RRR

A month has gone by since the last earnings report for Red Rock Resorts (RRR). Shares have lost about 6.8% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Red Rock Resorts due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Red Rock Resorts, Inc. before we dive into how investors and analysts have reacted as of late. Red Rock Resorts reported second-quarter 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. Both top and bottom lines declined year over year, reflecting softer results across casino, food and beverage, room and Native American operations.In the quarter under review, earnings per share came in at 67 cents, topping the Zacks Consensus Estimate of 33 cents by 103%. In the prior-year quarter, the company recorded earnings of 95 cents per share. Quarterly revenues of $510.3 million surpassed the Zacks Consensus Estimate of $497 million by 2.8%. However, the top line declined 3% year over year. Casino revenues remained the largest contributor in the quarter, declining to $338.3 million from $344.8 million a year ago. Food and beverage revenues also decreased to $93 million from $94.4 million in the prior-year quarter.Room revenues were another soft spot within the mix, falling to $46.7 million from $51.2 million. Other revenues increased to $28.5 million from $25.9 million, while Native American management and development fees declined sharply to $3.8 million from $10 million a year earlier. The company's Las Vegas operations continued to account for the bulk of its business, generating net revenues of $503.2 million in the second quarter. This marked a 2% decline from $513.3 million in the year-ago period.Adjusted EBITDA from Las Vegas operations fell 5% year over year to $227.5 million from $239.4 million. The segment's adjusted EBITDA margin consequently narrowed to 45.2% from 46.7%, indicating that profitability declined at a faster pace than revenues during the quarter. Expense trends added pressure to second-quarter profitability. Selling, general and administrative expenses increased to $117.9 million from $112 million, while depreciation and amortization climbed to $59 million from $48 million. Food and beverage costs also rose to $78.7 million from $75.9 million.Total operating costs and expenses increased 4.5% year over year to $374.3 million. As a result, operating income declined 19.1% to $136 million, with the operating margin contracting to 26.7% from 31.9% in the prior-year quarter. Consolidated adjusted EBITDA decreased 9.3% to $208 million, while the adjusted EBITDA margin narrowed to 40.8% from 43.6%. Net income was $76.6 million in the second quarter, down 29.3% from $108.3 million a year earlier. Net income attributable to Red Rock Resorts declined to $39.1 million from $56.4 million in the prior-year period.Interest expense, net, eased to $49.6 million from $50.6 million. The quarter also included a $3.1 million gain related to the change in fair value of derivative instruments. This compared with a $2.3 million loss in the year-ago quarter, which also included an $8.5 million gain on Native American development. Red Rock Resorts ended the second quarter with cash and cash equivalents of $136.5 million. The total principal amount of debt outstanding stood at $3.6 billion as of June 30, 2026, providing investors with a snapshot of the company's liquidity and leverage position at quarter-end.The board declared a cash dividend of 26 cents per Class A common share for the second quarter of 2026, payable Sept. 30 to its stockholders of record as of Sept. 15, 2026. Before the dividend payment, Station Holdco LLC will distribute approximately $29 million, or 26 cents per unit, to its unit holders. About $17.1 million is expected to be distributed to Red Rock Resorts and approximately $11.9 million to the other Station Holdco unit holders. Since the earnings release, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -17.65% due to these changes. Currently, Red Rock Resorts has a average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Red Rock Resorts has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Red Rock Resorts, Inc. (RRR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Red Rock Resorts (RRR) is back in focus after its second quarter 2026 earnings release and a fresh dividend declaration, giving investors new data on profitability, cash returns and performance in its Las Vegas focused portfolio. See our latest analysis for Red Rock Resorts. The recent earnings and dividend announcement come after a mixed price pattern for Red Rock Resorts, with a 23.76% 90 day share price return contrasting with a 1.10% year to date share price return and an 11.36% 1 year total shareholder return. If this kind of earnings and dividend story has your attention, it can be useful to broaden your watchlist and scan for 20 top founder-led companies After Red Rock Resorts stock moved higher over 90 days while earnings and revenue softened, the gap between today’s US$63.66 share price and the range of value estimates stands out. Where does fair value really sit now? The most followed narrative on Red Rock Resorts puts fair value at $71.82, above the recent $63.66 share price, and ties that gap to how its Las Vegas