Hilton Grand Vacations (HGV) - 2025 Q2 - Quarterly Results

Executive Summary & Q2 2025 Highlights This section highlights strong Q2 2025 performance with double-digit contract sales growth, robust operations, and strong adjusted free cash flow CEO Commentary 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] - 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][4] Key Financial & Operational Highlights 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] - 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] Company Overview This section provides an overview of recent acquisitions, consolidated financial performance, and accounting changes Recent Acquisitions 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] Consolidated Financial Performance (Q2 2025 vs Q2 2024) 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] Accounting Changes 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] - This accounting change did not result in revenue reclassification or impact the company's consolidated results for any presented period[8] Segment Performance This section details the financial performance of Real Estate Sales and Financing, and Resort Operations and Club Management segments Real Estate Sales and Financing 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][12] - 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] Resort Operations and Club Management 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 This section outlines the total contract sales pipeline and the composition of inventory by owned versus fee-for-service models Total Contract Sales Pipeline 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] - 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] Inventory Mix (Owned vs. Fee-for-service) 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 This section details the company's balance sheet, cash flow, leverage, and financing optimization strategies Balance Sheet Overview 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 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] - 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] 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] Financing Business Optimization 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] - The generated cash flow will be used for additional capital returns and business reinvestment[21] Subsequent Events This section covers the approval of a new share repurchase program and a recent term securitization Share Repurchase Program 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] - This new program supplements the remaining amount under the existing 2024 repurchase program[23] Term Securitization 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] - The securitization had a coupon rate of 1.41%, with proceeds primarily used for general corporate purposes[22] Construction Deferrals and Recognitions (ASC 606) 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) 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] 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 This section provides details on the upcoming conference call, forward-looking statements, and definitions of non-GAAP financial measures Conference Call Details 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] - 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] Forward-Looking Statements 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] - 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] - 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][35] Non-GAAP Financial Measures Definitions 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] - 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] - 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][49] EBITDA, Adjusted EBITDA, and Attributable to Stockholders 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] - 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] - Adjusted EBITDA attributable to stockholders is Adjusted EBITDA less the amount attributable to Big Cedar non-controlling interests[43] Adjusted Net Income and Adjusted Diluted EPS 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] - Adjusted net income attributable to stockholders excludes the amount attributable to Big Cedar non-controlling interests[48] - Adjusted diluted EPS is adjusted net income attributable to stockholders divided by diluted weighted average shares outstanding[48] Free Cash Flow and Adjusted Free Cash Flow 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] - 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] - 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] Non-GAAP Measures within Segments 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] - Real estate profit margin measures the efficiency of sales and marketing expenditures, inventory cost management, and initiatives to enhance profitability[54] - Financing profit margin measures the efficiency and profitability of the company's financing business related to VOI sales[55] - Resort and club management profit margin measures the efficiency and profitability of the resort and club management business supporting VOI sales operations[57] - 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] Real Estate Metrics 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] - Sales per guest (VPG) measures the effectiveness of HGV's sales process by combining average transaction price with closing rates[62] - Net Owner Growth (NOG) represents the year-over-year change in the number of members[61] Financial Tables 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 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 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 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 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 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 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 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 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 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 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 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 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 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) 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 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 |