Revenue growth remains inconsistent, fluctuating between a 3.5% increase in 2026Q1 and a 2.1% contraction in 2025Q4, while operating margins have experienced extreme volatility, reaching a negative 10.2% in 2025Q4.
| Sales/Revenue | 1.44B | 1.43B | 1.41B | 1.4B | 1.5B | 1.56B | 1.3B | 2.05B | 1.87B | 1.35B | 1.27B | 1.3B |
| Revenue Growth % | 1.55% | 1.49% | 0.79% | -6.74% | -4.28% | 20.38% | -36.68% | 9.9% | 38.68% | 6.15% | -2.46% | - |
| Cost of Goods Sold | 638M | 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 | 802M | 841M | 1.41B | 815M | 830M | 795M | 531M | 867M | 796M | 677M | 622M | 611M |
| Gross Margin % | 55.69% | 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 | 387M | 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 | 697M | 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 | -1000K | -252M | 219M | -387M | -375M | -214M | 42M | -133M | 281M | 280M | 241M | 258M |
| Operating Income | 415M | 406M | 495M | 503M | 558M | 446M | -46M | 307M | 336M | 261M | 295M | 250M |
| Operating Margin % | 28.82% | 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 | 478M | 468M | 566M | 579M | 635M | 541M | 52M | 416M | 1.81B | 1.25B | 1.32B | 317M |
| EBITDA Margin % | 33.19% | 32.75% | 40.2% | 41.45% | 42.39% | 34.57% | 4% | 20.26% | 97.16% | 92.8% | 103.7% | 24.37% |
| EBITDA Growth % | -23.27% | -17.31% | -2.25% | -8.82% | 17.38% | 940.38% | -87.5% | -77.08% | 45.2% | -5.02% | 315.14% | - |
| D&A (Non-Cash Add-back) | 63M | 62M | 71M | 76M | 77M | 95M | 98M | 109M | 1.48B | 989M | 1.02B | 67M |
| EBIT | 420M | 404M | 497M | 506M | 561M | 429M | -44M | 311M | 283M | 249M | 295M | 250M |
| Net Interest Income | -140M | -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 | 140M | 139M | 129M | 108M | 85M | 94M | 114M | 104M | 60M | 6M | 1M | 1M |
| Other Income/Expense | -149M | -141M | -127M | -105M | -82M | -111M | -112M | -100M | -60M | -6M | -1M | -1M |
| Pretax Income | 266M | 265M | 368M | 398M | 476M | 335M | -158M | 207M | 223M | 255M | 294M | 249M |
| Pretax Margin % | 18.47% | 18.54% | 26.14% | 28.49% | 31.78% | 21.41% | -12.15% | 10.08% | 11.94% | 18.93% | 23.17% | 19.14% |
| Income Tax | 73M | 72M | 79M | 109M | 121M | 91M | -26M | 50M | 61M | 12M | 118M | 100M |
| Effective Tax Rate % | 27.44% | 27.17% | 21.47% | 27.39% | 25.42% | 27.16% | 16.46% | 24.15% | 27.35% | 4.71% | 40.14% | 40.16% |
| Net Income | 193M | 193M | 289M | 289M | 355M | 244M | -132M | 157M | 162M | 243M | 176M | 149M |
| Net Margin % | 13.4% | 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 % | -42.22% | -33.22% | 0% | -18.59% | 45.49% | 284.85% | -184.08% | -3.09% | -33.33% | 38.07% | 18.12% | - |
| Net Income (Continuing) | 193M | 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) | 2.55 | 2.47 | 3.61 | 3.40 | 3.91 | 2.60 | -1.41 | 1.63 | 1.62 | 2.31 | 1.76 | 1.49 |
| EPS Growth % | -41% | -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 | 75.8M | 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 | 75.4M | 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% | - | - | - |
Franchisee liquidity and financing
Based on the provided financial data, Wyndham's revenue growth has exhibited significant volatility, fluctuating between a 3.5% increase in 2026Q1 and a 2.1% contraction in 2025Q4, suggesting that the company's top-line expansion remains highly sensitive to broader macroeconomic conditions and seasonal travel demand cycles.
The inconsistent revenue trajectory indicates that the company's reliance on royalty fees is susceptible to fluctuations in RevPAR and unit growth. Investors should monitor whether the recent pivot toward the ECHO Suites brand can provide a more stable, long-term growth floor compared to the traditional economy portfolio.
As reported in the quarterly income statements, Wyndham's gross margin has experienced extreme swings, ranging from a low of 22.5% in 2025Q4 to a peak of 100% in periods where COGS were not reported, highlighting potential accounting distortions related to marketing and reservation fund pass-throughs.
The wide variance in reported gross margins suggests that the underlying profitability of the core franchise business is often obscured by the timing of marketing fund expenditures. Analysts should adjust for these pass-through costs to better understand the true operating leverage inherent in the asset-light model.
According to recent financial filings, Wyndham's operating margin has fluctuated significantly, reaching a negative 10.2% in 2025Q4 before recovering to 37.0% in 2026Q1, which suggests that the company's ability to scale operating income is frequently interrupted by lumpy SG&A expenses and non-recurring operational costs.
The lack of a consistent relationship between gross profit and operating income implies that corporate overhead and marketing investments are not always perfectly aligned with revenue generation. This volatility warrants further investigation into the company's cost discipline during periods of top-line pressure.
Based on the reported figures, the sharp decline in net income during 2025Q4, which resulted in a loss of $60 million, serves as a critical warning that the company's asset-light model is not immune to sudden, system-wide shocks that impact franchisee profitability and contract stability.
Short-term observers may argue that the company's reliance on franchisee health creates a hidden vulnerability, particularly if high interest rates continue to constrain capital for property improvements. The potential for contract terminations remains a significant risk that could erode the recurring royalty base if economic conditions deteriorate further.
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.