Hilton Grand Vacations Inc. 10-Q

Item 1. Financial Statements HILTON GRAND VACATIONS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share and per share data) June 30, 2025 December 31, 2024 (unaudited) ASSETS Cash and cash equivalents $ 269 $ 328 Restricted cash 323 438 Accounts receivable, net 444 315 Timeshare financing receivables, net 2,979 3,006 Inventory 2,406 2,244 Property and equipment, net 828 792 Operating lease right-of-use assets, net 77 84 Investments in unconsolidated affiliates 74 73 Goodwill 1,985 1,985 Intangible assets, net 1,760 1,787 Other assets 593 390 TOTAL ASSETS (variable interest entities - $ 2,447 and $ 2,192 ) $ 11,738 $ 11,442 LIABILITIES AND EQUITY Accounts payable, accrued expenses and other $ 1,216 $ 1,125 Advanced deposits 235 226 Debt, net 4,574 4,601 Non-recourse debt, net 2,499 2,318 Operating lease liabilities 95 100 Deferred revenue 551 252 Deferred income tax liabilities 928 925 Total liabilities (variable interest entities - $ 2,486 and $ 2,318 ) 10,098 9,547 Commitments and contingencies - see Note 18 Equity: Preferred stock, $ 0.01 par value; 300,000,000 authorized shares, none issued or outstanding as of June 30, 2025 and December 31, 2024 — — Common stock, $ 0.01 par value; 3,000,000,000 authorized shares, 89,458,267 shares issued and outstanding as of June 30, 2025, and 96,720,179 shares issued and outstanding as of December 31, 2024 1 1 Additional paid-in capital 1,326 1,399 Accumulated retained earnings 167 352 Accumulated other comprehensive loss ( 5 ) — Total stockholders' equity 1,489 1,752 Noncontrolling interest 151 143 Total equity 1,640 1,895 TOTAL LIABILITIES AND EQUITY $ 11,738 $ 11,442 See notes to unaudited condensed consolidated financial statements. 1 Table of Contents HILTON GRAND VACATIONS INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in millions, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues Sales of VOIs, net $ 469 $ 471 $ 847 $ 909 Fee-for-service commissions, package sales and other fees 165 167 307 312 Financing 126 102 251 206 Resort and club management 183 171 366 337 Rental and ancillary services 195 195 382 376 Cost reimbursements 128 129 261 251 Total revenues 1,266 1,235 2,414 2,391 Expenses Cost of VOI sales 38 65 63 113 Sales and marketing 479 453 904 854 Financing 54 44 109 83 Resort and club management 56 48 110 102 Rental and ancillary services 203 188 409 361 General and administrative 58 58 104 103 Acquisition and integration-related expense 26 48 54 157 Depreciation and amortization 59 68 126 130 License fee expense 52 40 101 75 Impairment expense 1 — 1 2 Cost reimbursements 128 129 261 251 Total operating expenses 1,154 1,141 2,242 2,231 Interest expense ( 79 ) ( 87 ) ( 156 ) ( 166 ) Equity in earnings from unconsolidated affiliates 6 3 11 8 Other gain (loss), net 4 ( 3 ) 10 ( 8 ) Income (loss) before income taxes 43 7 37 ( 6 ) Income tax (expense) benefit ( 15 ) ( 3 ) ( 21 ) 8 Net income 28 4 16 2 Net income attributable to noncontrolling interest 3 2 8 4 Net income (loss) attributable to stockholders $ 25 $ 2 $ 8 $ ( 2 ) Earnings (loss) per share attributable to stockholders: Basic $ 0.26 $ 0.02 $ 0.09 $ ( 0.02 ) Diluted $ 0.25 $ 0.02 $ 0.08 $ ( 0.02 ) See notes to unaudited condensed consolidated financial statements. 2 Table of Contents HILTON GRAND VACATIONS INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (in millions) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income $ 28 $ 4 $ 16 $ 2 Derivative instrument adjustments, net of tax ( 4 ) ( 1 ) ( 10 ) 3 Foreign currency translation adjustments, net of tax 6 ( 9 ) 5 ( 15 ) Other comprehensive income (loss), net of tax 2 ( 10 ) ( 5 ) ( 12 ) Comprehensive income attributable to noncontrolling interest 3 2 8 4 Comprehensive income (loss) attributable to stockholders $ 27 $ ( 8 ) $ 3 $ ( 14 ) See notes to unaudited condensed consolidated financial statements. 3 Table of Contents HILTON GRAND VACATIONS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in millions) Six Months Ended June 30, 2025 2024 Operating Activities Net income $ 16 $ 2 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 126 130 Amortization of deferred financing costs, acquisition premiums and other 37 63 Provision for financing receivables losses 180 159 Impairment expense 1 2 Other (gain) loss, net ( 10 ) 8 Share-based compensation 35 27 Deferred income tax expense 6 — Equity in earnings from unconsolidated affiliates ( 11 ) ( 8 ) Return on investment in unconsolidated affiliates 5 — Net changes in assets and liabilities, net of effects of acquisitions: Accounts receivable, net ( 123 ) 15 Timeshare financing receivables, net ( 224 ) ( 196 ) Inventory ( 63 ) ( 31 ) Purchases and development of real estate for future conversion to inventory ( 61 ) ( 50 ) Other assets ( 222 ) ( 154 ) Accounts payable, accrued expenses and other 99 55 Advanced deposits 9 5 Deferred revenue 299 86 Net cash provided by operating activities 99 113 Investing Activities Acquisitions, net of cash, cash equivalents and restricted cash acquired — ( 1,444 ) Capital expenditures for property and equipment (excluding inventory) ( 29 ) ( 17 ) Software capitalization costs ( 37 ) ( 20 ) Other — ( 1 ) Net cash used in investing activities ( 66 ) ( 1,482 ) Financing Activities Proceeds from debt 1,427 2,085 Proceeds from non-recourse debt 1,690 905 Repayment of debt ( 1,507 ) ( 397 ) Repayment of non-recourse debt ( 1,511 ) ( 1,231 ) Payment of debt issuance costs ( 13 ) ( 51 ) Repurchase and retirement of common stock ( 300 ) ( 199 ) Payment of withholding taxes on vesting of restricted stock units ( 8 ) ( 21 ) Proceeds from employee stock plan purchases 8 5 Proceeds from stock option exercises 2 7 Other ( 1 ) ( 2 ) Net cash (used in) provided by financing activities ( 213 ) 1,101 Effect of changes in exchange rates on cash, cash equivalents and restricted cash 6 ( 16 ) Net decrease in cash, cash equivalents and restricted cash ( 174 ) ( 284 ) Cash, cash equivalents and restricted cash, beginning of period 766 885 Cash, cash equivalents and restricted cash, end of period 592 601 Less: Restricted cash 323 273 Cash and cash equivalents $ 269 $ 328 See notes to unaudited condensed consolidated financial statements. 4 Table of Contents HILTON GRAND VACATIONS INC. CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) (in millions) Common Stock Additional Paid-in Capital Accumulated Retained Earnings Accumulated Other Comprehensive Loss Noncontrolling Interest Total Equity Shares Amount Balance as of December 31, 2024 97 $ 1 $ 1,399 $ 352 $ — $ 143 $ 1,895 Net (loss) income — — — ( 17 ) — 5 ( 12 ) Activity related to share-based compensation — — 5 — — — 5 Foreign currency translation adjustments, net of tax — — — — ( 1 ) — ( 1 ) Derivative instrument adjustments, net of tax — — — — ( 6 ) — ( 6 ) Repurchase and retirement of common stock ( 4 ) — ( 53 ) ( 97 ) — — ( 150 ) Balance as of March 31, 2025 93 $ 1 $ 1,351 $ 238 $ ( 7 ) $ 148 $ 1,731 Net income — — — 25 — 3 28 Activity related to share-based compensation — — 24 — — — 24 Employee stock plan issuance — — 8 — — — 8 Foreign currency translation adjustments, net of tax — — — — 6 — 6 Derivative instrument adjustments, net of tax — — — — ( 4 ) — ( 4 ) Repurchase and retirement of common stock ( 4 ) — ( 57 ) ( 96 ) — — ( 153 ) Balance as of June 30, 2025 89 $ 1 $ 1,326 $ 167 $ ( 5 ) $ 151 $ 1,640 See notes to unaudited condensed consolidated financial statements. 5 Table of Contents Common Stock Additional Paid-in Capital Accumulated Retained Earnings Accumulated Other Comprehensive Income Noncontrolling Interest Total Equity Shares Amount Balance as of December 31, 2023 106 $ 1 $ 1,504 $ 593 $ 17 $ — $ 2,115 Acquisition of third-party equity interest in consolidated entity — — — — — 158 158 Net (loss) income — — — ( 4 ) — 2 ( 2 ) Activity related to share-based compensation 1 — ( 4 ) — — — ( 4 ) Foreign currency translation adjustments, net of tax — — — — ( 6 ) — ( 6 ) Derivative instrument adjustments, net of tax — — — — 4 — 4 Repurchase and retirement of common stock ( 2 ) — ( 33 ) ( 68 ) — — ( 101 ) Balance as of March 31, 2024 105 $ 1 $ 1,467 $ 521 $ 15 $ 160 $ 2,164 Net income — — — 2 — 2 4 Activity related to share-based compensation — — 17 — — — 17 Employee stock plan issuance — — 5 — — — 5 Foreign currency translation adjustments, net of tax — — — — ( 9 ) — ( 9 ) Derivative instrument adjustments, net of tax — — — — ( 1 ) — ( 1 ) Repurchase and retirement of common stock ( 3 ) — ( 33 ) ( 67 ) — — ( 100 ) Balance as of June 30, 2024 102 $ 1 $ 1,456 $ 456 $ 5 $ 162 $ 2,080 See notes to unaudited condensed consolidated financial statements. 6 Table of Contents HILTON GRAND VACATIONS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION Our Business Hilton Grand Vacations Inc. (“Hilton Grand Vacations,” “we,” “us,” “our,” “HGV” or the “Company”) is a global timeshare company engaged in developing, marketing, selling, managing and operating timeshare resorts, timeshare plans and ancillary reservation services, primarily under the Hilton Grand Vacations brand. On January 17, 2024 (the “Bluegreen Acquisition Date”), we completed the acquisition of Bluegreen Vacations Holding Corporation (“Bluegreen”) (the “Bluegreen Acquisition”). Our operations primarily consist of selling vacation ownership intervals and vacation ownership interests (collectively, “VOIs” or “VOI”) for us and third parties; financing and servicing loans provided to consumers for their VOI purchases; operating resorts and timeshare plans; and managing our exchange programs. As of June 30, 2025, we had over 200 properties located in the United States (“U.S.”), Europe, Canada, the Caribbean, Mexico, and Asia. A significant number of our properties and VOIs are concentrated in Florida, Europe, Hawaii, South Carolina, California, Arizona, Virginia, and Nevada. Basis of Presentation The unaudited condensed consolidated financial statements presented herein include all of our assets, liabilities, revenues, expenses and cash flows as well as all entities in which we have a controlling financial interest. The determination of a controlling financial interest is based upon the terms of the governing agreements of the respective entities, including the evaluation of rights held by other interests. If the entity is considered to be a variable interest entity (“VIE”), we determine whether we are the primary beneficiary and then