Hilton Grand Vacations Reports Third Quarter 2026 Results

ORLANDO, Fla.--(BUSINESS WIRE)--Hilton Grand Vacations Inc. (NYSE: HGV) (“HGV” or “the Company”) today reports its third quarter 2026 results.

Third Quarter 2026 Results¹

• Total contract sales were $807 million, a decrease of 11.0% compared to the third quarter of 2025.
• Total revenues were $1.961 billion.
  • Total revenues were affected by a net construction recognition of $536 million.
• Net income attributable to stockholders was $291 million and diluted EPS was $3.70.
  • Adjusted net income attributable to stockholders was $317 million and adjusted diluted EPS was $4.03.
  • Net income and Adjusted net income attributable to stockholders were affected by a net construction recognition of $296 million, or $3.76 per share.
• Adjusted EBITDA attributable to stockholders was $609 million.
  • Adjusted EBITDA attributable to stockholders was affected by a net construction recognition of $296 million.
• The provision for financing receivable losses was 12.5% of owned contract sales primarily driven by the changes to the allowance for financing receivables losses methodology implemented during the quarter.
• The Company announces the promotion of Mike Riley to EVP, chief sales & marketing officer.
• During the third quarter, the Company repurchased 2.4 million shares of common stock for $110 million.
  • As of Oct. 22, 2026, the Company has $617 million of remaining availability under the share repurchase plans.
• The Company is reducing its guidance for the full year 2026 Adjusted EBITDA, excluding deferrals and recognitions, to a range of $1.165 billion to $1.180 billion, from the prior range of $1.225 billion to $1.265 billion.

“The underlying business model, recurring revenue streams, and cash flow generation of our business remained resilient in the third quarter, but our sales results fell short of our expectations as the initiatives we put in place over the summer to improve execution are taking longer to ramp than we anticipated,” said Mark Wang, CEO of Hilton Grand Vacations. “While we are not satisfied with our third quarter results, we were encouraged to see initial signs of progress as we exited the quarter, and we’ve accelerated our implementation efforts while adding new measures to drive conversion.”

“Looking ahead, we are updating our outlook to reflect our year-to-date performance and a more realistic view on the timing and ramp of our initiatives,” Wang continued. “Our near-term priorities are clear: enhance sales execution by increasing our conversion rates and return the business to consistent and profitable growth. We remain confident in our business model, the quality of our brands and service, and our product and inventory position, including the recent opening of Ka Haku, a Hilton Club in Waikiki.”

1. The Company’s current period results and prior year results include impacts related to deferrals of revenues and direct expenses related to the Sales of Vacation Ownership Intervals or Vacation Ownership Interests (“VOIs”) under construction that are recognized when construction is complete. These impacts are reflected in the sub-bullets.

Overview

For the quarter ended Sept. 30, 2026, diluted EPS was $3.70 compared to $0.28 for the quarter ended Sept. 30, 2025. Net income attributable to stockholders and Adjusted EBITDA attributable to stockholders were $291 million and $609 million, for the quarter ended Sept. 30, 2026, compared to Net income attributable to stockholders and Adjusted EBITDA attributable to stockholders of $25 million and $245 million, for the quarter ended Sept. 30, 2025. Total revenues for the quarter ended Sept. 30, 2026, were $1.961 billion compared to $1.300 billion for the quarter ended Sept. 30, 2025.

Net income attributable to stockholders and Adjusted EBITDA attributable to stockholders for the quarter ended Sept. 30, 2026, included a net construction recognition of $296 million relating to a project in Hawaii. Net income attributable to stockholders and Adjusted EBITDA attributable to stockholders for the quarter ended Sept. 30, 2025, included a net construction deferral of $57 million relating to projects under construction in Hawaii and Japan.

