Second Quarter 2026
Filed Jul 30, 2026Hilton Grand Vacations Reports Second Quarter 2026 Results
Total revenues, Adjusted EBITDA attributable to stockholders, segment Adjusted EBITDA and free cash flow increased from the prior-year period, while diluted EPS declined, contract sales decreased and VPG declined. The Company reiterated full-year 2026 Adjusted EBITDA guidance excluding deferrals and recognitions.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $1.358 billion | – | – |
| Total revenues affected by net construction deferralGAAP | $54 million | – | – |
| Total contract salesother | $810 million | – | decreased $24 million |
| Net income attributable to stockholdersGAAP | $12 million | – | – |
| Diluted EPSGAAP | $0.15 | – | – |
| Adjusted net income attributable to stockholdersnon-GAAP | $72 million | – | – |
| Adjusted diluted EPSnon-GAAP | $0.89 | – | – |
| Net income and Adjusted net income attributable to stockholders affected by net construction deferralother | $28 million, or $(0.35) per share | – | – |
| Adjusted EBITDA attributable to stockholdersnon-GAAP | $265 million | – | – |
| Adjusted EBITDA attributable to stockholders affected by net construction deferralnon-GAAP | $28 million | – | – |
| Net incomeGAAP | $15 million | – | – |
| Net income attributable to noncontrolling interestGAAP | $3 million | – | – |
| Interest expenseGAAP | $70 million | – | – |
| Income tax expenseGAAP | $8 million | – | – |
| Depreciation and amortizationGAAP | $71 million | – | – |
| EBITDAother | $164 million | – | – |
| Adjusted EBITDAnon-GAAP | $269 million | – | – |
| Adjusted EBITDA attributable to noncontrolling interestnon-GAAP | $4 million | – | – |
| Sales of VOIs deferralsother | $ (54) | – | – |
| Cost of VOI sales deferralsother | $ (17) | – | – |
| Sales and marketing expense deferralsother | $ (9) | – | – |
| Net construction deferralsother | $ (28) | – | – |
| Toursother | increased by 6.1% | – | increased by 6.1% |
| VPGother | decreased by 8.6% | – | decreased by 8.6% |
| Fee-for-service contract sales representedother | 12.8% of contract sales | – | – |
| Free cash flownon-GAAP | $113 million | – | – |
| Adjusted free cash flownon-GAAP | $180 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Real Estate Sales and FinancingSegment revenues 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. Segment Adjusted EBITDA was $211 million and Adjusted EBITDA profit margin was 26.1%, compared to $176 million and 23.2% for the quarter ended June 30, 2025. | $809 million | – | an increase of $49 million |
| Resort Operations and Club ManagementSegment revenues increased primarily due to a $14 million increase in rental revenue and a $6 million increase in resort and club management revenue. Segment Adjusted EBITDA was $154 million and Adjusted EBITDA profit margin was 35.8%, compared to $149 million and 36.8% for the quarter ended June 30, 2025. | $430 million | – | an increase of $25 million |
full year 2026 outlook
- NoteAdjusted EBITDA, excluding deferrals and recognitions of $1.225 billion to $1.265 billion
Capital returns
- During the second quarter, the Company repurchased 3.1 million shares of common stock for $150 million.
- From July 1 through July 23, 2026, the Company repurchased approximately 488,000 shares for $25 million.
- The Company currently has $103 million of remaining availability under the 2025 Repurchase Plan.
What drove it
- Total revenues were affected by a net construction deferral of $54 million.
- Net income attributable to stockholders and Adjusted EBITDA attributable to stockholders included a net construction deferral of $28 million relating to a project under construction in Hawaii.
- Real Estate Sales and Financing contract sales decreased $24 million to $810 million, while tours increased by 6.1% and VPG decreased by 8.6%.
- Financing revenues increased by $18 million, 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 revenue growth was primarily driven by higher rental revenue and resort and club management revenue.
Concerns
- Diluted EPS was $0.15 compared to $0.25 for the quarter ended June 30, 2025.
- Net income attributable to stockholders was $12 million compared to $25 million for the quarter ended June 30, 2025.
- Contract sales decreased $24 million to $810 million compared to the quarter ended June 30, 2025.
- VPG decreased by 8.6% compared to the quarter ended June 30, 2025.
- Resort Operations and Club Management Adjusted EBITDA profit margin was 35.8%, compared to 36.8% for the quarter ended June 30, 2025.
- The Company reported $4.9 billion of corporate debt, net outstanding, and $2.9 billion of non-recourse debt, net outstanding, as of June 30, 2026.