focused projects and cash flows might play out over time. Read the complete narrative. Want to see how this pipeline turns into a valuation story? The narrative leans on measured revenue growth, improving margins and a future earnings multiple that assumes steady execution rather than a hype driven rerating. Result: Fair Value of $71.82 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Red Rock Resorts still faces meaningful risks if Las Vegas locals spending weakens or if large projects exceed their cost and timeline. Find out about the key risks to this Red Rock Resorts narrative. With Red Rock Resorts showing both points of concern and reasons for optimism, it makes sense to move quickly and test the thesis against the full picture. To explore both sides of this story in greater detail, review the 3 key rewards and 2 important warning signs If you stop with Red Rock Resorts, you miss other opportunities. Use the Simply Wall St Screener to compare, contrast and sharpen your next move. Spot potential high yield income ideas and pressure test your dividend approach with 10 dividend fortresses Hunt for quality stocks that trade below their estimated worth by scanning 50 high quality undervalued stocks Zero in on companies that prioritise resilience and capital protection through 83 resilient stocks with low risk scores This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RRR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Red Rock Resorts delivered second quarter results that were well received by investors, despite a year-over-year revenue decline. Management attributed the performance to steady demand in the Las Vegas locals market, resilience across gaming and non-gaming businesses, and the continued ramp of the Durango property. CFO Stephen Cootey highlighted that "our Las Vegas operations delivered the second highest second quarter net revenue and adjusted EBITDA in our history," pointing to solid execution even with construction-related disruptions. Is now the time to buy RRR? Find out in our full research report (it’s free). Revenue: $510.3 million vs analyst estimates of $499.1 million (3% year-on-year decline, 2.2% beat) Adjusted EPS: $0.66 vs analyst expectations of $0.74 (11% miss) Adjusted EBITDA: $208 million vs analyst estimates of $196.5 million (40.8% margin, 5.9% beat) Operating Margin: 26.8%, down from 32% in the same quarter last year Market Capitalization: $3.55 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ben Chaikin (Mizuho): Asked about intra-quarter demand trends and potential June softness. President Scott Kreeger explained, “We are very consistent across all 3 months of the quarter,” highlighting a pickup from World Cup events in June. Trey Bowers (Wells Fargo): Inquired about quantifying construction disruption and associated top-line impacts. CFO Stephen Cootey detailed that Green Valley Ranch’s disruption was roughly $7 million and emphasized these are temporary and offset by long-term benefits. Joe Stauff (Susquehanna): Sought clarity on regional and destination demand as well as the effect of local roadwork. Kreeger noted positive trends in both drive-in and fly-in markets, with expectations for improvement as renovations conclude. Steven Pizzella (Deutsche Bank): Requested insight into the ramp speed of ROI projects and the impact of Strip promotions on locals demand. Cootey reiterated a typical three-year ramp, while Fertitta stated that local demand remains insulated from Strip promotions. Dan Politzer (JPMorgan): Asked about operating expense pressures and expected margin lift post-renovation. Cootey cited utility costs and labor as near-term drags but called the margin compression “an anomaly” tied to temporary disruptions, with expectations for improvement as renovations finish. In upcoming quarters, our team will closely watch (1) the impact of completed renovations on guest volumes and property-level profitability, (2) the pace at which new tavern locations drive incremental customer engagement, and (3) indications that ongoing construction disruption is abating as major projects are finalized. The progress of new development initiatives and management’s ability to manage cost pressures will also be key markers of execution. Red Rock Resorts currently trades at $61.29, down from $64.27 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 4:30 p.m. ET Executive Vice President, Chief Financial Officer and Treasurer - Stephen Cootey Operator: Good afternoon, and welcome to Red Rock Resorts Second Quarter 26 Conference Call. All participants will be in a listen-only mode. Please note this conference is being recorded. I would now like to turn the conference over to Stephen Cootey, Executive Vice President, Chief Financial Officer and Treasurer of Red Rock Resorts. Please go ahead. Stephen Cootey: Thank you, operator, and good afternoon, everyone. Thank you for joining us today for Red Rock Resorts' second quarter 26 earnings conference call. Joining me on the call today are Frank and Lorenzo Fertitta, Scott Kreeger, and our executive team. I would like to remind everyone that our call today will include forward-looking statements under the safe harbor provisions of the United States Federal