Financial Data and Key Metrics Changes - Reported contract sales increased by 10% to $834 million, with adjusted EBITDA at $278 million and margins excluding reimbursements at 23% [10][25] - Total revenue excluding cost reimbursement grew by 9% to $1.2 billion [25] - Adjusted free cash flow for the quarter was $135 million, with expectations to convert 65% to 70% of adjusted EBITDA into cash flow for the year [16][32] Business Line Data and Key Metrics Changes - The owner business outperformed, contributing to double-digit contract sales growth driven by strong volume per guest (VPG) expansion [7][10] - The member count reached nearly 725,000, with over 233,000 HGV Max members, including nearly 21,000 legacy Bluegreen members [12][30] - Rental business demand remained stable, with revenue flat at $195 million, although Las Vegas experienced softness due to lower international and convention business [14][30] Market Data and Key Metrics Changes - Occupancy remained stable at 83%, with consolidated arrivals in the third quarter equal to the prior year [11] - The company added over 20,000 packages to its pipeline, more than doubling the additions from the first quarter [11] - The annualized default rate for the consolidated portfolio stood at 10.2%, consistent with the first quarter [29] Company Strategy and Development Direction - The company is focused on enhancing the value proposition of HGV Max and driving growth in membership [12][20] - Strategic inventory recapture is expected to support long-term cash flow growth and improve the embedded value of the owner base [13] - The company is committed to returning excess cash to shareholders, with a goal of returning $600 million this year [17][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business outlook, citing stable consumer demand and positive performance indicators [8][47] - The company anticipates high single-digit contract sales growth for the year, with flat tour growth expected [27] - Management noted that while the policy landscape remains volatile, the consumer environment has been relatively stable [8][48] Other Important Information - The company successfully closed a JPY 9.5 billion timeshare securitization in Japan, marking a significant milestone [15][23] - The integration of Bluegreen is on track, with nearly achieved cost-saving targets [19][26] - The company repurchased 4.1 million shares for $150 million during the quarter, with an additional $29 million spent on share repurchases in July [31][32] Q&A Session Summary Question: Impact of higher fee-for-service mix on EBITDA - The fee-for-service mix was higher in Q2 compared to Q1, which may have a slight drag on EBITDA as it retains only a commission for those sales [36][40] Question: Demand side from Bluegreen upgrade sales to MAX - The upgrade curve for MAX has improved by 20% since its launch, with strong performance from Bluegreen members [45][46] Question: Performance of new owner sales - New owner sales have stabilized, with a 10% increase in the new buyer pipeline and 30% of transactional sales coming from new buyers [54][55] Question: Las Vegas market outlook - Visitations in Las Vegas are down, but the company can strategically allocate room nights to mitigate softness in the market [60][62] Question: Loan book performance - The loan book remains in good shape, with stable to improving delinquency rates across brands [66][68] Question: VPG growth expectations - VPG growth is expected to remain strong in Q3 but may decline in Q4 due to tough comparisons from the previous year [69][70]

Core Insights - Hilton Grand Vacations (HGV) reported $1.27 billion in revenue for Q2 2025, a year-over-year increase of 2.5% but a surprise of -7.39% compared to the Zacks Consensus Estimate of $1.37 billion [1] - The EPS for the quarter was $0.54, down from $0.62 a year ago, representing a -30.77% surprise against the consensus estimate of $0.78 [1] Revenue Breakdown - Resort and club management revenues were $183 million, exceeding the average estimate of $177.99 million [4] - Cost reimbursements generated $128 million, slightly below the estimated $130.33 million, reflecting a -0.8% change year-over-year [4] - Rental and ancillary services revenues were $195 million, matching the year-ago figure but below the estimated $197.81 million [4] - Fee-for-service commissions, package sales, and other fees totaled $165 million, slightly below the estimated $166.2 million, with a -1.2% change year-over-year [4] - Financing revenues increased by 23.5% year-over-year to $126 million, compared to the estimated $134.1 million [4] - Sales of VOIs, net, were $469 million, significantly lower than the estimated $563.5 million, with a -0.4% change year-over-year [4] Stock Performance - Shares of Hilton Grand Vacations have returned +14.2% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

[Executive Summary & Q2 2025 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q2%202025%20Highlights) This section highlights strong Q2 2025 performance with double-digit contract sales growth, robust operations, and strong adjusted free cash flow [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Mark Wang expresses satisfaction with Q2 2025 results, highlighting double-digit contract sales growth, solid operational performance, and strong adjusted free cash flow driven by financing optimization - CEO Mark Wang expressed satisfaction with Q2 performance, emphasizing **double-digit contract sales growth**, robust operational results, and strong adjusted free cash flow due to financing business optimization[3](index=3&type=chunk) - The HGV Max member value proposition continues to resonate, with the company reaffirming full-year guidance and confidence in business prospects and future value creation opportunities[3](index=3&type=chunk)[4](index=4&type=chunk) [Key Financial & Operational Highlights](index=1&type=section&id=Key%20Financial%20%26%20Operational%20Highlights) Q2 2025 saw 10.2% YoY contract sales growth to $834 million, total revenue of $1.266 billion, with net income of $25 million and adjusted diluted EPS of $0.54 Q2 2025 Key Financial Data | Indicator | Amount/Ratio | | :--------------------------------- | :---------- | | Total Contract Sales | $834 Million (+10.2% YoY) | | Total Revenue | $1.266 Billion | | Net Income Attributable to Stockholders | $25 Million | | Adjusted Net Income Attributable to Stockholders | $50 Million | | Diluted EPS | $0.25 | | Adjusted Diluted EPS | $0.54 | | Adjusted EBITDA Attributable to Stockholders | $233 Million | | Share Repurchases (Current Quarter) | 4.1 Million shares / $150 Million | | New Share Repurchase Program (2025) | $600 Million (two-year) | | FY 2025 Adjusted EBITDA Guidance (Excluding Deferrals) | $1.125 - $1.165 Billion | - Total revenue was impacted by an **$82 million net deferral**, net income and adjusted net income