Revenue growth has been erratic—+7.3% in 2026Q3 but -5.5% in 2026Q2 and negative in four of ten quarters—while operating margin held a 37.0%-46.4% band outside the 2025Q4 loss quarter of -$34M, suggesting pass-through marketing fund timing distorts gross margin (22.5%-91.5% swings) more than underlying royalty pricing.
Wyndham Hotels & Resorts, Inc. (WH) annual income statement — 11-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Sales/Revenue | 1.45B | 1.43B | 1.41B | 1.4B | 1.5B | 1.56B | 1.3B | 2.05B | 1.87B | 1.35B | 1.27B | 1.3B |
| Revenue Growth % | 0.7% | 1.49% | 0.79% | -6.74% | -4.28% | 20.38% | -36.68% | 9.9% | 38.68% | 6.15% | -2.46% | - |
| Cost of Goods Sold | 693M | 588M | 0 | 582M | 668M | 770M | 769M | 1.19B | 1.07B | 670M | 647M | 690M |
| COGS % of Revenue | - | 41.15% | - | 41.66% | 44.59% | 49.2% | 59.15% | 57.77% | 57.39% | 49.74% | 50.98% | 53.04% |
| Gross Profit | 753M | 841M | 1.41B | 815M | 830M | 795M | 531M | 867M | 796M | 677M | 622M | 611M |
| Gross Margin % | 52.07% | 58.85% | 100% | 58.34% | 55.41% | 50.8% | 40.85% | 42.23% | 42.61% | 50.26% | 49.02% | 46.96% |
| Gross Profit Growth % | - | -40.27% | 72.76% | -1.81% | 4.4% | 49.72% | -38.75% | 8.92% | 17.58% | 8.84% | 1.8% | - |
| Operating Expenses | 318M | 435M | 913M | 312M | 272M | 349M | 577M | 560M | 400M | 368M | 324M | 348M |
| OpEx % of Revenue | - | 30.44% | 64.84% | 22.33% | 18.16% | 22.3% | 44.38% | 27.28% | 21.41% | 27.32% | 25.53% | 26.75% |
| Selling, General & Admin | 829M | 687M | 694M | 699M | 647M | 563M | 535M | 693M | 605M | 461M | 459M | 90M |
| SG&A % of Revenue | - | 48.08% | 49.29% | 50.04% | 43.19% | 35.97% | 41.15% | 33.76% | 32.39% | 34.22% | 36.17% | 6.92% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -3M | -252M | 219M | -387M | -375M | -214M | 42M | -133M | 281M | 280M | 241M | 258M |
| Operating Income | 435M | 406M | 495M | 503M | 558M | 446M | -46M | 307M | 336M | 261M | 295M | 250M |
| Operating Margin % | 30.08% | 28.41% | 35.16% | 36.01% | 37.25% | 28.5% | -3.54% | 14.95% | 17.99% | 19.38% | 23.25% | 19.22% |
| Operating Income Growth % | - | -17.98% | -1.59% | -9.86% | 25.11% | 1069.57% | -114.98% | -8.63% | 28.74% | -11.53% | 18% | - |
| EBITDA | 496M | 468M | 566M | 579M | 635M | 541M | 52M | 416M | 435M | 336M | 368M | 317M |
| EBITDA Margin % | 34.3% | 32.75% | 40.2% | 41.45% | 42.39% | 34.57% | 4% | 20.26% | 23.29% | 24.94% | 29% | 24.37% |
| EBITDA Growth % | -21.52% | -17.31% | -2.25% | -8.82% | 17.38% | 940.38% | -87.5% | -4.37% | 29.46% | -8.7% | 16.09% | - |
| D&A (Non-Cash Add-back) | 61M | 62M | 71M | 76M | 77M | 95M | 98M | 109M | 99M | 75M | 73M | 67M |
| EBIT | 424M | 404M | 497M | 506M | 561M | 429M | -44M | 311M | 283M | 249M | 295M | 250M |
| Net Interest Income | -143M | -139M | -124M | -102M | -80M | -93M | -112M | -100M | -60M | -6M | -1M | -1M |
