Revenues from Contracts with Customers
Contract Liabilities

The following table summarizes the activity of our contract liabilities during the year ended December 31, 2025:

(in millions)
Balance as of December 31, 2024
$1,829 
Cash received in advance and not recognized as revenue
869 
Revenue recognized(1)
(570)
Other(2)
226 
Balance as of December 31, 2025
$2,354 
____________
(1)Primarily related to Hilton Honors, including co-branded credit card arrangements.
(2)Represents the changes in estimated transaction prices for our performance obligations related to the issuance of Hilton Honors points, which had no effect on revenues.

Performance Obligations

As of December 31, 2025, deferred revenues for unsatisfied performance obligations consisted of: (i) $1,514 million related to Hilton Honors that will be recognized as revenue over approximately the next two years; (ii) $825 million related to advance consideration received from hotel owners for application, initiation and other fees and system implementation fees; and (iii) $15 million related to other obligations. These performance obligations are recognized as revenue as discussed in Note 2: Basis of Presentation and Summary of Significant Accounting Policies.
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Historical Timeline

Fiscal YearFiled
2025Feb 11, 2026Showing above
2024Feb 6, 2025
2023Feb 7, 2024
2022Feb 9, 2023
2021Feb 16, 2022
2020Feb 17, 2021
2019Feb 11, 2020
2018Feb 13, 2019
2016Feb 15, 2017
2015Feb 26, 2016

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.