Revenue rose 50.8% year over year to roughly $2.0B in Q3 2026 with operating margin expanding to 25.1%, but EPS volatility from $0.15 to $3.70 across recent quarters suggests net earnings are being driven by items below operating income and warrant further investigation.
Hilton Grand Vacations Inc. (HGV) annual income statement — 12-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 |
|---|
| Sales/Revenue | 6.16B | 5.05B | 4.98B | 3.98B | 3.83B | 2.33B | 894M | 1.84B | 2B | 1.71B | 1.58B | 1.48B | 1.32B |
| Revenue Growth % | 23.31% | 1.32% | 25.21% | 3.73% | 64.24% | 161.19% | -51.36% | -8.05% | 16.83% | 8.09% | 7.32% | 12% | - |
| Cost of Goods Sold | 2.43B | 2.19B | 2.15B | 2.75B | 2.56B | 1.48B | 742M | 1.31B | 1.31B | 1.15B | 1.06B | 1B | 884M |
| COGS % of Revenue | - | 43.31% | 43.08% | 69.11% | 66.75% | 63.38% | 83% | 71.33% | 65.73% | 67.45% | 67.21% | 67.86% | 67.12% |
| Gross Profit | 3.74B | 2.86B | 2.83B | 1.23B | 1.27B | 855M | 152M | 527M | 685M | 557M | 519M | 474M | 433M |
| Gross Margin % | 60.62% | 56.69% | 56.92% | 30.89% | 33.25% | 36.62% | 17% | 28.67% | 34.27% | 32.55% | 32.79% | 32.14% | 32.88% |
| Gross Profit Growth % | - | 0.92% | 130.68% | -3.61% | 49.12% | 462.5% | -71.16% | -23.07% | 22.98% | 7.32% | 9.49% | 9.47% | - |
| Operating Expenses | 2.75B | 2.3B | 2.14B | 545M | 580M | 357M | 152M | 212M | 251M | 220M | 196M | 153M | 120M |
| OpEx % of Revenue | - | 45.57% | 42.92% | 13.7% | 15.12% | 15.29% | 17% | 11.53% | 12.56% | 12.86% | 12.38% | 10.37% | 9.11% |
| Selling, General & Admin | 3.17B | 2.09B | 836M | 194M | 212M | 151M | 92M | 212M | 215M | 191M | 172M | 131M | 519M |
| SG&A % of Revenue | - | 41.33% | 16.78% | 4.88% | 5.53% | 6.47% | 10.29% | 11.53% | 10.76% | 11.16% | 10.87% | 8.88% | 39.41% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -1000K | 214M | 1.3B | 351M | 368M | 206M | 60M | 0 | -1M | 29M | -1M | 22M | 5M |
| Operating Income | 988M | 561M | 697M | 684M | 695M | 498M | 0 | 315M | 434M | 337M | 323M | 321M | 313M |
| Operating Margin % | 16.03% | 11.12% | 13.99% | 17.19% | 18.12% | 21.33% | - | 17.14% | 21.71% | 19.7% | 20.4% | 21.76% | 23.77% |
| Operating Income Growth % | - | -19.51% | 1.9% | -1.58% | 39.56% | - | -100% | -27.42% | 28.78% | 4.33% | 0.62% | 2.56% | - |
| EBITDA | 1.28B | 834M | 965M | 897M | 939M | 624M | -192M | 366M | 470M | 366M | 347M | 343M | 331M |
| EBITDA Margin % | 20.77% | 16.52% | 19.37% | 22.55% | 24.48% | 26.72% | -21.48% | 19.91% | 23.51% | 21.39% | 21.92% | 23.25% | 25.13% |
| EBITDA Growth % | 57.25% | -13.58% | 7.58% | -4.47% | 50.48% | 425% | -152.46% | -22.13% | 28.42% | 5.48% | 1.17% | 3.63% | - |
| D&A (Non-Cash Add-back) | 292M | 273M | 268M | 213M | 244M | 126M | 45M | 51M | 36M | 29M | 24M | 22M | 18M |
| EBIT | 1.37B | 486M | 465M | 627M | 623M | 374M | -237M | 316M | 433M | 338M | 322M | 321M | 313M |
