HGV

Image source: The Motley Fool. Thursday, July 30, 2026 at 9:00 a.m. ET Senior Vice President of Investor Relations - Mark Melnyk Chief Executive Officer - Mark Wang Chief Financial Officer - Dan Mathewes Operator: Good morning, welcome to the Hilton Grand Vacations second quarter 2026 earnings conference call. At this time, all participants have been placed in a listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question, please press star one on your touchtone phone to enter the queue. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. If you should require operator assistance, please press star zero. If using a speakerphone, please lift your handset to allow the signal to reach our equipment. Please limit yourself to one question and one follow-up to allow the opportunity for everyone to ask questions. You may re-enter the queue to ask additional questions. I would now like to turn the call over to Mark Melnyk, Senior Vice President of Investor Relations. Please go ahead, sir. Mark Melnyk: Thank you, operator, welcome to the Hilton Grand Vacations second quarter 2026 earnings call. Our discussions this morning will include forward-looking statements. Actual results could differ materially from those indicated by these forward-looking statements, and these statements are effective only as of today. We undertake no obligation to publicly update or revise these statements. For a discussion of some of the factors that could cause actual results to differ, please see the Risk Factors section of our SEC filings. Our reported results for all periods reflect accounting rules under ASC 606, which we adopted in 2018. Under ASC 606, we're required to defer certain revenues and expenses related to sales made in the period when a project is under construction and then hold off on recognizing these revenues and expenses until the period when construction is completed. The aggregate of these potentially overlapping deferrals and recognitions from various projects in any given period are known as net deferrals. Please note that in our prepared remarks today, we'll only be referring to metrics that remove the impact of net deferrals, which more accurately reflects the cash flow dynamics of our financial performance during the period. To simplify our discussion today, we've uploaded slides to our investor relations sites showing these metrics, which we'll be referring to on today's call. I'd urge you to view these slides on our website at investors.hgv.com. On slide two of these materials, you can see the deferral-adjusted metrics we'll refer to on the call. Reported results for this quarter do not reflect $54 million of net contract sales deferrals under ASC 606, which had the effect of reducing reported GAAP revenue and were related to pre-sales of our Ka Haku project. Also on slide two, we deferred net $26 million of direct expenses associated with those revenues. Adjusting for both of these items would increase the adjusted EBITDA to shareholders reported on our press release by a net $28 million to $293 million. With that, let me turn the call over to our CEO, Mark Wang. Mark? Mark Wang: Morning, everyone, and welcome to our second quarter earnings call. Our results for the quarter highlighted the strength of our business in several key areas. We generated 239,000 tours in the quarter, an increase of 6% versus the prior year, marking our fourth consecutive quarter of consolidated tour growth and demonstrating the continued demand across the platform. We also grew our adjusted EBITDA 5% to $293 million while expanding our margins to 23%, underscoring the resiliency of our operating model along with the effectiveness of our cost efficiency programs. That said, our contract sales declined versus the prior year, reflecting several factors. First, we observed faster than predicted VPG moderation at Bluegreen as we lapped the difficult comparisons from the successful launch period of HGV Max. Second, sales execution fell short of our expectation, which weighed on overall sales productivity. This was most pronounced in the back half of the quarter at a couple of our higher volume locations. Third, results reflected a higher mix of trust transactions and new buyer sales during the quarter. While these generally carry a lower average VPG than owner sales, they're an important driver to long-term embedded value. As a result, we're taking decisive action to improve our sales execution as we move through the balance of the year in order to better capitalize on the strong tour flow we're generating. While these initiatives have only recently rolled out, we believe that they'll help to drive improved execution in the back half. Importantly, we don't believe this softness was demand related. Occupancy levels remained healthy, with on-the-book arrivals in the back half remaining ahead of prior year. Tour growth across our footprint has been strong for both owners and new buyers, and we've seen sustained growth of HGV Max from new and existing members. Overall, the fundamentals of the business remain solid. Performance at our legacy business remains steady. We're generating strong tour flow, maintaining healthy profitability, and we continue to see significant long-term value creation from the Bluegreen integration and ongoing evolution of Max. Given the underlying strength of the business and confidence in the actions we're taking, we're maintaining our full-year EBITDA guidance, and we remain committed to driving improved sales productivity and delivering long-term cash flow and value creation to our shareholders. Beyond our near-term efforts to drive sales productivity, we're focused on executing strategic priorities that support our long-term algorithm of sustainable growth, margin expansion, and strong free cash flow generation. We also remain successful at attracting new buyers to our sales centers. New buyer tours increased at a high single-digit rate compared to the prior year, maintaining the strong pace we've seen since last fall. We also produced high single-digit new buyer transaction growth, which remains critical to growing our embedded value and supporting the long-term health of the business. This success was supported by the investments we made across our marketing platform over the past year, along with the strength of our lead generation channels. We also continue to focus on enhancing lifetime value. We've seen the benefits of the investments we made in HGV Max and our broader member ecosystem, which are helping to deepen member engagement and member satisfaction by reinforcing the value proposition of ownership. Nearly 300,000, or 40% of our base, are Max members today, growing 24% versus the prior year. As it relates to innovation, we continue to invest in our industry-leading experience platform. HGV Ultimate Access is operating at scale, hosting over 137,000 guests at our events this past year and generating strong contract sales. Given the positive response from our members in both satisfaction scores and upgrade sales, we'll keep our foot firmly on the gas to grow and expand what has become a core component of our offering. It was another successful quarter of programming for HGV Ultimate Access. We hosted our members at a series of events at World Cup matches in New York, Miami, and L.A. LPGA Hall of Famer and legend Annika Sörenstam joined our events at the American Century Championship to provide one-on-one coaching tips to our members at the practice range. We expanded our popular concert series with artists such as Ashley Cooke, Tucker Wetmore, and Don Felder of the Eagles. In addition, we also recently launched new tools to provide members with greater flexibility and easier access to HGV Ultimate Access, allowing them to further tailor their vacation plans around our industry-leading portfolio of experiences. Overall, Ultimate Access has grown to become a central pillar of our strategy as a vacation experience company, adding to the member value proposition and strengthening our engagement with the HGV brand. Finally, operational excellence remains at the core of how we manage our business. The teams did an excellent job managing costs, meeting our adjusted EBITDA targets through strong margin expansion, and delivering robust free cash flow. We used that cash flow to maintain our commitment to returning excess capital to our shareholders, repurchasing another $150 million of shares during the quarter. Year to date, we've purchased more than $300 million of shares, representing over 10% of our float entering the year. We also continue to execute our inventory optimization strategy, closing on the agreement we discussed last quarter to dispose of a group of non-core assets, removing them from our system. This transaction fits into our overall optimization strategy, providing us with an avenue to recycle capital, improve portfolio quality, reduce inventory carrying costs, and enhancing long-term returns. In summary, our confidence in the long-term value creation algorithm of the business remains unchanged. We're taking targeted actions to improve our sales execution while continuing to build on the strength of our business, enhance our value proposition, and drive operating efficiencies. Collectively, these initiatives support our goals of delivering sustainable growth, expanding margins, and generating strong free cash flow to create long-term shareholder value. With that, I'll turn it to Dan for more details on the numbers. Dan? Dan Mathewes: Thank you, Mark, and good morning, everyone. As Mark mentioned, we delivered EBITDA in line with our target, aided by a disciplined cost focus and the benefits of our ongoing efficiency initiatives. Although sales didn't meet our expectations, we're already taking corrective actions to improve our execution. More broadly, we continue to strategically invest in our products and our people while maintaining a focus on cost discipline to generate strong cash flow and drive overall profitability, which we demonstrated this quarter. As we look to the second half of 2026, we remain confident in our ability to achieve our full-year EBITDA and adjusted free cash flow outlook. Turning to our results for the quarter, total revenue before cost reimbursements grew 3% to $1.3 billion. Adjusted EBITDA to shareholders grew 5% to $293 million, with margins excluding reimbursements of 23%, up 40 basis points over the prior year. Within our real estate business, contract sales of $810 million were down 3% from the prior year. The decline was primarily due to the moderation in Bluegreen's elevated VPGs due to the successful launch of HGV Max in the prior year, along with the execution challenges and mix shifts Mark mentioned. New buyer contract sales represented 28% of total volume, up 70 basis points against the prior period. This was supported by another quarter of high single-digit transaction growth, reflecting tour strength aided by last year's marketing investment, along with stable close rates as compared to the prior period. Tours in the period grew 6% to 239,000, with both our owner and new borrower channels contributing to the growth. VPG was down 9% to approximately $3,400 in the quarter, reflecting the factors that I mentioned earlier. Cost of product in the period was 10%, consistent with the first quarter and down 130 basis points from the prior year. The higher mix of trust sales was the primary driver of the cost of product performance, which helped offset the lower VPG typically associated with the trust transactions. Real estate sales and marketing expense for the quarter was $397 million, or 49% of contract sales, 40 basis points lower than the prior year. Real estate profit for the quarter grew 7% to $173 million, with margins expanding 220 basis points to 28%, demonstrating the resilience of the model, along with the benefits of our focus on cost discipline and operating efficiency. In our financing business, revenue was $144 million and profit was $86 million. Excluding the amortization items associated with our acquired receivables portfolio, financing margins were 62%, up 100 basis points from the prior year. Looking at our portfolio metrics, our weighted average interest rate for originating loans was 14.4%. Combined gross receivables for the quarter were $5 billion. Our total allowance for bad debt was $1.4 billion on that $5 billion receivable balance, or 28% of the portfolio. The portfolio remains in great shape overall. As of last week, our 31-60-day delinquency trends remain stable for all three portfolios, notably at Bluegreen, which continues to improve, driven by our focus on increased equity at point of sale implemented last year. You will see when we file our 10-Q an abbreviated delinquency table, making it easier to see on a combined basis 31-90 day delinquencies as a percent of current were down nine basis points from year end. Our provision in the second quarter was 17% of own contract sales, which increased versus the prior year but remained within our targeted mid-teen range. The increase was related to a combination of higher financing propensity along with a higher mix of trust in new buyer sales in the quarter, which are provisioned higher than deeded or owned sales. That said, we remain confident in our mid-teens provision expectation for the year and expect the back half to be marginally better as higher equity loans begin to comprise a higher proportion of our loan pool. As I mentioned, our early-stage delinquency remains stable, as does the performance of our portfolio overall. In our resort and club business, our consolidated member count was 722,000 as we continue to add new HGV Max members balanced by additional inventory recapture. Revenue grew 3% to $189 million for the quarter, and profit was $128 million with margins of 68%. Expense remains slightly elevated in our club business due to the timing of program-related headcount additions, but we expect margins to approach last year's levels as we exit the year. Rental and ancillary revenues were up 8% versus the prior year to $210 million. Revenue growth for the quarter was driven by growth in RevPAR versus the prior year, along with increased room nights. Developer maintenance fees continue to remain the largest driver of our rental and ancillary business profitability trends and were responsible for the $10 million loss in the period. Reducing the burden of those fees remain a key focus for us, and I'm happy to announce that we closed the disposition transaction that we referenced on our prior call on June thirtieth. Owing to the timing of maintenance fee payments, most of which are paid