attributable to stockholders by a **$45 million ($0.49 per share) net deferral**, and adjusted EBITDA attributable to stockholders by a **$45 million net deferral**[4](index=4&type=chunk) - The company repurchased approximately **626,000 shares** worth **$29 million** between July 1 and July 24, 2025, with **$98 million** remaining under the 2024 repurchase program[4](index=4&type=chunk) [Company Overview](index=2&type=section&id=Company%20Overview) This section provides an overview of recent acquisitions, consolidated financial performance, and accounting changes [Recent Acquisitions](index=2&type=section&id=Recent%20Acquisitions) Hilton Grand Vacations (HGV) completed the acquisition of Bluegreen Vacations Holding Corporation on January 17, 2024 - HGV completed the acquisition of Bluegreen Vacations Holding Corporation on **January 17, 2024**[5](index=5&type=chunk) [Consolidated Financial Performance (Q2 2025 vs Q2 2024)](index=2&type=section&id=Consolidated%20Financial%20Performance%20%28Q2%202025%20vs%20Q2%202024%29) Q2 2025 diluted EPS significantly increased to $0.25, with total revenue slightly up to $1.266 billion, despite a decrease in net income and adjusted EBITDA attributable to stockholders Q2 2025 Consolidated Financial Performance Comparison | Indicator | Q2 2025 | Q2 2024 | Change (YoY) | | :----------------------------- | :------------- | :------------- | :---------- | | Diluted EPS | $0.25 | $0.02 | +$0.23 | | Net Income Attributable to Stockholders | $25 Million | $2 Million | +$23 Million | | Adjusted EBITDA Attributable to Stockholders | $233 Million | $262 Million | -$29 Million | | Total Revenue | $1.266 Billion | $1.235 Billion | +$31 Million | - Net income attributable to stockholders and adjusted EBITDA attributable to stockholders in Q2 2025 both included a **$45 million net deferral**, primarily related to projects under construction in Hawaii and Japan[7](index=7&type=chunk) [Accounting Changes](index=2&type=section&id=Accounting%20Changes) In Q1 2025, the company renamed "Sales, marketing, brand and other fees" to "Fee-for-service commissions, package sales and other" without reclassifying revenue or impacting consolidated results - In Q1 2025, the company renamed "Sales, marketing, brand and other fees" to "Fee-for-service commissions, package sales and other"[8](index=8&type=chunk) - This accounting change did not result in revenue reclassification or impact the company's consolidated results for any presented period[8](index=8&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) This section details the financial performance of Real Estate Sales and Financing, and Resort Operations and Club Management segments [Real Estate Sales and Financing](index=2&type=section&id=Real%20Estate%20Sales%20and%20Financing) Segment revenue increased by $20 million to $760 million, driven by financing income, but adjusted EBITDA and margin declined due to construction deferrals Real Estate Sales and Financing Segment Performance Comparison | Indicator | Q2 2025 | Q2 2024 | Change (YoY) | | :------------------------- | :------------- | :------------- | :---------- | | Segment Revenue | $760 Million | $740 Million | +$20 Million | | Adjusted EBITDA | $176 Million | $193 Million | -$17 Million | | Adjusted EBITDA Margin | 23.2% | 26.1% | -2.9 pp | | Contract Sales | $834 Million | $757 Million | +$77 Million | | Tours | -0.5% (YoY) | N/A | N/A | | Sales per Guest (VPG) | +11.1% (YoY) | N/A | N/A | | Fee-for-service Contract Sales Mix | 17.0% | 19.5% | -2.5 pp | - Financing revenue increased by **$24 million**, driven by a **10 basis point increase** in the weighted average interest rate of the outstanding portfolio and reduced amortization of premiums on acquired timeshare financing receivables[9](index=9&type=chunk)[12](index=12&type=chunk) - Segment adjusted EBITDA was impacted by a **$45 million net deferral** in the current quarter, compared to an **$8 million net deferral** in the prior-year quarter, both reducing reported adjusted EBITDA attributable to stockholders[10](index=10&type=chunk) [Resort Operations and Club Management](index=2&type=section&id=Resort%20Operations%20and%20Club%20Management) Segment revenue increased by $19 million to $405 million, but adjusted EBITDA and margin both decreased Resort Operations and Club Management Segment Performance Comparison | Indicator | Q2 2025 | Q2 2024 | Change (YoY) | | :------------------------- | :------------- | :------------- | :---------- | | Segment Revenue | $405 Million | $386 Million | +$19 Million | | Adjusted EBITDA | $149 Million | $152 Million | -$3 Million | | Adjusted EBITDA Margin | 36.8% | 39.4% | -2.6 pp | [Inventory & Pipeline](index=2&type=section&id=Inventory%20%26%20Pipeline) This section outlines the total contract sales pipeline and the composition of inventory by owned versus fee-for-service models [Total Contract Sales Pipeline](index=2&type=section&id=Total%20Contract%20Sales%20Pipeline) The total contract sales pipeline is estimated at $13.3 billion, with $10.7 billion from currently available inventory and $2.6 billion from future inventory - The company's total contract sales pipeline is estimated at **$13.3 billion**[14](index=14&type=chunk) - Of this, **$10.7 billion** in sales is from currently available inventory in open or soon-to-open projects, and **$2.6 billion** is from future inventory in new or existing projects[14](index=14&type=chunk) [Inventory Mix (Owned vs. Fee-for-service)](index=2&type=section&id=Inventory%20Mix%20%28Owned%20vs.%20Fee-for-service%29) Owned inventory constitutes 90.6% of the total sales pipeline, with 81.3% currently available, while fee-for-service inventory is 9.4%, with 68.2% available Inventory Composition | Inventory Type | % of Total Sales Pipeline | % Currently Available | | :------------- | :--------------- | :----------- | | Owned Inventory | 90.6% | 81.3% | | Fee-for-service Inventory | 9.4% | 68.2% | [Financial Position & Liquidity](index=3&type=section&id=Financial%20Position%20%26%20Liquidity) This section details the company's balance sheet, cash flow, leverage, and financing optimization strategies [Balance Sheet Overview](index=3&type=section&id=Balance%20Sheet%20Overview) As of June 30, 2025, the company held $269 million in cash and $323 million in restricted cash, with $4.6 billion in corporate net debt and $2.5 billion in non-recourse net debt Key Balance Sheet Data as of June 30, 2025 | Indicator | Amount | | :------------------- | :----------- | | Cash and Cash Equivalents | $269 Million | | Restricted Cash | $323 Million | | Corporate Net Debt | $4.6 Billion | | Corporate Debt Weighted Average Interest Rate | 5.991% | | Non-Recourse Net Debt | $2.5 Billion | | Non-Recourse Debt Weighted Average Interest Rate | 5.258% | [Cash Flow Analysis](index=3&type=section&id=Cash%20Flow%20Analysis) Q2 2025 free cash flow was $28 