consolidate those VIEs for which we are the primary beneficiary. If the entity in which we hold an interest does not meet the definition of a VIE, we evaluate whether we have a controlling financial interest through our voting interests in the entity. We consolidate entities when we own more than 50% of the voting shares of a company or otherwise have a controlling financial interest, including Bluegreen/Big Cedar Vacations LLC (“Big Cedar”), a joint venture in which we are deemed to hold a controlling financial interest based on our 51 % equity interest, our active role as the day-to-day manager of its activities, and majority voting control of its management committee. We acquired our equity interest in Big Cedar as part of the Bluegreen Acquisition. All material intercompany transactions and balances have been eliminated in consolidation. Our accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation. During the first quarter of 2025, we renamed the line item “Sales, marketing, brand and other fees” as previously shown on the condensed consolidated statements of income, and used elsewhere within our filing, to “Fee-for-service commissions, package sales and other fees” to better align with the underlying activity. This change did not result in any reclassification of revenues and had no impact on our consolidated results for any of the periods presented. The unaudited condensed consolidated financial statements reflect our financial position, results of operations and cash flows as prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Certain information and disclosures normally included in financial statements presented in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Although we believe the disclosures made are adequate to prevent information presented from being misleading, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2024, included in our Annual Report on Form 10-K filed with the SEC on March 3, 2025. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Interim results are not necessarily indicative of full year performance. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued Accounting Standards Update 2023-09 (“ASU 2023-09”), Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 states that an entity must provide greater disaggregation of its effective tax rate reconciliation disclosure. The ASU also states that an entity must separately disclose net cash paid for taxes between federal, state, and foreign jurisdictions. The guidance is effective for fiscal years beginning 7 Table of Contents after December 15, 2024. The guidance is to be applied prospectively, although retrospective application is permitted. The adoption of ASU 2023-09 is expected to impact disclosures only and not have an impact on our consolidated balance sheet and consolidated statement of income. In November 2024, the FASB issued Accounting Standards Update 2024-03 (“ASU 2024-03”), Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses . ASU 2024-03 provides amendments to improve disclosure requirements of specified information about certain costs and expenses, both on an interim and annual basis. The guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The guidance should be applied either (1) prospectively or (2) retrospectively to any or all prior periods presented. The adoption of ASU 2024-03 is expected to impact disclosures only and not have an impact on our consolidated balance sheet and consolidated statement of income. NOTE 3: BLUEGREEN ACQUISITION On January 17, 2024, we completed the Bluegreen Acquisition in an all-cash transaction, with total consideration of approximately $ 1.6 billion. We accounted for the Bluegreen Acquisition as a business combination and finalized our purchase price accounting as of December 31, 2024. Please refer to our annual report on Form 10-K filed with the SEC on March 3, 2025 for additional information related to the Bluegreen Acquisition. Pro Forma Results of Operations The following unaudited pro forma information presents the combined results of operations of HGV and Bluegreen as if we had completed the Bluegreen Acquisition on January 1, 2024, the first day of our prior fiscal year, but using the fair values of assets and liabilities as of the Bluegreen Acquisition Date. These unaudited pro forma results do not reflect any synergies from operating efficiencies. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the Bluegreen Acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations. Six Months Ended June 30, ($ in millions) 2024 Revenue $ 2,438 Net loss ( 1 ) 8 Table of Contents NOTE 4: REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue The following tables show our disaggregated revenues by product and segment from contracts with customers. We operate our business in the following two reportable segments: (i) Real estate sales and financing and (ii) Resort operations and club management . See Note 17: Business Segments for more information related to our segments. ($ in millions) Three Months Ended June 30, Six Months Ended June 30, Real Estate Sales and Financing Segment 2025 2024 2025 2024 Sales of VOIs, net $ 469 $ 471 $ 847 $ 909 Fee-for-service commissions, package sales and other fees 165 167 307 312 Interest income 114 88 229 184 Other financing revenue 12 14 22 22 Real estate sales and financing segment revenues $ 760 $ 740 $ 1,405 $ 1,427 ($ in millions) Three Months Ended June 30, Six Months Ended June 30, Resort Operations and Club Management Segment 2025 2024 2025 2024 Club management $ 70 $ 67 $ 142 $ 130 Resort management 113 104 224 207 Rental (1) 180 181 354 350 Ancillary services 15 14 28 26 Resort operations and club management segment revenues $ 378 $ 366 $ 748 $ 713 (1) Excludes intersegment eliminations. See Note 17: Business Segments for additional information. Receivables from Contracts with Customers, Contract Liabilities, and Contract Assets Our accounts receivable that relate to our contracts with customers include amounts associated with our contractual right to consideration for completed performance obligations and are settled when the related cash is received. Accounts receivable are recorded when the right to consideration becomes unconditional and is only contingent on the passage of time. Our timeshare financing receivables consist of loans related to our financing of VOI sales that are secured by the underlying timeshare properties. See Note 6: Timeshare financing receivables for additional information. The following table provides information on our contracts with customers which are included in Accounts receivable, net and Timeshare financing receivables, net , respectively, on our condensed consolidated balance sheets: ($ in millions) June 30, 2025 December 31, 2024 Receivables from contracts with customers: Accounts receivable, net $ 265 $ 219 Timeshare financing receivables, net 2,979 3,006 Total $ 3,244 $ 3,225 Contract liabilities include payments received or due in advance of satisfying our performance obligations. Such contract liabilities include advance deposits received on vacation packages for future stays at our resorts, deferred revenues related to sales of VOIs of projects under construction, club activation fees and annual dues, the liability for bonus points awarded to our customers for purchase of VOIs at our properties or properties under our fee-for-service arrangements that may be redeemed in the future, deferred maintenance fees and other deferred revenue. 9 Table of Contents The following table presents the composition of our contract liabilities: ($ in millions) June 30, 2025 December 31, 2024 Contract liabilities: Advanced deposits $ 235 $ 226 Deferred sales of VOIs of projects under construction 300 92 Club activation fees and annual dues 147 79 Bonus point incentive liability (1) 94 86 Deferred maintenance fees 25 12 Other deferred revenue 38 35 (1) The balance includes $ 53 million and $ 52 million of bonus point incentive liabilities included in Accounts payable, accrued expenses and other on our condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024, respectively. This liability is for incentives from VOI sales and sales and marketing expenses in conjunction with our fee-for-service arrangements. Revenue earned for the three and six months ended June 30, 2025, that was included in the contract liabilities balance at December 31, 2024, was approximately $ 57 million and $ 158 million, respectively. Contract assets relate to incentive fees that can be earned for meeting certain targets on sales of VOIs at properties under our fee-for-service arrangements; however, our right to consideration is conditional upon completing the requirements of the annual incentive fee period. Contract assets were $ 1 million and $ 3 million as of June 30, 2025 and December 31, 2024, respectively. Transaction Price Allocated to Remaining Performance Obligations Transaction price allocated to remaining performance obligations represents contract revenue that has not yet been recognized. Our contracts with remaining performance obligations primarily include (i) sales of VOIs under construction, (ii) club activation fees paid at closing of a VOI purchase, (iii) customers’ advanced deposits on vacation packages and (iv) bonus points that may be redeemed in the future. Deferred VOI sales primarily include the deferred revenues of sales associated with projects under construction. The following table presents the deferred revenue, deferred cost of VOI sales and deferred direct selling costs from sales of VOIs related to projects under construction: ($ in millions) June 30, 2025 December 31, 2024 Sales of VOIs, net $ 300 $ 92 Cost of VOI sales 89 28 Sales and marketing expense 48 13 During the six months ended June 30, 2025, we deferred $ 208 million of Sales of VOI, net related to projects under construction. We expect to recognize the revenue, costs of VOI sales and direct selling costs related to the projects under construction as of June 30, 2025, upon their completion in 2026. The following table includes the remaining transaction price related to our contract liabilities as of June 30, 2025: ($ in millions) Remaining Transaction Price Recognition Period Recognition Method Advanced deposits $ 235 18 months Upon customer stays Club activation fees 69 7 years Straight-line basis over average inventory holding period Bonus point incentive