Hilton Grand Vacations (NYSE:HGV) Q3 2025 Earnings: Revenue Misses, Adjusted EPS Beats Estimates

HILTON GRAND VACATIONS INC (NYSE:HGV) reported financial results for the third quarter of 2025, delivering a performance that notably missed analyst expectations on the top line while surpassing adjusted earnings per share estimates. The market's immediate reaction reflected this mixed outcome, with the stock trading lower in pre-market activity.

Earnings and Revenue Versus Estimates

The company’s third-quarter results presented a divergence between its revenue generation and its bottom-line profitability on an adjusted basis.

• Revenue: Total revenues for the quarter were reported at $1.300 billion. This figure fell short of the analyst consensus estimate of approximately $1.363 billion.
• Adjusted Earnings Per Share: The company reported an adjusted diluted EPS of $0.60. This surpassed the analyst estimate of $1.02 per share.

The discrepancy between the revenue miss and the earnings beat can be largely attributed to significant accounting treatments related to ongoing construction projects. The company highlighted a net deferral of $99 million in revenues and a corresponding $57 million impact on both net income and Adjusted EBITDA for the quarter. This means that while sales activity was strong, the accounting rules prevented the company from recognizing a portion of that revenue and profit in the current period, instead deferring it until specific construction milestones are completed.

Market Reaction and Price Action

The market's initial response to these results was negative. In pre-market trading, HGV shares were down approximately 2.6%. This price action suggests that investors are focusing more heavily on the revenue miss and the potential implications of the large deferrals rather than the outperformance on adjusted EPS. The negative sentiment indicates concerns over the company's top-line growth and the timing of profit recognition in the near term.

Key Highlights from the Quarterly Report

Beyond the headline earnings figures, the company’s press release outlined several important operational and financial developments.

Operational Performance:

• Contract Sales: Demonstrated strong underlying demand, with total contract sales increasing 16.7% year-over-year to $907 million.
• Segment Results: The Real Estate Sales and Financing segment saw a decrease in reported revenues and Adjusted EBITDA, primarily due to the net construction deferrals. Conversely, the Resort Operations and Club Management segment posted increased revenue and stable Adjusted EBITDA.
• Share Repurchases: The company returned capital to shareholders, repurchasing 3.3 million shares for $150 million during the quarter and an additional 1.1 million shares in October.

Balance Sheet and Liquidity:

• The company maintained a liquidity position of $847 million, consisting of $215 million in unrestricted cash and $632 million in available borrowing capacity.
• Total net leverage was reported at 4.0x on a trailing twelve-month basis.

Full-Year Outlook: The company reiterated its prior guidance for full-year 2025 Adjusted EBITDA, excluding deferrals and recognitions, of $1.125 billion to $1.165 billion. This provides a measure of confidence in the company’s full-year operational profitability, independent of the timing of construction-related revenue recognition.

For a more detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the data available on the HGV earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.