at the start of the year, we continue to expect that the contribution to EBITDA this year will be minimal. We continue to expect that on a run rate basis, it will reduce the fee burden on our EBITDA by $10 million-$12 million, all else being equal. As a result of the transaction, we recorded a non-cash loss of $48 million associated with the disposition. As a reminder, the third party that stepped into our future obligations as manager and developer is also actively marketing these properties for sale, and we will participate in the proceeds from any such transaction. Bridging the gap between segment adjusted EBITDA and total adjusted EBITDA, JV EBITDA was $2 million, reflecting the Elara transaction. License fees were $58 million, and EBITDA attributed a non-controlling interest was $4 million. Corporate G&A was $40 million, remains consistent at 3% of premium reimbursement revenue. Our adjusted free cash flow in the quarter was $180 million, a conversion rate from EBITDA of 61%. This includes inventory spend of $58 million in the quarter. As I mentioned earlier, we continue to expect our conversion rate for this year will remain in the lower half of our long-term target range of 55%-65%. During the quarter, the company repurchased 3.1 million shares of common stock for $150 million. From July 1st through July 23rd, we repurchased an additional 488,000 shares for $25 million. As of July 23rd, we had $103 million of remaining availability under our current share repurchase plan. We remain committed to capital returns as a primary use of our free cash flow in 2026, and we remain on track to continue repurchasing our shares at a pace of approximately $150 million per quarter, subject to the repurchase activity not increasing our net leverage for the full year. Turning now to our outlook. We are reiterating our 2026 guidance of adjusted EBITDA before deferrals to be between $1.225 billion and $1.265 billion. We expect the initiatives put in place to improve our execution as we move through the balance of the year, allowing us to make up some of the gap on sales. Our continued disciplined approach to cost as well as a focus on efficiencies will support margins and enables us to remain within our guidance range. Regarding sales, we expect tour growth for the year to be positive low- to mid-single digits, which remains unchanged from our prior view. In Q3 specifically, we expect to see low single-digit tour growth. In light of the second quarter's results, we now expect VPG for the year to decline in the low- to mid-single digits, versus our prior expectation of flat to down slightly. In Q3, we expect VPG to decline in the high single digits. We now believe that contract sales for the year will be flat to down slightly, versus the prior year expectation for a slight gain. Q3 specifically, we expect contract sales to be down in the mid-single digits. Moving to our liquidity. As of June 30th, our liquidity position was $735 million, consisting of $272 million of unrestricted cash and $463 million of availability under our revolving credit facility. Our debt balance at quarter end was comprised of corporate debt of $4.9 billion and a non-recourse debt balance of approximately $2.9 billion. At quarter end, we had $755 million of remaining capacity in our $1 billion warehouse facility. We also had $1.3 billion of notes that were current on payments but unsecuritized. Of that figure, approximately $719 million could be monetized through a combination of warehouse borrowing and securitization. We anticipate another $372 million will become available following certain customary milestones, such as first payment, deeding, and recording. Turning to our credit metrics. At the end of the quarter, the company's total net leverage on a pro forma TTM basis was 3.8x, which was consistent with year-end levels and down 0.1 turns compared to Q1. We will now turn the call over to the operator and look forward to your questions. Operator? Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment while we pull for questions. Our first question today will come from Patrick Scholes with Truist Securities. Patrick Scholes: Hi. Good morning, everyone. Thank you. Questions on the loan loss provision. As I calculated, it looks like it jumped up about 400 basis points year-over-year. Am I thinking about that apples to apples correctly? Can you help me bridge why that increase? Related to that, are you still thinking mid-teens for the full year for the provision? Thank you. Dan Mathewes: Good morning, Patrick. Excuse me. Your numbers are accurate. Our provision for the quarter was roughly 17%, which is definitely at the high end of our mid-teens range. But nearly, actually a little bit, just out of point a little, is associated with a higher propensity to borrow that we saw with the buyers coming through the door, as well as a mix to a higher % of product being sold under the trust product. As we've probably spoken about before, I'm sure we have, when we look at the three products that we sell, deed has the lowest provision, and both Bluegreen and Diamond have a substantially higher provision. You benefit from a lower cost of product, but from a provision perspective, it is higher. That drove a good piece of the increase. Now, the increase wasn't driven by a deterioration in the portfolio itself. I talked about delinquencies in my prepared remarks, but just to underscore that, if you look at the three portfolios, HGV's portfolio held steady year-over-year as well as sequentially. Both Diamond and Bluegreen improved materially both year-over-year as well as sequentially, almost 30 basis points year-over-year, and then sequentially north of 40, and in the Bluegreen case, north of 50 basis points. That was driven by the underwriting changes that we made last year, which are really coming to fruition with down payments on Bluegreen, in particular, being 800 basis points higher than they were just a year ago. We expect that trend to continue. Despite the higher propensity, which is obviously a good thing, more people borrowing money from us, unfortunately you take the provision up front, but even with a higher propensity held steady for the balance of the year, we would see bad debt provision year-over-year for the back half improve, which would keep us healthily in that mid-teens range. Patrick Scholes: Okay. Thank you. One last question here regarding the VPG, I believe. I'm sorry. I'm juggling a number of earnings calls this morning. I believe the VPG was pressured specifically by the Bluegreen portfolio. Can you just talk, a little bit more color on that? When I think about sort of your acquisitions and your legacy portfolio, the customer financial demographic is probably lowest for Bluegreen. Are you seeing any differences in performance between various financial demographics between the acquired portfolio and the legacy? Thank you. Mark Wang: Yeah. Patrick, this is Mark. Look, on the VPG headwinds, a number of things there. Dan talked about the mix, and I think I mentioned in prepared remarks, and some of the execution issues. The performance for legacy business was solid. Where we saw the headwinds was with Bluegreen. It's important to note that the miss was not related to consumer demand. Tour flow for Bluegreen was up 10%. New buyer transactions were up 16% to prior year for Bluegreen, and the MAX member count more than doubled versus the prior years to nearly 22,000. The real pressure came from really two things that were Bluegreen related. The owner VPGs The execution challenges at a handful of the sites. I'll talk about both of those here a little bit. As it relates to the owner VPGs, as you recall, last year, we had a very successful launch of MAX to Bluegreen base. If you look at VPGs, they were up 45% in Q2 of 2025. We're seeing a moderation of a very elevated launch period. That was one. That said, the owner VPGs, even as they came back and moderated, the VPGs for Bluegreen were the second highest in the history of the company. As it relates to execution in particular, the underperformance was due to execution challenges to a handful of the Bluegreen operations, and primarily in Orlando and Myrtle Beach. Anyways, we've taken decisive actions toward the end of the quarter. We've put new leadership in place. We've identified the issues, and we're making and working to rectify the performance there. Patrick Scholes: Okay, thank you. Operator: Our next question today will come from Ben Chaiken with Mizuho Securities. Ben Chaiken: Hey, good morning. Thanks for taking my questions. Maybe just double-clicking on the VPG side again, just so I'm clear. You've got two buckets, it sounds like owner VPG and execution. I guess on the execution side, understanding that you've identified Orlando and Myrtle Beach, but what were the actual issues? Is this like a sales personnel dynamic? Yeah, maybe just, if you don't mind, give us a tad bit more color on what the issue was and what you have fixed. Then on the comp dynamic, totally appreciate that it's a difficult comp. I think that makes sense. It's also consistent with the message you've had before. I guess my question would be, you probably knew that it was a hard comp, so maybe what changed? You mentioned that last year, I think you said VPGs were up 45% for that customer. You knew that going in. I'm just curious maybe what was slightly different this quarter versus the expectation. Thanks. Mark Wang: As I mentioned, the primary markets were Orlando and Myrtle Beach, and those are bigger markets. Ben, when you remove the noise on the comps, we had a number of Bluegreen markets that performed well. In both of the impacted markets, occupancy and tour flow were up. Really when you looked at it, the divergence from what you're seeing from the demand that's being created in those markets from the rest really gives us confidence that this was an execution issue in a couple of these bigger markets. It's worth noting that we have large HGV operations in both Orlando and Myrtle Beach, and we saw positive year-over-year growth. Which again points to the execution. It's not a market issue or an integration issue. It really was a leadership issue. We've identified the issue. We've addressed the situation with the leadership changes. We've got a deep bench here. We're very confident that the changes that we've made from a leadership standpoint, the added recruiting investments we've made and training investments we've made in those markets are already making a difference. We expect that the performance will improve as we move through the third quarter and get back up to the level of expectation that we expect from those sales distribution centers by Q4. Ben Chaiken: Okay. All right. That's helpful. Then just on the asset streamlining, I guess, it sounds like you closed the transaction. Do you anticipate there being more facilities that you streamline? Then part two of the question is, I think you mentioned some proceeds from the initial batch. Even just mentally, how do I conceptualize what your portion of the proceeds would be? Would it be the unsold VOI units, or is it some portion of that number? How do I think about your economics even just kind of like some type of mental framework? Thanks. Dan Mathewes: Hey, Ben Chaiken, I'll take the last part of your question first. When you think about the existing deal that we recently closed, the third party that stepped into our developer role, our management of the property role, they're also actively marketing those properties for sale. Upon disposition, we will take a significant portion of those proceeds, but it's a contractual arrangement with that third party, where they also share. To the extent that there are remaining owners in those properties, they will also benefit to the extent that they own. It's a waterfall. I can't tell you exactly what those properties will sell for. We're treating this as a standard gain contingency. As things happen, we'll obviously address it on future calls. With regards to future dispositions, yeah, there's definitely an opportunity. I think we talked about this last time. The process of identifying properties and working through a structure does take time Mark Wang: We do not anticipate identifying or announcing is probably a better word, announcing any future deals in 2026. As things come to fruition, we'll obviously speak on future calls. Ben Chaiken: Thank you. Appreciate it. Operator: Next we'll move to Trey Bowers with Wells Fargo. Nick Weichel: Hi, this is Nick on for Trey. As we're looking at the VPG miss this quarter, going behind the mechanics of it, there's obviously the closeout rates and then the average transaction size. Which part of that missed your expectations?I understand there's a leadership issue, but, with those two components, which came in light? Mark Wang: Yeah. Look, we had higher trust sales, which carries a lower ATP and VPG than traditional data transactions. Which, in our case is very positive as it reflects the strength of the product because we have a good supply of trust inventory. We also saw a higher mix in new buyer transactions, which also puts pressure on ATP. When you look at your mix, and transaction mix being higher, it has a lower VPG too. Really the pressure on VPG was from a mix standpoint, moving to more trust and moving to more new buyer transactions. This puts short-term pressure, but has attractive long-term value for us because we're bringing in new members into the Max ecosystem. We're expanding our upgrade opportunities and recurring revenue streams. Then, we talked about the comp already on the Bluegreen members, and we talked about the execution issue. Those four things really combined are what drove the VPG pressure in the quarter. Nick Weichel: Thank you. Operator: Next, we'll hear from Stephen Grambling with Morgan Stanley. Stephen Grambling: Hey, thanks. Sorry if I missed this on the call, two clarifying questions. First, you stated the efficiencies that you're hoping to get in the second half. Is that entirely related to some of the property closures? Are there other things that you're doing? It looks like the cost of product is where maybe we saw the biggest benefit in the quarter. I don't know, maybe, again, I may have missed this on the calls, did you quantify how much of the closures hit in the quarter and how to think about the cost of VOI going forward? Mark Wang: There's a lot in there, so let me just try to respond. When you think about the dispositions, they closed on June 30th, so those properties are no longer in the mix, either from an inventory standpoint, management fees obviously