Securities Laws. Developments and results may differ from those projected. During the call, we will also discuss non GAAP financial measures. For definitions and complete reconciliation for these figures to GAAP, please refer to the financial tables in our earnings press release, Form 8-Ks and investor deck, which were filed this afternoon prior to the call. Also, please note that this call is being recorded. Before we begin discussing our second quarter results, I would like to take a moment to recognize an important milestone for our company. On July 1, Station Casinos officially kicked off celebrating our 50th anniversary at Palace Station. The property where our story began. Throughout the summer, we are celebrating the history of our company, our incredible team members, our loyal customers, and the Las Vegas community. As part of this celebration, we will incur approximately $8 million 1-time anniversary and brand marketing expense, which will be reflected in our third quarter corporate expense. We view this as an investment in honoring our history, recognizing our team members, our loyal customers, and the local community that have made our success possible. The celebration also marks the launch of our new brand campaign from Vegas for Vegas, always Vegas. Reflecting our enduring commitment to the city we have proudly called home for the past 50 years and our confidence in the next chapter of our company's growth. Our second quarter results demonstrate the company we have built over the past 5 decades is as strong as it has ever been. Even against the strongest operating quarter in the company's history a year ago, our Las Vegas operations delivered the second highest second quarter net revenue and adjusted EBITDA in our history. While maintaining near record adjusted EBITDA margin. These results demonstrate the strength consistency and resilience of our operating model and our ability to deliver long term shareholder value through strong operational performance and disciplined capital allocation. Our Durango property continued to perform exceptionally well despite ongoing construction impacts, and has firmly established itself as a meaningful growth driver within the Las Vegas locals market. The property's continued success reinforces our long held understanding that investing in best in class integrated resorts can expand the market rather than simply redistribute existing demand. Equally important, our core properties continue to generate growth further demonstrating the strength of our broader portfolio. Building on Durango's continued momentum construction of the Durango North expansion is progressing well, and remains on schedule to open in the second half of 2027. The continued strength of our existing property together with the significant residential growth occurring in Southwest Las Vegas, reinforces our confidence in the expansion and its long-term growth prospects. Just as importantly, Durango continues to validate our approach to capital allocation, and we believe this expansion will further strengthen the property's competitive position expand the Las Vegas locals market, gain market share and generate superior long term shareholder value. Now let's take a look at our second quarter results. With respect to our Las Vegas operations, our second quarter net revenue was $503.2 million, down 2% from the prior year's second quarter. Our adjusted EBITDA was $227.5 million, down 5% from the prior year second quarter. Our adjusted EBITDA margin was 45.2% a decrease of 143 basis points from the prior year. On a consolidated basis, our second quarter net revenue which includes $3.8 million from our North Fork project, was $510.3 million, down 3% from the prior year's second quarter. Our adjusted EBITDA, which includes $2.8 million from our North Fork project, was $208 million, down 9.3% from the prior year second quarter. Adjusted EBITDA margin was 40.8% for the quarter, a decrease of 281 basis points from the prior year. During the quarter, we converted 48% of our adjusted EBITDA to operating free cash flow, generating $100 million, or $0.95 per share. Year to date, we have generated $206.7 million operating free cash flow or $1.97 per share. This strong free cash generation continues to validate our operating model, and disciplined approach to capital allocation enabling us to invest in our properties while continuing to return meaningful capital to our shareholders. Through dividends and share repurchases. As we begin the third quarter, we remain focused on serving our core local guests. We will continue to grow our regional and national customer segments across the portfolio. Compared to the second quarter of last year, we saw meaningful growth in overall carded spend per visit together with higher net theoretical win across our local, regional and national customers. These trends drove the second highest second quarter gaining revenue and profitability in our company's history surpassed only by last year's historic quarter. Turning to our nongaming operations. Our hotel and food and beverage divisions delivered a strong revenue quarter. Reflecting healthy underlying demand across both businesses and the diversification of our