| Net Interest Income | -767M | -311M | -329M | -178M | -142M | -105M | -43M | -43M | -30M | -27M | -29M | -29M | -36M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 767M | 311M | 329M | 178M | 142M | 105M | 43M | 43M | 30M | 27M | 29M | 29M | 36M |
| Other Income/Expense | -384M | -386M | -561M | -235M | -214M | -229M | -280M | -42M | -31M | -26M | -30M | -29M | -33M |
| Pretax Income | 604M | 175M | 136M | 449M | 481M | 269M | -280M | 273M | 403M | 311M | 293M | 292M | 280M |
| Pretax Margin % | 9.8% | 3.47% | 2.73% | 11.29% | 12.54% | 11.52% | -31.32% | 14.85% | 20.16% | 18.18% | 18.51% | 19.8% | 21.26% |
| Income Tax | 171M | 76M | 76M | 136M | 129M | 93M | -79M | 57M | 105M | -16M | 125M | 118M | 113M |
| Effective Tax Rate % | 28.31% | 43.43% | 55.88% | 30.29% | 26.82% | 34.57% | 28.21% | 20.88% | 26.05% | -5.14% | 42.66% | 40.41% | 40.36% |
| Net Income | 417M | 81M | 47M | 313M | 352M | 176M | -201M | 216M | 298M | 327M | 168M | 174M | 167M |
| Net Margin % | 6.77% | 1.6% | 0.94% | 7.87% | 9.18% | 7.54% | -22.48% | 11.75% | 14.91% | 19.11% | 10.61% | 11.8% | 12.68% |
| Net Income Growth % | 373.86% | 72.34% | -84.98% | -11.08% | 100% | 187.56% | -193.06% | -27.52% | -8.87% | 94.64% | -3.45% | 4.19% | - |
| Net Income (Continuing) | 433M | 99M | 60M | 313M | 352M | 176M | -201M | 216M | 298M | 327M | 168M | 174M | 167M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 162M | 151M | 143M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 5.31 | 0.89 | 0.46 | 2.80 | 2.93 | 1.74 | -2.36 | 2.42 | 3.04 | 3.28 | 1.70 | 1.76 | 1.69 |
| EPS Growth % | 470.33% | 93.48% | -83.57% | -4.44% | 68.39% | 173.73% | -197.52% | -20.39% | -7.32% | 92.94% | -3.41% | 4.14% | - |
| EPS (Basic) | - | 0.90 | 0.46 | 2.84 | 2.98 | 1.76 | -2.36 | 2.43 | 3.07 | 3.30 | 1.70 | 1.76 | 1.69 |
| Diluted Shares Outstanding | 78.6M | 91.5M | 103.1M | 111.6M | 120M | 101.09M | 85.18M | 89.29M | 98M | 100M | 99M | 99M | 99M |
| Basic Shares Outstanding | 76.9M | 89.9M | 101.9M | 110.21M | 118M | 99.75M | 85.18M | 88.76M | 97M | 99M | 98.82M | 99M | 99M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | 1.15% | - |
Quick answers to the most common questions about buying HGV stock.
For fiscal year 2025, Hilton Grand Vacations Inc. (HGV) reported total revenue of $5.05B. This represents a 283.2% increase compared to $1.32B in 2014.
Hilton Grand Vacations Inc. (HGV) is profitable, generating $81.0M in net income for the fiscal year ending 2025 with a net profit margin of 1.6%.
Hilton Grand Vacations Inc. (HGV) reported an operating income of $561.0M, resulting in an operating profit margin of 11.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Hilton Grand Vacations Inc. (HGV) generated $2.86B in gross profit for the year, representing a gross profit margin of 56.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Leverage and EPS volatility
Metrics are mathematically derived from official filings.