start to go away, and then to a certain extent, it's a little tricky when it comes to maintenance fees because maintenance fees are paid at the beginning of the year. There's some marginal benefit in the back half of the year associated with that, not to the extent of the normalized run rate that you'll see with the dispositions that we quantified last quarter. It's 10 to 12 on an annualized basis. It's not pro rata this year. It's, like I said, marginal. Dan Mathewes: That being said, when you think about the back half of the year, we've talked about the VPG compression that we saw in the latter part of Q2. We expect that to continue into Q3. When you think about the back half, how is that going to play out? How do we maintain guidance? It's really driven by cost discipline and some of the efforts that we've made in the prior year, in particular on the bad debt side, changing the underwriting. We now have a full year's worth of data and six additional months versus our original guidance for the year. We feel very confident that we'll see the provision come down in the back half of the year. To your point, cost of product is also a benefit. For the first two quarters, we were right at just slightly less than 10%. We think it'll be a little bit higher than that in the back half of the year, but still benefiting from a higher trust mix than originally anticipated. That'll also drive COP year-over-year to be down. In addition to that, we see some, and I kind of hit on this with the dispositions and just from a rental perspective. Just from a performance perspective, that's more marginal than anything else. Now, with the pressures on VPG and Q3, because it's like I said, some of these actions that we've taken do take time to roll into place. We would expect SG&A to be a little pressure in Q3, and then start to normalize in Q4. Hopefully that gives you some insight to how we see the year playing out. Stephen Grambling: Yeah. That's helpful. One other one from me. Have you seen any change in the effectively attrition rate of your owners, even as we think about those who have already paid down their receivable balance? Dan Mathewes: Sorry, say that one more time, Grambling. It was attrition rate associated with owners who've paid down their receivable balance? Stephen Grambling: Yeah Dan Mathewes: Yeah. I think, Stephen. Mark Wang: Yeah Stephen Grambling: We spoke previously about recapture becoming a bigger piece of our inventory sourcing strategy, especially with these acquisitions. Mark Wang: As the system matures, you have people that are traveling less and leaving the system, it's giving us an opportunity to recapture inventory. It's kind of a natural part of the system and evolution. For HGV, it wasn't as big a part of the system evolution, with the acquired companies, they are more mature than us, we are seeing, when you look at absolute number, you're seeing a little bit more attrition. As a percentage, it is about what you would expect. It's one of the advantages of the timeshare business model, right? It's a good COP, it's good for long-term free cash flow, since we don't have to go rebuild inventory. The opportunity to recycle inventory, and create additional full lifetime value with new customers is really strong. Yeah. No, absolutely. That's a good point, Mark. Dan Mathewes: That's also contributing some of the benefit that we see to COP in the back half of the year, the recapture from the inventory that was driven by the M&A transaction that we obviously completed. Operator: As a reminder, if you would like to ask a question, please press star one on your telephone keypad. Next, we'll move to Alex Henneau with Jefferies. Alex Henneau: Hey, good morning. Thanks for taking the call. Maybe just switching gears here, if we could revisit the Elara acquisition and talk about your expectations, what you've put out there for this year, as well as some of the earnings benefit in the medium to long term. Thanks. Dan Mathewes: Yeah. No, absolutely. We closed on Elara, as we talked last time, on April 30th. We anticipated that would be a benefit to EBITDA in Q3 of about $3 million, and for the full year this year, about $20 million on a run rate basis. Well, run rate is a loose term because it is a finite cashless stream. For next year, we expected, on an annualized basis for that 20 to accelerate to closer to between $25 million and $30 million. All that being said, the performance we've seen since close has been strong. It's been in line slightly better than our expectations. For the full year, I would tell you that would account for a shift from fee for service to own contract sales of close to 3% this year. We're right on track, to be in line, perhaps slightly ahead of that performance that we quoted last time. We've seen good upgrades into Elara because of advantageous maintenance fees and solid upgrades out of Elara, which is all part of the thesis. Alex Henneau: Awesome. Thank you. Operator: Our next question will hear from Chris Woronka with Deutsche Bank. Chris Woronka: Hey. Good morning, guys. Thanks for taking the question. You guys have spent a lot of time kind of covering some of the issues in Orlando and I think Myrtle Beach that you called out. I'm curious as to whether any of those relate to just kind of turnover in staffing or poaching from other timeshare companies. I think we've heard about some movement within the industry back and forth, and maybe if you could just give us a kind of bigger state of the union update on how you see staffing at some of these key sales centers and whether turnover is running better or worse than you would hope. Thanks. Mark Wang: I think, first of all, as I said in prepared remarks, and I think in some of my comments on the Q&A, demand remains healthy, right? Q2 is really more of an operational, not a structural issue here for us. As it relates to talent, competition for talent has always been part of the industry, and people move between companies, and that's been happening for decades. It's always encouraging when we see talent develop. I would say talent management is part of the nature of the business rather than an underlying risk. Look, our sales and marketing organization is one of our greatest competitive advantages, and they introduce more customers to our brand than any company in our space, and they're committed to teamwork, innovation, and importantly, integrity. They continue to lead the industry and shape the future. Feel really good about the team we have. We had some execution misses in a couple of our markets, as we've talked about. We've identified it, we've taken action, and we're already starting to see improvement. Chris Woronka: Okay. Thanks, Mark. Maybe just as a follow-up, I think we've seen Hilton recently talk about a couple higher profile conversions on the, I guess, luxury lifestyle side. Do you think that, to any degree, helps you with the kind of the way that your customer flow might work? I mean, if they're going to, I guess excel. I don't want to use the word accelerate, but accelerate kind of what they might do on the luxury lifestyle side. Do you guys plan for any kind of benefit that might roll through to you through the loyalty program and other kind of connections you have? Thanks. Mark Wang: Yeah. Well, our brand and relationship with Hilton is an incredibly important part of our strategy and our growth, right? Hilton Has consistently delivered and ranked among the top hotel brands in hospitality, right? If you look at their NUG, you look at the amount of hotels in the system, you look at the span and width of their brands and the way luxury lifestyle and luxury has continued to grow, all of that is beneficial. Because remember, not only do we have a license for the brand, but we have real deep connection with the customers within Hilton. We have access to the Hilton customer base, and that is an important part of our overall strategy, and it's important part of how we've leveraged to become the largest timeshare company in the world. When you look at our tour flow, we have leveraged that relationship better than any brand out there. We appreciate all the great work that Hilton is doing, and as they continue to build a bigger base of brands and properties, they're generating more new customers, and those new customers become great opportunities for HGV. Chris Woronka: Okay. Very helpful. Thanks, guys. Operator: There are no further questions at this time. I would like to turn the floor back to Mark Wang for closing remarks. Mark Wang: All right. Thank you again for joining us on the call today. I'd like to say a special thanks to our team members for their incredible work taking care of our members and guests. We look forward to speaking with you on our next call. Have a great day. Operator: Thank you. This does conclude today's teleconference. We thank you for your participation. You may disconnect your lines at this time. Before you buy stock in Hilton Grand Vacations, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Hilton Grand Vacations wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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Image source: The Motley Fool. Thursday, July 30, 2026 at 9:00 a.m. ET Senior Vice President of Investor Relations - Mark Melnyk Chief Executive Officer - Mark Wang Chief Financial Officer - Dan Mathewes Operator: Good morning, welcome to the Hilton Grand Vacations second quarter 2026 earnings conference call. At this time, all participants have been placed in a listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question, please press star one on your touchtone phone to enter the queue. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. If you should require operator assistance, please press star zero. If using a speakerphone, please lift your handset to allow the signal to reach our equipment. Please limit yourself to one question and one follow-up to allow the opportunity for everyone to ask questions. You may re-enter the queue to ask additional questions. I would now like to turn the call over to Mark Melnyk, Senior Vice President of Investor Relations. Please go ahead, sir. Mark Melnyk: Thank you, operator, welcome to the Hilton Grand Vacations second quarter 2026 earnings call. Our discussions this morning will include forward-looking statements. Actual results could differ materially from those indicated by these forward-looking statements, and these statements are effective only as of today. We undertake no obligation to publicly update or revise these statements. For a discussion of some of the factors that could cause actual results to differ, please see the Risk Factors section of our SEC filings. Our reported results for all periods reflect accounting rules under ASC 606, which we adopted in 2018. Under ASC 606, we're required to defer certain revenues and expenses related to sales made in the period when a project is under construction and then hold off on recognizing these revenues and expenses until the period when construction is completed. The aggregate of these potentially overlapping deferrals and recognitions from various projects in any given period are known as net deferrals. Please note that in our prepared remarks today, we'll only be referring to metrics that remove the impact of net deferrals, which more accurately reflects the cash flow dynamics of our financial performance during the period. To simplify our discussion today, we've uploaded slides to our investor relations sites showing these metrics, which we'll be referring to on today's call. I'd urge you to view these slides on our website at investors.hgv.com. On slide two of these materials, you can see the deferral-adjusted metrics we'll refer to on the call. Reported results for this quarter do not reflect $54 million of net contract sales deferrals under ASC 606, which had the effect of reducing reported GAAP revenue and were related to pre-sales of our Ka Haku project. Also on slide two, we deferred net $26 million of direct expenses associated with those revenues. Adjusting for both of these items would increase the adjusted EBITDA to shareholders reported on our press release by a net $28 million to $293 million. With that, let me turn the call over to our CEO, Mark Wang. Mark? Mark Wang: Morning, everyone, and welcome to our second quarter earnings call. Our results for the quarter highlighted the strength of our business in several key areas. We generated 239,000 tours in the quarter, an increase of 6% versus the prior year, marking our fourth consecutive quarter of consolidated tour growth and demonstrating the continued demand across the platform. We also grew our adjusted EBITDA 5% to $293 million while expanding our margins to 23%, underscoring the resiliency of our operating model along with the effectiveness of our cost efficiency programs. That said, our contract sales declined versus the prior year, reflecting several factors. First, we observed faster than predicted VPG moderation at Bluegreen as we lapped the difficult comparisons from the successful launch period of HGV Max. Second, sales execution fell short of our expectation, which weighed on overall sales productivity. This was most pronounced in the back half of the quarter at a couple of our higher volume locations. Third, results reflected a higher mix of trust transactions and new buyer sales during the quarter. While these generally carry a lower average VPG than owner sales, they're an important driver to long-term embedded value. As a result, we're taking decisive action to improve our sales execution as we move through the balance of the year in order to better capitalize on the strong tour flow we're generating. While these initiatives have only recently rolled out, we believe that they'll help to drive improved execution in the back half. Importantly, we don't believe this softness was demand related. Occupancy levels remained healthy, with on-the-book arrivals in the back half remaining ahead of prior year. Tour growth across our footprint has been strong for both owners and new buyers, and we've seen sustained growth of HGV Max from new and existing members. Overall, the fundamentals of the business remain solid. Performance at our legacy business remains steady. We're generating strong tour flow, maintaining healthy profitability, and we continue to see significant long-term value creation from the Bluegreen integration and ongoing evolution of Max. Given the underlying strength of the business and confidence in the actions we're taking, we're maintaining our full-year EBITDA guidance, and we remain committed to driving