Wynn Resorts, Limited - 10-Q Summary (Q2 2026)
Business Context and Reporting Period
This summary covers the quarterly period ended June 30, 2026. Wynn Resorts, Limited operates integrated resorts in Macau (Wynn Palace, Wynn Macau), Las Vegas (Wynn Las Vegas, Encore), and Boston (Encore Boston Harbor). The company also holds a 40% equity interest in the Al Marjan Joint Venture, developing a resort in Ras Al Khaimah, UAE.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Total Operating Revenues | $1,856.9 million | $1,737.8 million | $3,713.7 million | $3,438.2 million |
| Net Income (Attributable to Wynn) | $140.1 million | $66.2 million | $260.5 million | $139.0 million |
| Diluted EPS | $1.32 | $0.64 | $2.36 | $1.33 |
| Operating Cash Flow (YTD) | $645.4 million | $538.8 million | $645.4 million | $538.8 million |
| Cash & Equivalents (End of Period) | $1,573.4 million | $1,463.4 million | $1,573.4 million | $1,463.4 million |
| Total Debt (Current + Long-term) | $10.73 billion | $10.55 billion | $10.73 billion | $10.55 billion |
| Adjusted Property EBITDAR | $568.3 million | $552.4 million | $1,130.7 million | $1,085.3 million |
Material Changes vs. Prior Period
- Revenue Growth: Operating revenues increased 6.9% in Q2 and 8.0% YTD, driven primarily by a 25.9% increase in casino revenues at Wynn Palace due to higher mass market table games volume and win.
- Profitability Surge: Net income attributable to Wynn Resorts more than doubled in Q2 (up 111.5%) and increased 87.5% YTD. This was significantly aided by a $43.3 million gain in derivative fair value in Q2 2026, compared to a $1.1 million loss in Q2 2025.
- Segment Performance:
- Macau Operations: Wynn Palace Adjusted Property EBITDAR rose 28.2% QoQ. Wynn Macau remained relatively flat.
- Las Vegas Operations: Adjusted Property EBITDAR decreased 8.3% due to increased operating expenses, despite revenue growth.
- Encore Boston Harbor: Adjusted Property EBITDAR declined 12.2% due to lower operating revenues.
- Debt Structure: The company drew $200 million on its WRF Revolver in Q2 2026. The current portion of long-term debt increased significantly to $1.43 billion, largely due to the reclassification of WML Convertible Bonds.
Guidance, Outlook, and Risks
- Capital Expenditures: The company expects total project capital expenditures of $350–$400 million for Macau Operations in 2026 (including the Enclave at Wynn Palace) and $350–$375 million for Las Vegas Operations. Maintenance capex is estimated at $70–$80 million for Macau and $90–$115 million for Las Vegas/Boston combined.
- Al Marjan Island: The company has contributed $1.06 billion to date. Remaining equity contributions are estimated between $525 million and $650 million. The resort is expected to open in September 2027.
- Dividends: A cash dividend of $0.25 per share was declared on August 4, 2026, payable August 28, 2026.
- Share Repurchases: The company repurchased 1.27 million shares under its program in the first half of 2026 for $128.8 million. Approximately $326.1 million of repurchase authority remains.
- Risks: Key risks include geopolitical events affecting Macau tourism, regulatory compliance, credit losses on gaming receivables (allowance increased to 18.9% of gross casino receivables), and the ability to service significant debt levels.
Investor Verification Checklist
- Derivative Gains: Verify the sustainability of the $43.3 million Q2 gain from foreign currency swaps and convertible bond derivatives, which heavily influenced net income.
- Macau Mass Market vs. VIP: Confirm the trend of mass market recovery at Wynn Palace versus the continued decline in VIP turnover (down 32% QoQ at Wynn Palace).
- Debt Maturities: Review the schedule for the WML Convertible Bonds (due 2029, but potentially redeemable in 2027) and the impact of the $1.43 billion current debt portion.
- Al Marjan Funding: Assess the company's liquidity position against the remaining $525–$650 million capital commitment for the UAE project.
- Credit Losses: Monitor the provision for credit losses, which doubled YTD to $11.0 million, reflecting a higher allowance for casino receivables.