million and adjusted free cash flow was $135 million, both decreasing year-over-year, with $269 million in unrestricted cash and $794 million available on the revolving credit facility Q2 2025 Cash Flow Comparison | Indicator | Q2 2025 | Q2 2024 | Change (YoY) | | :------------- | :------------- | :------------- | :---------- | | Free Cash Flow | $28 Million | $95 Million | -$67 Million | | Adjusted Free Cash Flow | $135 Million | $370 Million | -$235 Million | - As of June 30, 2025, the company's liquidity included **$269 million** in unrestricted cash and **$794 million** in remaining borrowing capacity under its revolving credit facility[17](index=17&type=chunk) - The company has **$937 million** in notes in good standing but not yet securitized, of which approximately **$429 million** is available for warehouse borrowings or securitization, and **$260 million** in pledged notes are expected to become eligible upon meeting specific milestones[18](index=18&type=chunk) [Leverage](index=3&type=section&id=Leverage) As of June 30, 2025, the company's total net leverage ratio for the trailing twelve months, including all anticipated cost synergies, was approximately 3.9x - As of June 30, 2025, the company's total net leverage ratio for the trailing twelve months, including all anticipated cost synergies, was approximately **3.9x**[20](index=20&type=chunk) [Financing Business Optimization](index=3&type=section&id=Financing%20Business%20Optimization) HGV plans to optimize its securitization strategy by increasing non-recourse credit market usage to generate incremental cash flow for capital returns and business reinvestment - The company plans to optimize its securitization strategy by increasing the use of non-recourse credit markets, leveraging excess liquidity to generate incremental cash flow[21](index=21&type=chunk) - The generated cash flow will be used for additional capital returns and business reinvestment[21](index=21&type=chunk) [Subsequent Events](index=3&type=section&id=Subsequent%20Events) This section covers the approval of a new share repurchase program and a recent term securitization [Share Repurchase Program](index=3&type=section&id=Share%20Repurchase%20Program) On July 29, 2025, HGV's board approved a new two-year share repurchase program for up to $600 million of common stock, supplementing the existing 2024 program - On July 29, 2025, HGV's Board of Directors approved a new share repurchase program authorizing the company to repurchase up to **$600 million** of common stock over a two-year period[23](index=23&type=chunk) - This new program supplements the remaining amount under the existing 2024 repurchase program[23](index=23&type=chunk) [Term Securitization](index=3&type=section&id=Term%20Securitization) On July 11, 2025, the company completed a term securitization of approximately JPY 9.5 billion in timeshare loans through Hilton Grand Vacations Japan Trust 2025-1 at a 1.41% coupon rate - On July 11, 2025, the company completed a term securitization of approximately **JPY 9.5 billion** in timeshare loans through Hilton Grand Vacations Japan Trust 2025-1[22](index=22&type=chunk) - The securitization had a coupon rate of **1.41%**, with proceeds primarily used for general corporate purposes[22](index=22&type=chunk) [Construction Deferrals and Recognitions (ASC 606)](index=4&type=section&id=Construction%20Deferrals%20and%20Recognitions%20%28ASC%20606%29) This section explains the deferral of revenue and related expenses for projects under construction as per ASC 606, with Q2 2025 net construction deferral of $45 million [Net Construction Deferral Activity (Table T-1)](index=4&type=section&id=Net%20Construction%20Deferral%20Activity%20%28Table%20T-1%29) Under ASC 606, revenue and related expenses from sales of projects under construction are deferred until completion, with Q2 2025 net deferral at $45 million - Under ASC 606, revenue and related expenses from sales of projects under construction are deferred until project completion[24](index=24&type=chunk) Q2 2025 Net Construction Deferral Activity | Indicator | Q2 2025 (Million USD) | | :--------------------------------- | :------------------------ | | VOI Sales (Deferred) Recognized | (82) | | Cost of VOI Sales (Deferred) Recognized | (23) | | Selling and Marketing Expenses (Deferred) Recognized | (14) | | Net Construction (Deferred) Recognized | (45) | Q2 2024 Net Construction Deferral Activity | Indicator | Q2 2024 (Million USD) | | :--------------------------------- | :------------------------ | | VOI Sales Recognized (Deferred) | (13) | | Cost of VOI Sales (Deferred) Recognized | (4) | | Selling and Marketing Expenses (Deferred) Recognized | (1) | | Net Construction Recognized (Deferred) | (8) | [Additional Information](index=6&type=section&id=Additional%20Information) This section provides details on the upcoming conference call, forward-looking statements, and definitions of non-GAAP financial measures [Conference Call Details](index=6&type=section&id=Conference%20Call%20Details) Hilton Grand Vacations will host a conference call on July 31, 2025, at 11 AM ET to discuss Q2 results, with dial-in and webcast details provided - HGV will host a conference call on **July 31, 2025, at 11 AM ET** to discuss Q2 results[29](index=29&type=chunk) - Investors can participate by dialing **1-877-407-0784** (US/Canada) or **+1-201-689-8560** (International), or via webcast at https://investors.hgv.com[29](index=29&type=chunk) - A replay will be available within 24 hours until **August 14, 2025**, by dialing **1-844-512-2921** (US) or **+1-412-317-6671** (International), ID **13751067**[31](index=31&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements reflecting management's expectations for HGV's future, based on current beliefs, assumptions, and plans, subject to risks and uncertainties - This press release contains forward-looking statements reflecting management's expectations for HGV's future, based on current beliefs, assumptions, and plans[32](index=32&type=chunk) - Forward-looking statements involve HGV's revenue, earnings, taxes, cash flow, and related financial and operational metrics, as well as expectations for future operational, financial, and business performance[32](index=32&type=chunk) - HGV cautions that forward-looking statements involve known and unknown risks, uncertainties, and other factors beyond the company's control that could cause actual results to differ materially from expectations, and the company undertakes no obligation to update any forward-looking statements[33](index=33&type=chunk)[35](index=35&type=chunk) [Non-GAAP Financial Measures Definitions](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20Definitions) This section defines non-GAAP financial measures used by the company, including adjusted net income, adjusted diluted EPS, EBITDA, adjusted EBITDA, free cash