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Hilton Grand Vacations Q3 2026 Earnings Call Supplement October 29, 2026
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Q3 2026 Net Construction Recognition Activity Sales of VOI, net Cost of VOI sales Sales & marketing expense, net Adj. EBITDA to stockholders Reported GAAP metrics 1 Net recognition activity 2 ($584M) $609M 2 1) As reported in earnings press release and 10Q 2) As reported in T-1 Net Construction Deferral Activity in earnings press release 3) Amounts reflect the impact of a net recognition associated with the receipt of a certificate of occupancy for our Ka Haku property Total revenue Net construction deferrals $1,961M $1,124M ($207M) ($296M) $88M ($296M) ($536M) ($536M) $152M ($496M) $313M $1,425M $588M ($55M) Real Estate Business 3.6% 1.9% YoY Growth Net-recognition-adjusted metrics 3 as referenced on earnings call
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$ millions YTD 2026 Adjusted EBITDA to Adjusted Free Cash Flow 1 2 3 4 5 6 7 8 9 $873 $138 ($81) ($207) ($340) ($182) ($43) $48 $206 24% FCF Conversion YTD 2026 Adj. EBITDA to Stockholders excl. net deferrals Cost of VOI Sales Addback Cash Taxes Interest Payments on Corporate Debt Net Consumer Finance Inventory Capital Non-Inventory Capital Working Capital & Other YTD 2026 Adjusted FCF
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Improved conversion of Adjusted EBITDA1 to Adjusted Free Cash Flow2 has supported an inflection in capital returns 1) Adjusted EBITDA to stockholders excluding net deferrals 2) Adjusted FCF defined as net cash provided by operating activities minus capex for property and equipment and software capitalization costs, plus non-recourse debt activity, litigation settlement payment, acquisitions and integration-related expense, capitalized acquisition and integration-related costs and other one-time adjustments 3) FCF conversion is defined as Adjusted FCF divided by Adjusted EBITDA to stockholders excluding net deferrals 4 $283M $368M $432M $600M ~$600M 2019 2023 2024 2025 2026 $71M $532M $837M $756M 2019 2023 2024 2025 2026 52% 76% Lower half of long-term 55% - 65% target 69% 52% 79% Target 66% Target ~75% - 90% Long-term Target: 55% - 65% Free cash flow conversion Free Cash Flow Conversion Rate 3 Capital returned to shareholders % of FCF Returned to Shareholders via Share Repurchase $ Shares RepurchasedAdjusted Free Cash Flow 2
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5 1) Adjusted EBITDA net of deferrals of revenue and direct expenses related to the Sales of VOIs under construction GUIDANCE Adjusted EBITDA to stockholders excl. net deferrals 1 Guidance Range $1,225M - $1,265M Midpoint ~$1,245M Guidance Range $1,165M - $1,180M Midpoint ~$1,173M Previous 2026 Guidance Updated 2026 Guidance
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APPENDIX: NON-GAAP RECONCILIATIONS
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$ millions Q3 2026 Adjusted EBITDA to Adjusted Free Cash Flow $313 $55 ($34) ($70) ($124) ($53) ($23) ($1) $63 20% FCF Conversion Q3 2026 Adj. EBITDA to Stockholders excl. net deferrals Cost of VOI Sales Addback Cash Taxes Interest Payments on Corporate Debt Net Consumer Finance Inventory Capital Non-Inventory Capital Working Capital & Other Q3 2026 Adjusted FCF
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YTD 2026 Net Construction Recognition Activity Sales of VOI, net Cost of VOI sales Sales & marketing expense, net Adj. EBITDA to stockholders Reported GAAP metrics 1 Net recognition activity 2 ($1,503M) $1,123M 8 1) As reported in earnings press release and 10Q 2) As reported in T-1 Net Construction Deferral Activity in earnings press release 3) Amounts reflect impact of net deferral activity of revenue and direct expenses related to projects under construction Total revenue Net construction deferrals $4,604M $2,086M ($290M) ($250M) $74M ($250M) ($457M) ($457M) $133M ($1,429M) $873M $4,147M $1,629M ($157M) Real Estate Business Net-recognition-adjusted metrics 3 as referenced on earnings call 5.4% 3.1% YoY Growth
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Non-GAAP Reconciliations 9 Definition EBITDA, presented herein, is a financial measure that is not recognized under U.S. GAAP that reflects net income (loss), before interest expense (excluding non-recourse debt), a provision for income taxes and depreciation and amortization. Adjusted EBITDA, presented herein, is calculated as EBITDA, as previously defined, further adjusted to exclude certain items, including, but not limited to, gains, losses and expenses in connection with: (i) other gains or losses, 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. Adjusted EBITDA Attributable to Stockholders is calculated as Adjusted EBITDA, as previously defined, excluding amounts attributable to the noncontrolling interest in Bluegreen/Big Cedar