Wyndham Hotels & Resorts | 8-K: FY2026 Q2 Revenue Misses Estimate at USD 375 M

Revenue: As of FY2026 Q2, the actual value is USD 375 M, missing the estimate of USD 400.8 M.

EPS: As of FY2026 Q2, the actual value is USD 1.36, beating the estimate of USD 1.3421.

EBIT: As of FY2026 Q2, the actual value is USD 174 M.

Operational Metrics

System Size and Development

Wyndham Hotels & Resorts, Inc.’s global system, excluding Revo, expanded by 4% year-over-year, reaching 853,600 rooms as of June 30, 2026, compared to 824,200 rooms on June 30, 2025. Including Revo, the global system grew 3% to 873,400 rooms as of June 30, 2026, from 846,700 rooms on June 30, 2025. The U.S. system remained flat year-over-year at 501,100 rooms. International growth, excluding Revo, was 10% year-over-year. The global development pipeline, excluding Revo, increased 4% year-over-year to approximately 261,000 rooms and over 2,200 hotels as of June 30, 2026, with rooms under construction growing 4% year-over-year.

RevPAR (Revenue Per Available Room)

Global RevPAR decreased -1% in constant currency compared to 2025, reaching $47.01 in the second quarter of 2026. U.S. RevPAR grew 2% year-over-year to $54.50, while International RevPAR declined -6% in constant currency year-over-year to $37.31.

Financial Performance

Net Revenues

Net revenues declined -6% to $375 million in the second quarter of 2026, compared to $397 million in the second quarter of 2025.

Net Income

Net income increased 17% year-over-year to $102 million in the second quarter of 2026, up from $87 million in the second quarter of 2025.

Adjusted Net Income

Adjusted net income grew 8% year-over-year to $111 million in the second quarter of 2026, compared to $103 million in the second quarter of 2025.

Adjusted EBITDA

Adjusted EBITDA increased 9% year-over-year to $212 million in the second quarter of 2026, compared to $195 million in the second quarter of 2025.

Operating Income

Operating income for the second quarter of 2026 was $174 million, an increase from $150 million in the second quarter of 2025.

Expenses

Total expenses in the second quarter of 2026 were $201 million, down from $247 million in the second quarter of 2025. Marketing, reservation, and loyalty expenses decreased to $131 million from $162 million. General and administrative expenses decreased to $24 million from $31 million. Restructuring and other-related costs decreased to $5 million from $13 million.

Interest Expense, Net

Interest expense, net, increased to $36 million in the second quarter of 2026, from $34 million in the second quarter of 2025.

Cash Flow and Liquidity

Net Cash Provided by Operating Activities

Net cash provided by operating activities increased 30% to $91 million in the second quarter of 2026, from $70 million in the second quarter of 2025. For the six months ended June 30, 2026, net cash provided by operating activities was $133 million, compared to $129 million in the same period of 2025.

Adjusted Free Cash Flow

Adjusted free cash flow increased 19% to $105 million in the second quarter of 2026, from $88 million in the second quarter of 2025. For the six months ended June 30, 2026, adjusted free cash flow was $169 million, compared to $168 million in the same period of 2025.

Cash and Liquidity Position

Wyndham Hotels & Resorts, Inc. ended the second quarter of 2026 with a cash balance of $69 million and $1.0 billion in total liquidity.

Net Debt Leverage Ratio

The Company’s net debt leverage ratio at June 30, 2026, was 3.5 times, with total debt of $2,675 million and net debt of $2,606 million.

Shareholder Returns

Wyndham Hotels & Resorts, Inc. returned $86 million to shareholders in the second quarter of 2026, including $54 million in share repurchases and $32 million in quarterly cash dividends of $0.43 per share.

Outlook / Guidance

Wyndham Hotels & Resorts, Inc. updated its full-year 2026 outlook, projecting year-over-year rooms growth of 4.0% - 4.5% and global RevPAR growth of 0.0% - 1.0% on a constant currency basis. The company anticipates net revenues between $1.48 billion and $1.50 billion, adjusted EBITDA between $735 million and $745 million, and adjusted net income between $355 million and $365 million. The free cash flow conversion rate is projected to be 55% - 60%.