flow, and adjusted free cash flow, emphasizing their utility and limitations - The company references several non-GAAP financial measures in the press release, including adjusted net income, adjusted diluted EPS, EBITDA, adjusted EBITDA, free cash flow, and adjusted free cash flow[36](index=36&type=chunk) - The company believes these additional measures are essential for investors to understand its performance and efficiency, and are widely used by securities analysts, investors, and other interested parties as common metrics for comparing performance or valuation among companies in the industry[37](index=37&type=chunk) - Non-GAAP financial measures should not be considered substitutes for GAAP net income (loss) or other measures of financial performance or liquidity, and their definitions may not be comparable to similar measures used by other companies[44](index=44&type=chunk)[49](index=49&type=chunk) [EBITDA, Adjusted EBITDA, and Attributable to Stockholders](index=7&type=section&id=EBITDA%2C%20Adjusted%20EBITDA%2C%20and%20Attributable%20to%20Stockholders) EBITDA is net income before interest, taxes, depreciation, and amortization; Adjusted EBITDA further excludes specific non-recurring and non-cash items; Attributable to Stockholders excludes non-controlling interests - EBITDA is net income (loss) before interest expense (excluding non-recourse debt), income taxes, and depreciation and amortization[41](index=41&type=chunk) - Adjusted EBITDA further adjusts EBITDA by excluding other gains, debt restructuring/extinguishment, non-cash impairment losses, share-based compensation and other compensation expenses, and acquisition, restructuring, and purchase accounting premium amortization costs[42](index=42&type=chunk) - Adjusted EBITDA attributable to stockholders is Adjusted EBITDA less the amount attributable to Big Cedar non-controlling interests[43](index=43&type=chunk) [Adjusted Net Income and Adjusted Diluted EPS](index=8&type=section&id=Adjusted%20Net%20Income%20and%20Adjusted%20Diluted%20EPS) Adjusted net income excludes acquisition, restructuring, and non-cash/one-time items; attributable to stockholders excludes non-controlling interests; adjusted diluted EPS divides adjusted net income by diluted weighted average shares - Adjusted net income is net income (loss) further adjusted by excluding acquisition, restructuring, purchase accounting premium amortization, and other non-cash and one-time expenses[48](index=48&type=chunk) - Adjusted net income attributable to stockholders excludes the amount attributable to Big Cedar non-controlling interests[48](index=48&type=chunk) - Adjusted diluted EPS is adjusted net income attributable to stockholders divided by diluted weighted average shares outstanding[48](index=48&type=chunk) [Free Cash Flow and Adjusted Free Cash Flow](index=8&type=section&id=Free%20Cash%20Flow%20and%20Adjusted%20Free%20Cash%20Flow) Free cash flow is operating cash flow minus non-inventory capital expenditures; adjusted free cash flow further adjusts for non-recourse debt activities and other one-time items, serving as liquidity indicators - Free cash flow represents cash flow from operating activities less non-inventory capital expenditures[51](index=51&type=chunk) - Adjusted free cash flow further adjusts free cash flow for net non-recourse debt activities and other one-time adjustments, including acquisition-related costs[51](index=51&type=chunk) - The company considers free cash flow and adjusted free cash flow as liquidity indicators measuring cash generated from operating activities available for investing and financing activities[52](index=52&type=chunk) [Non-GAAP Measures within Segments](index=8&type=section&id=Non-GAAP%20Measures%20within%20Segments) This section defines segment-specific non-GAAP metrics like sales revenue, real estate profit, financing profit, and resort/club management profit, used to measure efficiency and profitability of business activities - Sales revenue includes net VOI sales and commissions earned from fee-for-service VOI sales[53](index=53&type=chunk) - Real estate profit margin measures the efficiency of sales and marketing expenditures, inventory cost management, and initiatives to enhance profitability[54](index=54&type=chunk) - Financing profit margin measures the efficiency and profitability of the company's financing business related to VOI sales[55](index=55&type=chunk) - Resort and club management profit margin measures the efficiency and profitability of the resort and club management business supporting VOI sales operations[57](index=57&type=chunk) - Rental and ancillary services profit margin measures the company's ability to convert available inventory and vacant rooms into revenue and profit, as well as the profitability of other services[58](index=58&type=chunk) [Real Estate Metrics](index=9&type=section&id=Real%20Estate%20Metrics) This section defines key real estate operational metrics such as contract sales, owned/fee-for-service inventory, tours, and sales per guest (VPG), used to measure sales activity and efficiency - Contract sales represent the total amount of VOI products for which purchase agreements have been signed and at least **10%** of the contract price has been received as a down payment during the reporting period[59](index=59&type=chunk) - Sales per guest (VPG) measures the effectiveness of HGV's sales process by combining average transaction price with closing rates[62](index=62&type=chunk) - Net Owner Growth (NOG) represents the year-over-year change in the number of members[61](index=61&type=chunk) [Financial Tables](index=10&type=section&id=Financial%20Tables) This section presents the company's condensed consolidated financial statements, including balance sheets, income statements, cash flow statements, and various reconciliation tables [T-2 CONDENSED CONSOLIDATED BALANCE SHEETS](index=11&type=section&id=T-2%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, total assets were $11.738 billion, total liabilities $10.098 billion, and total stockholders' equity $1.489 billion, with changes in cash, receivables, and inventory from year-end 2024 Condensed Consolidated Balance Sheets Key Data | Indicator | 2025年6月30日 (Million USD) | 2024年12月31日 (Million USD) | | :----------------------- | :----------------------- | :------------------------ | | Cash and Cash Equivalents | 269 | 328 | | Restricted Cash | 323 | 438 | | Accounts Receivable, Net | 444 | 315 | | Timeshare Financing Receivables, Net | 2,979 | 3,006 | | Inventory | 2,406 | 2,244 | | Total Assets | 11,738 | 11,442 | | Debt, Net | 4,574 | 4,601 | | Non-Recourse Debt, Net | 2,499 | 2,318 | | Deferred Revenue | 551 | 252 | | Total Liabilities | 10,098 | 9,547 | | Total Stockholders' Equity | 1,489 | 1,752 | [T-3 CONDENSED CONSOLIDATED STATEMENTS OF INCOME](index=12&type=section&id=T-3%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Q2 