Revenue Growth Decelerating From Peak Levels
Based on reported quarterly figures, HGV's revenue grew 50.8% year over year in Q3 2026 to roughly $2.0B, but this followed a sharp deceleration to 25.1% in Q2 and 11.9% in Q1, suggesting the spike may reflect acquisition timing rather than durable organic momentum.
The Q3 2026 jump appears heavily influenced by the Diamond Resorts integration and related inventory recognition timing, which makes the underlying growth rate difficult to isolate from the reported figures. Revenue growth in the two prior quarters was far more modest, implying the core sales engine may be expanding at a single-digit to low-teens pace. Investors should monitor whether the Q3 level is sustained in subsequent periods before extrapolating it into a run-rate.
Gross Margin Volatility Tied to Accounting Timing
Reported gross margin swung between 19.4% and 152.5% across the ten quarters, with the most recent print of 58.7% in Q3 2026 following 44.3% in Q2, indicating that headline gross margin is poorly suited as a stable profitability anchor for this business.
The extreme swings, including a negative cost of revenue in Q3 2024, point to the timing effects of VOI sales recognition and reserve adjustments rather than structural pricing shifts. The more consistent band of roughly 44% to 59% in recent quarters is a more reasonable reference point, though it still reflects a mix of transactional and fee-based income. Peer gross margins of 15.1% for VAC and 27.2% for TNL are not directly comparable given differing cost classification.
Operating Margin Recovery Lags Revenue Scale
Operating margin reached 25.1% in Q3 2026 against 9.7% in Q2, yet SG&A of $660.0M in the same quarter absorbed a large share of gross profit, suggesting operating leverage is real but dependent on sustaining the revenue step-up.
The operating income increase outpaced the rise in gross profit in Q3, which may indicate some overhead efficiency, though the SG&A base has also grown materially. Operating margin in the 7% to 15% range across most prior quarters suggests that the business has historically struggled to convert top-line growth into durable operating profit. Whether the Q3 margin holds will depend on whether sales and marketing intensity can be kept in check as volume scales.
EPS Swings Disconnected From Operating Trend
Diluted EPS ranged from -$0.18 to $3.70 over the period, with Q2 2026 printing $0.15 against a reported $1.37 estimate despite Q2 operating income of $153.0M, indicating net income is being materially affected by items below operating income.
The gap between operating income and net income in several quarters, including Q2 2026 where $153.0M of operating income produced only $12.0M of net income, suggests significant interest expense, amortization, or non-operating charges. Based on the 5.10 debt-to-equity ratio, interest burden is a plausible contributor, though the exact composition cannot be confirmed from the supplied data. Stock-based compensation of $10M to $25M per quarter is modest relative to these swings and does not appear to explain the variance.
Sales and Marketing Dominates Cost Base
SG&A reached $660.0M in Q3 2026 and $549.0M in Q2 2026, representing the dominant operating expense line, which suggests that customer acquisition costs for vacation ownership sales remain the primary lever of profitability.
Because R&D is reported as zero, the cost structure is effectively a two-line model of cost of revenue and SG&A, with SG&A carrying the operating burden. The trajectory from roughly $46M to $58M in SG&A during 2024 and 2025 to hundreds of millions in 2026 reflects a change in reporting scope or a material acquisition, which warrants investigation rather than assumption. Management's expense discipline is difficult to judge until the SG&A composition is clarified.
Headline Growth Masks Fragile Earnings Base
The bull case rests on Q3 2026 revenue growth of 50.8% and operating margin of 25.1%, yet Q2 2026 EPS of $0.15 against a $1.37 estimate suggests the reported strength may not convert into durable net earnings for shareholders.
Short-sellers would likely focus on the gap between a single strong quarter and the weak trend surrounding it, since Q1 and Q2 2026 growth were only 11.9% and 25.1% and net margin fell to 0.8% in Q2. A 5.10 debt-to-equity ratio means that any further deterioration in consumer loan performance or a rise in financing costs could compress earnings faster than revenue. Investors should treat the Q3 figures as requiring confirmation in subsequent periods before accepting them as an earnings floor.