operating model. During the quarter, Green Valley Ranch hotel renovation reduced the available room night inventory by more than 21 thousand room nights. Impacting both revenue and profitability across both divisions. Even with this temporary disruption, hotel performance remained solid supported by higher occupancy across the portfolio. Our food and beverage division benefited from higher guest volumes and higher check averages. We look forward to once again offering our guests the full Green Valley branch hotel product beginning in late September. As we look ahead to the balance of the year, we are seeing stable trends in our core slot and table business across the Las Vegas locals market, and within our carded database. While we expect ongoing disruption from construction activity at our Durango, Sunset Station and Green Valley Ranch properties, we are actively managing these projects to minimize operational disruption. We believe these temporary disruptions are more than offset by the long-term benefits of these investments. which will enhance the guest experience strengthen our competitive position and drive long term shareholder value. Now let's cover a few balance sheet and capital items. The company's cash and cash equivalents at the end of the second quarter was $136.5 million, and the total principal amount of debt outstanding was $3.6 billion, resulting in net debt of $3.5 billion. As of the end of the quarter, the company's net debt to EBITDA ratio was 4.21 times. During the quarter, we made total distributions of approximately $59 million to the LLC unitholders of Station HoldCo. Including a distribution of approximately $34.5 million to Red Rock Resorts. Company used its portion of the distribution to fund its previously declared quarterly dividend of $0.26 per Class A common share. When combining the dividend and share repurchases made during the year, we have returned approximately $198 million to our shareholders. Capital spend in the quarter was $139.8 million, which includes approximately $94.4 million in investment capital, as well as $45.4 million in maintenance capital. This brings our year to date capital spend to $257 million, which includes approximately $181.6 million in investment capital, as well as $75.4 million in maintenance capital. For the full year 2026, we still expect to spend between $375 million and $425 million, which includes $275 to $300 million in investment capital. As well as $100 million to $125 million in maintenance capital. In addition to the continued investment at Durango, we are making significant investments at our Sunset Station and Green Valley Ranch properties. At Sunset Station, we are continuing to make excellent progress on our podium refresh. The recently reopened Gaudi Bar has been met with positive customer feedback, and we are very encouraged by its early financial performance, reinforcing our confidence in both the renovation strategy and the underlying demand at the property. In the coming weeks, we look forward to opening Stoney's Rockin' Country, a new country western bar and nightclub, which will further expand the property's entertainment offerings. The renovation remains on budget with the remaining amenities expected to come online throughout 2026. Building on this momentum, we continue to execute the next phase of the Sunset Station redevelopment. This phase includes enhancements to the movie theaters, relocation of a temporary bingo operation into a permanent location, and the redevelopment of the former buffet space into a premium steak club, a steakhouse, and a high limit slot and table game area. These investments build upon a proven strategy that has consistently generated attractive returns across our portfolio. Further strengthening our confidence in the long term opportunity at Sunset Station. Construction remains on schedule with the balance of the project expected to be completed throughout 2026 and into 2027. The total project cost remains $87 million. At Green Valley Ranch, we continue to make excellent progress on the comprehensive renovation of our hotel product. The West Tower and Convention space have reopened to positive customer feedback and encouraging financial performance, validating our investment in the property. We expect to have the full East Tower Hotel product back online in September, completing the renovation of all of our guest rooms and suites. Upon completion, Green Valley Ranch will feature 1 of the finest hotel products in the Las Vegas Valley, complementing the recently renovated high limit slot and table game areas. And further strengthening its competitive position as 1 of Southern Nevada's premier integrated resorts. Building on the momentum of these investments, we continue to execute the next phase of Green Valley Ranch's long term redevelopment strategy. This phase includes a comprehensive casino floor refresh, enhancements to its food and beverage offerings, and upgrading entertainment amenities. Construction is underway and is expected to extend into 2027. With a total project cost is estimated at approximately $56 million. Turning to North Fork. Construction continues to progress well as we move closer to opening. Last month, we