Consolidated Segment Highlights — Third Quarter of 2026

Real Estate Sales and Financing

For the quarter ended Sept. 30, 2026, Real Estate Sales and Financing segment revenues were $1.418 billion, an increase of $629 million compared to the quarter ended Sept. 30, 2025. Real Estate Sales and Financing segment Adjusted EBITDA and Adjusted EBITDA profit margin were $557 million and 39.3%, for the quarter ended Sept. 30, 2026, compared to $184 million and 23.3%, for the quarter ended Sept. 30, 2025. Real Estate Sales and Financing segment revenues in the third quarter of 2026 increased due to a $651 million increase in Sales of VOI, net, and a $21 million increase in financing revenue partially offset by a $43 million decrease in fee-for-service commissions, package sales and other fees.

Real Estate Sales and Financing segment Adjusted EBITDA reflects a net construction recognition of $296 million for the quarter ended Sept. 30, 2026, compared to $57 million net construction deferral for the quarter ended Sept. 30, 2025. The net construction recognition in 2026 increased reported Adjusted EBITDA attributable to stockholders, while the net construction deferral in 2025 decreased reported Adjusted EBITDA attributable to stockholders.

Contract sales for the quarter ended Sept. 30, 2026, decreased $100 million to $807 million compared to the quarter ended Sept. 30, 2025. For the quarter ended Sept. 30, 2026, VPG decreased by 12.5% and tour flow increased 1.7% compared to the quarter ended Sept. 30, 2025. For the quarter ended Sept. 30, 2026, fee-for-service contract sales represented 11.5% of contract sales compared to 17.2% for the quarter ended Sept. 30, 2025. For the quarter ended Sept. 30, 2026, the provision for financing receivables losses decreased $37 million compared to the quarter ended Sept. 30, 2025, primarily due to the impact of the change in accounting estimate in connection with the methodology changes related to the allowance for originated financing receivable losses discussed below.

Financing revenues for the quarter ended Sept. 30, 2026, increased by $21 million compared to the quarter ended Sept. 30, 2025. This was driven primarily by an increase in the average outstanding balance of the timeshare financing receivables portfolio and a decrease in the premium amortization of acquired timeshare financing receivables of $4 million.

Resort Operations and Club Management

For the quarter ended Sept. 30, 2026, Resort Operations and Club Management segment revenues were $416 million, an increase of $10 million compared to the quarter ended Sept. 30, 2025. Resort Operations and Club Management segment Adjusted EBITDA and Adjusted EBITDA profit margin were $158 million and 38.0%, for the quarter ended Sept. 30, 2026, compared to $159 million and 39.2%, for the quarter ended Sept. 30, 2025. Resort Operations and Club Management segment revenues increased primarily due to increases of $6 million in rental revenue and $3 million in resort and club management revenue.

Balance Sheet and Liquidity

Total cash and cash equivalents were $227 million and total restricted cash was $275 million as of Sept. 30, 2026.

As of Sept. 30, 2026, the Company had $4.9 billion of corporate debt, net outstanding with a weighted average interest rate of 5.751% and $2.9 billion of non-recourse debt, net outstanding with a weighted average interest rate of 5.054%.

As of Sept. 30, 2026, the Company’s liquidity position consisted of $227 million of unrestricted cash and $457 million remaining borrowing capacity under the revolving facility.

As of Sept. 30, 2026, the Company had $450 million remaining borrowing capacity under the Timeshare Facility and $175 million remaining borrowing capacity under the Big Cedar Timeshare Facility. As of Sept. 30, 2026, the Company had $1.3 billion of notes that were current on payments but not securitized. Of that figure, approximately $851 million could be monetized through either warehouse borrowing or securitization while another $383 million of mortgage notes anticipate being eligible following certain customary milestones such as first payment, deeding and recording.

Free cash flow was $52 million for the quarter ended Sept. 30, 2026, compared to $(4) million for the same period in the prior year. Adjusted free cash flow was $63 million for the quarter ended Sept. 30, 2026, compared to $23 million for the same period in the prior year. Adjusted free cash flow for the quarter ended Sept. 30, 2026, and 2025 includes add-backs of $25 million and $49 million for acquisition and integration related costs.

As of Sept. 30, 2026, the Company’s total net leverage on a trailing 12-month basis was approximately 3.9x.