2025 total revenue was $1.266 billion, with net income attributable to stockholders at $25 million and diluted EPS at $0.25, showing significant improvement year-over-year Condensed Consolidated Statements of Income (Q2 2025) | Indicator | Q2 2025 (Million USD) | Q2 2024 (Million USD) | | :--------------------------------- | :------------------------ | :------------------------ | | Sales of VOIs, Net | 469 | 471 | | Fee-for-service Commissions, Package Sales and Other | 165 | 167 | | Financing Revenue | 126 | 102 | | Resort and Club Management Revenue | 183 | 171 | | Rental and Ancillary Services Revenue | 195 | 195 | | Total Revenue | 1,266 | 1,235 | | Cost of VOI Sales | 38 | 65 | | Selling and Marketing Expenses | 479 | 453 | | Financing Expense | 54 | 44 | | Total Operating Expenses | 1,154 | 1,141 | | Interest Expense | (79) | (87) | | Net Income Attributable to Stockholders | 25 | 2 | | Diluted EPS | 0.25 | 0.02 | [T-4 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS](index=13&type=section&id=T-4%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Q2 2025 net cash from operating activities was $62 million, net cash used in investing activities was $34 million, and net cash used in financing activities was $12 million, with operating cash flow decreasing year-over-year Condensed Consolidated Statements of Cash Flows (Q2 2025) | Indicator | Q2 2025 (Million USD) | Q2 2024 (Million USD) | | :----------------------- | :------------------------ | :------------------------ | | Net Cash Provided by Operating Activities | 62 | 113 | | Net Cash Used in Investing Activities | (34) | (9) | | Net Cash (Used in) Provided by Financing Activities | (12) | (171) | | Cash, Cash Equivalents, and Restricted Cash, End of Period | 592 | 601 | | Cash and Cash Equivalents, End of Period | 269 | 328 | [T-5 FREE CASH FLOW RECONCILIATION](index=14&type=section&id=T-5%20FREE%20CASH%20FLOW%20RECONCILIATION) Q2 2025 free cash flow was $28 million and adjusted free cash flow was $135 million, both significantly lower than the prior year Free Cash Flow Reconciliation (Q2 2025) | Indicator | Q2 2025 (Million USD) | Q2 2024 (Million USD) | | :----------------------- | :------------------------ | :------------------------ | | Net Cash Provided by Operating Activities | 62 | 113 | | Capital Expenditures (Property and Equipment) | (15) | (7) | | Capitalized Software Costs | (19) | (11) | | Free Cash Flow | 28 | 95 | | Non-Recourse Debt Activities, Net | 54 | 200 | | Acquisition and Integration Related Costs | 26 | 48 | | Litigation Settlement Payments | — | 13 | | Other Adjustments | 27 | 14 | | Adjusted Free Cash Flow | 135 | 370 | [T-6 SEGMENT REVENUE RECONCILIATION](index=14&type=section&id=T-6%20SEGMENT%20REVENUE%20RECONCILIATION) Q2 2025 Real Estate Sales and Financing segment revenue was $760 million, Resort Operations and Club Management segment revenue was $405 million, contributing to a total revenue of $1.266 billion Segment Revenue Reconciliation (Q2 2025) | Indicator | Q2 2025 (Million USD) | Q2 2024 (Million USD) | | :------------------------- | :------------------------ | :------------------------ | | Real Estate Sales and Financing | 760 | 740 | | Resort Operations and Club Management | 405 | 386 | | Total Segment Revenue | 1,165 | 1,126 | | Cost Reimbursements | 128 | 129 | | Intersegment Eliminations | (27) | (20) | | Total Revenue | 1,266 | 1,235 | [T-7 SEGMENT ADJUSTED EBITDA AND ADJUSTED EBITDA ATTRIBUTABLE TO STOCKHOLDERS TO NET INCOME ATTRIBUTABLE TO STOCKHOLDERS](index=15&type=section&id=T-7%20SEGMENT%20ADJUSTED%20EBITDA%20AND%20ADJUSTED%20EBITDA%20ATTRIBUTABLE%20TO%20STOCKHOLDERS%20TO%20NET%20INCOME%20ATTRIBUTABLE%20TO%20STOCKHOLDERS) Q2 2025 adjusted EBITDA was $238 million, with adjusted EBITDA attributable to stockholders at $233 million, and segment-specific adjusted EBITDA for Real Estate Sales and Financing at $176 million and Resort Operations at $149 million Segment Adjusted EBITDA Reconciliation (Q2 2025) | Indicator | Q2 2025 (Million USD) | Q2 2024 (Million USD) | | :--------------------------------- | :------------------------ | :------------------------ | | Net Income Attributable to Stockholders | 25 | 2 | | EBITDA | 182 | 164 | | Adjusted EBITDA | 238 | 266 | | Adjusted EBITDA Attributable to Stockholders | 233 | 262 | | Real Estate Sales and Financing Segment Adjusted EBITDA | 176 | 193 | | Resort Operations and Club Management Segment Adjusted EBITDA | 149 | 152 | | Adjusted EBITDA Margin | 18.8% | 21.5% | | EBITDA Margin | 14.4% | 13.3% | [T-8 REAL ESTATE SALES PROFIT DETAIL SCHEDULE](index=16&type=section&id=T-8%20REAL%20ESTATE%20SALES%20PROFIT%20DETAIL%20SCHEDULE) Q2 2025 tours slightly decreased, but sales per guest (VPG) grew 11.1% to $3,690, with contract sales increasing to $834 million, though real estate profit and margin declined Real Estate Sales Profit Detail (Q2 2025) | Indicator | Q2 2025 | Q2 2024 | | :----------------------- | :------------- | :------------- | | Tours | 225,222 | 226,388 | | VPG | $3,690 | $3,320 | | Owned Contract Sales Mix | 83.0% | 80.5% | | Fee-for-service Contract Sales Mix | 17.0% | 19.5% | | Contract Sales | $834 Million | $757 Million | | Sales Revenue | $553 Million | $559 Million | | Real Estate Profit | $117 Million | $120 Million | | Real Estate Profit Margin | 21.2% | 21.5% | [T-9 CONTRACT SALES MIX BY TYPE SCHEDULE](index=17&type=section&id=T-9%20CONTRACT%20SALES%20MIX%20BY%20TYPE%20SCHEDULE) Q2 2025 immediate contract sales mix was 11.1%, fee-for-service contract sales mix was 17.0%, with total capital-efficient contract sales mix decreasing to 28.1% from 40.4% year-over-year Contract Sales Mix by Type (Q2 2025) | Contract Sales Type | Q2 2025 | Q2 2024 | | :----------------------- | :------------- | :------------- | | Immediate Contract Sales Mix | 11.1% | 20.9% | | Fee-for-service Contract Sales Mix | 17.0% | 19.5% | | Total Capital-Efficient Contract Sales Mix | 28.1% | 40.4% | [T-10 FINANCING PROFIT DETAIL SCHEDULE](index=17&type=section&id=T-10%20FINANCING%20PROFIT%20DETAIL%20SCHEDULE) Q2 2025 financing revenue grew to $126 million, with financing profit increasing to $72 million, maintaining a financing profit margin of 57.1% Financing Profit Detail (Q2 2025) | Indicator | Q2 2025 (Million USD) | Q2 2024 (Million USD) | | :----------------------- | :------------------------ | :------------------------ | | Interest Income | 122 | 116 | | Other Financing Revenue | 12 | 14 | | Amortization of Premiums on Acquired Timeshare Financing Receivables | (8) | (28) | | Financing Revenue | 126 | 102 | | Financing Expense | 54 | 44 | | Financing Profit | 72 | 58 | | Financing Profit Margin | 57.1% | 56.9% | [T-11 RESORT AND CLUB PROFIT DETAIL SCHEDULE](index=18&type=section&id=T-11%20RESORT%20AND%20CLUB%20PROFIT%20DETAIL%20SCHEDULE) As of June 30, 2025, total members reached 724,306, with net owner