A compound cycle engine having a rotary internal combustion engine, a first turbine, and a second turbine is discussed. The exhaust port of the internal combustion engine is in fluid communication with the flowpath of the first turbine upstream of its rotor. The rotors of the first turbine and of each rotary unit drive a common load. The inlet of the second turbine is in fluid communication with the flowpath of the first turbine downstream of its rotor. The first turbine is configured as a velocity turbine and the first turbine has a pressure ratio smaller than that of the second turbine. A method of compounding a rotary engine is also discussed.