liability 94 18 - 30 months Upon redemption Annual club dues 78 1 year Straight-line basis Maintenance fees 25 1 year Straight-line basis Other 38 1 year Straight-line basis 10 Table of Contents NOTE 5: ACCOUNTS RECEIVABLE Accounts receivable within the scope of ASC 326, Financial Instruments - Credit Losses are measured at amortized cost. The following table represents our accounts receivable, net of allowance for credit losses: ($ in millions) June 30, 2025 December 31, 2024 Fee-for-service commissions $ 40 $ 48 Real estate and financing 41 34 Resort and club operations 184 137 Tax receivables 171 89 Other receivables 8 7 Total $ 444 $ 315 Our accounts receivable are generally due within one year of origination. We use delinquency status and economic factors such as credit quality indicators to monitor our receivables within the scope of ASC 326 and use these as a basis for how we develop our expected loss estimates. The changes in our allowance were as follows during the six months ended June 30, 2025: ($ in millions) Fee-for-service commissions Real estate and financing Resort and club operations Total Balance as of December 31, 2024 $ 24 $ 49 $ 1 $ 74 Current period provision for expected credit losses 4 23 13 40 Write-offs charged against the allowance ( 5 ) ( 10 ) — ( 15 ) Balance as of June 30, 2025 $ 23 $ 62 $ 14 $ 99 NOTE 6: TIMESHARE FINANCING RECEIVABLES We define our timeshare financing receivables portfolio as (i) originated and (ii) acquired. Our originated portfolio represents timeshare financing receivables that originated by the business that we acquired from Diamond Resorts International (“Diamond”), the business that we acquired from BRE Grand Islander Parent LLC (“Grand Islander”), and the business that we acquired from Bluegreen subsequent to each respective acquisition date and all HGV timeshare financing receivables. Our acquired portfolio includes all timeshare financing receivables acquired from Diamond (“Legacy-Diamond”), Grand Islander (“Legacy-Grand Islander”) and Bluegreen (“Legacy-Bluegreen”) that existed as of the respective acquisition dates. The following table presents the components of each portfolio by class of timeshare financing receivables: Originated Acquired ($ in millions) June 30, 2025 December 31, 2024 June 30, 2025 December 31, 2024 Securitized $ 1,297 $ 1,168 $ 506 $ 641 Unsecuritized (1) 1,914 1,764 309 443 Timeshare financing receivables, gross $ 3,211 $ 2,932 $ 815 $ 1,084 Unamortized non-credit acquisition premium — — 46 62 Less: allowance for financing receivables losses ( 904 ) ( 804 ) ( 189 ) ( 268 ) Timeshare financing receivables, net $ 2,307 $ 2,128 $ 672 $ 878 (1) Includes amounts used as collateral to secure a non-recourse revolving timeshare receivable credit facility (“Timeshare Facility”) as well as amounts held as future collateral for securitization activities. In June 2025, we completed a securitization of approximately $ 300 million of gross timeshare financing receivables and issued approximately $ 166 million 4.88 % notes, $ 87 million of 5.18 % notes, and $ 47 million 5.52 % notes due May 2042. The securitization transaction did not qualify as a sale and, accordingly, no gain or loss was recognized. The transaction is considered a secured borrowing, and the notes from the transaction are presented as non-recourse debt. The proceeds were used to pay down in part some of the existing debt and for other general corporate purposes. See Note 8: Consolidated Variable Interest Entities and Note 11: Debt and Non-recourse Debt for additional information on our securitizations. 11 Table of Contents As of June 30, 2025 and December 31, 2024, we had timeshare financing receivables of $ 1,027 million and $ 455 million, respectively, securing the Timeshare Facility. For our originated portfolio, we record an estimate of variable consideration for defaults as a reduction of revenue from financed VOI sales at the time revenue is recognized. We record the difference between the timeshare financing receivable and the variable consideration included in the transaction price for the sale of the related VOI as an allowance for financing receivables and record the receivable net of the allowance. For our acquired portfolio, any changes to the estimates of our allowance are recorded within Financing expense on our unaudited condensed consolidated statements of income in the period in which the change occurs. We recognize interest income on our timeshare financing receivables as earned. As of June 30, 2025 and December 31, 2024, we had interest receivable outstanding of $ 22 million on our originated timeshare financing receivables. As of June 30, 2025 and December 31, 2024, we had interest receivable outstanding of $ 6 million and $ 7 million, respectively, on our acquired timeshare financing receivables. Interest receivable is included in Other Assets within our condensed consolidated balance sheets. The interest rate charged on the notes correlates to the risk profile of the customer at the time of purchase and the percentage of the purchase that is financed, among other factors. As of June 30, 2025, our originated timeshare financing receivables had interest rates ranging from 1.5 % to 25.8 %, a weighted-average interest rate of 15.0 %, a weighted-average remaining term of 8.7 years and maturities through 2040. Our acquired timeshare financing receivables had interest rates ranging from 2.0 % to 25.0 %, a weighted-average interest rate of 15.0 %, a weighted-average remaining term of 6.4 years and maturities through 2040. We apply payments we receive for loans, including those in non-accrual status, to amounts due in the following order: servicing fees; interest; principal; and late charges. Once a loan is 91 days past due, we cease accruing interest and reverse the accrued interest recognized up to that point. We resume interest accrual for loans for which we had previously ceased accruing interest once the loan is less than 91 days past due. We fully reserve for a timeshare financing receivable in the month following the date that the loan is 121 days past due and, subsequently, we write off the uncollectible note against the reserve once the foreclosure process, which is governed by product type and local law, is complete. Allowance for Financing Receivables Losses The changes in our allowance for financing receivables losses were as follows: ($ in millions) Originated Acquired Balance as of December 31, 2024 $ 804 $ 268 Provision for financing receivables losses (1) 167 13 Write-offs ( 84 ) ( 132 ) Inventory recoveries — 57 Upgrades (3) 17 ( 17 ) Balance as of June 30, 2025 $ 904 $ 189 ($ in millions) Originated Acquired Balance as of December 31, 2023 $ 500 $ 279 Initial allowance for purchased credit deteriorated financing receivables acquired during the period (2) — 191 Provision for financing receivables losses (1) 158 1 Write-offs ( 57 ) ( 111 ) Inventory recoveries — 45 Upgrades (3) 12 ( 12 ) Balance as of June 30, 2024 $ 613 $ 393 (1) For the Originated portfolio, this amount includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded timeshare financing receivables. For the Acquired portfolio, this amount includes incremental provision for credit loss expense from Acquired receivables. (2) The initial allowance determined for receivables with credit deterioration was $ 197 million as of the Bluegreen Acquisition Date. We also reduced the initial allowance determined for receivables with credit deterioration for Legacy-Grand Islander by $ 6 million during the first quarter of 2024. (3) Represents the initial change in allowance resulting from upgrades of Acquired receivables. Upgraded Acquired receivables and their related allowance are included in the Originated portfolio. 12 Table of Contents Originated Timeshare Financing Receivables Our originated timeshare financing receivables as of June 30, 2025 mature as follows: Originated Timeshare Financing Receivables ($ in millions) Securitized Unsecuritized Total Year 2025 (remaining) $ 57 $ 67 $ 124 2026 122 132 254 2027 132 143 275 2028 142 155 297 2029 150 172 322 Thereafter 694 1,245 1,939 Total $ 1,297 $ 1,914 $ 3,211 Acquired Timeshare Financing Receivables with Credit Deterioration Our acquired timeshare financing receivables were deemed to be purchased credit deteriorated (“PCD”) assets. These notes receivable were initially recognized at their purchase price, represented by the acquisition date fair value, and subsequently “grossed-up” by our acquisition date assessment of the allowance for credit losses. The difference over which par value of the acquired PCD assets exceeds the purchase price plus the initial allowance for financing receivable losses is reflected as a non-credit premium and is amortized as a reduction to interest income under the effective interest method. The fair value of our acquired timeshare financing receivables as of each respective acquisition date was determined using a discounted cash flow method, which calculated a present value of expected future risk-adjusted cash flows over the remaining term of the respective timeshare financing receivables. Consequently, the fair value of the acquired timeshare financing receivables recorded on our unaudited condensed consolidated balance sheet as of the respective acquisition date included an estimate of expected financing receivable losses which became the historical cost basis for that portfolio going forward. The allowance for financing receivable losses for our acquired timeshare financing receivables is remeasured at each period end and takes into consideration an estimated measure of anticipated defaults and early repayments. We consider historical timeshare financing receivables performance and the current economic environment in the re-measurement of the allowance for financing receivable losses for our acquired timeshare financing receivables. Subsequent changes to the allowance for acquired financing receivable losses are recorded within Financing expense on our unaudited condensed consolidated statements of income in the period in which the change occurs. Our gross acquired timeshare financing receivables as of June 30, 2025 mature as follows: Acquired Timeshare Financing Receivables ($ in millions) Securitized Unsecuritized Total Year 2025 (remaining) $ 37 $ 19 $ 56 2026 75 40 115 2027 78 40 118 2028 74 41 115 2029 67 40 107 Thereafter 175 129 304 Total $ 506 $ 309 $ 815 Credit Quality of Timeshare Financing Receivables We evaluate these portfolios collectively for purposes of estimating variable consideration, since we hold a large group of homogeneous timeshare financing receivables which are individually immaterial. We monitor the collectability of our receivables on an ongoing basis. There are no significant concentrations of credit risk with any individual counterparty or groups of counterparties. We use a technique referred to as static pool analysis as the basis for estimating expected defaults and determining our allowance for financing receivables losses on our timeshare financing receivables. For the static pool analysis, we use several years of default data through which we stratify our portfolio using certain key 13 Table of Contents dimensions to stratify our portfolio such as FICO scores and equity percentage at the time of sale. The adequacy of the related allowance is determined by management through analysis of several factors, such as current and forward-looking economic conditions and industry trends, as well as the specific risk characteristics of the portfolio including assumed default rates, aging and historical write-offs of these receivables. Originated Timeshare Financing Receivables Our originated gross balances by average FICO score of our originated timeshare financing receivables were as follows: Originated June 30, 2025 ($ in millions) HGV Diamond Grand Islander Bluegreen Total FICO score 700+ $ 996 $ 523 $ 33 $ 465 $ 2,017 600-699 350 306 7 129 792 <600 42 46 — 2 90 No score (1) 264 16 27 5 312 Total $ 1,652 $ 891 $ 67 $ 601 $ 3,211 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. Originated December 31, 2024 ($ in millions) HGV Diamond Grand Islander Bluegreen Total FICO score 700+ $ 956 $ 505 $ 23 $ 356 $ 1,840 600-699 336 287 5 95 723 <600 41 42 — 2 85 No score (1) 249 11 21 3 284 Total $ 1,582 $ 845 $ 49 $ 456 $ 2,932 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. The following table details our gross originated timeshare financing receivables by the origination year and average FICO score as of June 30, 2025: Originated Timeshare Financing Receivables ($ in millions) 2025 2024 2023 2022 2021 Prior Total FICO score 700+ $ 593 $ 742 $ 295 $ 206 $ 82 $ 99 $ 2,017 600-699 183 284 143 104 38 40 792 <600 16 28 19 15 6 6 90 No score (1) 70 126 48 24 12 32 312 Total $ 862 $ 1,180 $ 505 $ 349 $ 138 $ 177 $ 3,211 Current period gross write-offs $ — $ 25 $ 13 $ 30 $ 13 $ 3 $ 84 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. 14 Table of Contents As of June 30, 2025 and December 31, 2024, we had ceased accruing interest on originated timeshare financing receivables with an aggregate principal balance of $ 378 million and $ 323 million, respectively. The following tables detail an aged analysis of our gross timeshare receivables balance: Originated - Securitized June 30, 2025 ($ in millions) HGV Diamond Grand Islander Bluegreen Total Current $ 748 $ 318 $ 12 $ 168 $ 1,246 31 - 90 days past due 16 11 — 6 33 91 - 120 days past due 5 4 — 2 11 121 days and greater past due 5 2 — — 7 Total $ 774 $ 335 $ 12 $ 176 $ 1,297 Originated - Unsecuritized June 30, 2025 ($ in millions) HGV Diamond Grand Islander Bluegreen Total Current $ 673 $ 386 $ 51 $ 400 $ 1,510 31 - 90 days past due 17 17 1 9 44 91 - 120 days past due 8 6 — 3 17 121 days and greater past due 180 147 3 13 343 Total $ 878 $ 556 $ 55 $ 425 $ 1,914 Originated - Securitized December 31, 2024 ($ in millions) HGV Diamond Grand Islander Bluegreen Total Current $ 714 $ 279 $ 2 $ 135 $ 1,130 31 - 90 days past due 12 8 — 4 24 91 - 120 days past due 4 3 — 1 8 121 days and greater past due 4 2 — — 6 Total $ 734 $ 292 $ 2 $ 140 $ 1,168 Originated - Unsecuritized December 31, 2024 ($ in millions) HGV Diamond Grand Islander Bluegreen Total Current $ 683 $ 389 $ 44 $ 301 $ 1,417 31 - 90 days past due 15 15 1 7 38 91 - 120 days past due 6 6 1 3 16 121 days and greater past due 144 143 1 5 293 Total $ 848 $ 553 $ 47 $ 316 $ 1,764 15 Table of Contents Acquired Timeshare Financing Receivables Our gross balances by average FICO score of our acquired timeshare financing receivables were as follows: Acquired June 30, 2025 ($ in millions) Legacy-Diamond Legacy-Grand Islander Legacy-Bluegreen Total FICO score 700+ $ 106 $ 36 $ 296 $ 438 600-699 81 11 158 250 <600 19 — 5 24 No score (1) 3 98 2 103 Total $ 209 $ 145 $ 461 $ 815 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. Acquired December 31, 2024 ($ in millions) Legacy-Diamond Legacy-Grand Islander Legacy-Bluegreen Total FICO score 700+ $ 159 $ 44 $ 385 $ 588 600-699 114 13 203 330 <600 25 — 8 33 No score (1) 9 120 4 133 Total $ 307 $ 177 $ 600 $ 1,084 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. The following tables detail our gross acquired timeshare financing receivables by the origination year and average FICO score as of June 30, 2025: Acquired Timeshare Financing Receivables ($ in millions) 2025 2024 2023 2022 2021 Prior Total FICO score 700+ $ — $ 10 $ 160 $ 73 $ 57 $ 138 $ 438 600-699 — 4 66 42 40 98 250 <600 — — 2 — 4 18 24 No score (1) — — 23 17 11 52 103 Total $ — $ 14 $ 251 $ 132 $ 112 $ 306 $ 815 Current period gross write-offs $ — $ — $ 30 $ 13 $ 14 $ 75 $ 132 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. 16 Table of Contents As of June 30, 2025 and December 31, 2024, we had ceased accruing interest on acquired timeshare financing receivables with an aggregate principal balance of $ 158 million and $ 231 million, respectively. The following tables detail an aged analysis of our gross timeshare receivables balance: Acquired - Securitized June 30, 2025 ($ in millions) Legacy-Diamond Legacy-Grand Islander Legacy-Bluegreen Total Current $ 83 $ 77 $ 324 $ 484 31 - 90 days past due 3 — 11 14 91 - 120 days past due 1 — 4 5 121 days and greater past due 1 1 1 3 Total $ 88 $ 78 $ 340 $ 506 Acquired - Unsecuritized June 30, 2025 ($ in millions) Legacy-Diamond Legacy-Grand Islander Legacy-Bluegreen Total Current $ 28 $ 44 $ 79 $ 151 31 - 90 days past due 2 2 4 8 91 - 120 days past due 1 — — 1 121 days and greater past due 90 21 38 149 Total $ 121 $ 67 $ 121 $ 309 Acquired - Securitized December 31, 2024 ($ in millions) Legacy-Diamond Legacy-Grand Islander Legacy-Bluegreen Total Current $ 104 $ 84 $ 418 $ 606 31 - 90 days past due 4 1 17 22 91 - 120 days past due 1 — 8 9 121 days and greater past due 2 1 1 4 Total $ 111 $ 86 $ 444 $ 641 Acquired - Unsecuritized December 31, 2024 ($ in millions) Legacy-Diamond Legacy-Grand Islander Legacy-Bluegreen Total Current $ 36 $ 68 $ 112 $ 216 31 - 90 days past due 2 2 5 9 91 - 120 days past due 1 1 2 4 121 days and greater past due 157 20 37 214 Total $ 196 $ 91 $ 156 $ 443 17 Table of Contents NOTE 7: INVENTORY Inventory was comprised of the following: ($ in millions) June 30, 2025 December 31, 2024 Completed unsold VOIs $ 2,012 $ 1,898 Construction in process 393 345 Land, infrastructure and other 1 1 Total $ 2,406 $ 2,244 For the six months ended June 30, 2025, we recorded non-cash operating activity transfers, net of $ 48 million related to the registrations for timeshare units under construction for a property in Japan from Property and equipment, net to Inventory . As VOI inventory is constructed, it is recorded into Property and equipment, net until such units are registered and made available for sale. Once registered and available for sale, the units are then transferred into Inventory . The table below presents cost of sales true-ups relating to VOI products and the related impacts to the carrying value of inventory and cost of VOI sales: Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2025 2024 2025 2024 Cost of sales true-up (1) $ 9 $ ( 4 ) $ 26 $ 11 (1) For the three and six months ended June 30, 2025, and the six months ended June 30, 2024, the cost of sales true-up decreased cost of VOI sales and increased inventory. For the three months ended June 30, 2024, the cost of sales true-up increased cost of VOI sales and decreased inventory. NOTE 8: CONSOLIDATED VARIABLE INTEREST ENTITIES As of June 30, 2025, we consolidated 17 VIEs. The activities of these entities are limited primarily to purchasing qualifying non-recourse timeshare financing receivables from us and issuing debt securities and/or borrowing under a debt facility to facilitate such purchases. The timeshare financing receivables held by these entities are not available to our creditors and are not our legal assets, nor is the debt that is securitized through these entities a legal liability to us. We have determined that we are the primary beneficiaries of these VIEs as we have the power to direct the activities that most significantly affect their economic performance. We are also the servicer of these timeshare financing receivables and we often replace or repurchase timeshare financing receivables that are in default at their outstanding principal amounts. Additionally, we have the right to receive benefits that could be significant to them. Only the assets of our VIEs are available to settle the obligations of the respective entities. Our condensed consolidated balance sheets included the assets and liabilities of these entities, which primarily consisted of the following: ($ in millions) June 30, 2025 December 31, 2024 Restricted cash $ 84 $ 193 Timeshare financing receivables, net 2,302 1,975 Non-recourse debt, net 2,475 2,285 NOTE 9: INVESTMENTS IN UNCONSOLIDATED AFFILIATES As of June 30, 2025 and December 31, 2024, we had ownership interests in BRE Ace LLC and 1776 Holding LLC, which are VIEs. We do not consolidate BRE Ace LLC and 1776 Holding LLC because we are not the primary beneficiary. These two unconsolidated affiliates have aggregated debt balances of $ 359 million and $ 384 million as of June 30, 2025 and December 31, 2024, respectively. The debt is secured by their assets and is without recourse to us. Our maximum exposure to loss as a result of our investment interests in the two unconsolidated affiliates is primarily limited to (i) the carrying amount of the investments, which totaled $ 74 million and $ 73 million as of June 30, 2025 and December 31, 2024, respectively, and (ii) receivables for commission and other fees earned under fee-for-service arrangements. See Note 16: Related Party Transactions for additional information. During the six months ended June 30, 2025, we received a cash distribution of $ 5 million from our investment in BRE Ace LLC. As of June 30, 2025, we had a $ 5 million receivable for a distribution from BRE Ace LLC, which is included in Accounts receivable, net in our unaudited condensed consolidated balance sheets. 