Shares of Hilton Grand Vacations Inc. (HGV) are surging 5.26% in pre-market trading following the release of its first-quarter 2025 earnings report. The stock's positive movement comes despite mixed results, as investors appear to focus on the company's reaffirmed full-year guidance and signs of resilience in a challenging environment.

For Q1 2025, Hilton Grand Vacations reported a net loss of $17 million, or $0.17 per share, falling short of Wall Street expectations. However, on an adjusted basis, the company posted earnings of $0.09 per share. Total revenue for the quarter came in at $1.148 billion, slightly down from the previous year. The company's Adjusted EBITDA was $180 million, a decrease from $273 million in the same quarter of 2024.

Despite the year-over-year declines, investors seem encouraged by Hilton Grand Vacations' decision to reaffirm its full-year 2025 Adjusted EBITDA guidance of $1.125-1.165 billion. This reaffirmation suggests management's confidence in the company's ability to navigate current challenges and deliver improved performance in the coming quarters. Additionally, the positive adjusted earnings per share, albeit lower than analyst expectations, indicates that the company is maintaining profitability on an adjusted basis.

The stock's pre-market surge may also reflect a potential overselling of shares prior to the earnings release, with investors now reassessing the company's value based on the full earnings report and forward-looking statements. As the market opens, it will be interesting to see if this positive momentum continues and how investors interpret the mixed results in the context of the broader travel and hospitality industry landscape.