Wynn Resorts doubled GAAP EPS to $1.32 on derivative and FX gains, but Adjusted Property EBITDAR rose just 2.9% as a surge in Wynn Palace’s mass-market win rate offset declines in Las Vegas and Boston.
Revenue
$1.9B
+6.9% YoY
Net income
$140M
+111.5% YoY
Diluted EPS
$1.32
+106.3% YoY
Operating margin
16.0%
How WYNN compares with Consumer Discretionary peers
Figure
WYNN
Peer median
Rank
Revenue growth (YoY)
+6.9%
+6.0%
18th of 43
Operating margin
16.0%
15.6%
20th of 43
EPS growth (YoY)
+106.3%
+5.7%
7th of 41
Rank 1 = fastest revenue growth, highest operating margin, fastest EPS growth. Peers are the other Consumer Discretionary companies with a 2026 report on this site, each at its latest period we've analyzed; fiscal calendars differ, so periods are not always the same months.
Wynn Resorts' second quarter of 2026 (ended June 30) looks strong on the surface: revenue up 6.9% to $1.86 billion, and GAAP net income attributable to Wynn more than doubled, from $66.2 million to $140.1 million ($1.32 per diluted share vs $0.64). Most of that doubling does not come from running the resorts better, though. About three-quarters of the $105.6 million rise in pre-minority net income came from two non-operating lines: a swing in derivative values and much smaller currency losses. The operating story is narrower. One property, Wynn Palace in Macau, won a much larger share of the money gamblers bet than a year ago, and that paid for declines at Las Vegas and Encore Boston Harbor. Adjusted Property EBITDAR, the company's main measure of resort-level profit, rose just 2.9% to $568.3 million.
At a glance
Wynn Palace mass-market win rate: 29.7% vs 22.3%. Mass-market betting volume (table "drop") rose only 3.0%, but table win jumped 36.9% to $563.3 million. Most of Palace's $113.8 million revenue gain came from winning a bigger share of bets, not from more customers betting.
Las Vegas Adjusted Property EBITDAR fell 8.3% to $215.2 million on revenue up just 0.7%. Costs rose faster than sales, and that happened in a quarter when table win was above last year's (23.9% vs 21.8%).
$43.3 million derivative gain vs a $1.1 million loss a year ago. Together with foreign-currency losses shrinking from $36.2 million to $2.7 million, these accounting items explain most of the doubling in GAAP EPS. On the company's adjusted basis, EPS rose 13.8% ($1.24 vs $1.09).
The numbers
Metric
Q2 2026
Q2 2025
YoY Change
Operating revenues
$1,856.9M
$1,737.8M
+6.9%
Operating income
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Adjusted Property EBITDAR is earnings before interest, taxes, depreciation and amortization, rent, and corporate/one-off items. It strips out the costs that don't belong to any single resort, so it's the closest thing to a "how profitable is each casino" figure. It is a company-defined non-GAAP measure. Operating margin is operating income divided by revenue: the share of each sales dollar left after running the business, before interest and tax.
Macau: one property, one number
In a casino, hold (or "win percentage") is the share of the money wagered that the house keeps. Over millions of bets it settles into a fairly predictable range, but in any single quarter it can swing on luck, especially where a few high-stakes players account for a large share of the betting. Wynn publishes an "expected range" for some of its games so readers can tell luck apart from demand.
At Wynn Palace, the gap between betting volume and winnings is large:
Wynn Palace
Q2 2026
Q2 2025
Change
Mass-market table drop
$1,900.0M
$1,844.1M
+3.0%
Mass-market table win
$563.3M
$411.6M
+36.9%
Mass-market win %
29.7%
22.3%
+7.4 pts
VIP turnover
$2,767.5M
$4,071.1M
−32.0%
VIP win % of turnover (expected 3.1%–3.4%)
2.97%
2.86%
+0.11 pts
Casino revenue
$564.4M
$448.3M
+25.9%
For a rough sense of scale: at last year's 22.3% win rate, this quarter's $1.90 billion of mass drop would have produced about $424 million of table win, not $563 million. That is roughly $140 million less gross win, before Macau's gaming taxes take their cut. Two caveats. Wynn does not publish an expected range for Macau mass-market hold. And "drop" in Macau only counts cash placed at tables plus chips bought at the casino cage, so the ratio also moves with how players buy chips, not purely with luck. The elevated rate isn't a single-quarter fluke, either: Palace's mass win rate was 28.1% for the first half, which implies roughly 26.6% in Q1. Still, the filing's own explanation for the revenue gain is "higher mass market table games volume and win," and the numbers show win doing most of the work. Some of the volume is real: Palace ran 287 mass tables on average vs 249 and 721 slots vs 627, and slot handle (total slot wagers) grew 26.7%.