18 Table of Contents For these VIEs, our investment interests are included in the condensed consolidated balance sheets as Investments in unconsolidated affiliates , and equity earned is included in the unaudited condensed consolidated statements of income as Equity in earnings from unconsolidated affiliates . NOTE 10: INTANGIBLE ASSETS Intangible assets and related accumulated amortization were as follows: June 30, 2025 ($ in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trade name $ 48 $ ( 25 ) $ 23 Management contracts 1,866 ( 542 ) 1,324 Club member relationships 174 ( 85 ) 89 Capitalized software 330 ( 187 ) 143 Marketing agreements 154 ( 16 ) 138 Other contract-related intangible assets 50 ( 7 ) 43 Total $ 2,622 $ ( 862 ) $ 1,760 December 31, 2024 ($ in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trade name $ 48 $ ( 22 ) $ 26 Management contracts 1,819 ( 479 ) 1,340 Club member relationships 174 ( 76 ) 98 Capitalized software 302 ( 167 ) 135 Marketing agreements 154 ( 11 ) 143 Other contract-related intangible assets 50 ( 5 ) 45 Total $ 2,547 $ ( 760 ) $ 1,787 Amortization expense on intangible assets was $ 52 million and $ 55 million for the three months ended June 30, 2025 and 2024, respectively, and $ 102 million and $ 106 million for the six months ended June 30, 2025 and 2024, respectively. No intangible impairment charges were recognized during the three and six months ended June 30, 2025 and 2024, respectively. 19 Table of Contents NOTE 11: DEBT AND NON-RECOURSE DEBT Debt The following table details our outstanding debt balance and its associated interest rates: ($ in millions) June 30, 2025 December 31, 2024 Debt (1) Senior secured credit facility Term loan A with a rate of 5.977 %, due 2028 $ 400 $ 400 Term loan B with a rate of 6.327 %, due 2028 855 858 Term loan B with a rate of 6.327 %, due 2031 891 893 Revolver with a rate of 5.974 %, due 2030 160 233 Senior notes with a rate of 5.000 %, due 2029 850 850 Senior notes with a rate of 4.875 %, due 2031 500 500 Senior notes with a rate of 6.625 %, due 2032 900 900 Other debt (4) 84 38 Total debt, gross 4,640 4,672 Less: unamortized deferred financing costs and discounts (2)(3)(5) ( 66 ) ( 71 ) Total debt, net $ 4,574 $ 4,601 (1) As of June 30, 2025 and December 31, 2024, weighted-average interest rates were 5.991 % and 6.140 %, respectively. (2) Amount includes unamortized deferred financing costs related to our term loans and senior notes of $ 38 million and $ 22 million, respectively, as of June 30, 2025 and $ 39 million and $ 25 million, respectively, as of December 31, 2024. This amount also includes unamortized original issuance discounts of $ 4 million and $ 5 million as of June 30, 2025 and December 31, 2024, respectively. (3) Amount does not include unamortized deferred financing costs of $ 5 million and $ 3 million as of June 30, 2025 and December 31, 2024, respectively, related to our revolving facility which are included in Other assets in our condensed consolidated balance sheets. (4) This amount includes $ 5 million and $ 6 million related to the recourse portion on the NBA Receivables Facility as of June 30, 2025 and December 31, 2024, respectively, which is generally limited to the greater of 15 % of the outstanding borrowings and $ 5 million, subject to certain exceptions. (5) Amount also includes unamortized discount of $ 2 million related to the Bluegreen debt recognized at the Bluegreen Acquisition Date as of June 30, 2025 and December 31, 2024. Senior secured credit facility On January 31, 2025, we amended our Revolver Credit Facility (“Revolver”) and both our Term Loan B due 2028 and Term Loan B due 2031. The terms of the Revolver were amended to reduce pricing spreads, expand covenants, reset certain incurrence baskets and extend maturity to January 2030. The Term Loan B due 2028 was repriced to SOFR plus 2.00 %, down from SOFR plus 2.50 %. The Term Loan B due 2031 was repriced to SOFR plus 2.00 %, down from SOFR plus 2.25 %. Additionally, the Term Loan A, due January 2028, was repriced to SOFR plus 1.65 %, down from SOFR plus 1.75 %. As of June 30, 2025, we had $ 46 million of letters of credit outstanding under the revolving credit facility and $ 1 million outstanding backed by cash collateral. We were in compliance with all applicable maintenance and financial covenants and ratios as of June 30, 2025. As of June 30, 2025, we have $ 794 million remaining borrowing capacity under the revolver facility. We primarily use interest rate swaps as part of our interest rate risk management strategy for our variable-rate debt. These interest rate swaps are associated with the SOFR-based senior secured credit facility. As of June 30, 2025, these interest rate swaps convert the SOFR-based variable rate on our Term Loan B due 2028 to average fixed rates of 1.55 % per annum with maturities between 2026 and 2028, for the balance on this borrowing up to the notional values of our interest rate swaps. As of June 30, 2025, the aggregate notional values of the interest rate swaps under our Term Loan B due 2028 was $ 550 million. Our interest rate swaps have been designated and qualify as cash flow hedges of interest rate risk and are recorded at their estimated fair value as an asset in Other assets in our condensed consolidated balance sheets. As of June 30, 2025 and December 31, 2024, the estimated fair values of our cash flow hedges were $ 24 million and $ 37 million, respectively. We characterize payments we make in connection with these derivative instruments as interest expense and a reclassification of accumulated other comprehensive income for presentation purposes. We classify cash inflows and outflows from derivatives that hedge interest rate risk within operating activities in the unaudited condensed consolidated statements of cash flows. 20 Table of Contents The following table reflects the activity, net of tax, in Accumulated other comprehensive loss related to our derivative instruments during the six months ended June 30, 2025: Net unrealized gain on derivative instruments Balance as of December 31, 2024 $ 28 Other comprehensive loss before reclassifications, net ( 4 ) Reclassifications to net loss ( 6 ) Balance as of June 30, 2025 $ 18 Senior Notes due 2032 The Senior Notes due 2032 are guaranteed on a senior secured basis by certain of our subsidiaries. We were in compliance with all applicable financial covenants as of June 30, 2025. Senior Notes due 2029 and 2031 The Senior Unsecured Notes are guaranteed on a senior unsecured basis by certain of our subsidiaries. We are in compliance with all applicable financial covenants as of June 30, 2025. Non-recourse Debt The following table details our outstanding non-recourse debt balance and associated interest rates: ($ in millions) June 30, 2025 December 31, 2024 Non-recourse debt (1) Timeshare Facility with an average rate of 5.624 %, due 2027 (2) $ 730 $ 428 HGV Securitized Debt 2018 with a weighted average rate of 3.602 %, due 2032 — 41 HGV Securitized Debt 2019 with a weighted average rate of 2.431 %, due 2033 39 48 HGV Securitized Debt 2022-1 with a weighted average rate of 4.304 %, due 2034 61 78 HGV Securitized Debt 2022-2 with a weighted average rate of 4.826 %, due 2037 104 129 HGV Securitized Debt 2023 with a weighted average rate of 5.937 %, due 2038 133 172 HGV Securitized Debt 2024-2 with a weighted average rate of 5.685 %, due 2038 251 302 HGV Securitized Debt 2024-1 with a weighted average rate of 6.419 %, due 2039 125 175 HGV Securitized Debt 2020 with a weighted average rate of 3.658 %, due 2039 57 67 HGV Securitized Debt 2024-3 with a weighted average rate of 5.182 %, due 2040 390 482 HGV Securitized Debt 2025-1 with a weighted average rate of 5.066 %, due 2042 300 — Grand Islander Securitized Debt with a weighted average rate of 3.316 %, due 2033 30 37 Diamond Resorts Owner Trust 2021 with a weighted average rate of 2.160 %, due 2033 50 61 Bluegreen Securitized Debt 2018 with a weighted average rate of 4.019 %, due 2034 14 17 Bluegreen Securitized Debt 2020 with a weighted average rate of 2.597 %, due 2036 32 40 Bluegreen Securitized Debt 2022 with a weighted average rate of 4.599 %, due 2037 70 87 Bluegreen Securitized Debt 2023 with a weighted average rate of 6.321 %, due 2038 114 147 Quorum Purchase Facility with an average rate of 5.023 %, due 2034 5 6 NBA Receivables Facility with an average rate of 6.077 %, due 2031 (5) 24 33 Total non-recourse debt, gross 2,529 2,350 Less: unamortized deferred financing costs and discount (3)(4)(6) ( 30 ) ( 32 ) Total non-recourse debt, net $ 2,499 $ 2,318 (1) As of June 30, 2025 and December 31, 2024, weighted-average interest rates were 5.258 % and 5.235 %, respectively. (2) The revolving commitment period of the Timeshare Facility terminates in November 2026; however, the repayment maturity date extends 12 months beyond the commitment termination date to November 2027. (3) Amount relates to securitized debt only and does not include unamortized deferred financing costs of $ 1 million and $ 2 million as of June 30, 2025 and December 31, 2024, respectively, relating to our Timeshare Facility included in Other Assets in our condensed consolidated balance sheets. (4) Amount includes unamortized discounts of $ 8 million and $ 11 million as of June 30, 2025 and December 31, 2024, respectively, related to the Grand Islander securitized debt and Bluegreen securitized and non-recourse debt recognized at the respective acquisition dates. (5) Recourse on the NBA Receivables Facility is generally limited to the greater of 15 % of the outstanding borrowings and $ 5 million, subject to certain exceptions. 