What to watch
- The full-year 2026 Adjusted EBITDA guidance range of $1.225 billion to $1.265 billion, excluding deferrals and recognitions.
- Tour growth and VPG trends following the 6.1% increase in tours and 8.6% decrease in VPG.
- The timing of revenue and expense recognition for projects under construction under ASC 606.
- The mix of fee-for-service contract sales, which represented 12.8% of contract sales compared to 17.0% in the prior-year period.
- Monetization of the $1.3 billion of notes that were current on payments but not securitized.
Balance sheet and cash flow
- Total cash and cash equivalents were $272 million as of June 30, 2026.
- Total restricted cash was $296 million 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% as of June 30, 2026.
- The Company had $2.9 billion of non-recourse debt, net outstanding with a weighted average interest rate of 5.035% as of June 30, 2026.
- Liquidity 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 as of June 30, 2026.
- 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.
- Total net leverage on a trailing 12-month basis was approximately 3.8x as of June 30, 2026.
- On July 17, 2026, the Company refinanced its 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%.
Analysis
Hilton Grand Vacations reported total revenues of $1.358 billion for the quarter ended June 30, 2026, compared with $1.266 billion in the prior-year quarter. Revenue was affected by a net construction deferral of $54 million. Adjusted EBITDA attributable to stockholders increased to $265 million from $233 million, while adjusted EBITDA was $269 million compared with $238 million. The earnings outcome was weaker on a GAAP attributable basis, with net income attributable to stockholders of $12 million versus $25 million and diluted EPS of $0.15 versus $0.25.
Real Estate Sales and Financing generated $809 million of revenue, an increase of $49 million, and its Adjusted EBITDA increased to $211 million from $176 million. Its Adjusted EBITDA profit margin improved to 26.1% from 23.2%. Sales of VOI, net, increased by $38 million and financing revenue increased by $18 million, partly offset by a $7 million decline in fee-for-service commissions, package sales and other fees. Contract sales nevertheless decreased $24 million to $810 million, as a 6.1% increase in tours was offset by an 8.6% decrease in VPG.
Resort Operations and Club Management revenue was $430 million, up $25 million, driven principally by a $14 million increase in rental revenue and a $6 million increase in resort and club management revenue. Segment Adjusted EBITDA rose to $154 million from $149 million, but the Adjusted EBITDA profit margin declined to 35.8% from 36.8%. Fee-for-service contract sales represented 12.8% of contract sales, compared with 17.0% in the prior-year period, which is an important mix change alongside lower VPG.
Cash generation improved materially, with free cash flow of $113 million compared with $28 million and adjusted free cash flow of $180 million compared with $135 million. The Company repurchased 3.1 million shares for $150 million during the quarter and subsequently repurchased approximately 488,000 shares for $25 million through July 23, 2026. Liquidity included $272 million of unrestricted cash and $463 million of revolving-facility borrowing capacity, while corporate debt, net outstanding was $4.9 billion and non-recourse debt, net outstanding was $2.9 billion.
Construction accounting remained material. The second-quarter net construction deferral was $28 million, compared with $45 million in the prior-year quarter, and the Company stated that the current-quarter net construction deferral related to a project under construction in Hawaii. Management reiterated full-year 2026 Adjusted EBITDA guidance, excluding deferrals and recognitions, of $1.225 billion to $1.265 billion. The guide, tour and VPG progression, construction-recognition timing and the conversion of unsold or unsecuritized notes into financing capacity are the central reported variables for the balance of the year.
Management, verbatim
We delivered solid revenue and EBITDA growth in the second quarter driven by healthy tour growth and disciplined cost management. 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.
Mark Wang, CEO of Hilton Grand Vacations
Not in the filing
stated, not guessed- Prior full-year outlook section was not provided, so comparison of reported results with prior guidance is unavailable.
- GAAP operating income was not provided in the filing text.
- Gross profit and gross margin were not provided in the filing text.
- Operating cash flow was not provided in the filing text.
- Prior-year adjusted net income attributable to stockholders was not provided in the filing text.
- Prior-year adjusted diluted EPS was not provided in the filing text.
- Prior-quarter total revenue, total contract sales, diluted EPS, adjusted net income attributable to stockholders and adjusted diluted EPS were not provided in the filing text.
- Prior-year revenue for each operating segment was not printed on the segment revenue line.
- Percentage year-over-year and quarter-over-quarter changes were not printed for total revenues, contract sales, net income, diluted EPS, Adjusted EBITDA attributable to stockholders, free cash flow or adjusted free cash flow.
- Dividend information was not provided in the filing text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.