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Timeshare vacation company Hilton Grand Vacations (NYSE:HGV) fell short of the market’s revenue expectations in Q1 CY2025, with sales flat year on year at $1.15 billion. Its non-GAAP profit of $0.09 per share was 82.2% below analysts’ consensus estimates.

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Hilton Grand Vacations (HGV) Q1 CY2025 Highlights:

• Revenue: $1.15 billion vs analyst estimates of $1.24 billion (flat year on year, 7.6% miss)

• Adjusted EPS: $0.09 vs analyst expectations of $0.53 (82.2% miss)

• Adjusted EBITDA: $180 million vs analyst estimates of $236.4 million (15.7% margin, 23.8% miss)

• Operating Margin: 5.2%, in line with the same quarter last year

• Free Cash Flow was $185 million, up from -$374 million in the same quarter last year

• Members: 724,617, in line with the same quarter last year

• Market Capitalization: $3.84 billion

StockStory’s Take

Hilton Grand Vacations reported flat revenue growth for Q1, as operational initiatives and efficiency improvements partially offset a challenging macroeconomic landscape. Management emphasized enhanced transaction rates, value-per-guest (VPG) gains, and the ongoing integration of Bluegreen Vacations as central to maintaining momentum. CEO Mark Wang noted, “Our direct marketing approach, diversified product range, and dedicated member base have provided us with a buffer against broader market volatility.”

Looking forward, leadership maintained its annual profitability outlook, focusing on actions within its control to manage consumer uncertainty. Mark Wang highlighted continued investments in lead generation, digital marketing, and flexible financing options as key strategic priorities. He acknowledged that external factors, such as tariffs and changing consumer sentiment, could influence results but stated that the company is proactively adapting to mitigate potential headwinds.

Key Insights from Management’s Remarks

Management identified several business levers that contributed to performance, with a focus on operational efficiency and new product initiatives. The quarter’s deviations from analysts’ expectations were largely attributed to macroeconomic volatility and ongoing integration efforts.

• Tour Efficiency Initiatives: Hilton Grand Vacations continued to refine its guest qualification and scoring models, prioritizing higher-quality tour prospects. These efforts boosted close rates and average transaction values, particularly among existing owners.

• Bluegreen Integration Progress: The integration of Bluegreen Vacations yielded $89 million in cost synergies so far, with management confident in reaching its $100 million target by year-end. The launch of HGV Max to Bluegreen members drove strong value-per-guest (VPG) growth, especially among legacy Bluegreen owners.

• Product and Marketing Enhancements: The company is accelerating digital marketing integration, launching new owner-focused campaigns, and rolling out enhancements to its HGV Max product, scheduled for later this year. These actions are designed to drive incremental member engagement and encourage additional stays.

• Flexible Financing Rollout: Management is unifying and simplifying its financing programs across brands, aiming to reduce friction at the sales table and incentivize purchases of specific inventory types. The new standardized approach is expected to drive additional cash flow at the point of sale.

• Geographic and Segment Strength: Strong performance was noted across multiple regions, including Hawaii, New York, and Orlando, with no major geographic concentration of weakness. Legacy owner channels outperformed, while new buyer segments showed moderate improvement, aided by targeted marketing and qualification strategies.