Cash conversion efficiency remains erratic, evidenced by an OCF/NI ratio that swung from 0.01 in 2024Q2 to 4.75 in 2024Q1, complicating the predictability of free cash flow generation.
| Cash from Operations | 350M | 367M | 290M | 376M | 399M | 426M | 67M | 100M | 231M | 279M | 264M | 287M |
| Operating CF Margin % | - | 25.68% | 20.6% | 26.91% | 26.64% | 27.22% | 5.15% | 4.87% | 12.37% | 20.71% | 20.8% | 22.06% |
| Operating CF Growth % | 6893.48% | 26.55% | -22.87% | -5.76% | -6.34% | 535.82% | -33% | -56.71% | -17.2% | 5.68% | -8.01% | - |
| Net Income | 193M | 193M | 289M | 289M | 355M | 244M | -132M | 157M | 162M | 243M | 176M | 149M |
| Depreciation & Amortization | 63M | 62M | 71M | 76M | 77M | 95M | 98M | 109M | 99M | 75M | 73M | 67M |
| Stock-Based Compensation | 0 | 43M | 0 | 39M | 33M | 28M | 21M | 20M | 0 | 41M | 0 | 7M |
| Deferred Taxes | 0 | 0 | 4M | -17M | -39M | -1M | -23M | -14M | 0 | -92M | 26M | 10M |
| Other Non-Cash Items | 94M | 248M | 64M | 6M | -79M | 34M | 241M | -165M | -62M | 6M | 2M | 10M |
| Working Capital Changes | 0 | -179M | -138M | -17M | 52M | 26M | -138M | -7M | 7M | 6M | -13M | 44M |
| Change in Receivables | -3M | -48M | -39M | -10M | 16M | 25M | -38M | -11M | -55M | -10M | 0 | -17M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1M | 0 | -3M | 0 | 3M |
| Change in Payables | 32M | 0 | -33M | -4M | 14M | 39M | -46M | -28M | 85M | 21M | -13M | 26M |
| Cash from Investing | -51M | -103M | -65M | -66M | 179M | -34M | -31M | -53M | -1.73B | -198M | -114M | -104M |
| Capital Expenditures | -46M | -46M | -49M | -37M | -39M | -37M | -33M | -50M | -73M | -46M | -42M | -51M |
| CapEx % of Revenue | 3.19% | 3.22% | 3.48% | 2.65% | 2.6% | 2.36% | 2.54% | 2.44% | 3.91% | 3.42% | 3.31% | 3.92% |
| Acquisitions | 0 | 0 | 0 | 0 | -44M | 0 | 0 | 0 | -1.7B | 0 | -70M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -5M | -57M | -16M | -29M | 262M | 3M | 2M | -3M | 48M | -152M | -2M | -53M |
| Cash from Financing | -269M | -314M | -175M | -402M | -584M | -713M | 363M | -320M | 1.81B | -51M | -161M | -170M |
| Debt Issued (Net) | 114M | 93M | 257M | 128M | -9M | -534M | 479M | -21M | 2.11B | 9M | 77M | -12M |
| Equity Issued (Net) | -239M | -289M | -310M | -393M | -444M | -107M | -50M | -247M | -151M | 0 | 0 | -156M |
| Dividends Paid | -128M | -127M | -122M | -118M | -116M | -82M | -53M | -112M | 0 | 0 | 0 | 0 |
| Share Repurchases | -244M | -289M | -310M | -393M | -448M | -107M | -50M | -242M | -117M | 0 | 0 | -156M |
| Other Financing | -16M | 9M | 0 | -19M | -15M | 10M | -13M | 60M | -70M | -60M | -238M | -2M |
| Net Change in Cash | 31M | -49M | 47M | -95M | -10M | -322M | 399M | -272M | 307M | 29M | -10M | 13M |
| Free Cash Flow | 304M | 321M | 241M | 339M | 360M | 389M | 34M | 50M | 158M | 233M | 222M | 236M |
| FCF Margin % | 21.11% | 22.46% | 17.12% | 24.27% | 24.03% | 24.86% | 2.62% | 2.44% | 8.46% | 17.3% | 17.49% | 18.14% |
| FCF Growth % | 34.51% | 33.2% | -28.91% | -5.83% | -7.46% | 1044.12% | -32% | -68.35% | -32.19% | 4.96% | -5.93% | - |
| FCF per Share | 4.01 | 4.24 | 3.01 | 3.99 | 3.96 | 4.14 | 0.36 | 0.52 | 1.58 | 2.34 | 2.22 | 2.36 |
| FCF Conversion (FCF/Net Income) | 1.58x | 1.90x | 1.00x | 1.30x | 1.12x | 1.75x | -0.51x | 0.64x | 1.43x | 1.15x | 1.50x | 1.93x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Franchisee liquidity and financing
As reported in recent financial statements, the relationship between net income and operating cash flow is highly volatile, with OCF/NI ratios swinging from a low of 0.01 in 2024Q2 to an extreme 4.75 in 2024Q1, indicating significant timing differences between accounting profits and actual cash realization.
The frequent decoupling of net income from operating cash flow suggests that non-cash items or working capital fluctuations are heavily distorting the reported earnings quality. Investors should monitor whether these discrepancies represent temporary timing issues or a structural difficulty in converting franchise royalty accruals into liquid cash.
Based on the provided data, free cash flow margins have fluctuated wildly, ranging from a negative 1.6% in 2024Q2 to a robust 40.7% in 2025Q4, demonstrating that the company's ability to generate surplus cash is highly sensitive to quarterly operational and working capital shifts.
The inconsistency in FCF generation complicates the assessment of the company's long-term cash-generating capacity. While the asset-light model should theoretically provide stable cash flows, the observed volatility suggests that external pressures on the franchise system may be creating lumpy cash inflows.
According to recent SEC filings, working capital changes have been a primary driver of cash flow variance, with swings as large as a $88 million outflow in 2024Q2 followed by a $52 million inflow in 2023Q4, highlighting the impact of franchisee payment cycles on liquidity.
These significant working capital movements suggest that the company's cash position is heavily influenced by the timing of collections from its franchise base. Such variability warrants further investigation into whether these fluctuations are indicative of underlying stress within the franchisee network's ability to meet payment obligations.
As evidenced by the reported figures, Wyndham has consistently prioritized shareholder returns, with buybacks totaling $131 million in 2024Q2 alone, even during periods where operating cash flow was nearly non-existent, suggesting a management strategy that favors capital distribution over maintaining a substantial cash buffer.
The commitment to share repurchases and dividends appears to be a core pillar of the capital allocation strategy, yet the reliance on debt or existing cash to fund these during low-cash-flow quarters may limit future financial flexibility. Investors should consider whether this aggressive return policy is sustainable if franchisee-driven cash inflows remain erratic.
Quick answers to the most common questions about buying WH stock.
Wyndham Hotels & Resorts, Inc. (WH) generated $367.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Wyndham Hotels & Resorts, Inc. (WH) generated $321.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Wyndham Hotels & Resorts, Inc. (WH) spent $46.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Wyndham Hotels & Resorts, Inc. (WH) returned $127.0M to shareholders via cash dividends and spent $289.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.