Much of that extra win went straight to the government. Palace's casino expense rose $68.1 million, including $53.7 million more gaming tax (Macau taxes gross gaming revenue, so tax rises with win). That is why Palace's $113.8 million revenue gain became a $44.3 million EBITDAR gain.
Wynn Macau, the older peninsula property, shows what Macau looks like without a hold boost. Mass drop grew 8.3%, but the mass win rate slipped (17.1% vs 17.4%). VIP turnover fell 56.4%, with the average number of VIP tables cut from 21 to 10, and VIP hold came in at 2.58%, below its 3.1%–3.4% expected range. Revenue edged up 2.1% and EBITDAR was flat at $95.5 million. Hotel rates slipped at both Macau properties (Palace ADR, the average nightly room rate, fell 5.6% to $219; Wynn Macau's fell 3.2% to $209) even with occupancy near 99%.
Las Vegas: record May, weaker quarter
CEO Craig Billings pointed to "a monthly record for Adjusted Property EBITDAR in Las Vegas in May." For the quarter as a whole, though, Las Vegas EBITDAR fell $19.6 million (−8.3%), and its EBITDAR margin fell from 36.8% to 33.5%. The filing says the drop was "due to increased operating expenses, partially offset by increased operating revenues."
The detail:
Tables helped. Table drop rose 4.8% and win rose 14.8%, with hold at 23.9%, inside the 22%–26% expected range and above last year's 21.8%. Casino revenue rose 6.5%.
Slots and rooms softened. Slot win fell 5.3%. Hotel occupancy dropped to 87.1% from 89.2%, and a 4.9% higher ADR ($575) left revenue per available room (REVPAR) up only 2.5%.
Entertainment shrank. Entertainment, retail and other revenue fell 6.9%, which the filing attributes to "a reduction in entertainment venue offerings."
Costs grew. Food and beverage expense rose $6.8 million "due to costs associated with new food and beverage offerings," while F&B revenue grew just 0.4%.
Wynn is spending heavily on the property: $174.9 million of Las Vegas capex in the first half (vs $106.1 million a year earlier), with $350–$375 million of project capex planned for 2026. The quarter doesn't yet show a payoff from that spending.
Encore Boston Harbor: mostly a hold story
Boston's revenue fell 3.0% to $209.3 million and EBITDAR fell 12.2% to $56.1 million. Here hold explains most of the decline. Table drop actually rose 3.0%, but table hold was 18.1%, at the bottom of the 18%–22% expected range and down from 21.3%. At last year's rate, this quarter's $348.4 million drop would have produced roughly $74 million of table win instead of $62.9 million. That ~$11 million gap is larger than the $6.4 million revenue decline. Slot win (+0.9%) and room revenue (+9.7%, ADR up 9.9% to $445) were fine.
What the headline numbers hide
The EPS doubling is mostly non-operating. Pre-minority net income rose $105.6 million. Operating income contributed $33.0 million of that. The rest came mostly from a $44.4 million swing in derivative fair values (a $35.9 million gain on foreign-currency swaps plus $7.0 million on the conversion feature of Wynn Macau's convertible bonds, vs a $1.1 million net loss last year) and a $33.4 million reduction in foreign-currency remeasurement losses (tied to the Macau pataca's movement against U.S.-dollar debt). None of these is a repeatable operating result. The company's own adjusted figures remove them and show +12.5% adjusted net income ($127.5M vs $113.3M) and +13.8% adjusted EPS.