improved sales productivity and delivering long-term cash flow and value creation to our shareholders. Beyond our near-term efforts to drive sales productivity, we're focused on executing strategic priorities that support our long-term algorithm of sustainable growth, margin expansion, and strong free cash flow generation. We also remain successful at attracting new buyers to our sales centers. New buyer tours increased at a high single-digit rate compared to the prior year, maintaining the strong pace we've seen since last fall. We also produced high single-digit new buyer transaction growth, which remains critical to growing our embedded value and supporting the long-term health of the business. This success was supported by the investments we made across our marketing platform over the past year, along with the strength of our lead generation channels. We also continue to focus on enhancing lifetime value. We've seen the benefits of the investments we made in HGV Max and our broader member ecosystem, which are helping to deepen member engagement and member satisfaction by reinforcing the value proposition of ownership. Nearly 300,000, or 40% of our base, are Max members today, growing 24% versus the prior year. As it relates to innovation, we continue to invest in our industry-leading experience platform. HGV Ultimate Access is operating at scale, hosting over 137,000 guests at our events this past year and generating strong contract sales. Given the positive response from our members in both satisfaction scores and upgrade sales, we'll keep our foot firmly on the gas to grow and expand what has become a core component of our offering. It was another successful quarter of programming for HGV Ultimate Access. We hosted our members at a series of events at World Cup matches in New York, Miami, and L.A. LPGA Hall of Famer and legend Annika Sörenstam joined our events at the American Century Championship to provide one-on-one coaching tips to our members at the practice range. We expanded our popular concert series with artists such as Ashley Cooke, Tucker Wetmore, and Don Felder of the Eagles. In addition, we also recently launched new tools to provide members with greater flexibility and easier access to HGV Ultimate Access, allowing them to further tailor their vacation plans around our industry-leading portfolio of experiences. Overall, Ultimate Access has grown to become a central pillar of our strategy as a vacation experience company, adding to the member value proposition and strengthening our engagement with the HGV brand. Finally, operational excellence remains at the core of how we manage our business. The teams did an excellent job managing costs, meeting our adjusted EBITDA targets through strong margin expansion, and delivering robust free cash flow. We used that cash flow to maintain our commitment to returning excess capital to our shareholders, repurchasing another $150 million of shares during the quarter. Year to date, we've purchased more than $300 million of shares, representing over 10% of our float entering the year. We also continue to execute our inventory optimization strategy, closing on the agreement we discussed last quarter to dispose of a group of non-core assets, removing them from our system. This transaction fits into our overall optimization strategy, providing us with an avenue to recycle capital, improve portfolio quality, reduce inventory carrying costs, and enhancing long-term returns. In summary, our confidence in the long-term value creation algorithm of the business remains unchanged. We're taking targeted actions to improve our sales execution while continuing to build on the strength of our business, enhance our value proposition, and drive operating efficiencies. Collectively, these initiatives support our goals of delivering sustainable growth, expanding margins, and generating strong free cash flow to create long-term shareholder value. With that, I'll turn it to Dan for more details on the numbers. Dan? Dan Mathewes: Thank you, Mark, and good morning, everyone. As Mark mentioned, we delivered EBITDA in line with our target, aided by a disciplined cost focus and the benefits of our ongoing efficiency initiatives. Although sales didn't meet our expectations, we're already taking corrective actions to improve our execution. More broadly, we continue to strategically invest in our products and our people while maintaining a focus on cost discipline to generate strong cash flow and drive overall profitability, which we demonstrated this quarter. As we look to the second half of 2026, we remain confident in our ability to achieve our full-year EBITDA and adjusted free cash flow outlook. Turning to our results for the quarter, total revenue before cost reimbursements grew 3% to $1.3 billion. Adjusted EBITDA to shareholders grew 5% to $293 million, with margins excluding reimbursements of 23%, up 40 basis points over the prior year. Within our real estate business, contract sales of $810 million were down 3% from the prior year. The decline was primarily due to the moderation in Bluegreen's elevated VPGs due to the successful launch of HGV Max in the prior year, along with the execution challenges and mix shifts Mark mentioned. New buyer contract sales represented 28% of total volume, up 70 basis points against the prior period. This was supported by another quarter of high single-digit transaction growth, reflecting tour strength aided by last year's marketing investment, along with stable close rates as compared to the prior period. Tours in the period grew 6% to 239,000, with both our owner and new borrower channels contributing to the growth. VPG was down 9% to approximately $3,400 in the quarter, reflecting the factors that I mentioned earlier. Cost of product in the period was 10%, consistent with the first quarter and down 130 basis points from the prior year. The higher mix of trust sales was the primary driver of the cost of product performance, which helped offset the lower VPG typically associated with the trust transactions. Real estate sales and marketing expense for the quarter was $397 million, or 49% of contract sales, 40 basis points lower than the prior year. Real estate profit for the quarter grew 7% to $173 million, with margins expanding 220 basis points to 28%, demonstrating the resilience of the model, along with the benefits of our focus on cost discipline and operating efficiency. In our financing business, revenue was $144 million and profit was $86 million. Excluding the amortization items associated with our acquired receivables portfolio, financing margins were 62%, up 100 basis points from the prior year. Looking at our portfolio metrics, our weighted average interest rate for originating loans was 14.4%. Combined gross receivables for the quarter were $5 billion. Our total allowance for bad debt was $1.4 billion on that $5 billion receivable balance, or 28% of the portfolio. The portfolio remains in great shape overall. As of last week, our 31-60-day delinquency trends remain stable for all three portfolios, notably at Bluegreen, which continues to improve, driven by our focus on increased equity at point of sale implemented last year. You will see when we file our 10-Q an abbreviated delinquency table, making it easier to see on a combined basis 31-90 day delinquencies as a percent of current were down nine basis points from year end. Our provision in the second quarter was 17% of own contract sales, which increased versus the prior year but remained within our targeted mid-teen range. The increase was related to a combination of higher financing propensity along with a higher mix of trust in new buyer sales in the quarter, which are provisioned higher than deeded or owned sales. That said, we remain confident in our mid-teens provision expectation for the year and expect the back half to be marginally better as higher equity loans begin to comprise a higher proportion of our loan pool. As I mentioned, our early-stage delinquency remains stable, as does the performance of our portfolio overall. In our resort and club business, our consolidated member count was 722,000 as we continue to add new HGV Max members balanced by additional inventory recapture. Revenue grew 3% to $189 million for the quarter, and profit was $128 million with margins of 68%. Expense remains slightly elevated in our club business due to the timing of program-related headcount additions, but we expect margins to approach last year's levels as we exit the year. Rental and ancillary revenues were up 8% versus the prior year to $210 million. Revenue growth for the quarter was driven by growth in RevPAR versus the prior year, along with increased room nights. Developer maintenance fees continue to remain the largest driver of our rental and ancillary business profitability trends and were responsible for the $10 million loss in the period. Reducing the burden of those fees remain a key focus for us, and I'm happy to announce that we closed the disposition transaction that we referenced on our prior call on June thirtieth. Owing to the timing of maintenance fee payments, most of which are paid at the start of the year, we continue to expect that the contribution to EBITDA this year will be minimal. We continue to expect that on a run rate basis, it will reduce the fee burden on our EBITDA by $10 million-$12 million, all else being equal. As a result of the transaction, we recorded a non-cash loss of $48 million associated with the disposition. As a reminder, the third party that stepped into our future obligations as manager and developer is also actively marketing these properties for sale, and we will participate in the proceeds from any such transaction. Bridging the gap between segment adjusted EBITDA and total adjusted EBITDA, JV EBITDA was $2 million, reflecting the Elara transaction. License fees were $58 million, and EBITDA attributed a non-controlling interest was $4 million. Corporate G&A was $40 million, remains consistent at 3% of premium reimbursement revenue. Our adjusted free cash flow in the quarter was $180 million, a conversion rate from EBITDA of 61%. This includes inventory spend of $58 million in the quarter. As I mentioned earlier, we continue to expect our conversion rate for this year will remain in the lower half of our long-term target range of 55%-65%. During the quarter, the company repurchased 3.1 million shares of common stock for $150 million. From July 1st through July 23rd, we repurchased an additional 488,000 shares for $25 million. As of July 23rd, we had $103 million of remaining availability under our current share repurchase plan. We remain committed to capital returns as a primary use of our free cash flow in 2026, and we remain on track to continue repurchasing our shares at a pace of approximately $150 million per quarter, subject to the repurchase activity not increasing our net leverage for the full year. Turning now to our outlook. We are reiterating our 2026 guidance of adjusted EBITDA before deferrals to be between $1.225 billion and $1.265 billion. We expect the initiatives put in place to improve our execution as we move through the balance of the year, allowing us to make up some of the gap on sales. Our continued disciplined approach to cost as well as a focus on efficiencies will support margins and enables us to remain within our guidance range. Regarding sales, we expect tour growth for the year to be positive low- to mid-single digits, which remains unchanged from our prior view. In Q3 specifically, we expect to see low single-digit tour growth. In light of the second quarter's results, we now expect VPG for the year to decline in the low- to mid-single digits, versus our prior expectation of flat to down slightly. In Q3, we expect VPG to decline in the high single digits. We now believe that contract sales for the year will be flat to down slightly, versus the prior year expectation for a slight gain. Q3 specifically, we expect contract sales to be down in the mid-single digits. Moving to our liquidity. As of June 30th, our liquidity position was $735 million, consisting of $272 million of unrestricted cash and $463 million of availability under our revolving credit facility. Our debt balance at quarter end was comprised of corporate debt of $4.9 billion and a non-recourse debt balance of approximately $2.9 billion. At quarter end, we had $755 million of remaining capacity in our $1 billion warehouse facility. We also had $1.3 billion of notes that were current on payments but unsecuritized. Of that figure, approximately $719 million could be monetized through a combination of warehouse borrowing and securitization. We anticipate another $372 million will become available following certain customary milestones, such as first payment, deeding, and recording. Turning to our credit metrics. At the end of the quarter, the company's total net leverage on a pro forma TTM basis was 3.8x, which was consistent with year-end levels and down 0.1 turns compared to Q1. We will now turn the call over to the operator and look forward to your questions. Operator? Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment while we pull for questions. Our first question today will come from Patrick Scholes with Truist Securities. Patrick Scholes: Hi. Good morning, everyone. Thank you. Questions on the loan loss provision. As I calculated, it looks like it jumped up about 400 basis points year-over-year. Am I thinking about that apples to apples correctly? Can you help me bridge why that increase? Related to that, are you still thinking mid-teens for the full year for the provision? Thank you. Dan Mathewes: Good morning, Patrick. Excuse me. Your numbers are accurate. Our provision for the quarter was roughly 17%, which is definitely at the high end of our mid-teens range. But nearly, actually a little bit, just out of point a little, is associated with a higher propensity to borrow that we saw with the buyers coming through the door, as well as a mix to a higher % of product being sold under the trust product. As we've probably spoken about before, I'm sure we have, when we look at the three products that we sell, deed has the lowest provision, and both Bluegreen and Diamond have a substantially higher provision. You benefit from a lower cost of product, but from a provision perspective, it is higher. That drove a good piece of the increase. Now, the increase wasn't driven by a deterioration in the portfolio itself. I talked about delinquencies in my prepared remarks, but just to underscore that, if you look at the three portfolios, HGV's portfolio held steady year-over-year as well as sequentially. Both Diamond and Bluegreen improved materially both year-over-year as well as sequentially, almost 30 basis points year-over-year, and then sequentially north of 40, and in the Bluegreen case, north of 50 basis points. That was driven by the underwriting changes that we made last year, which are really coming to fruition with down payments on Bluegreen, in particular, being 800 basis points higher than they were just a year ago. We expect that trend to continue. Despite the higher propensity, which is obviously a good thing, more people borrowing money from us, unfortunately you take the provision up front, but even with a higher propensity held steady for the balance of the year, we would see bad debt provision year-over-year for the back half improve, which would keep us healthily in that mid-teens range. Patrick Scholes: Okay. Thank you. One last question here regarding the VPG, I believe. I'm sorry. I'm juggling a number of earnings calls this morning. I believe the VPG was pressured specifically by the Bluegreen portfolio. Can you just talk, a little bit more color on that? When I think about sort of your acquisitions and your legacy portfolio, the customer financial demographic is probably lowest for Bluegreen. Are you seeing any differences in performance between various financial demographics between the acquired portfolio and the legacy? Thank you. Mark Wang: Yeah. Patrick, this is Mark. Look, on the VPG headwinds, a number of things there. Dan talked about the mix, and I think I mentioned in prepared remarks, and some of the execution issues. The performance for legacy business was solid. Where we saw the headwinds was with Bluegreen. It's important to note that the miss was not related to consumer demand. Tour flow for Bluegreen was up 10%. New buyer transactions were up 16% to prior year for Bluegreen, and the MAX member count more than doubled versus the prior years to nearly 22,000. The real pressure came from really two things that were Bluegreen related. The owner VPGs The execution challenges at a handful of the sites. I'll talk about both of those here a little bit. As it relates to the owner VPGs, as you recall, last year, we had a very successful launch of MAX to Bluegreen base. If you look at VPGs, they were up 45% in Q2 of 2025. We're seeing a moderation of a very elevated launch period. That was one. That said, the owner VPGs, even as they came back and moderated, the VPGs for Bluegreen were the second highest in the history of the company. As it relates to execution in particular, the underperformance was due to execution challenges to a handful of the Bluegreen operations, and primarily in Orlando and Myrtle Beach. Anyways, we've taken decisive actions toward the end of the quarter. We've put new leadership in place. We've identified the issues, and we're making and working to rectify the performance there. Patrick Scholes: Okay, thank you. Operator: Our next question today will come from Ben Chaiken with Mizuho Securities. Ben Chaiken: Hey, good morning. Thanks for taking my questions. Maybe just double-clicking on the VPG side again, just so I'm clear. You've got two buckets, it sounds like owner VPG and execution. I guess on the execution side, understanding that you've identified Orlando and Myrtle Beach, but what were the actual issues? Is this like a sales personnel dynamic? Yeah, maybe just, if you don't mind, give us a tad bit more color on what the issue was and what you have fixed. Then on the comp dynamic, totally appreciate that it's a difficult comp. I think that makes sense. It's also consistent with the message you've had before. I guess my question would be, you probably knew that it was a hard comp, so maybe what changed? You mentioned that last year, I think you said VPGs were up 45% for that customer. You knew that going in. I'm just curious maybe what was slightly different this quarter versus the expectation. Thanks. Mark Wang: As I mentioned, the primary markets were Orlando and Myrtle Beach, and those are bigger markets. Ben, when you remove the noise on the comps, we had a number of Bluegreen markets that performed well. In both of the impacted markets, occupancy and tour flow were up. Really when you looked at it, the divergence from what you're seeing from the demand that's being created in those markets from the rest really gives us confidence that this was an execution issue in a couple of these bigger markets. It's worth noting that we have large HGV operations in both Orlando and Myrtle Beach, and we saw positive year-over-year growth. Which again points to the execution. It's not a market issue or an integration issue. It really was a leadership issue. We've identified the issue. We've addressed the situation with the leadership changes. We've got a deep bench here. We're very confident that the changes that we've made from a leadership standpoint, the added recruiting investments we've made and training investments we've made in those markets are already making a difference. We expect that the performance will improve as we move through the third quarter and get back up to the level of expectation that we expect from those sales distribution centers by Q4. Ben Chaiken: Okay. All right. That's helpful. Then just on the asset streamlining, I guess, it sounds like you closed the transaction. Do you anticipate there being more facilities that you streamline? Then part two of the question is, I think you mentioned some proceeds from the initial batch. Even just mentally, how do I conceptualize what your portion of the proceeds would be? Would it be the unsold VOI units, or is it some portion of that number? How do I think about your economics even just kind of like some type of mental framework? Thanks. Dan Mathewes: Hey, Ben Chaiken, I'll take the last part of your question first. When you think about the existing deal that we recently closed, the third party that stepped into our developer role, our management of the property role, they're also actively marketing those properties for sale. Upon disposition, we will take a significant portion of those proceeds, but it's a contractual arrangement with that third party, where they also share. To the extent that there are remaining owners in those properties, they will also benefit to the extent that they own. It's a waterfall. I can't tell you exactly what those properties will sell for. We're treating this as a standard gain contingency. As things happen, we'll obviously address it on future calls. With regards to future dispositions, yeah, there's definitely an opportunity. I think we talked about this last time. The process of identifying properties and working through a structure does take time Mark Wang: We do not anticipate identifying or announcing is probably a better word, announcing any future deals in 2026. As things come to fruition, we'll obviously speak on future calls. Ben Chaiken: Thank you. Appreciate it. Operator: Next we'll move to Trey Bowers with Wells Fargo. Nick Weichel: Hi, this is Nick on for Trey. As we're looking at the VPG miss this quarter, going behind the mechanics of it, there's obviously the closeout rates and then the average transaction size. Which part of that missed your expectations?I understand there's a leadership issue, but, with those two components, which came in light? Mark Wang: Yeah. Look, we had higher trust sales, which carries a lower ATP and VPG than traditional data transactions. Which, in our case is very positive as it reflects the strength of the product because we have a good supply of trust inventory. We also saw a higher mix in new buyer transactions, which also puts pressure on ATP. When you look at your mix, and transaction mix being higher, it has a lower VPG too. Really the pressure on VPG was from a mix standpoint, moving to more trust and moving to more new buyer transactions. This puts short-term pressure, but has attractive long-term value for us because we're bringing in new members into the Max ecosystem. We're expanding our upgrade opportunities and recurring revenue streams. Then, we talked about the comp already on the Bluegreen members, and we talked about the execution issue. Those four things really combined are what drove the VPG pressure in the quarter. Nick Weichel: Thank you. Operator: Next, we'll hear from Stephen Grambling with Morgan Stanley. Stephen Grambling: Hey, thanks. Sorry if I missed this on the call, two clarifying questions. First, you stated the efficiencies that you're hoping to get in the second half. Is that entirely related to some of the property closures? Are there other things that you're doing? It looks like the cost of product is where maybe we saw the biggest benefit in the quarter. I don't know, maybe, again, I may have missed this on the calls, did you quantify how much of the closures hit in the quarter and how to think about the cost of VOI going forward? Mark Wang: There's a lot in there, so let me just try to respond. When you think about the dispositions, they closed on June 30th, so those properties are no longer in the mix, either from an inventory standpoint, management fees obviously start to go away, and then to a certain extent, it's a little tricky when it comes to maintenance fees because maintenance fees are paid at the beginning of the year. There's some marginal benefit in the back half of the year associated with that, not to the extent of the normalized run rate that you'll see with the dispositions that we quantified last quarter. It's 10 to 12 on an annualized basis. It's not pro rata this year. It's, like I said, marginal. Dan Mathewes: That being said, when you think about the back half of the year, we've talked about the VPG compression that we saw in the latter part of Q2. We expect that to continue into Q3. When you think about the back half, how is that going to play out? How do we maintain guidance? It's really driven by cost discipline and some of the efforts that we've made in the prior year, in particular on the bad debt side, changing the underwriting. We now have a full year's worth of data and six additional months versus our original guidance for the year. We feel very confident that we'll see the provision come down in the back half of the year. To your point, cost of product is also a benefit. For the first two quarters, we were right at just slightly less than 10%. We think it'll be a little bit higher than that in the back half of the year, but still benefiting from a higher trust mix than originally anticipated. That'll also drive COP year-over-year to be down. In addition to that, we see some, and I kind of hit on this with the dispositions and just from a rental perspective. Just from a performance perspective, that's more marginal than anything else. Now, with the pressures on VPG and Q3, because it's like I said, some of these actions that we've taken do take time to roll into place. We would expect SG&A to be a little pressure in Q3, and then start to normalize in Q4. Hopefully that gives you some insight to how we see the year playing out. Stephen Grambling: Yeah. That's helpful. One other one from me. Have you seen any change in the effectively attrition rate of your owners, even as we think about those who have already paid down their receivable balance? Dan Mathewes: Sorry, say that one more time, Grambling. It was attrition rate associated with owners who've paid down their receivable balance? Stephen Grambling: Yeah Dan Mathewes: Yeah. I think, Stephen. Mark Wang: Yeah Stephen Grambling: We spoke previously about recapture becoming a bigger piece of our inventory sourcing strategy, especially with these acquisitions. Mark Wang: As the system matures, you have people that are traveling less and leaving the system, it's giving us an opportunity to recapture inventory. It's kind of a natural part of the system and evolution. For HGV, it wasn't as big a part of the system evolution, with the acquired companies, they are more mature than us, we are seeing, when you look at absolute number, you're seeing a little bit more attrition. As a percentage, it is about what you would expect. It's one of the advantages of the timeshare business model, right? It's a good COP, it's good for long-term free cash flow, since we don't have to go rebuild inventory. The opportunity to recycle inventory, and create additional full lifetime value with new customers is really strong. Yeah. No, absolutely. That's a good point, Mark. Dan Mathewes: That's also contributing some of the benefit that we see to COP in the back half of the year, the recapture from the inventory that was driven by the M&A transaction that we obviously completed. Operator: As a reminder, if you would like to ask a question, please press star one on your telephone keypad. Next, we'll move to Alex Henneau with Jefferies. Alex Henneau: Hey, good morning. Thanks for taking the call. Maybe just switching gears here, if we could revisit the Elara acquisition and talk about your expectations, what you've put out there for this year, as well as some of the earnings benefit in the medium to long term. Thanks. Dan Mathewes: Yeah. No, absolutely. We closed on Elara, as we talked last time, on April 30th. We anticipated that would be a benefit to EBITDA in Q3 of about $3 million, and for the full year this year, about $20 million on a run rate basis. Well, run rate is a loose term because it is a finite cashless stream. For next year, we expected, on an annualized basis for that 20 to accelerate to closer to between $25 million and $30 million. All that being said, the performance we've seen since close has been strong. It's been in line slightly better than our expectations. For the full year, I would tell you that would account for a shift from fee for service to own contract sales of close to 3% this year. We're right on track, to be in line, perhaps slightly ahead of that performance that we quoted last time. We've seen good upgrades into Elara because of advantageous maintenance fees and solid upgrades out of Elara, which is all part of the thesis. Alex Henneau: Awesome. Thank you. Operator: Our next question will hear from Chris Woronka with Deutsche Bank. Chris Woronka: Hey. Good morning, guys. Thanks for taking the question. You guys have spent a lot of time kind of covering some of the issues in Orlando and I think Myrtle Beach that you called out. I'm curious as to whether any of those relate to just kind of turnover in staffing or poaching from other timeshare companies. I think we've heard about some movement within the industry back and forth, and maybe if you could just give us a kind of