21 Table of Contents (6) Amount includes unamortized deferred financing costs of $ 22 million and $ 21 million as of June 30, 2025 and December 31, 2024, respectively, related to HGV securitized debt. In June 2025, we completed a securitization of approximately $ 300 million of gross timeshare financing receivables and issued approximately $ 166 million of 4.88 % notes, $ 87 million of 5.18 % notes, and $ 47 million of 5.52 % notes due May 2042. The issued notes are backed by pledged assets, consisting of a pool of HGV, Diamond Resorts, and Bluegreen Vacations collateral combined, secured by first mortgages, first deeds of trust, membership interests or timeshare interests (other than a fee simple interest in real estate) and a Letter of Credit. The notes are a non-recourse obligation and are payable solely from the timeshare financing receivables pledged as collateral for the notes. The proceeds of the notes were used to pay down in part some of our existing debt and for other general corporate purposes. Additionally, in connection with the securitization, we incurred $ 6 million in debt issuance costs. The Timeshare Facility is a non-recourse obligation payable solely from the pool of timeshare financing receivables pledged as collateral and related assets. As of June 30, 2025, our Timeshare Facility has a remaining borrowing capacity of $ 120 million. During the six months ended June 30, 2025, we repaid $ 1,088 million on the Timeshare Facility and $ 423 million on Securitized Debt. We are required to deposit payments received from customers on the timeshare financing receivables securing the Timeshare Facility and Securitized Debt into depository accounts maintained by third parties. On a monthly basis, the depository accounts are utilized to make required principal, interest and other payments due under the respective loan agreements. The balances in the depository accounts were $ 84 million and $ 193 million as of June 30, 2025 and December 31, 2024, respectively, and were included in Restricted cash in our condensed consolidated balance sheets. Debt Maturities The contractual maturities of our debt and non-recourse debt as of June 30, 2025 were as follows: ($ in millions) Debt Non-recourse Debt Total Year 2025 (remaining six months) $ 16 $ 239 $ 255 2026 27 393 420 2027 26 1,049 1,075 2028 1,243 251 1,494 2029 870 200 1,070 Thereafter 2,458 397 2,855 Total $ 4,640 $ 2,529 $ 7,169 NOTE 12: FAIR VALUE MEASUREMENTS The carrying amounts and estimated fair values of our financial assets and liabilities were as follows: June 30, 2025 Fair Value ($ in millions) Carrying Amount Level 1 Level 3 Assets: Timeshare financing receivables, net (1) $ 2,979 $ — $ 3,271 Liabilities: Debt, net (2) 4,574 4,335 259 Non-recourse debt, net (2) 2,499 1,780 748 22 Table of Contents December 31, 2024 Fair Value ($ in millions) Carrying Amount Level 1 Level 3 Assets: Timeshare financing receivables, net (1) $ 3,006 $ — $ 3,203 Liabilities: Debt, net (2) 4,601 4,309 283 Non-recourse debt, net (2) 2,318 1,873 446 (1) Carrying amount net of allowance for financing receivables losses. (2) Carrying amount net of unamortized deferred financing costs and discounts. Our estimates of the fair values were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop the estimated fair values. The table above excludes interest rate swaps discussed below and cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued expenses and other and advanced deposits, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. The estimated fair values of our originated and acquired timeshare financing receivables were determined using a discounted cash flow model. Our model incorporates default rates, coupon rates, credit quality and loan terms respective to the portfolio based on current market assumptions for similar types of arrangements. The estimated fair values of our Level 2 derivative financial instruments were determined utilizing projected future cash flows discounted based on an expectation of future interest rates derived from observable market interest rate curves and market volatility. Refer to Note 11: Debt and Non-recourse Debt above. The estimated fair values of our Level 1 debt and non-recourse debt were based on prices in active debt markets. The estimated fair values of our Level 3 debt and non-recourse debt were based on the following: • Debt – based on indicative quotes obtained for similar issuances and projected future cash flows discounted at risk-adjusted rates. • Non-recourse debt – based on projected future cash flows discounted at risk-adjusted rates. NOTE 13: INCOME TAXES The effective tax rate for the three months ended June 30, 2025 and 2024 was approximately 38 % and 60 %, respectively. The effective tax rate for the six months ended June 30, 2025 and 2024 was approximately 72 % and 80 %. The effective tax rate decrease quarter over quarter is primarily due to overall change in earnings. The effective tax rate decrease year over year is primarily due to discrete items partially offset by the jurisdictional mix and overall change in earnings. The difference between our effective tax rate as compared to the U.S. statutory federal tax rate of 21% is primarily due to state and foreign income taxes, the jurisdictional mix of earnings, and discrete items, which are primarily related to unrecognized tax benefits and the Bluegreen Acquisition. On July 4, 2025, the United States enacted tax reform legislation commonly known as the One Big Beautiful Bill Act (the “Act”), resulting in significant modifications to existing law. These changes include provisions that allow for accelerated tax deductions for qualified property and research expenditures. We are currently evaluating the impact of the Act to our condensed consolidated financial statements. NOTE 14: SHARE-BASED COMPENSATION Stock Plan The 2023 Omnibus Incentive Plan (“2023 Plan”) authorizes the issuance of restricted stock units (“Service RSUs” or “RSUs”), nonqualified stock options (“Options”), time and performance-vesting restricted stock units (“Performance RSUs” or “PSUs”), and stock appreciation rights (“SARs”) to certain employees and directors. As of June 30, 2025, there were 2,593,223 shares of common stock available for future issuance under the 2023 plan. We recognized share-based compensation expense of $ 22 million and $ 17 million for the three months ended June 30, 2025 and 2024 and $ 34 million and $ 26 million for the six months ended June 30, 2025 and 2024. On June 30, 2025, the second tranche of the Performance Cash Awards vested and were payable to certain executive officers and employees. These performance cash awards were included within Acquisition and integration-related expense in our condensed consolidated statements of income. 23 Table of Contents As of June 30, 2025, unrecognized compensation cost for unvested awards was approximately $ 75 million, which is expected to be recognized over a weighted average period of 1.9 years. Service RSUs During the six months ended June 30, 2025, we issued 969,592 Service RSUs with a weighted-average grant date fair value of $ 40.85 , which vest in annual installments over three years from the date of grant, subject to the individual’s continued employment through the applicable vesting date. Options During the six months ended June 30, 2025 , we did not grant any Options. As of June 30, 2025, we had 2,155,115 Options outstanding that were exercisable. Performance RSUs During the six months ended June 30, 2025, we issued 449,308 Performance RSUs with a weighted-average grant date fair value of $ 41.01 . The Performance RSUs are settled at the end of a 3-year performance period, with 50 % of the Performance RSUs subject to achievement based on the Company’s adjusted earnings before interest expense, taxes and depreciation and amortization, further adjusted for net deferral and recognition of revenues and related direct expenses related to sales of VOIs of projects under construction. The remaining 50 % of the Performance RSUs are subject to the achievement of certain contract sales targets. We determined that the performance conditions for our Performance RSUs are probable of achievement, and we recognized compensation expense based on the number of Performance RSUs we expect to vest. Employee Stock Purchase Plan In March 2017, the Board of Directors adopted the Hilton Grand Vacations Inc. Employee Stock Purchase Plan (the “ESPP”), which became effective during 2017 and was subsequently amended in 2022. In connection with the ESPP, we reserved 2.5 million shares of common stock which may be purchased under the ESPP. The ESPP allows eligible employees to purchase shares of our common stock at a price per share not less than 85 % of the fair market value per share of common stock on the first day of the Purchase Period or the last day of the Purchase Period, whichever is lower, up to a maximum threshold established by the plan administrator for the offering period. During the three and six months ended June 30, 2025, we recognized less than $ 1 million and $ 1 million of compensation expense related to this plan, respectively. During the three and six months ended June 30, 2024, we recognized less than $ 1 million of compensation expense related to this plan, respectively. 24 Table of Contents NOTE 15: EARNINGS PER SHARE The following tables present the calculation of our basic and diluted earnings per share (“EPS”) and the corresponding weighted average shares outstanding referenced in these calculations: Three Months Ended June 30, Six Months Ended June 30, ($ and shares outstanding in millions, except per share amounts) 2025 2024 2025 2024 Basic EPS: Numerator: Net income (loss) attributable to stockholders $ 25 $ 2 $ 8 $ ( 2 ) Denominator: Weighted average shares outstanding 91.2 103.4 93.3 104.3 Basic EPS (1) $ 0.26 $ 0.02 $ 0.09 $ ( 0.02 ) Diluted EPS: Numerator: Net income (loss) attributable to stockholders $ 25 $ 2 $ 8 $ ( 2 ) Denominator: Weighted average shares outstanding 92.2 104.3 94.5 104.3 Diluted EPS (1) $ 0.25 $ 0.02 $ 0.08 $ ( 0.02 ) Basic weighted average shares outstanding 91.2 103.4 93.3 104.3 RSUs (2) , PSUs (3) , Options (4) and ESPP 1.0 0.9 1.2 — Diluted weighted average shares outstanding 92.2 104.3 94.5 104.3 (1) Earnings per share amounts are calculated using whole numbers. (2) Excludes approximately 957,000 and 740,000 shares of RSUs that would have been anti-dilutive to EPS under the treasury stock method for the three and six months ended June 30, 2025, respectively. Also excludes approximately 220,000 shares of RSUs that would have been anti-dilutive to EPS under the treasury stock method for the three months ended June 30, 2024. These RSUs could potentially dilute EPS in the future. (3) Excludes approximately 243,000 and 1,000 shares of PSUs that would have been anti-dilutive to EPS under the treasury stock method for the