Wynn Resorts, Limited (WYNN) Cash Flow Statement

The negative OCF in 2026Q2, despite positive net income, is driven by a $213.5M working capital outflow, suggesting that reported earnings are not yet translating into cash. Conversely, 2025Q4's OCF/NI of 4.78 reflects a large working capital release, implying that cash generation is heavily influenced by timing of receivables and payables. Investors should monitor whether these swings normalize, as they obscure the underlying quality of earnings.

The erratic FCF pattern, with negative quarters in 2025Q1 and 2026Q1, suggests that capital expenditures and working capital changes are causing substantial swings. However, the average FCF margin over the period is roughly 10%, which is below LVS's 20.3% but above MGM's 9.4%, indicating moderate cash generation relative to peers. The recent negative FCF in 2026Q1 and 2026Q2 may indicate a temporary downturn, but the longer-term trend appears stable.

The consistent rise in capital expenditures, from roughly $100M to $180M per quarter, indicates that WYNN is investing heavily in property enhancements or new developments. This capital intensity is now above the peer average, which may pressure near-term FCF but could support future revenue growth. The increase in CapEx relative to depreciation (D&A) suggests that the company is expanding its asset base, potentially signaling a growth-oriented strategy.

The extreme swings in working capital, particularly the $213.5M outflow in 2026Q2 and the -$213.5M inflow in 2026Q1, suggest that WYNN's cash flow is highly sensitive to timing of collections and payments. This volatility may be due to large casino receivables or prepaid expenses, and it obscures the underlying operational cash generation. Investors should monitor whether these swings are seasonal or indicative of structural inefficiencies in working capital management.

The data shows a notable increase in share repurchases and acquisition spending in recent quarters, with buybacks turning positive in 2026Q2 and acquisition net cash outflows of $114.6M. This suggests that WYNN is prioritizing returning capital to shareholders and pursuing growth through M&A, which may strain liquidity if cash flows remain volatile. Dividends have been relatively stable around $26-60M per quarter, but the combined deployment could pressure the balance sheet if operating cash flow does not stabilize.

While cumulative OCF is higher than net income, the quarterly divergence is stark, with OCF/NI ranging from -8.71 to 6.12. The large positive OCF in 2025Q4 and 2024Q4, relative to net income, indicates that cash generation is being boosted by working capital releases, which may not be sustainable. Conversely, the negative OCF in 2026Q2 suggests that earnings are not always converting to cash, warranting a closer look at accruals and the sustainability of cash flows.