3 2024[65] - Net income for Q3 2025 was $30 million, a decrease of 6.25% from $32 million in Q3 2024[67] - Total revenues for Q3 2025 were $1.3 billion, slightly down from $1.306 billion in Q3 2024, representing a decrease of 0.46%[71] - Adjusted net income attributable to stockholders for Q3 2025 was $54 million, a decrease of 20.6% from $68 million in Q3 2024[88] - Total net income for the nine months ended September 30, 2025, was $46 million, compared to $34 million in the same period of 2024, indicating a growth of 35.3%[88] Revenue Segments - Real Estate Sales and Financing segment revenues decreased by $25 million to $789 million, with Adjusted EBITDA at $184 million and a profit margin of 23.3%[9] - Financing revenues increased by $23 million, driven by a higher average balance of the originated portfolio[12] - Resort Operations and Club Management segment revenue increased by $23 million to $406 million, with Adjusted EBITDA at $159 million and a profit margin of 39.2%[13] - Real estate sales and financing revenue for Q3 2025 was $789 million, a decrease of 3.07% from $814 million in Q3 2024[71] - Rental and ancillary services revenues for the three months ended September 30, 2025, were $186 million, slightly up from $183 million in 2024, indicating a growth of 1.6%[83] Cash Flow and Expenses - Free cash flow was $(4) million for Q3 2025, compared to $59 million for the same period in the prior year[19] - The company reported a net cash provided by operating activities of $34 million for Q3 2025, down from $91 million in Q3 2024[69] - Interest expense for Q3 2025 was $79 million, slightly down from $84 million in Q3 2024[89] - General and administrative expenses increased to $58 million in Q3 2025 from $44 million in Q3 2024, marking a rise of 31.8%[89] - The company incurred acquisition and integration-related expenses totaling $237 million, highlighting ongoing strategic investments[26] Market Metrics - The estimated value of the total contract sales pipeline is $14.1 billion, with $10.7 billion related to currently available inventory[14] - Contract sales, an important operational metric, reflect the overall volume and pace of sales, with a focus on fee-for-service, just-in-time, developed, and points-based products[57] - Net Owner Growth (NOG) represents the year-over-year change in membership, a critical metric for assessing customer retention and growth[59] - Volume per guest (VPG) measures sales effectiveness, calculated by dividing contract sales by tour flow, indicating the average transaction price and closing rate[60] - Total members as of September 30, 2025, were 721,488, a slight decrease from 721,504 in 2024, showing a net owner growth decline of 16 members[81] Asset and Liability Overview - Total cash and cash equivalents were $215 million, with total corporate debt at $4.7 billion and a weighted average interest rate of 5.980%[16] - Total assets as of September 30, 2025, were $11,680 million, an increase from $11,442 million at the end of 2024[64] - Total liabilities increased to $10,139 million as of September 30, 2025, compared to $9,547 million at the end of 2024[64] Yearly Performance Highlights - Adjusted EBITDA for the year reached $1,094 million, reflecting a strong operational performance despite challenges[26] - Adjusted EBITDA attributable to stockholders was $1,078 million for the year, showcasing effective cost management strategies[26] - Interest expense for the year amounted to $329 million, indicating a slight increase from the previous year[26] - The company reported a depreciation and amortization expense of $268 million for the year, consistent with prior periods[26] - The company anticipates future revenues and direct expenses related to sales of VOIs under construction, which may impact financial results[36]

Core Viewpoint - Hilton Grand Vacations Inc. announces an impressive entertainment lineup for the 2026 Hilton Grand Vacations Tournament of Champions, which will take place at Lake Nona Golf & Country Club from January 29 to February 1, 2026, featuring LPGA champions alongside celebrity athletes, musicians, and TV personalities for a high-level competition and memorable experiences [1]. Company Summary - Hilton Grand Vacations Inc. is positioned as a leading company in vacation ownership and experiences, enhancing its brand visibility through high-profile events like the Tournament of Champions [1]. Industry Summary - The event marks the LPGA Tour season opener, indicating the significance of such tournaments in promoting women's golf and attracting diverse audiences through the inclusion of celebrities [1].

Core Insights - Hilton Grand Vacations (NYSE: HGV) shares have increased by 15% over the past year, indicating solid performance [1] - Recent pullback in share prices is attributed to insider selling and mixed financial results, which may be influenced by accounting noise [1] Company Performance - The stock has experienced a decline from its highs, primarily due to insider selling activities [1] - Mixed results in financial performance have contributed to the volatility in share prices [1] Analyst Perspective - The analyst has over fifteen years of experience in making contrarian investment decisions based on macroeconomic views and specific stock turnaround stories [1] - The focus is on achieving outsized returns with a favorable risk/reward profile [1]

Core Insights - Hilton Grand Vacations (HGV) reported Q2 2025 results with strong contract sales but missed Wall Street forecasts for both GAAP revenue and adjusted EPS [1][5][14] - The company emphasized ongoing integration of acquired businesses, particularly Bluegreen Vacations, as a key strategic focus [1][4] Financial Performance - GAAP revenue was $1.266 billion, below the estimated $1.378 billion, while adjusted EPS (non-GAAP) was $0.54 compared to an expected $0.81 [1][2] - Adjusted EBITDA attributable to stockholders was $233 million, down 11.1% from $262 million in Q2 2024 [2] - Adjusted free cash flow dropped 63.5% year-over-year to $135 million, with free cash flow at $28 million, a 70.5% decline from the previous year [2][13] Business Segments - Contract sales increased by 10.2% to $834 million in Q2 2025, indicating solid top-line growth [2][5] - The real estate sales and financing segment generated $760 million in revenue, but profit margins faced pressure due to a $45 million net deferral related to ongoing projects [6] - Resort operations and club management revenue grew to $405 million, but adjusted EBITDA decreased from $152 million to $149 million, with a profit margin drop to 36.8% [7] - The rental and ancillary services segment reported flat revenue of $195 million but moved to a loss of $8 million from a $7 million profit compared to Q2 2024 [8] Strategic Focus - The company is focusing on expansion through acquisitions and brand partnerships, with the Bluegreen Vacations acquisition broadening its product range [4] - Inventory management is crucial, with a pipeline valued at $13.3 billion and owned inventory representing 90.6% of total contract sales pipeline [11] Shareholder Actions - In Q2 2025, the company repurchased 4.1 million shares for $150 million and approved an additional $600 million repurchase authorization [13] - The net leverage ratio remained at approximately 3.9x trailing-twelve-month EBITDA as of June 30, 2025 [13] Outlook - Management maintained its 2025 guidance for full-year adjusted EBITDA in the range of $1.125 billion to $1.165 billion, with no updates on revenue or earnings per share [14] - Key watch points include membership growth, integration pace of Bluegreen, and recovery in profit margins [15]