Wyndham Hotels & Resorts, Inc. filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $1.45 billion, which rose 0.7% on the year before. That growth rate was up 2.9 percentage points on the rate a quarter earlier.

What stands out

Reported profit and cash are moving at different speeds. Net income fell 40.2% over the year while free cash flow rose 12.2%.

Growth and profit

The trailing operating margin was 29.3%, down 10.3 percentage points from a year earlier. The trailing net margin was 14.0%. Net income over the twelve months was $202.0 million, which fell 40.2% on the year before.

Cash flow

Operating cash flow over the twelve months was $378.0 million, up 8.3% on the year before. Capital spending was $48.0 million, or 3.3% of revenue. Free cash flow, operating cash flow less capital spending, was $330.0 million, up 12.2% on the year before. Free cash flow was 22.8% of revenue (the free-cash-flow margin), up 2.3 percentage points from a year earlier. The average diluted share count fell 3.4% over the year.

In context

Today’s free-cash-flow margin of 22.8% is higher than 80% of the company’s own past quarterly readings, which have ranged from −0.2% to 27.9%. Today’s operating margin of 29.3% is higher than 54% of the company’s own past quarterly readings, which have ranged from −3.5% to 39.6%. Today’s twelve-month revenue growth rate of 0.7% is higher than 52% of the company’s own past quarterly readings, which have ranged from −40.2% to 57.4%.

Guidance

The company gave its full-year 2026 guidance for Year-over-year rooms growth: 4%. The company kept its full-year 2026 guidance for Net revenues: $1.48 billion to $1.5 billion. The company raised its full-year 2026 guidance for Adjusted EBITDA: $740.0 million to $745.0 million. The company raised its full-year 2026 guidance for Adjusted net income: $363.0 million to $369.0 million.

What it means for value

In our model, growth 5 percentage points lower would lower the value by 39.4%, and 5 percentage points higher would raise it by 51.8%. A free-cash-flow margin 1 percentage point lower would lower it by 5.1%.

What to watch

The next filing will show whether the divergence between falling net income and rising free cash flow continues. It will also reveal if the recent improvement in revenue growth rate sustains. Finally, it will indicate if the elevated free-cash-flow margin remains above the majority of historical readings.