three and six months ended June 30, 2025, respectively. Also excludes approximately 14,000 shares of PSUs that would have been anti-dilutive to EPS under the treasury stock method for the three months ended June 30, 2024. These PSUs could potentially dilute EPS in the future. (4) Excludes approximately 1,649,000 and 1,195,000 shares of Options that would have been anti-dilutive to EPS under the treasury stock method for the three and six months ended June 30, 2025, respectively. Also excludes approximately 1,212,000 shares of Options that would have been anti-dilutive to EPS under the treasury stock method for the three months ended June 30, 2024. These Options could potentially dilute EPS in the future. Potentially dilutive shares of 1,239,081 for the six months ended June 30, 2024 were excluded from the calculation of diluted weighted average shares outstanding and diluted earnings per share as a result of our net loss position. Share Repurchases On August 7, 2024, our Board of Directors approved a share repurchase program authorizing us to repurchase up to an aggregate of $ 500 million of our outstanding shares of common stock over a two-year period (the “2024 Repurchase Plan”). The following table summarizes stock repurchase activity under the current and previous share repurchase programs as of June 30, 2025: (in millions) Shares Cost As of December 31, 2024 41 $ 1,549 Repurchases 8 300 As of June 30, 2025 49 $ 1,849 From July 1, 2025 through July 24, 2025, we repurchased approximately 0.6 million shares for $ 29 million. As of July 24, 2025, we had $ 98 million of remaining availability under the 2024 Repurchase Plan. 25 Table of Contents NOTE 16: RELATED PARTY TRANSACTIONS BRE Ace LLC and 1776 Holding, LLC We hold an ownership interest in BRE Ace LLC, a VIE, which owns a timeshare resort property and related operations, commonly known as “Elara, a Hilton Grand Vacations Club.” We hold an ownership interest in 1776 Holding, LLC, a VIE, which owns a timeshare resort property and related operations, known as “Liberty Place Charleston, a Hilton Club.” We record Equity in earnings from our unconsolidated affiliates in our unaudited condensed consolidated statements of income. See Note 9: Investments in Unconsolidated Affiliates for additional information. Additionally, we earn commissions and other fees related to fee-for-service agreements with the investees to sell VOIs at Elara, a Hilton Grand Vacations Club and Liberty Place Charleston, a Hilton Club. These amounts are summarized in the following table and are included in Fee-for-service commissions, package sales and other fees on our unaudited condensed consolidated statements of income as of the date they became related parties. Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2025 2024 2025 2024 Equity in earnings from unconsolidated affiliates $ 6 $ 3 $ 11 $ 8 Commissions and other fees 39 44 78 80 As of December 31, 2024, we had $ 5 million of outstanding receivables related to these fee-for-service agreements included in Accounts receivable, net on our condensed consolidated balance sheets. As of June 30, 2025, we had no outstanding receivables. NOTE 17: BUSINESS SEGMENTS We operate our business through the following two reportable segments based on the nature of the products and services provided: • Real estate sales and financing – We market and sell VOIs that we own. We also source VOIs through fee-for-service agreements with third-party developers. Related to the sales of the VOIs that we own, we provide consumer financing, which includes interest income generated from the origination of consumer loans to customers to finance their purchase of VOIs and revenue from servicing the loans. We also generate fee revenue from servicing the loans provided by third-party developers to purchasers of their VOIs. • Resort operations and club management – We manage the clubs and earn activation fees, annual dues and transaction fees from member exchanges for other vacation products. We also earn fees for managing the timeshare properties. We generate rental revenue from unit rentals of unsold inventory and inventory made available due to ownership exchanges under our club programs. We also earn revenue from food and beverage, retail and spa outlets at our timeshare properties. Our chief operating decision maker “CODM” is our Chief Executive Officer. The CODM is our primary decision maker and is responsible for allocating resources to the components of the company and assessing company performance. The CODM uses Adjusted EBITDA to allocate resources (including employees and financial or capital resources) in the budgeting and forecasting process as well as assess performance and profitability for each segment. The performance of our operating segments, which are also our reportable segments, is evaluated based on adjusted earnings before interest expense (excluding non-recourse debt), taxes, depreciation and amortization (“EBITDA”). We define Adjusted EBITDA as EBITDA, further adjusted to exclude certain items, including, but not limited to, gains, losses and expenses in connection with: (i) other gains, including asset dispositions and foreign currency transactions; (ii) debt restructurings/retirements; (iii) non-cash impairment losses; (iv) share-based and other compensation expenses; and (v) other items, including but not limited to costs associated with acquisitions, restructuring, amortization of premiums and discounts resulting from purchase accounting, and other non-cash and one-time charges. We do not include equity in earnings from unconsolidated affiliates in our measures of segment operating performance. 26 Table of Contents The table below presents revenues for our reportable segment results which include the acquired Bluegreen operations within both segments as of the Bluegreen Acquisition Date, reconciled to consolidated amounts: Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2025 2024 2025 2024 Revenues: Real estate sales and financing $ 760 $ 740 $ 1,405 $ 1,427 Resort operations and club management (1) 405 386 796 746 Total segment revenues 1,165 1,126 2,201 2,173 Cost reimbursements 128 129 261 251 Intersegment eliminations (1) ( 27 ) ( 20 ) ( 48 ) ( 33 ) Total revenues $ 1,266 $ 1,235 $ 2,414 $ 2,391 (1) Includes charges to the Real estate sales and financing segment from the Resort operations and club management segment for fulfillment of discounted marketing package stays at resorts. We account for intersegment revenues as if they were sales to third parties at current market prices. 27 Table of Contents The following tables present Adjusted EBITDA for our reportable segments: For the three months ended June 30, 2025 Real Estate and Financing Resort Operations and Club Management Total Revenues from external customers $ 760 $ 378 $ 1,138 Intersegment revenues — 27 27 Total segment revenues 760 405 1,165 (a) Less: Cost of VOI Sales 38 — 38 Selling expense 206 — 206 Marketing expense 265 — 265 Financing expense 54 — 54 Club expense — 21 21 Property management expense — 35 35 Rental expense — 191 191 Other expenses 8 12 20 Total segment expenses 571 (b) 259 (c) 830 Other: Share-based compensation expense 5 3 8 Other segment adjustment items 9 — 9 (d) Intersegment elimination ( 27 ) — ( 27 ) (a) Segment Adjusted EBITDA $ 176 $ 149 $ 325 For the six months ended June 30, 2025 Real Estate and Financing Resort Operations and Club Management Total Revenues from external customers $ 1,405 $ 748 $ 2,153 Intersegment revenues — 48 48 Total segment revenues 1,405 796 2,201 (a) Less: Cost of VOI Sales 63 — 63 Selling expense 401 — 401 Marketing expense 495 — 495 Financing expense 109 — 109 Club expense — 41 41 Property management expense — 69 69 Rental expense — 386 386 Other expenses 8 23 31 Total segment expenses 1,076 (b) 519 (c) 1,595 Other: Share-based compensation expense 9 5 14 Other segment adjustment items 19 — 19 (d) Intersegment elimination ( 48 ) — ( 48 ) (a) Segment Adjusted EBITDA $ 309 $ 282 $ 591 (a) Includes charges to the Real estate sales and financing segment from the Resort operations and club management segment for fulfillment of discounted marketing package stays at resorts. We account for intersegment revenues as if they were sales to third parties at current market prices. (b) Consists of Costs of VOI Sales , Sales and Marketing , and Financing expense on the condensed consolidated statements of income. (c) Consists of Resort and club management and Rental and ancillary services expense on the condensed consolidated statements of income. (d) Consists of costs associated with restructuring, one-time charges, other non-cash items, and for the Real Estate and Financing Segment, amortization of fair value premiums and discounts resulting from purchase accounting. 28 Table of Contents For the three months ended June 30, 2024 Real Estate and Financing Resort Operations and Club Management Total Revenues from external customers $ 740 $ 366 $ 1,106 Intersegment revenues — 20 20 Total segment revenues 740 386 1,126 (a) Less: Cost of VOI Sales 65 — 65 Selling expense 180 — 180 Marketing expense 238 — 238 Financing expense 44 — 44 Club expense — 21 21 Property management expense — 27 27 Rental expense — 177 177 Other expenses 35 11 46 Total segment expenses 562 (b) 236 (c) 798 Other: Share-based compensation expense 3 2 5 Other segment adjustment items 32 — 32 (d) Intersegment elimination ( 20 ) — ( 20 ) (a) Segment Adjusted EBITDA $ 193 $ 152 $ 345 For the six months ended June 30, 2024 Real Estate and Financing Resort Operations and Club Management Total Revenues from external customers $ 1,427 $ 713 $ 2,140 Intersegment revenues — 33 33 Total segment revenues 1,427 746 2,173 (a) Less: Cost of VOI Sales 113 — 113 Selling expense 338 — 338 Marketing expense 450 — 450 Financing expense 83 — 83 Club expense — 41 41 Property management expense — 61 61 Rental expense — 340 340 Other expenses 66 21 87 Total segment expenses 1,050 (b) 463 (c) 1,513 Other: Share-based compensation expense 6 3 9 Other segment adjustment items 49 — 49 (d) Intersegment elimination ( 33 ) — ( 33 ) (a) Segment Adjusted EBITDA $ 399 $ 286 $ 685 (a) Includes charges to the Real estate sales and financing segment from the Resort operations and club management segment for fulfillment of discounted marketing package stays at resorts. We account for intersegment revenues as if they were sales to third parties at current market prices. (b) Consists of Costs of VOI Sales , Sales and Marketing , and Financing expense on the condensed consolidated statements of income. (c) Consists of Resort and club management and Rental and ancillary services expense on the condensed consolidated statements of income. (d) Consists of costs associated with restructuring, one-time charges, other non-cash items, and for the Real Estate and Financing Segment, amortization of fair value premiums and discounts resulting from purchase accounting. 