Research Reports

Key takeaways

Operating income rose 1.8% to $114.0M from $112.0M, delivering a 34.9% operating margin as franchise efficiencies offset cost pressures.

Net income remained flat at $61.0M versus prior year, with higher effective tax rate due to lower tax benefit from stock-based compensation.

Diluted EPS grew 2.6% to $0.80 from $0.78, reflecting earnings stability amid tax headwinds.

Operating cash flow was $42.0M, down from $59.0M due to working capital timing and seasonality differences from revenue patterns.

Free cash flow of $35.0M followed disciplined $7.0M capital expenditures, enabling continued capital returns.

Full analysis

Net income held flat at $61.0 million, as the higher effective tax rate during 2026—stemming from a lower tax benefit associated with stock-based compensation—offset modest pre-tax gains, though diluted EPS improved 2.6% to $0.80. This stability highlights earnings quality in a franchised model less exposed to property-level volatility. Cash generation showed timing variability, with net cash provided by operating activities at $42.0 million versus $59.0 million last year, reflecting working capital requirements and cash flow seasonality that may differ from revenue patterns, plus fluctuations from investment activities and new market expansions introducing different dynamics.

WH · Wyndham Hotels & Resorts, Inc.

Summary

Key takeaways

Full analysis