growth at 0.6%; Q2 2025 resort and club management revenue grew to $183 million, with profit at $127 million, but margin slightly decreased Resort and Club Profit Detail (Q2 2025) | Indicator | 2025年6月30日 (12 Months) | 2024年6月30日 (12 Months) | | :----------------------- | :----------------------- | :----------------------- | | Total Members | 724,306 | 720,069 | | Net Owner Growth (NOG) | 4,237 | 8,776 | | Net Owner Growth Rate (NOG %) | 0.6% | 1.7% | | Indicator | Q2 2025 (Million USD) | Q2 2024 (Million USD) | | :----------------------- | :------------------------ | :------------------------ | | Club Management Revenue | 70 | 67 | | Resort Management Revenue | 113 | 104 | | Resort and Club Management Revenue | 183 | 171 | | Resort and Club Management Expense | 56 | 48 | | Resort and Club Management Profit | 127 | 123 | | Resort and Club Management Profit Margin | 69.4% | 71.9% | [T-12 RENTAL AND ANCILLARY PROFIT DETAIL SCHEDULE](index=19&type=section&id=T-12%20RENTAL%20AND%20ANCILLARY%20PROFIT%20DETAIL%20SCHEDULE) Q2 2025 rental and ancillary services revenue remained at $195 million, but due to increased expenses, the segment recorded an $8 million loss, with the profit margin turning negative Rental and Ancillary Profit Detail (Q2 2025) | Indicator | Q2 2025 (Million USD) | Q2 2024 (Million USD) | | :----------------------- | :------------------------ | :------------------------ | | Rental Revenue | 180 | 181 | | Ancillary Services Revenue | 15 | 14 | | Rental and Ancillary Services Revenue | 195 | 195 | | Rental and Ancillary Services Expense | 203 | 188 | | Rental and Ancillary Services Profit | (8) | 7 | | Rental and Ancillary Services Profit Margin | (4.1)% | 3.6% | [T-13 REAL ESTATE SALES AND FINANCING SEGMENT ADJUSTED EBITDA](index=20&type=section&id=T-13%20REAL%20ESTATE%20SALES%20AND%20FINANCING%20SEGMENT%20ADJUSTED%20EBITDA) Q2 2025 Real Estate Sales and Financing segment adjusted EBITDA was $176 million, with a margin of 23.2%, both decreasing year-over-year Real Estate Sales and Financing Segment Adjusted EBITDA (Q2 2025) | Indicator | Q2 2025 (Million USD) | Q2 2024 (Million USD) | | :--------------------------------- | :------------------------ | :------------------------ | | Real Estate Sales and Financing Segment Revenue | 760 | 740 | | Real Estate Sales and Financing Segment Adjusted EBITDA | 176 | 193 | | Real Estate Sales and Financing Segment Adjusted EBITDA Margin | 23.2% | 26.1% | [T-14 RESORT AND CLUB MANAGEMENT SEGMENT ADJUSTED EBITDA](index=21&type=section&id=T-14%20RESORT%20AND%20CLUB%20MANAGEMENT%20SEGMENT%20ADJUSTED%20EBITDA) Q2 2025 Resort and Club Management segment adjusted EBITDA was $149 million, with a margin of 36.8%, both decreasing year-over-year Resort and Club Management Segment Adjusted EBITDA (Q2 2025) | Indicator | Q2 2025 (Million USD) | Q2 2024 (Million USD) | | :--------------------------------- | :------------------------ | :------------------------ | | Resort and Club Management Segment Revenue | 405 | 386 | | Resort and Club Management Segment Adjusted EBITDA | 149 | 152 | | Resort and Club Management Segment Adjusted EBITDA Margin | 36.8% | 39.4% | [T-15 ADJUSTED NET INCOME ATTRIBUTABLE TO STOCKHOLDERS AND ADJUSTED DILUTED EARNINGS PER SHARE (Non-GAAP)](index=22&type=section&id=T-15%20ADJUSTED%20NET%20INCOME%20ATTRIBUTABLE%20TO%20STOCKHOLDERS%20AND%20ADJUSTED%20DILUTED%20EARNINGS%20PER%20SHARE%20%28Non-GAAP%29) Q2 2025 adjusted net income attributable to stockholders was $50 million, and adjusted diluted EPS was $0.54, both lower than the prior year Adjusted Net Income Attributable to Stockholders and Adjusted Diluted EPS (Q2 2025) | Indicator | Q2 2025 (Million USD) | Q2 2024 (Million USD) | | :--------------------------------- | :------------------------ | :------------------------ | | Net Income Attributable to Stockholders | 25 | 2 | | Adjusted Net Income Attributable to Stockholders | 50 | 65 | | Diluted Weighted Average Shares | 92.2 | 104.3 | | Diluted EPS | 0.25 | 0.02 | | Adjusted Diluted EPS | 0.54 | 0.62 | [T-16 RECONCILIATION OF NON-GAAP PROFIT MEASURES TO GAAP MEASURE](index=23&type=section&id=T-16%20RECONCILIATION%20OF%20NON-GAAP%20PROFIT%20MEASURES%20TO%20GAAP%20MEASURE) Q2 2025 total profit was $308 million, comprising $117 million from real estate, $72 million from financing, $127 million from resort and club management, and a negative $8 million from rental and ancillary services Reconciliation of Non-GAAP Profit Measures to GAAP Measure (Q2 2025) | Indicator | Q2 2025 (Million USD) | Q2 2024 (Million USD) | | :--------------------------------- | :------------------------ | :------------------------ | | Net Income Attributable to Stockholders | 25 | 2 | | EBITDA | 182 | 164 | | Profit | 308 | 308 | | Real Estate Profit | 117 | 120 | | Financing Profit | 72 | 58 | | Resort and Club Management Profit | 127 | 123 | | Rental and Ancillary Services Profit | (8) | 7 |

Company Overview - Hilton Grand Vacations (HGV) is expected to report quarterly earnings on July 31, 2025, with a consensus estimate of $0.78 per share, reflecting a year-over-year increase of +25.8% [3] - Revenues are anticipated to reach $1.37 billion, which is a 10.7% increase from the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] - The Most Accurate Estimate for Hilton Grand Vacations is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +10.58% [12] Historical Performance - In the last reported quarter, Hilton Grand Vacations was expected to post earnings of $0.49 per share but only achieved $0.09, resulting in a surprise of -81.63% [13] - The company has not beaten consensus EPS estimates in any of the last four quarters [14] Market Sentiment - Despite a positive Earnings ESP, Hilton Grand Vacations currently holds a Zacks Rank of 4, making it challenging to predict an earnings beat conclusively [12] - The overall market sentiment suggests that Hilton Grand Vacations may not be a compelling earnings-beat candidate, and investors should consider other factors before making investment decisions [17] Industry Context - In the broader Zacks Hotels and Motels industry, Civeo (CVEO) is expected to report a loss of $0.03 per share for the same quarter, indicating a year-over-year change of -105.4% [18] - Civeo's revenue is projected to decline by 12.4% to $165.34 million, with a negative Earnings ESP of -933.33% despite a Zacks Rank of 2 (Buy) [19][20]

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting its growth potential [1] - The popularity of insurance companies in the Philippines since 2014 indicates a shift in investment strategies among local investors [1] - The diversification of investment portfolios across various industries and market capitalizations is becoming a common practice among investors [1] Investment Trends - There is a notable trend of investing in blue-chip companies initially, which has evolved into a broader investment strategy across different sectors [1] - The entry into the US market has been facilitated by platforms like Seeking Alpha, which provide valuable analyses for comparison with local markets [1] - The focus on specific sectors such as banking, telecommunications, retail, hotels, and logistics reflects targeted investment strategies [1]

