Revenue growth remains highly sensitive to cyclical demand, evidenced by a sharp swing from 28.3% growth in 2024Q3 to a 0.5% contraction by 2025Q3.
| Sales/Revenue | 5.18B | 5.05B | 4.98B | 3.98B | 3.83B | 2.33B | 894M | 1.84B | 2B | 1.71B | 1.58B | 1.48B | 1.32B |
| Revenue Growth % | 4.24% | 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 | 2.24B | 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 | 2.95B | 2.86B | 2.83B | 1.23B | 1.27B | 855M | 152M | 527M | 685M | 557M | 519M | 474M | 433M |
| Gross Margin % | 56.85% | 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 | 2.32B | 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 | 2.58B | 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 | 628M | 561M | 697M | 684M | 695M | 498M | 0 | 315M | 434M | 337M | 323M | 321M | 313M |
| Operating Margin % | 12.11% | 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 | 905M | 834M | 965M | 897M | 939M | 624M | -192M | 366M | 470M | 366M | 347M | 343M | 331M |
| EBITDA Margin % | 17.46% | 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 % | 2.72% | -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) | 277M | 273M | 268M | 213M | 244M | 126M | 45M | 51M | 36M | 29M | 24M | 22M | 18M |
| EBIT | 1.04B | 486M | 465M | 627M | 623M | 374M | -237M | 316M | 433M | 338M | 322M | 321M | 313M |
| Net Interest Income | -777M | -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 | 777M | 311M | 329M | 178M | 142M | 105M | 43M | 43M | 30M | 27M | 29M | 29M | 36M |
| Other Income/Expense | -373M | -386M | -561M | -235M | -214M | -229M | -280M | -42M | -31M | -26M | -30M | -29M | -33M |
| Pretax Income | 255M | 175M | 136M | 449M | 481M | 269M | -280M | 273M | 403M | 311M | 293M | 292M | 280M |
| Pretax Margin % | 4.92% | 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 | 46M | 76M | 76M | 136M | 129M | 93M | -79M | 57M | 105M | -16M | 125M | 118M | 113M |
| Effective Tax Rate % | 18.04% | 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 | 199M | 81M | 47M | 313M | 352M | 176M | -201M | 216M | 298M | 327M | 168M | 174M | 167M |
| Net Margin % | 3.84% | 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 % | 25.16% | 72.34% | -84.98% | -11.08% | 100% | 187.56% | -193.06% | -27.52% | -8.87% | 94.64% | -3.45% | 4.19% | - |
| Net Income (Continuing) | 209M | 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 | 153M | 151M | 143M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.38 | 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 % | 43.95% | 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 | 83.7M | 91.5M | 103.1M | 111.6M | 120M | 101.09M | 85.18M | 89.29M | 98M | 100M | 99M | 99M | 99M |
| Basic Shares Outstanding | 81.48M | 89.9M | 101.9M | 110.21M | 118M | 99.75M | 85.18M | 88.76M | 97M | 99M | 98.82M | 99M | 99M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | 1.15% | - |
High leverage and margin volatility
According to quarterly financial disclosures, HGV's revenue growth has exhibited significant volatility, fluctuating from a 28.3% year-over-year increase in 2024Q3 to a 0.5% contraction by 2025Q3, suggesting that the company's top-line performance remains highly sensitive to broader consumer discretionary spending patterns and regional travel demand.
The inconsistency in revenue growth highlights the inherent cyclicality of the vacation ownership model, where transactional sales are prone to sudden shifts in consumer sentiment. While the company maintains a recurring revenue base through club management, the reliance on new VOI sales to drive top-line expansion appears to be a persistent vulnerability in the current macro environment.
As reported in recent income statements, HGV's gross margins have experienced extreme variance, ranging from a high of 152.5% in 2024Q3 to a low of 19.4% in 2024Q2, indicating that accounting adjustments and inventory-related costs significantly distort the underlying profitability of the core resort operations.
The wide swings in gross margin suggest that investors should look past headline figures to understand the true cost of sales and marketing efficiency. The persistent pressure on net margins, which have frequently dipped into low single digits or negative territory, implies that the company's high fixed-cost structure leaves little room for error during periods of lower sales volume.
Based on the provided income statement data, HGV's operating income has failed to scale consistently with revenue, as evidenced by operating margins that have fluctuated between 7.7% and 17.2% over the last ten quarters, reflecting the challenges of managing a high fixed-cost base during revenue downturns.
The inability to maintain stable operating margins suggests that the company's SG&A and operational overhead are not sufficiently flexible to adjust to revenue volatility. This lack of operating leverage may indicate that the integration of the Diamond Resorts platform has introduced significant complexity that continues to weigh on the company's bottom-line efficiency.
Financial filings indicate that HGV's net income has been highly erratic, with quarterly results swinging from a $154 million profit in 2024Q3 to a $17 million loss in 2025Q1, suggesting that non-operating items and accounting nuances are significantly impacting the reported bottom-line performance.
The frequent divergence between operating income and net income warrants further investigation into the impact of interest expenses and potential non-cash charges. Investors should monitor whether the company's reliance on securitization and loan loss provisions is masking underlying operational weaknesses or creating artificial earnings volatility.
Analysis of the company's financial position reveals a debt-to-equity ratio of 5.10, which, as noted in recent regulatory filings, poses a significant risk to long-term solvency if interest rates remain elevated or if the company's ability to generate consistent cash flow from VOI sales continues to deteriorate.
Short-sellers may focus on the potential for margin compression if the cost of guest acquisition continues to rise while the financing portfolio faces increased default risks. The company's aggressive capital allocation strategy, historically focused on buybacks, appears increasingly difficult to justify given the current leverage profile and the need for operational reinvestment.
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.