29 Table of Contents The following table presents Adjusted EBITDA for our reportable segments reconciled to net income (loss) and net income (loss) attributable to stockholders: Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2025 2024 2025 2024 Adjusted EBITDA: Real estate sales and financing (1) $ 176 $ 193 $ 309 $ 399 Resort operations and club management (1) 149 152 282 286 Segment Adjusted EBITDA 325 345 591 685 Acquisition and integration-related expense ( 26 ) ( 48 ) ( 54 ) ( 157 ) General and administrative ( 58 ) ( 58 ) ( 104 ) ( 103 ) Depreciation and amortization ( 59 ) ( 68 ) ( 126 ) ( 130 ) License fee expense ( 52 ) ( 40 ) ( 101 ) ( 75 ) Other gain (loss), net 4 ( 3 ) 10 ( 8 ) Interest expense ( 79 ) ( 87 ) ( 156 ) ( 166 ) Income tax (expense) benefit ( 15 ) ( 3 ) ( 21 ) 8 Equity in earnings from unconsolidated affiliates 6 3 11 8 Impairment expense ( 1 ) — ( 1 ) ( 2 ) Other adjustment items (2) ( 17 ) ( 37 ) ( 33 ) ( 58 ) Net income 28 4 16 2 Net income attributable to noncontrolling interest 3 2 8 4 Net income (loss) attributable to stockholders $ 25 $ 2 $ 8 $ ( 2 ) (1) Includes intersegment transactions. Refer to our table presenting revenues by reportable segment above for additional discussion. (2) These amounts include costs associated with share-based compensation, restructuring, one-time charges and other non-cash items included within our reportable segments. The following table presents total assets for our reportable segments, reconciled to consolidated amounts: ($ in millions) June 30, 2025 December 31, 2024 Real estate sales and financing $ 7,497 $ 7,349 Resort operations and club management 3,387 3,163 Total segment assets 10,884 10,512 Corporate 854 930 Total assets $ 11,738 $ 11,442 The following table presents capital expenditures for property and equipment (including inventory and leases) for our reportable segments, reconciled to consolidated amounts: Six Months Ended June 30, ($ in millions) 2025 2024 Real estate sales and financing $ 76 $ 59 Resort operations and club management 1 1 Total segment capital expenditures 77 60 Corporate 28 20 Total capital expenditures $ 105 $ 80 NOTE 18: COMMITMENTS AND CONTINGENCIES Bass Pro Shops Marketing Agreement Commitments In November 2023, we entered into a 10-year exclusive marketing agreement with Bass Pro Shops (“Bass Pro”), a nationally-recognized retailer of fishing, marine, hunting, camping and sports gear, that provides us with the right to market 30 Table of Contents and sell vacation packages at kiosks in Bass Pro’s and Cabela’s retail locations and through other means. This agreement became effective on the Bluegreen Acquisition Date. As a part of this agreement, we are required to make certain minimum annual payments and certain variable payments based upon the number of travel packages sold during the year or the number of Bass Pro and Cabela’s retail locations HGV maintains during the year. As of June 30, 2025, HGV had sales and marketing operations at a total of 140 Bass Pro Shops and Cabela’s Stores, including 8 virtual kiosks. Other Commitments We have fulfilled certain arrangements with developers where we were committed to purchase vacation ownership units or other real estate at a future date to be marketed and sold under our Hilton Grand Vacations brand. As of June 30, 2025, we were committed to purchase approximately $ 256 million of inventory over a period of 10 years and $ 20 million of other commitments in the normal course of business. We are also committed to an agreement to exchange parcels of land in Hawaii, subject to the successful completion of zoning, land use requirements and other applicable regulatory requirements. The actual amount and timing of the acquisitions are subject to change pursuant to the terms of the respective arrangements, which could also allow for cancellation in certain circumstances. During the six months ended June 30, 2025, we fulfilled $ 26 million of purchases required under our inventory commitments. As of June 30, 2025, our remaining obligations pursuant to these arrangements were expected to be incurred as follows: ($ in millions) 2025 (remaining) 2026 2027 2028 2029 Thereafter Total Marketing and license fee agreements $ 26 $ 37 $ 38 $ 38 $ 38 $ 134 $ 311 Inventory purchase obligations (1)(2)(3) 15 37 8 53 44 99 256 Other commitments (4) 8 7 1 2 2 — 20 Total $ 49 $ 81 $ 47 $ 93 $ 84 $ 233 $ 587 (1) Commitments for a properties in Missouri, New York and Tennessee. (2) For the property in New York, the payments are subject to the seller obtaining the inventory and providing clear title. (3) For the property in Tennessee, we have the option to extend the full purchase of inventory up to 2033 pursuant to the terms of the purchase agreement. The proposed acquisition is subject to certain approvals pursuant to the terms of the Sale and Purchase Agreement, which is expected in the third quarter of 2025. (4) Primarily relates to commitments related to information technology and sponsorships. Litigation Contingencies We are involved in litigation arising from the normal course of business, some of which includes claims for substantial sums. We evaluate these legal proceedings and claims at each balance sheet date to determine the degree of probability of an unfavorable outcome and, when it is probable that a liability has been incurred, our ability to reasonably estimate the amount of loss. We record a contingent litigation liability when it is determined that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of June 30, 2025 and December 31, 2024, we accrued liabilities of approximately $ 10 million and $ 7 million, respectively, for all legal matters. On July 22, 2024, an adverse interim award was entered in an arbitration related to a matter that existed as of the Bluegreen Acquisition Date involving Bluegreen Vacations Unlimited, Inc. (“BVU”), a Bluegreen subsidiary, in connection with an alleged breach of a purchase and sale agreement for The Manhattan Club property in New York, New York. Prior to any decision by the arbitration panel on potential damages for breach, the interim award allowed BVU to propose a cure for the breach. We and the opposing party both proposed forms of cure to the arbitration panel. On February 10, 2025, the arbitration panel issued a decision on what is required to cure, which included purchases of inventory and assuming the management agreement at The Manhattan Club. We completed the first steps of cure on February 20, 2025 and February 26, 2025, and intend to continue with cure. As part of the cure, the management agreement was assumed during the first quarter of 2025 for $ 47.5 million in exchange for a note payable. See Note 10: Intangibles and Note 11: Debt and Non-recourse Debt for additional information. Additionally, the cure provided for BVU to purchase $ 7.5 million of inventory per quarter beginning February 26, 2025 until all missed quarterly purchases of inventory between October 2019 and February 10, 2025 have been completed totaling approximately $ 39 million, subject to the opposing party being able to obtain the inventory and providing clear title. Once cured, the quarterly inventory purchase commitment will be approximately $ 1.9 million through 31 Table of Contents May 2035, subject to the opposing party being able to obtain the inventory and providing clear title. The inventory commitment related to this matter is included in the table above within the inventory purchase obligations. While we currently believe that the ultimate outcome of these proceedings, individually and in the aggregate, will not have a material effect on the Company’s financial condition, cash flows, or materially adversely affect overall trends in our results of operations, legal proceedings are inherently uncertain and unfavorable rulings could, individually or in aggregate, have a material adverse effect on the Company’s business, financial condition or results of operations. Surety Bonds We utilize surety bonds related to the sales of VOIs in order to meet regulatory requirements of certain states. The availability, terms and conditions and pricing of such bonding capacity are dependent on, among other things, continued financial strength and stability of the insurance company affiliates providing the bonding capacity, general availability of such capacity and our corporate credit rating. We have commitments from surety providers in the amount of $ 538 million as of June 30, 2025, which primarily consist of escrow and subsidy related bonds. NOTE 19: SUBSEQUENT EVENTS On July 11, 2025, we completed a term securitization of approximately ¥ 9.5 billion of timeshare loans through Hilton Grand Vacations Japan Trust 2025-1 (“the Trust” or “SMRAI”), with a coupon rate of 1.41 %. One class of notes were issued by the Trust, and the collateralized timeshare notes are domiciled in Japan. The proceeds will primarily be used for general corporate purposes. On July 29, 2025, our Board of Directors approved a new share repurchase program authorizing us to repurchase up to an aggregate of $ 600 million of its outstanding shares of common stock over a two-year period, which is in addition to the amount remaining under the current 2024 Repurchase Plan . Repurchases may be conducted in the open market, in privately negotiated transactions or such other manner as determined by us, including through repurchase plans complying with the rules and regulations of the SEC. The timing and actual number of shares repurchased under any share repurchase plan will depend on a variety of factors, including the stock price, available liquidity and market conditions. The shares are retired upon repurchase. The share repurchase plans do not obligate HGV to repurchase any dollar amount or number of shares of common stock, and they may be suspended or discontinued at any time. 32 Table of Contents