Changes to the Company's Allowance for Financing Receivables Losses Methodology

During the third quarter of 2026, the Company made certain changes to its allowance for financing receivables methodology to reflect the continued integration of its previously acquired businesses and the Company's expectation that future owners will represent a composite of all historical owners. The changes to the Company's methodology included combining the historical performance of timeshare financing receivables from these businesses into a single static pool model that stratifies the receivables by FICO score and equity percentage at the time of sale, consistent with the Company's integrated underwriting standards. These changes were accounted for prospectively as a change in accounting estimate. As a result, HGV recorded a $55 million decrease in the allowance for originated timeshare financing receivables. The change reduced the provision for financing receivables losses, which resulted in an increase to Sales of VOIs, net.

Total Construction Deferrals and/or Recognitions Included in Results Reported Under Accounting Standards Codification Topic 606 (“ASC 606”)

The Company’s Adjusted EBITDA as reported under ASC 606 includes construction-related recognitions and deferrals of revenues and related expenses as detailed in Table T-1 below. Under ASC 606, the Company defers revenues and related expenses pertaining to sales at projects that occur during periods when that project is under construction until the period when construction is completed.

Conference Call

Hilton Grand Vacations will host a conference call on Oct. 29, 2026, at 9 a.m. (ET) to discuss third quarter results.

To access the live teleconference, please dial 1-877-407-0784 in the U.S./Canada (or +1-201-689-8560 internationally) approximately 15 minutes prior to the teleconference’s start time. A live webcast will also be available by logging onto the HGV Investor Relations website at http://investors.hgv.com/events-and-presentations.

In the event of audio difficulties during the call on the toll-free number, participants are advised that accessing the call using the +1-201-689-8560 dial-in number may bypass the source of audio difficulties.

A replay will be available beginning three hours after the teleconference’s completion through Nov. 12, 2026. To access the replay, please dial 1-844-512-2921 in the U.S. (+1-412-317-6671 internationally) using ID#13758081. A webcast replay and transcript will also be available within 24 hours after the live event at https://investors.hgv.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements convey management’s expectations as to the future of HGV, and are based on management’s beliefs, expectations, assumptions and such plans, estimates, projections and other information available to management at the time HGV makes such statements. Forward-looking statements include all statements that are not historical facts, and may be identified by terminology such as the words “outlook,” “believe,” “expect,” “potential,” “goal,” “continues,” “may,” “will,” “should,” “could,” “would,” “seeks,” “approximately,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “future,” “guidance,” “target,” or the negative version of these words or other comparable words, although not all forward-looking statements may contain such words. The forward-looking statements contained in this press release include statements related to HGV’s revenues, earnings, taxes, cash flow and related financial and operating measures, and expectations with respect to future operating, financial and business performance and other anticipated future events and expectations that are not historical facts.

HGV cautions you that our forward-looking statements involve known and unknown risks, uncertainties and other factors, including those that are beyond HGV’s control, which may cause the actual results, performance or achievements to be materially different from the future results. Any one or more of these risks or uncertainties, could adversely impact HGV’s operations, revenue, operating profits and margins, key business operational metrics, financial condition or credit rating.

For a more detailed discussion of these factors, see the information under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in HGV’s most recent Annual Report on Form 10-K, which may be supplemented and updated by the risk factors in HGV’s quarterly reports, current reports and other filings HGV makes with the SEC.

HGV’s forward-looking statements speak only as of the date of this communication or as of the date they are made. HGV disclaims any intent or obligation to update any “forward-looking statement” made in this communication to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

Presentation of Financial Information

Financial information discussed in this press release includes certain non-GAAP financial measures such as Adjusted Net Income or Loss, Adjusted Net Income or Loss Attributable to Stockholders, Adjusted Diluted EPS, EBITDA, Adjusted EBITDA, Adjusted EBITDA Attributable to Stockholders, EBITDA profit margin, Adjusted EBITDA profit margin, Free Cash Flow and Adjusted Free Cash Flow, profits and profit margins for HGV’s key activities - real estate, financing, resort and club management, and rental and ancillary services.