bigger state of the union update on how you see staffing at some of these key sales centers and whether turnover is running better or worse than you would hope. Thanks. Mark Wang: I think, first of all, as I said in prepared remarks, and I think in some of my comments on the Q&A, demand remains healthy, right? Q2 is really more of an operational, not a structural issue here for us. As it relates to talent, competition for talent has always been part of the industry, and people move between companies, and that's been happening for decades. It's always encouraging when we see talent develop. I would say talent management is part of the nature of the business rather than an underlying risk. Look, our sales and marketing organization is one of our greatest competitive advantages, and they introduce more customers to our brand than any company in our space, and they're committed to teamwork, innovation, and importantly, integrity. They continue to lead the industry and shape the future. Feel really good about the team we have. We had some execution misses in a couple of our markets, as we've talked about. We've identified it, we've taken action, and we're already starting to see improvement. Chris Woronka: Okay. Thanks, Mark. Maybe just as a follow-up, I think we've seen Hilton recently talk about a couple higher profile conversions on the, I guess, luxury lifestyle side. Do you think that, to any degree, helps you with the kind of the way that your customer flow might work? I mean, if they're going to, I guess excel. I don't want to use the word accelerate, but accelerate kind of what they might do on the luxury lifestyle side. Do you guys plan for any kind of benefit that might roll through to you through the loyalty program and other kind of connections you have? Thanks. Mark Wang: Yeah. Well, our brand and relationship with Hilton is an incredibly important part of our strategy and our growth, right? Hilton Has consistently delivered and ranked among the top hotel brands in hospitality, right? If you look at their NUG, you look at the amount of hotels in the system, you look at the span and width of their brands and the way luxury lifestyle and luxury has continued to grow, all of that is beneficial. Because remember, not only do we have a license for the brand, but we have real deep connection with the customers within Hilton. We have access to the Hilton customer base, and that is an important part of our overall strategy, and it's important part of how we've leveraged to become the largest timeshare company in the world. When you look at our tour flow, we have leveraged that relationship better than any brand out there. We appreciate all the great work that Hilton is doing, and as they continue to build a bigger base of brands and properties, they're generating more new customers, and those new customers become great opportunities for HGV. Chris Woronka: Okay. Very helpful. Thanks, guys. Operator: There are no further questions at this time. I would like to turn the floor back to Mark Wang for closing remarks. Mark Wang: All right. Thank you again for joining us on the call today. I'd like to say a special thanks to our team members for their incredible work taking care of our members and guests. We look forward to speaking with you on our next call. Have a great day. Operator: Thank you. This does conclude today's teleconference. We thank you for your participation. You may disconnect your lines at this time. Before you buy stock in Hilton Grand Vacations, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Hilton Grand Vacations wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. HGV (HGV) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Hilton Grand Vacations Inc.? Here are five stocks we like better. Q2 adjusted EBITDA rose 5% to $293 million, while revenue before cost reimbursements increased 3% to $1.3 billion and margins expanded to 23%, supported by cost controls and operating efficiencies. Tours grew 6% to 239,000, but real estate contract sales fell 3% to $810 million and VPG declined 9% to approximately $3,400. Management attributed the weakness primarily to Bluegreen execution challenges and post-HGV Max comparisons rather than reduced demand. Hilton Grand Vacations reaffirmed its 2026 adjusted EBITDA guidance of $1.225 billion to $1.265 billion, while lowering expectations for full-year VPG to a low- to mid-single-digit decline and contract sales to flat to slightly down; the company also repurchased more than $300 million of shares year to date. Hilton Grand Vacations (NYSE:HGV) reported second-quarter adjusted EBITDA to shareholders of $293 million, up 5% from a year earlier, as cost controls and operating-efficiency initiatives helped offset lower contract sales and sales productivity pressures at portions of its Bluegreen business. The company said adjusted EBITDA margin, excluding cost reimbursements, expanded 40 basis points year over year to 23%. Total revenue before cost reimbursements rose 3% to $1.3 billion. Management said reported GAAP results excluded $54 million in net contract-sales deferrals tied to presales at its Ka Haku project, along with $26 million in associated direct expenses. Adjusting for those items would add a net $28 million to adjusted EBITDA, according to the company. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Hilton Grand Vacations generated 239,000 tours during the quarter, a 6% increase from the prior-year period and its fourth consecutive quarter of consolidated tour growth. CEO Mark Wang said the results demonstrated continued demand across the platform, with occupancy and on-the-book arrivals for the second half of the year remaining ahead of the prior year. However, real estate contract sales declined 3% to $810 million. Volume per guest, or VPG, fell 9% to about $3,400. Wang said the decline reflected a faster-than-expected moderation in Bluegreen VPG following the prior-year launch of HGV Max, sales-execution challenges at several high-volume locations, and a greater mix of trust transactions and new-buyer sales. → Microsoft Just Flipped the AI Spending Narrative Overnight New-buyer contract sales accounted for 28% of total volume, up 70 basis points from the prior-year period. The company reported high-single-digit growth in both new-buyer tours and transactions, supported by prior marketing investments and stable close rates. Wang said the company did not view the sales shortfall as a demand problem. In particular, Bluegreen tour flow increased 10% year over year and new-buyer transactions at Bluegreen rose 16%, he said. But owner VPG at Bluegreen faced a difficult comparison after the HGV Max rollout drove a 45% increase in VPG during the second quarter of 2025. → Carrier Earnings Could Send the Stock to a New All-Time High Management also identified execution issues at Bluegreen operations in Orlando and Myrtle Beach. Wang said the company installed new leadership and increased recruiting and training investments in those markets. He said Hilton Grand Vacations expects performance to improve through the third quarter and return to expected levels by the fourth quarter. Real estate profit increased 7% to $173 million, while real estate margins expanded 220 basis points to 28%. Cost of product was 10%, down 130 basis points from a year earlier and consistent with the first quarter. President and CFO Dan Mathewes said the larger mix of trust sales contributed to the cost-of-product performance. Trust transactions generally carry lower VPG than traditional deeded sales, but also have a lower cost of product, he said. Management also said inventory recapture from prior acquisitions is expected to contribute to cost-of-product benefits in the second half. Real estate sales and marketing expense was $397 million, or 49% of contract sales, 40 basis points below the prior-year period. The financing business produced $144 million in revenue and $86 million in profit. Excluding amortization related to acquired receivables, financing margins were 62%, up 100 basis points year over year. The company’s provision for bad debt was 17% of owned contract sales, at the high end of its targeted mid-teens range. Mathewes attributed the increase primarily to a higher customer borrowing propensity and a greater mix of trust and new-buyer sales, which carry higher provisions than deeded sales. He said the increase was not caused by portfolio deterioration, citing stable or improving early-stage delinquency trends across the company’s portfolios. Combined gross receivables totaled $5 billion, with a $1.4 billion allowance for bad debt, or 28% of the portfolio. The weighted average interest rate on originated loans was 14.4%. Hilton Grand Vacations ended the quarter with 722,000 consolidated members. Nearly 300,000 members, or 40% of its base, were enrolled in HGV Max, representing 24% growth from a year earlier. Wang said the company continues to invest in HGV Max and its member experience platform to support engagement, upgrades and recurring revenue opportunities. Its HGV Ultimate Access events platform hosted more than 137,000 guests over the past year and generated what management described as strong contract sales. The company said the platform has become a core part of its member offering. Rental and ancillary revenue rose 8% to $210 million, supported by higher revenue per available room and increased room nights. However, developer maintenance fees remained the largest driver of profitability trends in that business and contributed to a $10 million loss during the period. The company completed the disposition of a group of non-core assets on June 30. It recorded a $48 million non-cash loss related to the transaction, though management expects the deal to reduce the annualized maintenance-fee burden on EBITDA by $10 million to $12 million, all else equal. The benefit in 2026 is expected to be minimal because many maintenance fees are paid at the beginning of the year. Hilton Grand Vacations said it may participate in proceeds if the third party managing and marketing the properties completes future sales. Adjusted free cash flow was $180 million, representing 61% conversion from adjusted EBITDA. During the quarter, the company repurchased 3.1 million shares for $150 million, followed by another 488,000 shares for $25 million between July 1 and July 23. Year to date, share repurchases exceeded $300 million. As of July 23, $103 million remained under the company’s repurchase authorization. Hilton Grand Vacations reaffirmed its 2026 adjusted EBITDA-before-deferrals guidance of $1.225 billion to $1.265 billion. Management said cost discipline, lower expected cost of product and improving bad-debt provisions in the second half should help support the outlook despite sales pressure. The company now expects full-year VPG to decline in the low- to mid-single digits, compared with its prior outlook for flat to slightly lower VPG. For the third quarter, it expects high-single-digit VPG declines. Full-year contract sales are now expected to be flat to down slightly, versus its earlier expectation for a slight increase; third-quarter contract sales are expected to decline in the mid-single digits. As of June 30, the company had $735 million of liquidity, including $272 million of unrestricted cash and $463 million available under its revolving credit facility. Total net leverage was 3.8 times on a pro forma trailing-12-month basis, down 0.1 turns from the first quarter and consistent with year-end levels. Hilton Grand Vacations Inc is a leading developer and marketer of premium vacation ownership resorts. The company specializes in selling timeshare interests in vacation properties under the Hilton Grand Vacations brand, enabling members to purchase deeded real estate interests and utilize a points-based system for booking stays. Alongside new sales, the company provides ongoing management services for its portfolio of resorts, ensuring high standards of guest services, resort maintenance, and member engagement through its proprietary technology platform. In addition to vacation ownership sales, Hilton Grand Vacations offers a comprehensive suite of membership benefits. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Hilton Grand Vacations Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Generated 239,000 tours in Q2 2026, a 6% increase year-over-year, marking the fourth consecutive quarter of consolidated tour growth. Adjusted EBITDA grew 5% to $293 million, with margins expanding 40 basis points to 23%, reflecting cost discipline and efficiency programs. New buyer tours increased at a high single-digit rate year-over-year, supporting long-term embedded value growth. HGV Max membership grew 24% year-over-year to nearly 300,000 members, deepening member engagement and satisfaction. Repurchased $150 million in shares during the quarter, demonstrating commitment to returning excess capital to shareholders. Contract sales declined 3% year-over-year to $810 million, missing expectations due to execution challenges and VPG moderation. VPG decreased 9% to approximately $3,400, pressured by a higher mix of trust transactions and new buyer sales, as well as execution issues at Bluegreen locations. Sales execution fell short in key Bluegreen markets like Orlando and Myrtle Beach, requiring leadership changes and corrective actions. Loan loss provision increased to 17% of contract sales, above the mid-teens target, due to higher financing propensity and mix shifts. Full-year contract sales guidance revised to flat to down slightly, with Q3 expected to decline in the mid-single digits. Warning! GuruFocus has detected 9 Warning Signs with HGV. Is HGV fairly valued? Test your thesis with our free DCF calculator. Q: What were the primary drivers of the VPG decline in the second quarter, and how should we think about the different components?A: Mark Wang (CEO): The VPG headwinds came from a few key areas. First, we saw a moderation in Bluegreen's owner VPGs as we lapped the very successful launch of HGV Max in the prior year, where VPGs were up 45% in Q2 of 2025. Second, we had execution challenges at a handful of Bluegreen locations, primarily in Orlando and Myrtle Beach. Third, we had a higher mix of trust transactions and new buyer sales, which generally carry a lower average VPG than owner sales but are important for long-term value. The legacy HGV business performed solidly. Q: Can you provide more detail on the sales execution issues in Orlando and Myrtle Beach? What were the specific problems and what actions have been taken?A: Mark Wang (CEO): In both impacted markets, occupancy and