Core Viewpoint - Hilton Grand Vacations (NYSE: HGV) has underperformed in the past year, with a loss of approximately 7% in value due to rising credit losses in its timeshare loan portfolio [1] Company Performance - The company has faced increasing credit losses on its timeshare loan portfolio, which has contributed to its poor stock performance [1] Analyst Perspective - The analysis is based on over fifteen years of experience in making contrarian bets and focusing on stock-specific turnaround stories to achieve favorable risk/reward profiles [1]

Sales and Revenue Performance - For the three months ended March 31, 2025, sales from fee-for-service and just-in-time inventory accounted for 15% and 10% of contract sales, respectively [123]. - The estimated contract sales value related to inventory currently available for sale is $13.2 billion, with capital efficient arrangements representing approximately 28% of that supply [123]. - For the three months ended March 31, 2025, 75% of contract sales were to existing owners, slightly down from 76% in the same period of 2024 [126]. - Real estate sales and financing revenues decreased by 6.1% from $687 million in Q1 2024 to $645 million in Q1 2025 [148]. - Resort operations and club management revenues increased by 8.6% from $360 million in Q1 2024 to $391 million in Q1 2025 [148]. - Total revenues for the company decreased by 0.7% from $1,156 million in Q1 2024 to $1,148 million in Q1 2025 [148]. - Sales of VOIs (Vacation Ownership Interests) decreased by $60 million or 13.7%, from $438 million in 2024 to $378 million in 2025 [161]. - Contract sales increased by $90 million or 14.3%, from $631 million in 2024 to $721 million in 2025, primarily due to a 14.4% increase in VPG (Volume Per Guest) [160]. Financial Metrics and Losses - Net loss attributable to stockholders increased from $4 million in Q1 2024 to $17 million in Q1 2025, a change of $13 million [148]. - Adjusted EBITDA attributable to stockholders decreased by 34.1% from $273 million in Q1 2024 to $180 million in Q1 2025 [148]. - The company reported a net loss of $12 million for Q1 2025 compared to a net loss of $2 million in Q1 2024 [148]. - Total segment revenues decreased by 1.1% from $1,047 million in Q1 2024 to $1,036 million in Q1 2025 [148]. - Adjusted EBITDA for the three months ended March 31, 2025, was $185 million, a decrease of $91 million or 33.0% compared to $276 million in 2024 [149]. - Net loss attributable to stockholders was $17 million for the three months ended March 31, 2025, compared to a net loss of $4 million in 2024, representing a $13 million increase in loss [153]. Expenses and Cost Management - Sales and marketing expense increased by $24 million or 6.0%, from $401 million in 2024 to $425 million in 2025 [156]. - Real estate profit decreased by $64 million or 47.8%, from $134 million in 2024 to $70 million in 2025, primarily due to decreased sales of VOIs [161]. - The provision for financing receivables losses increased by $8 million or 12.5%, from $64 million in 2024 to $72 million in 2025 [160]. - Fee-for-service commissions increased by $4 million or 6.3%, from $64 million in 2024 to $68 million in 2025 [161]. - The real estate profit margin decreased from 26.7% in 2024 to 15.7% in 2025, reflecting the impact of decreased sales and increased expenses [161]. - Share-based compensation expense increased by 33.3% from $9 million in Q1 2024 to $12 million in Q1 2025 [148]. - Acquisition and integration-related expenses decreased significantly by 74.3% from $109 million in Q1 2024 to $28 million in Q1 2025 [148]. Financing and Cash Flow - Financing propensity for the three months ended March 31, 2025, was 64%, compared to 65% for the same period in 2024 [127]. - The weighted-average FICO score for loans to U.S. and Canadian borrowers at the time of origination was 736 for 2025, down from 744 in 2024 [128]. - Financing profit increased by $5 million to $70 million for the three months ended March 31, 2025, compared to $65 million in 2024, driven by a $21 million increase in financing revenue [164][165]. - Financing revenue rose by $21 million to $125 million, primarily due to an increase in the weighted average outstanding balance of timeshare financing receivables and a decrease in premium amortization of $8 million [165]. - Financing expenses increased by $16 million to $55 million, mainly due to a $9 million rise in portfolio management expenses and a $6 million increase in consumer financing interest expense [166]. - Net cash provided by operating activities was $38 million for the three months ended March 31, 2025, compared to no cash provided in the same period in 2024 [180]. - Net cash used in investing activities was $32 million, significantly lower than $1,473 million in 2024, mainly due to the prior year's Bluegreen Acquisition [184]. - Net cash used in financing activities was $201 million, a decrease from $1,272 million in 2024, primarily due to reduced net proceeds from debt and increased share repurchases [185]. Company Operations and Market Presence - As of March 31, 2025, the company had approximately 725,000 members across its Club offerings, providing access to around 8,400 properties in the Hilton system [117]. - The company completed the acquisition of Bluegreen Vacations Holding Corporation on January 17, 2024, expanding its market presence [114]. - The company operates approximately 100 sales distribution centers in various domestic and international locations [124]. - The management fees earned from resort operations are highly predictable, typically ranging from 10% to 15% of the costs to operate the applicable resort [132]. - The company has signed a 10-year exclusive marketing agreement with Bass Pro, effective from the Bluegreen Acquisition Date, to market vacation packages [125]. - General and administrative expenses remained stable at $46 million, while depreciation and amortization rose by $5 million to $67 million, attributed to assets acquired in the Bluegreen Acquisition [171][172]. - The company has approximately $9,356 million in contractual obligations over 16 years, with $734 million due in the remainder of 2025 [186]. - The company has commitments from surety providers amounting to $669 million as of March 31, 2025, primarily consisting of escrow, subsidy, and construction-related bonds [187]. - The company is exposed to market risks from changes in interest rates and currency exchange rates, with no material change in exposure reported since the previous year [189].

