$HGV

Hilton Grand Vacations Inc.

CIK:0001674168|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues
Revenues	$ 1,358	$ 1,266	$ 2,643	$ 2,414
Expenses
General and administrative	67	58	116	104
Depreciation and amortization	71	59	142	126
Loss on sale and impairment	48	1	48	1
Total operating expenses	1,267	1,154	2,409	2,242
Interest expense	(70)	(79)	(143)	(156)
Equity in earnings from unconsolidated affiliates	2	6	7	11
Other gain (loss), net	0	4	(1)	10
Income before income taxes	23	43	97	37
Income tax expense	(8)	(15)	(14)	(21)
Net income	15	28	83	16
Net income attributable to noncontrolling interest	3	3	5	8
Net income attributable to stockholders	$ 12	$ 25	$ 78	$ 8
Earnings per share attributable to stockholders:
Basic (in dollars per share)	$ 0.15	$ 0.26	$ 0.97	$ 0.09
Diluted (in dollars per share)	$ 0.15	$ 0.25	$ 0.95	$ 0.08
Sales of VOIs, net
Revenues
Revenues	$ 507	$ 469	$ 962	$ 847
Fee-for-service commissions, package sales and other fees
Revenues
Revenues	158	165	319	307
Financing
Revenues
Revenues	144	126	282	251
Expenses
Expenses	58	54	109	109
Resort and club management
Revenues
Revenues	189	183	374	366
Expenses
Expenses	61	56	120	110
Rental and ancillary services
Revenues
Revenues	210	195	407	382
Expenses
Expenses	220	203	436	409
Cost reimbursements
Revenues
Revenues	150	128	299	261
Expenses
Expenses	150	128	299	261
Cost of VOI sales
Expenses
Expenses	38	38	83	63
Sales and marketing
Expenses
Expenses	482	479	919	904
Acquisition and integration-related
Expenses
Expenses	14	26	26	54
License fees
Expenses
Expenses	$ 58	$ 52	$ 111	$ 101

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating Activities
Net income	$ 83	$ 16
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	142	126
Amortization of deferred financing costs, acquisition premiums and other	31	37
Provision for loan losses	211	180
Loss on sale and impairment	48	1
Other loss (gain), net	1	(10)
Share-based compensation	36	35
Deferred income tax expense	0	6
Equity in earnings from unconsolidated affiliates	(7)	(11)
Return on investment in unconsolidated affiliates	7	5
Net changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net	(28)	(123)
Timeshare financing receivables, net	(302)	(224)
Inventory	(17)	(63)
Purchases and development of real estate for future conversion to inventory	(29)	(61)
Other assets	(249)	(222)
Accounts payable, accrued expenses and other	109	99
Advanced deposits	(1)	9
Deferred revenue	227	299
Net cash provided by operating activities	262	99
Investing Activities
Acquisitions, net of cash, cash equivalents and restricted cash acquired	(100)	0
Capital expenditures for property and equipment (excluding inventory)	(9)	(29)
Software capitalization costs	(32)	(37)
Net cash used in investing activities	(141)	(66)
Financing Activities
Proceeds from debt	1,285	1,427
Proceeds from non-recourse debt	1,469	1,690
Repayment of debt	(968)	(1,507)
Repayment of non-recourse debt	(1,594)	(1,511)
Payment of debt issuance costs	(13)	(13)
Repurchase and retirement of common stock	(300)	(300)
Payment of withholding taxes on vesting of restricted stock units	(18)	(8)
Proceeds from employee stock plan purchases	8	8
Proceeds from stock option exercises	19	2
Other	(3)	(1)
Net cash used in financing activities	(115)	(213)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	(9)	6
Net decrease in cash, cash equivalents and restricted cash	(3)	(174)
Cash, cash equivalents and restricted cash, beginning of period	571	766
Cash, cash equivalents and restricted cash, end of period	568	592
Less: Restricted cash	296	323
Cash and cash equivalents	$ 272	$ 269

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and cash equivalents	$ 272	$ 239
Restricted cash	296	332
Accounts receivable, net	312	270
Timeshare financing receivables, net	3,591	3,115
Inventory	2,546	2,522
Property and equipment, net	899	859
Operating lease right-of-use assets, net	63	72
Investments in unconsolidated affiliates	20	63
Goodwill	1,986	1,985
Intangible assets, net	1,592	1,670
Other assets	657	410
TOTAL ASSETS (variable interest entities - $2,642 and $2,601)	12,234	11,537
LIABILITIES AND EQUITY
Accounts payable, accrued expenses and other	1,169	1,018
Advanced deposits	228	228
Debt, net	4,876	4,545
Non-recourse debt, net	2,896	2,716
Operating lease liabilities	79	89
Deferred revenue	864	637
Deferred income tax liabilities	864	864
Total liabilities (variable interest entities - $2,884 and $2,824)	10,976	10,097
Commitments and contingencies - see Note 18
Preferred stock, $0.01 par value; 300,000,000 authorized shares, none issued or outstanding as of June 30, 2026 and December 31, 2025	0	0
Common stock, $0.01 par value; 3,000,000,000 authorized shares, 78,017,947 shares issued and outstanding as of June 30, 2026, and 83,133,678 shares issued and outstanding as of December 31, 2025	1	1
Additional paid-in capital	1,230	1,276
Accumulated (deficit) retained earnings	(101)	34
Accumulated other comprehensive loss	(28)	(22)
Total stockholders' equity	1,102	1,289
Noncontrolling interest	156	151
Total equity	1,258	1,440
TOTAL LIABILITIES AND EQUITY	$ 12,234	$ 11,537