tour flow were up, which gave us confidence this was an execution issue, not a demand or market issue. It was a leadership issue in a couple of these bigger markets. We identified the issue, addressed the situation with leadership changes, and have added recruiting and training investments. We are confident these changes will improve performance through Q3 and get back to expected levels by Q4. Q: The loan loss provision jumped up year-over-year. Can you bridge the increase and confirm if you are still expecting mid-teens for the full year?A: Dan (CFO): The provision for the quarter was roughly 17%, at the high end of our mid-teens range. The increase was driven by a higher propensity to borrow from customers and a higher mix of trust product sales, which have a higher provision than deeded sales. Importantly, this was not driven by a deterioration in the portfolio. Delinquencies are stable or improving, especially at Bluegreen due to underwriting changes. We expect the provision to improve in the back half, keeping us healthily in the mid-teens range for the full year. Q: Regarding the asset streamlining, do you expect to close more transactions like the one announced last quarter? How should we think about the economics of the proceeds from the initial batch?A: Dan (CFO): There is definitely an opportunity for future deals, but the process of identifying properties and working through a structure takes time. We do not anticipate announcing any future deals in 2026. For the existing deal, the third-party is actively marketing those properties for sale. Upon disposition, we will take a significant portion of the proceeds through a contractual waterfall arrangement. We are treating this as a standard gain contingency. Q: How are you able to maintain your full-year EBITDA guidance despite the VPG pressure and lower contract sales expectations?A: Dan (CFO): Maintaining guidance is driven by cost discipline and prior-year efforts, particularly on the bad debt side. We have a full year's data on our underwriting changes and expect the provision to come down in the back half. Cost of product will also be a benefit due to a higher trust mix. We expect some pressure on SG&A in Q3 as actions take time to roll into place, but it should normalize in Q4. Q: Have you seen any change in the attrition rate of owners, particularly those who have paid down their receivable balance?A: Mark Wang (CEO): Recapture is becoming a bigger part of our inventory sourcing strategy, especially with the acquisitions. As the system matures, we are seeing a natural level of attrition, which is about what you would expect. This is an advantage of the timeshare business model, as it provides a good cost of product and allows us to recycle inventory and create additional lifetime value with new customers. Q: Can you revisit the Alara acquisition and discuss your expectations for this year and the medium to long-term earnings benefit?A: Dan (CFO): We closed on Alara on April 30th. We anticipated a benefit to EBITDA of about $3 million in Q3 and about $20 million for the full year. On a run-rate basis for next year, we expect that to accelerate to between $25 and $30 million. Performance since close has been strong and in line with or slightly better than our expectations. We are right on track to be in line, perhaps slightly ahead of that. Q: Do the sales execution issues relate to turnover in staffing or poaching from other timeshare companies? Can you give a bigger state of the union on staffing at key sales centers?A: Mark Wang (CEO): Competition for talent has always been part of the industry. Talent management is part of the nature of the business rather than an underlying risk. Our sales and marketing organization is one of our greatest competitive advantages. We had some execution misses in a couple of markets, which we have identified and taken action on, and we are already starting to see improvement. Q: Does Hilton's recent push into luxury and lifestyle conversions help your customer flow through the loyalty program?A: Mark Wang (CEO): Absolutely. Our brand and relationship with Hilton is an incredibly important part of our strategy. As Hilton continues to build a bigger base of brands and properties, they generate more new customers. Those new customers become great opportunities for HGV, as we have deep connections with the Hilton customer base and have leveraged that relationship better than any brand out there. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

ORLANDO, Fla., July 30, 2026--(BUSINESS WIRE)--Hilton Grand Vacations Inc. (NYSE: HGV) ("HGV" or "the Company") today reports its second quarter 2026 results. Second Quarter 2026 Results1 Total contract sales were $810 million. Total revenues were $1.358 billion. Net income attributable to stockholders was $12 million and diluted EPS was $0.15. Adjusted EBITDA attributable to stockholders was $265 million. During the second quarter, the Company repurchased 3.1 million shares of common stock for $150 million. The Company is reiterating its prior guidance for the full year 2026 Adjusted EBITDA, excluding deferrals and recognitions of $1.225 billion to $1.265 billion. "We delivered solid revenue and EBITDA growth in the second quarter driven by healthy tour growth and disciplined cost management," said Mark Wang, CEO of Hilton Grand Vacations. "During the quarter, we made progress on our strategic priorities by successfully completing our previously announced disposition transaction, expanding our HGV Max membership, and continuing to return capital to shareholders. These achievements reflect the strength of our business model and reinforce our confidence in our long-term growth algorithm of sustainable growth, margin expansion and strong cash flow generation." Overview For the quarter ended June 30, 2026, diluted EPS was $0.15 compared to $0.25 for the quarter ended June 30, 2025. Net income attributable to stockholders and Adjusted EBITDA attributable to stockholders were $12 million and $265 million, for the quarter ended June 30, 2026, compared to Net income attributable to stockholders and Adjusted EBITDA attributable to stockholders of $25 million and $233 million, for the quarter ended June 30, 2025. Total revenues for the quarter ended June 30, 2026, were $1.358 billion compared to $1.266 billion for the quarter ended June 30, 2025. Net income attributable to stockholders and Adjusted EBITDA attributable to stockholders for the quarter ended June 30, 2026, included a net construction deferral of $28 million relating to a project under construction in Hawaii. Net income attributable to stockholders and Adjusted EBITDA attributable to stockholders for the quarter ended June 30, 2025, included a net construction deferral of $45 million relating to projects under construction in Hawaii and Japan during the period. Consolidated Segment Highlights — Second Quarter of 2026 Real Estate Sales and Financing For the quarter ended June 30, 2026, Real Estate Sales and Financing segment revenues were $809 million, an increase of $49 million compared to the quarter ended June 30, 2025. Real Estate Sales and Financing segment Adjusted EBITDA and Adjusted EBITDA profit margin were $211 million and 26.1%, for the quarter ended June 30, 2026, compared to $176 million and 23.2%, for the quarter ended June 30, 2025. Real Estate Sales and Financing segment revenues in the second quarter of 2026 increased due to a $38 million increase in Sales of VOI, net, and a $18 million increase in financing revenue partially offset by a $7 million decrease in fee-for-service commissions, package sales and other fees. Real Estate Sales and Financing segment Adjusted EBITDA reflects a net construction deferral of $28 million for the quarter ended June 30, 2026, compared to $45 million net construction deferral for the quarter ended June 30, 2025, both of which reduced reported Adjusted EBITDA attributable to stockholders. Contract sales for the quarter ended June 30, 2026, decreased $24 million to $810 million compared to the quarter ended June 30, 2025. For the quarter ended June 30, 2026, tours increased by 6.1% and VPG decreased by 8.6% compared to the quarter ended June 30, 2025. For the quarter ended June 30, 2026, fee-for-service contract sales represented 12.8% of contract sales compared to 17.0% for the quarter ended June 30, 2025. Financing revenues for the quarter ended June 30, 2026, increased by $18 million compared to the quarter ended June 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 June 30, 2026, Resort Operations and Club Management segment revenues were $430 million, an increase of $25 million compared to the quarter ended June 30, 2025. Resort Operations and Club Management segment Adjusted EBITDA and Adjusted EBITDA profit margin were $154 million and 35.8%, for the quarter ended June 30, 2026, compared to $149 million and 36.8%, for the quarter ended June 30, 2025. Resort Operations and Club Management segment revenues increased primarily due to a $14 million increase in rental revenue and a $6 million increase in resort and club management revenue. Balance Sheet and Liquidity Total cash and cash equivalents were $272 million and total restricted cash was $296 million as of June 30, 2026. As of June 30, 2026, the Company had $4.9 billion of corporate debt, net outstanding with a weighted average interest rate of 5.626% and $2.9 billion of non-recourse debt, net outstanding with a weighted average interest rate of 5.035%. As of June 30, 2026, the Company’s liquidity position consisted of $272 million of unrestricted cash and $463 million remaining borrowing capacity under the revolving facility. As of June 30, 2026, the Company had $755 million remaining borrowing capacity under the Timeshare Facility. As of June 30, 2026, the Company had $1.3 billion of notes that were current on payments but not securitized. Of that figure, approximately $719 million could be monetized through either warehouse borrowing or securitization while another $372 million of mortgage notes anticipate being eligible following certain customary milestones such as first payment, deeding and recording. Free cash flow was $113 million for the quarter ended June 30, 2026, compared to $28 million for the same period in the prior year. Adjusted free cash flow was $180 million for the quarter ended June 30, 2026, compared to $135 million for the same period in the prior year. Adjusted free cash flow for the quarter ended June 30, 2026, and 2025 includes add-backs of $25 million and $53 million, respectively for acquisition and integration related costs. As of June 30, 2026, the Company’s total net leverage on a trailing 12-month basis was approximately 3.8x. On July 17, 2026, we refinanced our Term Loan B due 2028 with an amended $850 million Term Loan B due 2033. The Term Loan B pricing remained unchanged at SOFR plus 2.00%. 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 July 30, 2026, at 9 a.m. (ET) to discuss second 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 https://investors.hgv.com. 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 within 24 hours after the teleconference’s completion through Aug. 13, 2026. To access the replay, please dial 1-844-512-2921 in the U.S. (+1-412-317-6671 internationally) using ID#13758080. 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 more than 720,000 members 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. HGV believes that EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders provide useful information to investors about us and our financial condition and results of operations for the following reasons: (i) EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders are among the measures used by our management team to evaluate our operating performance and make day-to-day operating decisions; and (ii) EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders are frequently used by securities analysts, investors and other interested parties as a common performance measure to compare results or estimate valuations across companies in our industry. EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders have limitations as analytical tools and should not be considered either in isolation or as a substitute for net income (loss), cash flow or other methods of analyzing our results as reported under U.S. GAAP. Some of these limitations are: EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders do not reflect changes in, or cash requirements for, our working capital needs; EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders do not reflect our interest expense (excluding interest expense on non-recourse debt), or the cash requirements necessary to service interest or principal payments on our indebtedness; EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders do not reflect our tax expense or the cash requirements to pay our taxes; EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders do not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments; EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders do not reflect the effect on earnings or changes resulting from matters that we consider not to be indicative of our future operations; EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders do not reflect any cash requirements for future replacements of assets that are being depreciated and amortized; and EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders may be calculated differently from other companies in our industry limiting their usefulness as comparative measures. Because of these limitations, EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders should not be considered as discretionary cash available to us to reinvest in the growth of our business or as measures of cash that will be available to us to meet our obligations. Adjusted Net Income, Adjusted Net Income Attributable to Stockholders and Adjusted Diluted EPS Attributable to Stockholders Adjusted Net Income, presented herein, is calculated as net income (loss) further adjusted to exclude certain items, including, but not limited to, gains, losses and expenses in connection with costs associated with acquisitions, restructuring, amortization of premiums and discounts resulting from purchase accounting, and other non-cash and one-time charges. Adjusted Net Income Attributable to Stockholders, presented herein, is calculated as Adjusted Net Income, as defined above, excluding amounts attributable to the noncontrolling interest in Big Cedar. Adjusted Diluted EPS, presented herein, is calculated as Adjusted Net Income Attributable to Stockholders, as