Cash generation remains inconsistent, highlighted by a $236 million working capital outflow in 2025Q3 and a volatile operating cash flow to net income ratio that reached 56.50 in 2024Q2.
| Cash from Operations | 390M | 300M | 309M | 312M | 747M | 168M | 79M | 145M | -159M | 356M | 158M | 131M | 213M |
| Operating CF Margin % | - | 5.94% | 6.2% | 7.84% | 19.48% | 7.19% | 8.84% | 7.89% | -7.95% | 20.81% | 9.98% | 8.88% | 16.17% |
| Operating CF Growth % | 187.23% | -2.91% | -0.96% | -58.23% | 344.64% | 112.66% | -45.52% | 191.19% | -144.66% | 125.32% | 20.61% | -38.5% | - |
| Net Income | 199M | 53M | 60M | 313M | 352M | 176M | -201M | 216M | 298M | 327M | 168M | 174M | 167M |
| Depreciation & Amortization | 328M | 346M | 268M | 213M | 244M | 165M | 45M | 51M | 36M | 29M | 24M | 22M | 18M |
| Stock-Based Compensation | 40M | 64M | 47M | 40M | 46M | 48M | 15M | 22M | 16M | 15M | 8M | 13M | 4M |
| Deferred Taxes | -62M | -56M | -29M | -23M | -38M | 0 | -123M | 3M | 20M | -129M | 23M | 20M | 37M |
| Other Non-Cash Items | 504M | 493M | 471M | 170M | 193M | -35M | 260M | -84M | -219M | 63M | 5M | 7M | -4M |
| Working Capital Changes | -596M | -600M | -508M | -401M | -50M | -186M | 83M | -63M | -310M | 51M | -111M | -131M | -42M |
| Change in Receivables | 9M | 57M | -339M | -305M | -401M | -124M | 163M | -131M | -159M | -91M | -128M | -94M | -78M |
| Change in Inventory | -188M | -120M | -84M | -93M | 100M | -18M | -91M | -4M | 16M | 47M | 7M | -38M | 51M |
| Change in Payables | 238M | -105M | 21M | -86M | 294M | 0 | -56M | -17M | -24M | 95M | 28M | 18M | -6M |
| Cash from Investing | -134M | -146M | -1.57B | -158M | -97M | -1.63B | -33M | -65M | -62M | -87M | -34M | -18M | -11M |
| Capital Expenditures | -134M | -146M | 0 | -75M | -97M | -18M | -31M | -63M | -63M | -47M | -34M | -18M | -17M |
| CapEx % of Revenue | 2.58% | 2.89% | 2.53% | 1.89% | 2.53% | 0.77% | 3.47% | 3.43% | 3.15% | 2.75% | 2.15% | 1.22% | 1.29% |
| Acquisitions | 0 | 0 | -1.44B | -74M | 0 | -1.59B | -2M | -2M | 1M | -40M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | -127M | -9M | 0 | -21M | -25M | -26M | -13M | -7M | -8M | -6M | 6M |
| Cash from Financing | -259M | -338M | 1.16B | 183M | -782M | 1.64B | 328M | -108M | 104M | -123M | -80M | -111M | -202M |
| Debt Issued (Net) | 345M | 259M | 1.66B | 559M | -494M | 1.7B | 350M | 184M | 300M | -119M | 501M | -212M | -159M |
| Equity Issued (Net) | -571M | -572M | -432M | -382M | -272M | -6M | -14M | -287M | -183M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2M | 0 |
| Share Repurchases | -600M | -600M | -432M | -368M | -272M | -6M | -10M | -283M | -183M | 0 | 0 | 0 | 0 |
| Other Financing | -33M | -25M | -76M | 6M | -16M | -59M | -8M | -5M | -13M | -4M | -577M | 95M | -43M |
| Net Change in Cash | -18M | -195M | -119M | 330M | -140M | 169M | 374M | -28M | -117M | 146M | 44M | 2M | 0 |
| Free Cash Flow | 328M | 230M | 183M | 237M | 650M | 150M | 48M | 82M | -222M | 309M | 124M | 113M | 196M |
| FCF Margin % | 6.33% | 4.56% | 3.67% | 5.96% | 16.95% | 6.42% | 5.37% | 4.46% | -11.11% | 18.06% | 7.83% | 7.66% | 14.88% |
| FCF Growth % | 57.69% | 25.68% | -22.78% | -63.54% | 333.33% | 212.5% | -41.46% | 136.94% | -171.84% | 149.19% | 9.73% | -42.35% | - |
| FCF per Share | 3.92 | 2.51 | 1.77 | 2.12 | 5.42 | 1.48 | 0.56 | 0.92 | -2.27 | 3.09 | 1.25 | 1.14 | 1.98 |
| FCF Conversion (FCF/Net Income) | 1.65x | 3.70x | 6.57x | 1.00x | 2.12x | 0.95x | -0.39x | 0.67x | -0.53x | 1.09x | 0.94x | 0.75x | 1.28x |
| Interest Paid | 0 | 0 | 0 | 0 | 177M | 113M | 64M | 63M | 49M | 42M | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 141M | 0 | 54M | 74M | 153M | 57M | 0 | 0 | 0 |
High leverage and volatility
As reported in recent financial statements, HGV's operating cash flow to net income ratio has fluctuated wildly, reaching an extreme 56.50 in 2024Q2, which suggests that reported net income is a poor proxy for the actual cash-generating capacity of the underlying vacation ownership business model.
The significant divergence between net income and operating cash flow indicates that non-cash accounting adjustments, likely related to the timing of revenue recognition under ASC 606, are heavily influencing the bottom line. Investors should monitor this gap, as it implies that reported earnings may not reflect the actual liquidity available to service the company's substantial debt obligations.
Based on quarterly data, free cash flow margins have remained inconsistent, ranging from a negative 1.6% in 2024Q1 to a peak of 11.0% in 2025Q4, highlighting the difficulty in maintaining a stable cash generation trajectory amidst cyclical shifts in consumer demand and high fixed costs.
The erratic nature of free cash flow suggests that the company's ability to self-fund operations is highly sensitive to sales volume fluctuations. This inconsistency complicates the company's capital allocation strategy, particularly given the ongoing need to manage debt levels while simultaneously funding property development and share repurchases.
According to recent SEC filings, HGV has consistently recorded negative working capital changes, with a notable outflow of $236 million in 2025Q3, indicating that the company is continuously consuming cash to support its inventory build-up and the financing of consumer vacation ownership interests.
These persistent outflows suggest that the business model is inherently cash-intensive, requiring significant upfront investment before revenue is fully realized. The reliance on working capital to fuel growth may exacerbate liquidity pressures if sales velocity slows or if the credit quality of the financing portfolio begins to deteriorate.
Financial records indicate that HGV has maintained a consistent share repurchase program of $150 million per quarter throughout 2025, despite the company's high debt-to-equity ratio of 5.10, which warrants further investigation into the sustainability of returning capital while managing significant interest-bearing liabilities.
The decision to prioritize share repurchases over debt reduction appears aggressive given the company's strained balance sheet and the volatility of its cash flows. This capital allocation strategy may limit the company's financial flexibility, potentially leaving it vulnerable to future interest rate shocks or operational downturns.
Quick answers to the most common questions about buying HGV stock.
Hilton Grand Vacations Inc. (HGV) generated $300.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Hilton Grand Vacations Inc. (HGV) generated $230.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Hilton Grand Vacations Inc. (HGV) spent $146.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Hilton Grand Vacations Inc. (HGV) spent $600.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.