Please see the tables in this press release and “Definitions” for additional information and reconciliations of such non-GAAP financial measures.

These non-GAAP financial measures differ from reported GAAP results and are intended to illustrate what management believes are relevant period-over-period comparisons. The Company believes these additional measures are also important in helping investors understand the performance and efficiency with which we are able to convert revenues for each of these key activities into operating profit, both in dollars and as margins, and are frequently used by securities analysts, investors and other interested parties as one of common performance measures to compare results or estimate valuations across companies in our industry. Management also internally uses these measures to assess our operating performance, both absolutely and in comparison to other companies, and in evaluating or making selected compensation decisions. Exclusion of items in the Company's non-GAAP presentation should not be considered an inference that these items are unusual, infrequent or non-recurring.

The Company refers to Adjusted EBITDA guidance excluding deferrals and recognitions, which does not take into account any future deferrals of revenues and direct expenses related to the sales of VOIs under construction that are recognized, only on a non-GAAP basis, as the quantification of reconciling items to the most directly comparable U.S. GAAP financial measure is not readily available without unreasonable effort due to uncertainties associated with the timing and amount of such items. These items may create a material difference between the non-GAAP and comparable U.S. GAAP results.

The Company may use its website as a means of disclosing information concerning its operations, results and prospects, including information which may constitute material nonpublic information, and for complying with its disclosure obligations under SEC Regulation FD. Disclosure of such information will be included on the Company's website in the Investor Relations section at https://investors.hgv.com. Accordingly, investors should monitor such section of the Company website, in addition to accessing its press releases, its submissions and filings with the SEC, and its publicly noticed conference calls and webcasts.

About Hilton Grand Vacations Inc.

Hilton Grand Vacations Inc. (NYSE:HGV) is recognized as a leading global timeshare company and is the exclusive vacation ownership partner of Hilton. With headquarters in Orlando, Florida, Hilton Grand Vacations develops, markets, and operates a system of brand-name, high-quality vacation ownership resorts in select vacation destinations. Hilton Grand Vacations has a reputation for delivering a consistently exceptional standard of service, and unforgettable vacation experiences for guests and approximately 715,000 Club Members. Membership with the Company provides best-in-class programs, exclusive services and maximum flexibility for our Members around the world.

For more information, visit www.corporate.hgv.com. Follow us on Instagram, Facebook, LinkedIn, X (formerly Twitter), Pinterest and YouTube.

HILTON GRAND VACATIONS INC.

DEFINITIONS

EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders

EBITDA, presented herein, is a financial measure that is not recognized under U.S. GAAP that reflects net income (loss), before interest expense (excluding non-recourse debt), a provision for income taxes and depreciation and amortization.

Adjusted EBITDA, presented herein, is calculated as EBITDA, as previously defined, further adjusted to exclude certain items, including, but not limited to, gains, losses and expenses in connection with: (i) other gains and losses, including asset dispositions and foreign currency transactions; (ii) debt restructurings/retirements; (iii) non-cash impairment losses; (iv) share-based and other compensation expenses; and (v) other items, including but not limited to costs associated with acquisitions, restructuring, amortization of premiums and discounts resulting from purchase accounting, and other non-cash and one-time charges.

Adjusted EBITDA Attributable to Stockholders is calculated as Adjusted EBITDA, as previously defined, excluding amounts attributable to the noncontrolling interest in Bluegreen/Big Cedar Vacations in which HGV owns a 51% interest (“Big Cedar”).

EBITDA profit margin, presented herein, represents EBITDA, as previously defined, divided by total revenues. Adjusted EBITDA profit margin, presented herein, represents Adjusted EBITDA, as previously defined, divided by total revenues.

EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders are not recognized terms under U.S. GAAP and should not be considered as alternatives to net income (loss) or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. In addition, our definitions of EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders may not be comparable to similarly titled measures of other companies.

Investor Contact:
Mark Melnyk
407-613-3327
mark.melnyk@hgv.com

Media Contact:
Lauren George
407-613-8431
lauren.george@hgv.com