successfully completed the turnover of the first phase of the casino podium, and we have begun installing slot machines and other gaming equipment. We expect turnover of the next phase of the podium later this month, which will keep us on pace for an early fourth quarter 26 opening. The project remains on budget, and is fully financed with total all in costs expected to remain approximately $750 million. As of quarter end, the Red Rock's outstanding note receivable from the tribe was approximately $83.4 million, with construction progressing well and the project moving into its operational readiness phase, we remain excited about this best-in-class development and look forward to welcoming our first guests later this year. The company's Board of Directors has also declared its regular cash dividend of $0.26 per Class A common share payable on September 30 to Class A shareholders of record as of September 15. As we look ahead, we remain confident in the strength and resilience of our business model. And long term opportunities across our portfolio. Our recent capital investments continue to perform well, reinforcing our disciplined approach to reinvesting our existing properties and advancing our development pipeline. Continued success at Durango validates our long term growth strategy and the embedded value of our more than 450 acres of owned development land located in some of the most attractive submarkets across the Las Vegas Valley. Combined with our portfolio of best in class assets, this unmatched development pipeline positions us to capitalize on a very favorable demographic trends and high barriers to entry that continue to define the Las Vegas locals market. And before we wrap up, we would like to sincerely thank all of our team members for their continued hard work, dedication, and commitment to delivering exceptional guest experiences every day. They are the foundation of our company's success, and the driving force behind the results we continue to achieve. Their efforts continue to be recognized both locally and nationally. During the year, Station Casinos was recognized by Forbes and Statista as 1 of America's best large employers of 2026. By Newsweek as 1 of America's greatest workplaces by state for the second consecutive year as a top workplace in Nevada for the sixth consecutive year and as a USA TODAY top workplace for the fourth consecutive year. Finally, as we celebrate our 50th anniversary, we want to extend our sincere gratitude to our loyal guests and the communities we have proudly served over the past 5 decades. Your trust and support have made this milestone possible. As we look to the future, we remain committed to investing in our team members, our properties, and our communities as we continue building on the foundation established over the past 50 years. With that, operator, we would be happy to open the line for questions. Operator: We will now begin the question and answer session. To ask a question, you may press star then 1 on your touch tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. At this time, we will pause momentarily to assemble our roster. First question today comes from Benjamin Chaikin with Mizuho. Please go ahead. Ben Chaikin: Hey, how's it going? Thanks for taking my questions. Maybe if you could just take us through the cadence of the quarter to the extent you can. I think we had heard that maybe June was potentially softer in Las Vegas. Not sure if that is calendar related or maybe anything underlying. Just maybe what you are seeing to the extent you can break it down. Thank you. Scott Kreeger: Hey, Benjamin. This is Scott. Thanks for the question. Let's start with slot revenue, which for us is our primary source and most important aspect of our business. Actually, we are very consistent across all 3 months of the quarter. And then if you look at it, April 2 was definitely better than May and June, but only by a certain amount of whole percentage difference in race and sportsbook and table games. But otherwise pretty consistent across the quarter. We actually got quite a pickup from the World Cup in June. Our properties really leaned into activation and promotion for the event, drove a lot of bodies, overall, I think it helped June from a traffic standpoint. Analyst: So it was positive. Ben Chaikin: Understood. that is very helpful. And then maybe just from a modeling standpoint question. Love to touch on seasonality. Just as we sit here today, what is your best take on Q3, at least historically? Thanks. Stephen Cootey: Yeah. Thanks, Benjamin. Looking forward typically from Q2 to Q3 is seasonal, with Q3 being 1 of our softer quarters, usually you see it down 10% from Q2 to Q3. Appreciate it. Ben Chaikin: Thanks. Operator: The next question comes from Trey Bowers with Wells Fargo. Please go ahead. Trey Bowers: Hey, guys. Thanks for the question. Just wondering if you guys in the past have given some helpful detail around kind of the numeric impact of the disruption. As we think about Q2 and then kind of making our way through the balance of the year as some of these projects kind of finish up and come online? Any sense of just the impact in Q2 relative to Q1 and then what it might look like for