| Interest Income | 0 | 0 | 5M | 6M | 5M | 1M | 2M | 4M | 0 | 0 | 0 | 0 |
| Interest Expense | 143M | 139M | 129M | 108M | 85M | 94M | 114M | 104M | 60M | 6M | 1M | 1M |
| Other Income/Expense | -154M | -141M | -127M | -105M | -82M | -111M | -112M | -100M | -60M | -6M | -1M | -1M |
| Pretax Income | 281M | 265M | 368M | 398M | 476M | 335M | -158M | 207M | 223M | 255M | 294M | 249M |
| Pretax Margin % | 19.43% | 18.54% | 26.14% | 28.49% | 31.78% | 21.41% | -12.15% | 10.08% | 11.94% | 18.93% | 23.17% | 19.14% |
| Income Tax | 79M | 72M | 79M | 109M | 121M | 91M | -26M | 50M | 61M | 12M | 118M | 100M |
| Effective Tax Rate % | 28.11% | 27.17% | 21.47% | 27.39% | 25.42% | 27.16% | 16.46% | 24.15% | 27.35% | 4.71% | 40.14% | 40.16% |
| Net Income | 202M | 193M | 289M | 289M | 355M | 244M | -132M | 157M | 162M | 243M | 176M | 149M |
| Net Margin % | 13.97% | 13.51% | 20.53% | 20.69% | 23.7% | 15.59% | -10.15% | 7.65% | 8.67% | 18.04% | 13.87% | 11.45% |
| Net Income Growth % | -40.24% | -33.22% | 0% | -18.59% | 45.49% | 284.85% | -184.08% | -3.09% | -33.33% | 38.07% | 18.12% | - |
| Net Income (Continuing) | 202M | 193M | 289M | 289M | 355M | 244M | -132M | 157M | 162M | 230M | 176M | 149M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.77B | 127M | 146M | 0 |
| EPS (Diluted) | 2.72 | 2.47 | 3.61 | 3.40 | 3.91 | 2.60 | -1.41 | 1.63 | 1.62 | 2.31 | 1.76 | 1.49 |
| EPS Growth % | -38.16% | -31.58% | 6.18% | -13.04% | 50.38% | 284.4% | -186.5% | 0.62% | -29.87% | 31.25% | 18.12% | - |
| EPS (Basic) | - | 2.49 | 3.64 | 3.42 | 3.93 | 2.61 | -1.41 | 1.63 | 1.63 | 2.31 | 1.76 | 1.49 |
| Diluted Shares Outstanding | 74.3M | 75.7M | 80.1M | 84.9M | 90.8M | 93.9M | 93.4M | 96.6M | 99.8M | 99.78M | 99.9M | 99.9M |
| Basic Shares Outstanding | 74.1M | 75.7M | 79.5M | 84.4M | 90.3M | 93.4M | 93.4M | 96.5M | 99.5M | 99.78M | 99.5M | 99.9M |
| Dividend Payout Ratio | - | 65.8% | 42.21% | 40.83% | 32.68% | 33.61% | - | 71.34% | 114.81% | - | - | - |
Quick answers to the most common questions about buying WH stock.
For fiscal year 2025, Wyndham Hotels & Resorts, Inc. (WH) reported total revenue of $1.43B. This represents a 9.8% increase compared to $1.30B in 2015.
Wyndham Hotels & Resorts, Inc. (WH) is profitable, generating $193.0M in net income for the fiscal year ending 2025 with a net profit margin of 13.5%.
Wyndham Hotels & Resorts, Inc. (WH) reported an operating income of $406.0M, resulting in an operating profit margin of 28.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Wyndham Hotels & Resorts, Inc. (WH) generated $841.0M in gross profit for the year, representing a gross profit margin of 58.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Erratic cost matching distorts margins
Metrics are mathematically derived from official filings.
