Hilton Grand Vacations Inc

Good morning and welcome to the Hilton Grand Vacations Second Quarter 2026 Earnings Conference Call. At this time, all participants have been placed in a listen-only mode and the floor will be open for your questions following the presentation. If you would like to ask a question, please press star 1 on your touch-tone phone to enter the queue. If at any point your question has been answered, you may remove yourself from the queue by pressing star 2. If you should require operator assistance, please press star zero. If using a speakerphone, please lift your handset to allow the signal to reach our equipment. Please limit yourself to one question and one follow-up to allow the opportunity for everyone to ask questions. You may then re-enter the queue to ask additional questions. I would now like to turn the call over to Mark Melnyk, Senior Vice President of Investor Relations. Please go ahead, sir.

Thank you, operator, and welcome to the Hilton Grand Vacations second quarter 2026 earnings call. Our discussions this morning will include forward-looking statements. Actual results could differ materially from those indicated by these forward-looking statements, and these statements are reflected only as of today. We undertake no obligation to publicly update or revise these statements. For discussion of some of the factors that could cause actual results to differ, please see the risk factors section of our SEC filings. Our reported results for all periods reflect accounting rules under ASC 606, which we adopted in 2018. Under ASC 606, we're required to defer certain revenues and expenses related to sales made in the period when a project is under construction, and then hold off on recognizing these revenues and expenses until the period when construction is completed. The aggregate of these potentially overlapping deferrals and recognitions from various projects and any given period are known as net deferrals. Please note that in our prepared remarks today, we'll only be referring to metrics that remove the impact of net deferrals, more accurately reflects the cash flow dynamics of our financial performance during the period. To simplify our discussion today, we've uploaded slides to our investor relations sites showing these metrics, which we'll be referring to on today's call. I'd urge you to view these slides on our website at investors.hgb.com. On slide two of these materials, you can see the deferral adjusted metrics were referred to on the call. Reported results for this quarter do not reflect 54 million of net contract sales deferrals under ASC 606, which had the effect of reducing reported gap revenue and were related to presales of our Kahaku project. Also on slide two, we deferred net 26 million of direct expenses associated with those revenues. Adjusting for both of these items would increase The adjusted EBITDA shareholders reported on our press release by a net $28 million to $293 million. With that, let me turn the call over to our CEO, Mark Wang. Mark?

Good morning, everyone, and welcome to our second quarter earnings call. Our results for the quarter highlighted the strength of our business in several key areas. We generated 239,000 tours in the quarter, an increase of 6% versus the prior year, Marking our fourth consecutive quarter consolidated tour growth and demonstrated the continued demand across the platform. We also grew our adjusted EBITDA 5% to $293 million while expanding our margins to 23%, underscoring the resiliency of our operating model along with the effectiveness of our cost efficiency programs. That said, our contract sales declined versus the prior year, reflecting several factors. First, we observed faster than predicted VPG moderation at Blue Green as we lapped the difficult comparisons from the successful launch period of HUD MAX. Second, sales execution fell short of our expectation, which weighed on overall sales productivity. This was most pronounced in the back half of the quarter at a couple of our higher volume locations. Third, results reflected a higher mix of trust transactions and new buyer sales during the quarter. While these generally carry a lower average VPG than owner sales, they're an important driver to long-term embedded value. As a result, we're taking decisive action to improve our sales execution as we move through the balance of the year in order to better capitalize on the strong tour flow we're generating. While these initiatives have only recently rolled out, We believe that they'll help to drive improved execution in the back half. Importantly, we don't believe the softness was demand-related, occupancy levels remained healthy, with on-the-book arrivals in the back half remaining ahead of prior year, poor growth across our footprint has been strong for both owners and new buyers, and we've seen sustained growth of HEV MACs from new and existing members. Overall, the fundamentals of the business remain solid. Performance at our legacy business remains steady. We're generating strong tour flow, maintaining healthy profitability, and we continue to see significant long-term value creation from the Blue-Green integration and ongoing evolution of Max. Given the underlying strength of business and confidence in the actions we're taking, we're maintaining our full-year EBITDA guidance, and we remain committed to driving improved We also remain successful at attracting new buyers to our sales centers. New buyer tours increased at a high single-digit rate Compared to the prior year, maintaining the strong pace we've seen since the last fall. And we also produce high single-digit new buyer transaction growth, which remains critical to growing our embedded value and supporting the long-term health of the business. This success was supported by the investments we made across our marketing platform over the past year, along with the strength of our lead generation channels. We also continue to focus on enhancing lifetime value. We've seen the benefits of the investments we made in HEV MAX and our broader member ecosystem, which are helping to deepen member engagement and member satisfaction by reinforcing the value proposition of ownership. Nearly 300,000, or 40% of our base, are MAX members today, growing 24% versus the prior year. As it relates to innovation, we continue to invest in our industry-leading experience platform. HCV Ultimate Access is operating at scale, hosting over 137,000 guests at our events this past year and generating strong contract sales. Given the positive response from our members in both satisfaction scores and upgrade sales, we'll keep our foot firmly on the gas to grow and expand what has become a core component of our offerings. And it was another successful quarter of programming for HCV Ultimate Access. We hosted our members at a series of events at World Cup matches in New York, Miami, and LA. LPGA Hall of Famer and legend Annika Sorensen joined our events at the American Century Open to provide one-on-one coaching tips to our members at the practice range. And we expanded our popular concert series with artists such as Ashley Cook, Tucker Wetmore, and Don Felder of the Eagles. In addition, we also recently launched new tools to provide members with greater flexibility and easier access to HEV Ultimate Access, allowing them to further tailor their vacation plans around our industry-leading portfolio of experiences. Overall, Ultimate Access has grown to become a central pillar of our strategy as a vacation experience company Adding to the member value proposition and strengthening our engagement with the HCV brand. Finally, operational excellence remains at the core of how we manage our business. The teams did an excellent job managing costs, meeting our adjusted EBITDA targets through strong margin expansion and delivering robust free cash flow. And we used that cash flow to maintain our commitment to returning excess capital to our shareholders We also continue to execute our inventory optimization strategy, closing on the agreement we discussed last quarter to dispose of a group of non-core assets, removing them from our system. This transaction fits into our overall optimization strategy. providing us with an avenue to recycle capital, improve portfolio quality, reduce inventory carrying costs, and enhancing long-term returns. In summary, our confidence in the long-term value creation algorithm of the business remains unchanged. We're taking targeted actions to improve our sales execution while continuing to build on the strength of our business, enhance our value proposition, and drive operating efficiencies. Collectively, these initiatives support our goals of delivering sustainable growth, expanding margins, and generating strong free cash flow to create long-term shareholder value. With that, I'll turn it to Dan for more details on the numbers.