Hilton Grand Vacations Q2 2025 Earnings Miss Estimates, Revenue Down to $1.266 Billion, EPS at $0.25

Hilton Grand Vacations Inc reported Q2 2025 revenue of $1.266 billion, missing estimates of $1.357.97 million. EPS was $0.25, below the estimated $0.72. Net income attributable to stockholders was $25 million, up from $2 million in the same quarter last year. Contract sales increased by 10.2% to $834 million, driven by the HGV Max membership. Despite challenges, the company repurchased $150 million worth of shares.

Hilton Grand Vacations Inc (HGV) reported its Q2 2025 earnings, revealing a significant miss on earnings per share (EPS) and revenue forecasts. The company posted an EPS of $0.25, falling short of the expected $0.72, a 65.9% negative surprise. Revenue came in at $1.266 billion, below the anticipated $1.357.97 billion. Despite the earnings miss, the company repurchased $150 million worth of shares. Contract sales increased by 10.2% to $834 million, driven by the HGV Max membership.

Key Takeaways
- EPS missed expectations by 65.9%, with actual EPS at $0.25.
- Revenue fell short of forecasts, coming in at $1.266 billion.
- Net income attributable to stockholders was $25 million, up from $2 million in the same quarter last year.
- Contract sales increased by 10.2% to $834 million.
- The company repurchased $150 million worth of shares.

Market Reaction
The market reacted negatively to the earnings report, with Hilton Grand Vacations’ stock price dropping 10.58% to $49 in pre-market trading. This decline reflects investor concerns over the company’s ability to meet its financial targets and the broader implications of its earnings miss.

Outlook & Guidance
Despite the Q2 earnings miss, Hilton Grand Vacations maintained its 2025 adjusted EBITDA guidance of $1.125-$1.165 billion. The company anticipates an adjusted free cash flow per share of $8-$9 and remains committed to returning $600 million to shareholders. Future projections include EPS forecasts of $0.97 for Q3 and $1.1 for Q4 2025.

Risks and Challenges
Continued earnings volatility could impact investor confidence. Market softness in key areas like Las Vegas may affect future sales. Integration of acquisitions poses operational risks. Macroeconomic pressures, such as inflation, could affect consumer spending. Competitive pressures in the travel industry remain high.

References:
[1] https://finance.yahoo.com/news/hilton-grand-vacations-hgv-q2-133008734.html
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-hilton-grand-vacations-q2-2025-misses-eps-estimates-93CH-4164235