WHMEDIUM SIGNALFINANCIAL10-K

Wyndham Hotels reported meaningful declines across profitability and equity metrics alongside a notable reduction in system size, even as operating cash flow improved materially year-over-year.

The contraction in net income, operating income, and stockholders' equity—alongside a drop in affiliated hotels from approximately 9,300 to over 8,300 and rooms from approximately 903,000 to approximately 869,000—suggests the company is navigating a period of portfolio rationalization and margin pressure. Investors should monitor whether the system-size reduction reflects strategic pruning of underperforming properties or a more concerning trend of franchisee attrition. The share count decline from approximately 77.7 million to approximately 75.1 million confirms continued capital return activity, though buybacks moderated by roughly 14% year-over-year.

Comparing 2026-02-19 vs 2025-02-13View on EDGAR →
FINANCIAL ANALYSIS

Operating cash flow grew notably to $367M from $290M (+26.6%), providing a constructive counterpoint to weaker headline earnings, and suggests the earnings decline may reflect non-cash or below-the-line items rather than a fundamental deterioration in cash generation. However, operating income fell approximately 18.8% and net income declined approximately 33.2%, while cash on hand dropped meaningfully to $64M from $103M (-37.9%) and stockholders' equity compressed to $468M from $650M (-28%). The overall picture is one of a financially sound but moderately pressured franchise business—strong cash conversion offsets profitability headwinds, but the balance sheet thinning and system contraction merit close monitoring in upcoming quarters.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
-37.9%
$103.0M→$64.0M

Cash declined 37.9% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Net Income
P&L
-33.2%
$289.0M→$193.0M

Net income declined 33.2% — review whether driven by operations, interest costs, or non-recurring items.

Stockholders Equity
Balance Sheet
-28%
$650.0M→$468.0M

Equity decreased 28% — buybacks or losses reducing book value, monitor solvency ratios.

Operating Cash Flow
Cash Flow
+26.6%
$290.0M→$367.0M

Operating cash flow grew 26.6% — strong conversion of earnings to cash, healthy business fundamentals.

Operating Income
P&L
-18.8%
$495.0M→$402.0M

Operating profitability softening — costs rising faster than revenue, watch for margin recovery plan.

Share Buybacks
Cash Flow
-14.2%
$310.0M→$266.0M

Buyback activity reduced 14.2% — capital being redeployed elsewhere or cash conservation underway.

LANGUAGE CHANGES
NEW — 2026-02-19
PRIOR — 2025-02-13
ADDED
As of January 31, 2026, the registrant had outstanding 75,148,844 shares of common stock.
( Wyndham Hotels , the Company , we , our or us ) is the world s largest hotel franchising company by number of franchised properties, with over 8,300 affiliated hotels and approximately 869,000 rooms located in approximately 100 countries and welcoming approximately 138 million guests annually worldwide.
We boast a remarkably asset-light business model dramatically limiting our capital needs.
Our widely recognized brands with select-service focus offer a breadth of options for franchisees and a wide range of price points and experiences for our guests.
We are a global leader in the economy, midscale and upper midscale chain scales where our brands represent approximately 19% of branded rooms in the United States.
The following charts illustrate our system size (by rooms) as of December 31, 2025: ______________________ (a) Royalty contribution by geography for 2025 was as follows: U.S.
(b) EMEA is representative of Europe, the Middle East, Eurasia and Africa.
(c) LATAM is representative of Latin America and the Caribbean.
Beginning in the second quarter of 2025, we revised our reporting methodology to exclude the impact of all rooms under the Super 8 China master license agreement from our reported system size, RevPAR and royalty rate, and corresponding growth metrics.
Our financial results will continue to reflect fees due from the Super 8 master licensee in China, which contributed approximately $2 million to our full-year 2025 consolidated adjusted EBITDA.
REMOVED
As of January 31, 2025, the registrant had outstanding 77,745,945 shares of common stock.
( Wyndham Hotels , the Company , we , our or us ) is the world s largest hotel franchising company by number of franchised properties, with approximately 9,300 affiliated hotels with approximately 903,000 rooms located in over 95 countries and welcoming approximately 135 million guests annually worldwide.
We boast a remarkably asset-light business model dramatically limiting our capital needs and our exposure to the rising wage environment.
We are a global leader in the economy and midscale chain scales where our brands represent approximately 30% of branded rooms in the United States.
Additionally, we have a strong presence in the upper midscale chain scale.
The following charts illustrate our system size (by rooms) as of December 31, 2024: ______________________ * Royalty contribution by geography for 2024 was as follows: U.S.
** LATAM is representative of Latin America and the Caribbean.
*** EMEA is representative of Europe, the Middle East, Eurasia and Africa.
and 58% was located internationally; 78% of our pipeline was for new construction properties, of which 35% have broken ground and 22% represented conversion opportunities.
Our franchise sales team consists of over 170 professionals throughout the world.
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