Royalty Growth Swings Without Trend
Wyndham's revenue trajectory is uneven, with 7.3% growth in 2026Q3 contrasting against a 5.5% decline in 2026Q2 and a 3.0% drop in 2025Q3, as reported in the company's quarterly income statements, suggesting demand momentum hinges on RevPAR rather than broad-based system expansion.
The alternating sign of year-over-year revenue growth across ten quarters implies the royalty base is not compounding predictably; the 7.3% print in 2026Q3 follows a contraction, which may point to timing of initial franchise fees or marketing-fund gross-up rather than a durable step-change in unit economics. For a franchisor whose earnings thesis rests on recurring royalties, investors should monitor whether the 2026Q3 acceleration repeats before underwriting an upgraded growth slope.
Gross Margin Volatility Masks Stable Operating Base
Gross margin swung between 22.5% in 2025Q4 and 91.5% in 2026Q2, while operating margin held a narrower 37.0%-46.4% band outside the loss quarter, according to WH's reported figures, implying pass-through marketing and reservation fund timing distorts gross profitability more than underlying pricing power.
Because marketing and reservation funds are designed to be broadly break-even, the extreme gross-margin dispersion appears to be a classification and matching artifact rather than evidence of pricing erosion or windfall economics, which makes gross margin an unreliable diagnostic for this business. The operating margin line, by contrast, has stayed in the high-30s to mid-40s percentage range in eight of ten quarters, suggesting the asset-light royalty model retains structural profitability closer to what the 28.4% peer-comparable operating margin at Choice Hotels would imply after adjusting for mix.
Operating Income Decouples From Expense Swings
Operating income reached $174M in both 2026Q3 and 2026Q2 despite SG&A swinging from $194M to $169M, as shown in Wyndham's income statement, indicating corporate overhead scales unevenly and that recent earnings gains reflect expense timing as much as revenue.
The fact that operating income was identical across two quarters with a $25M gap in reported SG&A suggests expense recognition timing, possibly around loyalty marketing or contract acquisition cost amortization, is absorbing revenue variation before it reaches the operating line. Genuine operating leverage would instead show operating income scaling faster than gross profit, and the 2025Q4 episode — where $407M of SG&A against $75M of gross profit produced a $34M operating loss — indicates the overhead base can overwhelm the royalty engine when costs are booked in a concentrated period.
Per-Share Earnings Clouded by Cost Timing
Diluted EPS of $1.33 in 2026Q3 fell 2.2% year over year with net margin at 24.1%, per Wyndham's quarterly disclosure, while stock-based compensation swung between -$10M and $14M across the last ten quarters, clouding the quality of underlying per-share earnings.
A 24.1% net margin in a quarter with the highest revenue of the period ($410M) versus 27.5% a year earlier on lower revenue suggests below-the-line items or cost matching, not franchise economics, are driving per-share outcomes, and the negative SBC figure in 2026Q2 warrants scrutiny as an unusual reversal. The 2025Q4 EPS of -$0.80, which management's Q2 2026 beat against a $1.33 estimate may have encouraged investors to look past, underscores that quarterly EPS for WH carries meaningful accounting-driven variance that trims the signal content of any single print.
Contraction Quarters Challenge Royalty Thesis
The bear case centers on 2025Q4, when SG&A of $407M drove a $60M net loss on $334M revenue, as documented in WH's income statement, and revenue contracted year over year in four of the last ten quarters, questioning the durability of royalty growth.
A short seller would argue that four contraction quarters, including the 5.5% decline in 2026Q2, sit awkwardly with a narrative of resilient economy-tier trade-down demand, and that the Q2 2026 EPS beat may partly reflect the same expense-timing mechanics that produced the prior quarter's loss rather than structural RevPAR strength. Additionally, elevated interest rates that constrain franchisee financing for new builds and property improvement plans could pressure both net unit growth and receivable collectability, risks that would surface first in the royalty line investors are currently extrapolating upward.