Core Viewpoint - The company is focused on discussing its strategic priorities, competitive positioning, and plans for delivering durable compounding growth and strong shareholder returns over the next three years [1] Group 1 - The event is the 2026 Investor Day, held in Jersey City, aimed at engaging with investors and stakeholders [1] - The company emphasizes the importance of gathering familiar faces and new attendees to strengthen relationships and share insights [1]

Financial Data and Key Metrics Changes - Contract sales grew by 10% in 2025, marking the highest growth since 2022, with Adjusted EBITDA of $1.15 billion, a 4% increase year-over-year [16][18] - Total revenue before cost reimbursements for the quarter increased by 1% to $1.3 billion, with Adjusted EBITDA to shareholders growing 12% to $324 million [18][19] - Adjusted free cash flow for the year was $756 million, or over $8.25 per share, with 79% of that cash flow returned to shareholders [17][26] Business Line Data and Key Metrics Changes - In the real estate business, contract sales for the quarter grew 2% to $852 million, with tours up 9% year-over-year to 225,000 [18][19] - The financing business reported revenues of $134 million for the fourth quarter, with profit margins of 60% [20] - The resort and club business saw revenue growth of 6% to $219 million for the quarter, with segment profit margins of 73% [24] Market Data and Key Metrics Changes - The company surpassed pro forma consolidated 2019 tour flow levels for the first time, indicating strong recovery and growth in market demand [11][18] - The annualized default rate for consolidated portfolios improved to 9.86%, reflecting a 24 basis points improvement from the previous quarter [21] Company Strategy and Development Direction - The company is focused on four strategic priorities: attracting new customers cost-effectively, enhancing member lifetime value, product evolution and innovation, and driving operational excellence [10][12] - The introduction of HGV Max has driven a greater than 20% increase in lifetime value for Max members compared to non-Max members [12] - The company aims to maintain a robust pace of share repurchases at approximately $150 million per quarter without increasing leverage [27][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a stable consumer environment where travel remains a priority, carrying significant momentum into 2026 [9] - The guidance for 2026 anticipates low single-digit contract sales growth and mid-single-digit EBITDA growth, with expectations for improved cash flow conversion [28][29] - Management highlighted the importance of operational excellence and cost management as key drivers for future performance [14] Other Important Information - The company achieved $100 million in cost synergies from the Bluegreen acquisition ahead of schedule [16][14] - The company has a liquidity position of over $1 billion, consisting of $239 million in unrestricted cash and $809 million available under its revolving credit facility [31] Q&A Session Summary Question: Can you provide expectations for quarterly cadence, specifically for tour growth and VPG? - Management indicated high single-digit growth for tour flow in Q1, with a high single-digit decline in VPG due to tough comparisons from the previous year [34][39] Question: Can you clarify the uptick in the fourth quarter loan loss provision related to upgrades? - Management explained that the increase was due to changes in underwriting processes and the release of reserves associated with upgraded loans, which should stabilize in 2026 [42][43] Question: What is the company's strategy regarding excess inventory and potential asset streamlining? - Management confirmed ongoing analysis of the portfolio to optimize assets, indicating that some acquired properties may not align with long-term goals [50][51] Question: How is the sales force performing and are there any strategic changes? - Management praised the sales force for achieving significant growth and indicated ongoing improvements in team capabilities across various markets [67][68]

Financial Data and Key Metrics Changes - In 2025, the company achieved record net revenues of $780.6 million, representing a 24% year-over-year increase, and adjusted EBITDA of $460.5 million, up 15% year-over-year [25][31] - The company generated over $329 million in cash from operations in 2025 and ended the year with over $386 million in cash, an increase of approximately $224 million from the end of 2024 [7][31] - GAAP net income for the quarter was $17 million, up 36% year-over-year, while full-year GAAP net income was $62.9 million, down 9% year-over-year due to a one-time loss on extinguishment of debt [29][30] Business Line Data and Key Metrics Changes - Jornay PM net revenue was $45.9 million in Q4, up 57% year-over-year, and $148.9 million for the full year, up 48% compared to pro forma 2024 revenue [26][31] - The pain portfolio generated $631.7 million in 2025, up 6% year-over-year, with all three core pain medicines delivering full-year growth [7][21] - Belbuca net revenue was $59.1 million in Q4, up 7% year-over-year, and $221.7 million in 2025, up 5% year-over-year [26][27] Market Data and Key Metrics Changes - Jornay's market share of the long-acting branded methylphenidate market grew to nearly 26% in Q4, up 6.5 percentage points year-over-year [18] - The pediatric and adolescent segment, which represents about 80% of total prescriptions, grew 14% year-over-year, while the adult segment grew 24% year-over-year [18][19] - The prescriber base for Jornay PM reached an all-time high of over 29,000 in Q4, up 21% year-over-year [18] Company Strategy and Development Direction - The company focuses on three strategic priorities: driving growth for Jornay PM, maximizing the durability of the pain portfolio, and strategically deploying capital to enhance shareholder value [4][10] - The company aims to expand its portfolio through business development while maintaining a strong balance sheet, as evidenced by the closing of a $980 million syndicated credit facility [8][34] - The company is committed to maximizing the life cycle of its pain portfolio and ensuring accessibility to its medicines [9][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive growth in 2026, expecting Jornay revenue to be in the range of $190 million-$200 million, representing over 30% annual growth [11][32] - The company anticipates a modest quarter-over-quarter decline in revenues in Q1 2026 due to typical seasonal dynamics, but remains optimistic about long-term growth [32][33] - Management highlighted the importance of ongoing investments in sales and marketing to support future growth, particularly for Jornay PM [10][11] Other Important Information - The company published its 2025 ESG report, emphasizing its commitment to social responsibility alongside financial performance [5][6] - The company repurchased $25 million in shares through its share repurchase program, reinforcing its capital deployment strategy [8][34] Q&A Session Questions and Answers Question: What assumptions underlie 2026 Jornay guidance, and how should we think about factors that could lead to upside? - Management indicated that growth is expected to be driven by demand growth, with relative stability in gross to nets between 2025 and 2026 [40] Question: Have there been any competitive developments in the ADHD market that could potentially impact Jornay demand? - Management noted that there have not been any material changes in competitive dynamics that could impact Jornay demand, emphasizing its differentiated delivery technology [41] Question: Can you help us frame how you're thinking about the ramp to peak for Jornay? - Management stated that they have not previously discussed peak sales but expect to see the impact of expanded sales and marketing efforts throughout 2026 [45] Question: How promotionally sensitive are Belbuca and Xtampza at this stage of their life cycle? - Management indicated that Belbuca and Xtampza are promotionally sensitive, and the sales team is focused on navigating the complex payer environment [47] Question: How are you thinking about acquiring a rare disease-focused asset? - Management expressed interest in rare disease assets but emphasized a preference for commercial or near-commercial assets that align with existing therapeutic areas [51][54]

Strategic Priorities - The management team is focusing on several strategic priorities, particularly capital deployment and organic growth initiatives [2] - There is an emphasis on navigating through transformation and improving operational efficiency, which has been a significant topic over the last couple of years [3] Capital Deployment - Capital deployment is currently a top priority for the management, especially following a recent significant acquisition in the wealth sector [2] - The company aims to continue its growth journey through effective capital allocation [2] Organic Growth Initiatives - The company has multiple ongoing organic growth initiatives across various lines of business, which are crucial for maintaining momentum [2] - Centralizing client experience is also a key focus area for enhancing service delivery [2] Operational Efficiency - Operational efficiency has been a critical focus area, particularly in light of recent IT investments aimed at supporting the transformation journey [3]