Financial Data and Key Metrics Changes - Reported contract sales increased by 10% to $721 million, and adjusted EBITDA was $248 million with margins excluding reimbursements at 22% [13][23] - Total revenue excluding cost reimbursements grew by 11% to $1.1 billion [23] - Adjusted free cash flow for the quarter was $185 million, with a cash flow conversion rate of 75% [29][30] Business Line Data and Key Metrics Changes - Contract sales in the real estate business were $721 million, up 10% year-over-year, with VPG growing 15% to over $4,100 [24] - Rental and ancillary revenues reached $187 million, with a segment loss of $19 million due to elevated expenses [28] - Financing business revenue was $125 million, with segment profit at $70 million and margins of 56% [25] Market Data and Key Metrics Changes - Occupancy rate remained flat at 77%, with consolidated arrivals in the second quarter ahead of the prior year [14] - The marketing package pipeline was robust with over 725,000 packages, indicating solid booking growth [14] - Member count was 725,000 at the end of the quarter, with a net owner growth (NOG) of just under 1% [15][28] Company Strategy and Development Direction - The company is focused on enhancing lead generation, execution, and product enhancements to support EBITDA and cash flow goals [17][18] - Integration with Bluegreen is progressing well, achieving $89 million in cost synergies, with a target of $100 million by year-end [19] - The company maintains a disciplined approach to process and execution while adapting to macroeconomic volatility [10][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased macroeconomic volatility but emphasized the company's strong fundamentals and proactive initiatives [10][12] - The company is maintaining its EBITDA guidance for the year, expecting to navigate through potential uncertainties effectively [12][31] - Management expressed confidence in the demand for experiences over goods, which may continue to grow despite economic challenges [86] Other Important Information - The company repurchased $150 million worth of stock during the quarter, with a commitment to continue capital returns [30] - The liquidity position included $259 million in unrestricted cash and $870 million available under the revolving credit facility [32] Q&A Session Summary Question: Consumer behavior and forward bookings - Management noted no material changes in forward bookings, attributing stability to the prepaid nature of owner and package sales [35][37] Question: New owner mix versus owned mix - Management indicated that the mix is controllable and expects continued strong performance despite seasonal shifts [39][40] Question: Balance sheet optimization - Management clarified that a portion of unsecuritized receivables is not immediately securitizable but has a path for future securitization [46][50] Question: VPG performance and Bluegreen customer upgrades - Management reported strong VPG growth across all segments, particularly among Bluegreen owners, with significant outperformance [53] Question: KPIs and growth expectations - Management expects mid to higher single-digit VPG growth for the remainder of the year, despite some challenges in tour flow [60] Question: Strategic initiatives for financing and engagement - Management is standardizing financing programs and enhancing value propositions to drive engagement and performance [64][68]

Financial Data and Key Metrics Changes - Reported contract sales increased by 10% to $721 million, and adjusted EBITDA was $248 million with margins excluding reimbursements of 22% [12][20][22] - Total revenue excluding cost reimbursements grew by 11% to $1.1 billion [22] - Adjusted free cash flow in the quarter was $185 million, with a cash flow conversion rate of 75% [29] Business Line Data and Key Metrics Changes - Real estate contract sales were $721 million, up 10% year-over-year, with VPG growing 15% to over $4,100 [12][23] - Rental business revenues were $187 million, with a segment loss of $19 million due to elevated expenses [28] - Financing business revenue was $125 million, with segment profit of $70 million and margins of 56% [25] Market Data and Key Metrics Changes - Occupancy rate remained flat at 77%, with consolidated arrivals in the second quarter ahead of the prior year [13] - The marketing package pipeline was robust at over 725,000 packages, with confirmed travel dates increasing from the fourth quarter [13][14] - Member count was 725,000 at the end of the quarter, with NOG just under 1% [14][28] Company Strategy and Development Direction - The company is focused on enhancing lead generation, execution, and product enhancements to support EBITDA and cash flow goals [16][18] - Integration with Bluegreen is progressing, with $89 million in cost synergies achieved and a target of $100 million for the year [18] - The company maintains a disciplined approach to process and execution while adapting to macroeconomic volatility [10][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased macroeconomic volatility but noted that they have not seen material shifts in forward demand indicators [8][14] - The company is maintaining its adjusted EBITDA guidance for 2025 in the range of $1.125 billion to $1.165 billion [30] - Management expressed confidence in the business model's resilience, citing a diversified portfolio and a dedicated member base [10][11] Other Important Information - The company repurchased $150 million worth of stock during the quarter and remains committed to capital returns [29] - The liquidity position included $259 million of unrestricted cash and $870 million available under the revolving credit facility [32] Q&A Session Summary Question: Consumer behavior and forward bookings - Management noted that they have not seen changes in preview package sales or forward bookings, attributing this to their unique demand creation model [34][36] Question: New owner mix versus owned mix - Management clarified that the new buyer mix is closer to 25% to 30%, and they expect to maintain strong VPGs despite seasonal shifts [38][40] Question: Balance sheet optimization - Management discussed the current unsecuritized receivables and plans to term out their warehouse facility through ABS markets [44][46] Question: VPG performance and Bluegreen customer upgrades - Management reported strong VPG growth across all segments, particularly among Bluegreen owners, with over 40% growth in VPG for that group [52][54] Question: Economic downside scenarios - Management expressed confidence in their value proposition and ability to create demand, despite potential economic challenges [85][88]

Core Insights - Hilton Grand Vacations (HGV) reported revenue of $1.15 billion for the quarter ended March 2025, a decrease of 0.7% year-over-year, with EPS at $0.09 compared to $0.95 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $1.24 billion, resulting in a surprise of -7.47%, while the EPS surprise was -81.63% against a consensus estimate of $0.49 [1] Revenue Breakdown - Resort and club management revenues were $183 million, exceeding the estimated $173.93 million [4] - Cost reimbursements generated $133 million, slightly above the average estimate of $129.67 million, reflecting a year-over-year increase of 9% [4] - Rental and ancillary services revenues reached $187 million, compared to the estimated $186.37 million, marking a year-over-year growth of 3.3% [4] - Sales, marketing, brand, and other fees totaled $142 million, in line with the estimate of $142.07 million, but showed a decline of 2.1% year-over-year [4] - Financing revenues were $125 million, surpassing the estimate of $123.54 million, with a significant year-over-year increase of 20.2% [4] - Sales of VOIs, net, amounted to $378 million, falling short of the estimated $476.78 million, representing a year-over-year decline of 13.7% [4] Stock Performance - Shares of Hilton Grand Vacations have decreased by 11.2% over the past month, contrasting with the Zacks S&P 500 composite's decline of only 0.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]