defined above, divided by diluted weighted average shares outstanding. Adjusted Net Income, Adjusted Net Income Attributable to Stockholders and Adjusted Diluted EPS 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 definition may not be comparable to similarly titled measures of other companies. Adjusted Net Income, Adjusted Net Income Attributable to Stockholders and Adjusted Diluted EPS are useful to assist our investors in evaluating our ongoing operating performance for the current reporting period and, where provided, over different reporting periods. Free Cash Flow and Adjusted Free Cash Flow Free Cash Flow represents cash from operating activities less non-inventory capital spending. Adjusted Free Cash Flow represents free cash flow further adjusted for net non-recourse debt activities and other one-time adjustment items including, but not limited to, costs associated with acquisitions. We consider Free Cash Flow and Adjusted Free Cash Flow to be liquidity measures not recognized under U.S. GAAP that provide useful information to both management and investors about the amount of cash generated by operating activities that can be used for investing and financing activities, including strategic opportunities and debt service. We do not believe these non-GAAP measures to be a representation of how we will use excess cash. Non-GAAP Measures within Our Segments Sales revenue represents sales of VOIs, net, and Fee-for-service commissions earned from the sale of fee-for-service VOIs. Fee-for-service commissions represents Fee-for-service commissions, package sales and other fees, which corresponds to the applicable line item from our condensed consolidated statements of income, adjusted by package sales and other fees earned primarily from discounted marketing related packages which encompass a sales tour to prospective owners. Real estate expense represents costs of VOI sales and Sales and marketing expense, net. Sales and marketing expense, net represents sales and marketing expense, which corresponds to the applicable line item from our condensed consolidated statements of income, adjusted by package sales and other fees earned primarily from discounted marketing related packages which encompass a sales tour to prospective owners. Both fee-for-service commissions and sales and marketing expense, net, represent non-GAAP measures. We present these items net because it provides a meaningful measure of our underlying real estate profit related to our primary real estate activities which focus on the sales and costs associated with our VOIs. Real estate profit represents sales revenue less real estate expense. Real estate margin is calculated as a percentage by dividing real estate profit by sales revenue. We consider real estate profit margin to be an important non-GAAP operating measure because it measures the efficiency of our sales and marketing spending, management of inventory costs, and initiatives intended to improve profitability. Financing profit represents financing revenue, net of financing expense, both of which correspond to the applicable line items from our condensed consolidated statements of income. Financing profit margin is calculated as a percentage by dividing financing profit by financing revenue. We consider this to be an important non-GAAP operating measure because it measures the efficiency and profitability of our financing business in connection with our VOI sales. Resort and club management profit represents resort and club management revenue, net of resort and club management expense, both of which correspond to the applicable line items from our condensed consolidated statements of income. Resort and club management profit margin is calculated as a percentage by dividing resort and club management profit by resort and club management revenue. We consider this to be an important non-GAAP operating measure because it measures the efficiency and profitability of our resort and club management business that support our VOI sales business. Rental and ancillary services profit represents rental and ancillary services revenues, net of rental and ancillary services expenses, both of which correspond to the applicable line items from our condensed consolidated statements of income. Rental and ancillary services profit margin is calculated as a percentage by dividing rental and ancillary services profit by rental and ancillary services revenue. We consider this to be an important non-GAAP operating measure because it measures our ability to convert available inventory and unoccupied rooms into revenue and profit by transient rentals, as well as profitability of other services, such as food and beverage, retail, spa offerings and other guest services. Real Estate Metrics Contract sales represents the total amount of VOI products (fee-for-service, just-in-time, developed, and points-based) under purchase agreements signed during the period where we have received a down payment of at least 10% of the contract price. Contract sales differ from revenues from the Sales of VOIs, net that we report in our condensed consolidated statements of income due to the requirements for revenue recognition, as well as adjustments for incentives. While we do not record the purchase price of sales of VOI products developed by fee-for-service partners as revenue in our condensed consolidated financial statements, rather recording the commission earned as revenue in accordance with U.S. GAAP, we believe contract sales to be an important operational metric, reflective of the overall volume and pace of sales in our business and believe it provides meaningful comparability of HGV’s results the results of our competitors which may source their VOI products differently. HGV believes that the presentation of contract sales on a combined basis (fee-for-service, just-in-time, developed, and points-based) is most appropriate for the purpose of the operating metric; additional information regarding the split of contract sales, is included in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our most recent Quarterly Report on form 10-Q for the period ended June 30, 2026. Developed Inventory refers to VOI inventory that is sourced from projects developed by HGV. Fee-for-Service Inventory refers to VOI inventory HGV sells and manages on behalf of third-party developers. Just-in-Time Inventory refers to VOI inventory primarily sourced in transactions that are designed to closely correlate the timing of the acquisition with HGV’s sale of that inventory to purchasers. Points-Based Inventory refers to VOI sales that are backed by physical real estate that is or will be contributed to a trust. Net Owner Growth ("NOG") represents the year-over-year change in membership. Tour flow represents the number of sales presentations given at HGV’s sales centers during the period. Volume per guest ("VPG") represents the sales attributable to tours at HGV’s sales locations and is calculated by dividing contract sales, excluding telesales, by tour flow. HGV considers VPG to be an important operating measure because it measures the effectiveness of HGV’s sales process, combining the average transaction price with closing rate. View source version on businesswire.com: https://www.businesswire.com/news/home/20260729891895/en/ Contacts Investor Contact:Mark [email protected] Media Contact:Lauren [email protected]

Hilton Grand Vacations (HGV) came out with quarterly earnings of $0.89 per share, beating the Zacks Consensus Estimate of $0.86 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.49%. A quarter ago, it was expected that this company would post earnings of $0.44 per share when it actually produced earnings of $0.99, delivering a surprise of +125%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Hilton Grand Vacations, which belongs to the Zacks Hotels and Motels industry, posted revenues of $1.36 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.16%. This compares to year-ago revenues of $1.27 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hilton Grand Vacations shares have added about 14.9% since the beginning of the year versus the S&P 500's gain of 6.9%. While Hilton Grand Vacations has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hilton Grand Vacations was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.11 on $1.46 billion in revenues for the coming quarter and $4.66 on $5.68 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Hotels and Motels is currently in the bottom 13% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, H World Group (HTHT), has yet to report results for the quarter ended June 2026. This hotel operator is expected to post quarterly earnings of $0.74 per share in its upcoming report, which represents a year-over-year change of +25.4%. The consensus EPS estimate for the quarter has been revised 1.4% higher over the last 30 days to the current level. H World Group's revenues are expected to be $983.82 million, up 9.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hilton Grand Vacations Inc. (HGV) : Free Stock Analysis Report H World Group Limited Sponsored ADR (HTHT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the contract sales decline to faster-than-predicted VPG moderation at Bluegreen as the company lapped the high-growth launch period of HGV Max. Sales execution fell short of expectations in the back half of the quarter, specifically localized to high-volume operations in Orlando and Myrtle Beach. The company observed a shift in transaction mix toward trust-based sales and new buyers; while these carry lower average VPG, management views them as critical for long-term embedded value. Tour growth remained robust at 6%, marking the fourth consecutive quarter of growth and indicating that recent softness is an execution issue rather than a demand-related trend. Profitability was supported by cost efficiency programs and a disciplined approach to margins, which expanded to 23% despite the top-line sales pressure. The Bluegreen integration continues to drive value, with Max membership reaching 40% of the total base, representing a 24% increase over the prior year. Full-year EBITDA guidance is maintained based on the assumption that corrective leadership and training actions will bridge the sales gap in the second half of the year. VPG expectations for the full year were revised downward to a low-to-mid-single-digit decline, reflecting the Q2 performance and anticipated high-single-digit declines in Q3. Management expects the bad debt provision to improve in the back half of the year as higher-equity loans from recent underwriting changes comprise a larger portion of the pool. The company remains committed to returning capital, targeting approximately $150 million in share repurchases per quarter, provided it does not increase net leverage for the full year. Inventory optimization through the disposal of non-core assets is expected to reduce the fee burden on EBITDA by $10 million to $12 million on a run-rate basis. A non-cash loss of $48 million was recorded following the disposition of non-core assets, a move intended to recycle capital and reduce inventory carrying costs. The company reported $54 million in net contract sales deferrals under ASC 606 related to pre-sales at the Ka Haku project, which reduced reported GAAP revenue. Loan loss provisions reached 17%, the high end of the target range, driven by a higher propensity to borrow and a shift toward trust-based products which require higher upfront provisioning. Management identified a leadership gap in specific markets as the primary driver of execution misses and has installed new leadership to rectify performance. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified the increase was driven by a higher propensity for customers to borrow and a product mix shift toward trust sales, rather than portfolio deterioration. Delinquency trends remain stable or improving, particularly at Bluegreen, due to higher down payment requirements implemented last year. The CEO identified these as leadership and operational issues rather than market-wide demand problems, noting that legacy HGV operations in the same markets performed well. Corrective actions include new leadership, increased recruiting investments, and enhanced training, with performance expected to normalize by Q4. The company will participate in a 'waterfall' of proceeds when the third-party developer eventually sells the properties, though this is treated as a gain contingency. The primary immediate benefit is the removal of future maintenance fee obligations and the ability to recycle capital into higher-quality inventory. The acquisition is performing slightly ahead of expectations, contributing to a shift from fee-for-service to owned contract sales. Management expects a $20 million EBITDA benefit this year, accelerating to between $25 million and $30 million in 2027.

Wyndham Hotels (WH) came out with quarterly earnings of $1.48 per share, beating the Zacks Consensus Estimate of $1.42 per share. This compares to earnings of $1.33 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.23%. A quarter ago, it was expected that this hotel and resort chain would post earnings of $0.85 per share when it actually produced earnings of $0.96, delivering a surprise of +12.94%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Wyndham, which belongs to the Zacks Hotels and Motels industry, posted revenues of $375 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 7.15%. This compares to year-ago revenues of $397 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Wyndham shares have added about 0.2% since the beginning of the year versus the S&P 500's gain of 9.7%. While Wyndham has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Wyndham was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.40 on $407.17 million in revenues for the coming quarter and $4.82 on $1.5 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Hotels and Motels is currently in the bottom 11% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Hilton Grand Vacations (HGV), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 30. This company is expected to post quarterly earnings of $1.00 per share in its upcoming report, which represents a year-over-year change of +85.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Hilton Grand Vacations' revenues are expected to be $1.36 billion, up 7.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wyndham Hotels & Resorts (WH) : Free Stock Analysis Report Hilton Grand Vacations Inc. (HGV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research