More of the profit belongs to minority holders. Net income attributable to noncontrolling interests jumped from $10.7 million to $42.5 million, because Wynn owns only about 72% of Wynn Macau, Limited (WML), and WML's earnings rose sharply. Wynn's shareholders get about 72% of the Macau upside, not all of it.
Buybacks and tax played a small role. Diluted shares fell 0.8% (102.98M vs 103.78M) after $75.0 million of Q2 repurchases at an average $101.20. That accounts for less than a point of EPS growth. The effective tax rate was lower (about 8% vs 12%), mainly because more of the profit came from Macau casino operations, which are exempt from Macau's 12% Complementary Tax.
Hold cuts both ways. Palace mass hold was well above last year and Boston table hold was at the bottom of its range. VIP hold was below range at both Macau properties. Net, the Palace boost dominates, so this quarter's consolidated profit is likely flattered relative to a normal-hold quarter. The filing doesn't give a hold-adjusted EBITDAR figure, so the exact size can't be stated.
Cash conversion is solid. First-half operating cash flow was $645.4 million vs $333.1 million of net income (depreciation of $325.9 million explains most of the gap), up from $538.8 million a year ago. After $332.1 million of capex, the first half produced about $313 million of free cash flow. Uses totaled more than that: $178.6 million into the Al Marjan joint venture, $165.5 million of buybacks and $95.0 million of dividends, so Wynn drew $200 million on its WRF revolver.
Credit quality is worth watching. Receivables fell to $336.6 million from $402.6 million at year-end. But the allowance for casino credit losses rose to 18.9% of gross casino receivables from 14.3%, and the quarter's credit-loss provision doubled to $6.9 million from $3.4 million. About 70% of casino markers (credit extended to gamblers) are owed by customers outside the U.S., mainly in Asia.
Leverage is high. Total debt was $10.72 billion against $1.57 billion of cash plus $527 million of short-term investments, and the company carries a stockholders' deficit. WML's convertible bonds can be put back to the company (holders can demand repayment) on March 7, 2027, and they now sit in current debt.
Takeaway: Stripped of accounting gains, Wynn's quarter was roughly flat. Adjusted Property EBITDAR grew $15.9 million (+2.9%), and nearly all of that growth came from Wynn Palace winning 29.7% of mass-market drop vs 22.3% a year ago on only 3% more betting volume. Las Vegas, the company's biggest single profit source, went backwards on rising costs. The doubled GAAP EPS is not a good guide to underlying earnings power.
Capital plans: what changed since Q1
Wynn gives no revenue or earnings guidance, but the 10-Q updates its spending plans. Compared with the Q1 10-Q filed in May:
Wynn Al Marjan Island (UAE) now has a firm opening month, September 2027 (previously just "2027"). Wynn contributed $48.1 million in Q2, bringing its life-to-date contribution to $1.06 billion for its 40% stake. However, its estimate of the remaining equity it must still put in rose to $525–$650 million from $350–$450 million in the Q1 filing, even after that $48.1 million contribution. The filing doesn't explain the increase. It is the most important change in the outlook section, because it means more cash committed to a project that won't generate revenue until late 2027 at the earliest.
Macau project capex for 2026 was trimmed to $350–$400 million (from $400–$450 million) and 2027 raised to $750–$800 million (from $700–$750 million). The Enclave at Wynn Palace, a 432-suite tower budgeted at $900–$950 million, still starts construction in the second half of 2026.
Las Vegas project capex for 2026 moved to $350–$375 million (from $375–$400 million), with 2027 up to $175–$200 million (from $150–$175 million). This looks like timing rather than a cut.
Outlook
The quarterly dividend stays at $0.25, and $326.1 million of buyback authority remains. The key question for the second half is whether Wynn Palace's elevated mass win rate holds. If it drifts back toward the low-to-mid 20s, Macau EBITDAR growth would likely shrink sharply, because volume grew only 3%. Las Vegas has to show that its new restaurants and heavier capex can lift margins rather than just costs. Boston should recover some ground if table hold returns to the middle of its range, since its betting volume is growing. On the balance sheet, rising Al Marjan equity needs, the Enclave build, revolver borrowing and the 2027 convertible put all compete for cash with the buyback. With free cash flow already short of total uses in the first half, buybacks could slow if Macau hold normalizes.