Vacations in which HGV owns a 51% interest (“Big Cedar”). HGV believes that EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders provide useful information to investors about us and our financial condition and results of operations for the following reasons: (i) EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders are among the measures used by our management team to evaluate our operating performance and make day-to-day operating decisions; and (ii) EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders are frequently used by securities analysts, investors and other interested parties as a common performance measure to compare results or estimate valuations across companies in our industry. EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders have limitations as analytical tools and should not be considered either in isolation or as a substitute for net income (loss), cash flow or other methods of analyzing our results as reported under U.S. GAAP. Some of these limitations are: • EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders do not reflect changes in, or cash requirements for, our working capital needs; • EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders do not reflect our interest expense (excluding interest expense on non-recourse debt), or the cash requirements necessary to service interest or principal payments on our indebtedness; • EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders do not reflect our tax expense or the cash requirements to pay our taxes; • EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders do not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments; • EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders do not reflect the effect on earnings or changes resulting from matters that we consider not to be indicative of our future operations; • EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders do not reflect any cash requirements for future replacements of assets that are being depreciated and amortized; and • EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders may be calculated differently from other companies in our industry limiting their usefulness as comparative measures. Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders
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10 Definition Free Cash Flow represents cash from operating activities less non-inventory capital spending. Adjusted Free Cash Flow represents free cash flow further adjusted for net non-recourse debt activities and other one-time adjustment items including, but not limited to, costs associated with acquisitions. We consider Free Cash Flow and Adjusted Free Cash Flow to be liquidity measures not recognized under U.S. GAAP that provide useful information to both management and investors about the amount of cash generated by operating activities that can be used for investing and financing activities, including strategic opportunities and debt service. We do not believe these non-GAAP measures to be a representation of how we will use excess cash. Free Cash Flow and Adjusted Free Cash Flow Non-GAAP Reconciliations (Continued)
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Hilton Grand Vacations Inc. Adjusted EBITDA Attributable to Stockholders Reconciliation(1) (in millions) Three Months Ended September 30, Nine Months Ended September 30, 2026 2026 Net income attributable to stockholders $291 $369 Net income attributable to noncontrolling interest 6 11 Net income 297 380 Interest expense 78 221 Income tax expense 117 131 Depreciation and amortization 70 212 EBITDA 562 944 Other loss, net 1 2 Share-based compensation expense 20 56 Acquisition and integration-related expense 13 39 Loss on sale and impairment, net (7) 41 Other adjustment items(2) 28 55 Adjusted EBITDA 617 1,137 Adjusted EBITDA attributable to noncontrolling interest 8 14 Adjusted EBITDA attributable to stockholders $609 $1,123 (1) As reported in T-7 Adjusted EBITDA Attributable to Stockholders Reconciliation in earnings release (2) Includes costs associated with restructuring, one-time charges, other non-cash items and the amortization of fair value premiums and discounts resulting from purchase accounting.
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Hilton Grand Vacations Inc. Free Cash Flow Reconciliation(1) (in millions) Three Months Ended September 30, Nine Months Ended September 30, 2026 2026 Net cash provided by operating activities $87 $349 Capital expenditures for property and equipment (14) (23) Software capitalization costs (21) (53) Free Cash Flow 52 273 Non-recourse debt activity, net (14) (139) Acquisition and integration-related expense 13 39 Other adjustment items(2) 12 33 Adjusted Free Cash Flow $63 $206 (1) As reported in T-5 Free Cash Flow Reconciliation in earnings release (2) Includes capitalized acquisition and integration-related costs.