Wynn Resorts, Limited - Q1 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended March 31, 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, expected to open in 2027.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Operating Revenues | $1,856.8 million | $1,700.4 million |
| Net Income (Wynn Resorts) | $120.5 million | $72.7 million |
| Diluted EPS | $1.04 | $0.69 |
| Operating Cash Flow | $153.5 million | $133.8 million |
| Adjusted Property EBITDAR | $562.4 million | $532.9 million |
| Total Debt (Gross) | $10.63 billion | $10.63 billion |
| Cash & Equivalents | $1.19 billion | $1.46 billion |
Material Changes vs. Prior Period
- Revenue Growth: Total operating revenues increased 9.2% year-over-year, driven by a 23.0% increase at Wynn Palace and a 5.9% increase at Las Vegas Operations.
- Casino Performance: Casino revenues rose 13.1% to $1.18 billion. Wynn Palace saw significant gains in both VIP (28.4% win increase) and mass market (24.0% win increase) table games.
- Profitability: Net income attributable to Wynn Resorts increased 65.6% to $120.5 million. This was aided by a $46.8 million gain in derivative fair value (vs. a $29.5 million loss in Q1 2025) and higher operating income.
- Segment EBITDAR: Wynn Palace Adjusted Property EBITDAR grew 25.9% to $203.8 million. Conversely, Wynn Macau EBITDAR declined 16.2% to $75.6 million due to higher gaming taxes and lower VIP turnover.
- Capital Allocation: The company repurchased $70.0 million of common stock (down from $212.0 million in Q1 2025) and paid $26.9 million in dividends.
Outlook, Risks, and Unusual Items
- Derivative Gains: A significant non-operating gain of $46.8 million resulted from changes in the fair value of the WML Convertible Bond conversion option and foreign currency swaps.
- Capital Expenditures: Investing cash outflows were $287.7 million, including $179.1 million in capital expenditures and $114.6 million in contributions to the Al Marjan Joint Venture.
- Future Projects: Construction on the Enclave at Wynn Palace is expected to begin in H2 2026. The Al Marjan Island project remains on track for a 2027 opening, with remaining equity commitments estimated between $350 million and $450 million.
- Risks: Key risks include geopolitical events affecting Macau tourism, regulatory compliance, and the ability to service $10.6 billion in debt. The company maintains $2.58 billion in available revolver capacity.
Investor Verification Checklist
- Derivative Volatility: Verify the sustainability of the $46.8 million derivative gain, as this significantly boosted net income and is subject to market fluctuations.
- Macau VIP Trends: Monitor the divergence between Wynn Palace (strong growth) and Wynn Macau (declining VIP turnover) to assess overall Macau market health.
- Debt Maturities: Review the schedule for the WML Convertible Bonds (due 2029) and the potential for conversion or redemption impacts.
- Al Marjan Funding: Track the $350-$450 million remaining equity commitment for the UAE project and its impact on future liquidity.
- Credit Losses: Note the increase in provision for credit losses to $4.1 million (from $1.4 million), reflecting a higher allowance for casino receivables (15.9% of gross).