Hilton Grand Vacations faced a difficult Q3, with the market reacting negatively to results that missed Wall Street’s revenue and profit expectations. Management attributed the shortfall largely to elevated investment in future customer acquisition and increased marketing spending, which weighed on margins. CEO Mark Wang described the period as one of “above-average investment in future customer acquisition,” noting that while contract sales grew 17%, these gains were offset by upfront costs and a flat member base. The company’s cautious tone reflected challenges in balancing growth initiatives with near-term profitability.
Is now the time to buy HGV? Find out in our full research report (it’s free for active Edge members).
Hilton Grand Vacations (HGV) Q3 CY2025 Highlights:
- Revenue: $1.3 billion vs analyst estimates of $1.37 billion (flat year on year, 5% miss)
- Adjusted EPS: $0.60 vs analyst expectations of $0.97 (38.5% miss)
- Adjusted EBITDA: $245 million vs analyst estimates of $299.1 million (18.8% margin, 18.1% miss)
- Operating Margin: 9.3%, down from 12.6% in the same quarter last year
- Members: 721,488, in line with the same quarter last year
- Market Capitalization: $3.53 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Hilton Grand Vacations’s Q3 Earnings Call
-
Charles Scholes (Truist Securities) asked about expectations for 2026, especially for financing profit. CEO Mark Wang said growth would be driven by tour flow, while CFO Daniel Mathewes flagged continued headwinds but saw opportunities from expanded securitization.
-
Benjamin Chaiken (Mizuho Securities) inquired about the impact of higher marketing expenses and flow-through. Wang and Mathewes confirmed these costs are upfront and will be recouped as package holders convert, expecting better alignment next year.
-
Chris Woronka (Deutsche Bank) asked about trends among first-time buyers by segment. Wang highlighted improved close rates for new buyers across generations and net worth tiers, noting stable consumer behavior.
-
Brandt Montour (Barclays) questioned divergence in close rates by property type or customer tier. Wang responded that execution, not consumer weakness, was the driver, with middle- and high-net-worth tiers showing the best improvement.
-
Dany Asad (Bank of America) queried credit risk among lower FICO score customers. Mathewes stated that subprime exposure is limited and delinquency rates remain stable, supported by high satisfaction among Max members.
Catalysts in Upcoming Quarters
In upcoming quarters, key areas to watch include: (1) the pace at which package sales convert to actual tours and contract sales, (2) further realization of cost synergies and operational efficiencies from Bluegreen integration, and (3) stabilization or improvement in the Las Vegas rental market. The company’s ability to manage financing margins and maintain healthy delinquency rates as macroeconomic conditions evolve will also be important.
Hilton Grand Vacations currently trades at $41.32, down from $44.20 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
Our Favorite Stocks Right Now
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