the next couple of quarters? Thanks. Stephen Cootey: Yeah. Sure. I think the team did a great job managing disruption both on-site at our Green Valley Ranch, Sunset Station, Durango properties as well as off-site as NDOT is engaged in a pretty substantial infrastructure projects across near several of our properties, including Durango, Green Valley, and Red Rock. You know, while estimating disruption is never really an exact science, we did experience temporary disruption at Green Valley. To the extent about $7 million, which was slightly lower than the $9 million we had noted in our last earnings call. And it was really driven by the primary loss of the 21 thousand room nights as well as the associated gaming, food, and beverage revenue of the property. Durango, the team did a great job managing disruption. We really did not see too much disruption in Q2, but still stick to our guidance as construction both on-site and off-site, is kind of progressing. So we are still guiding about $2.5 million in Q3, and then each quarter subsequent to the project completes in the back half of 27. I did want to remind everyone, by the way, that these income you know, these impacts are temporary in nature. And they are more than offset by the long-term benefits of the investments that we are making. Trey Bowers: And then if I could just get a follow-up, appreciate the call out of the $8 million impact from the 50th anniversary this quarter. Just offsetting that, any anything that we should expect to see kind of from a top line perspective or just any further detail on what that means from the model, that would be super helpful. Thank you. Scott Kreeger: Well, I think this is Scott. I think, certainly, there is a good degree of brand awareness and goodwill that comes into what we are doing here. You know, we are part of the community and being out the community with the message is certainly going to have a positive impact going forward. I can tell you, you know, looking at the quarter thus far, we are happy with the way things are going. And, you know, if we stay on this track, I would imagine there is a net positive effect from the top line. Trey Bowers: Great. Thanks all. Operator: The next question comes from Chad Beynon with Macquarie. Please go ahead. Aaron: Hey, good afternoon. This is Aaron on for Chad. Thanks for taking our question. Maybe to start with just a higher level question. We continue to hear about the C-shaped economy versus the K-shaped economy. Are you seeing any notable differences in visitation or spend between your lower worth and higher worth customers? Stephen Cootey: No. Actually, I mean, we I think as the I mentioned, the trends are pretty stable across our entire business, both slots and tables. And that stems to both I think both from the high-end to low-end customers. Aaron: Okay. Gotcha. Great to hear you guys did well on the World Cup. Just kind of sticking on the event theme. The third F1 Las Vegas race is coming up, and I know in the past, you have said that F1 is not really, you know, an event for your company. Just curious if that is still the case or maybe if the programming around it or you know, the understanding of visitation and customer behavior has changed where there could be some opportunities for you guys? Thanks. Lorenzo J. Fertitta: Yeah. This is Lorenzo. The F1 event in Las Vegas is primarily tourist driven as we see it. You do not get a lot of rallying behind it from a local's perspective. The World Cup worked for us because, you know, the local fans were really into it. Obviously, with the different countries participating depending what game was going on, I mean, our sports folks were just billowing with people all over. It was actually very, very positive. Like I said, from a traffic standpoint, But for us, specifically, F1 does not really move the needle, at all, and we do not really lean into anything to, you know, participate in a promotion. My understanding is it is obviously very good for the higher end properties on Las Vegas Strip, though. Aaron: So Okay. Thank you. Nice quarter. Operator: The next question comes from Joe Stauff with Susquehanna. Please go ahead. Joe Stauff: Thanks. I was wondering if you could give maybe an assessment of the level of demand you are seeing or you saw in the second quarter and what you are seeing thus far as far as you could see it for destination and regional demand, and then maybe an update with respect to the roadwork and, you know, all the things that the state is doing, in and around the Durango property. Is it worsening? Is it the same as you know, let's say, it was a month or 2 ago? Just trying to assess you know, that level of disruption there. Scott Kreeger: Yeah, Joe. it is Scott. I will take the first question, and let me get maybe Stephen to talk about the second. If I were to gauge demand, I would look at 2 areas, inbound gaming and then inbound hotel. We like the way the database and the customer segments performed in the quarter? We like what we are seeing in July, and into the future relative to the gaming database. And specifically, our regional, which is essentially drive market and out of town, which is fly market. So we see positive trends there. From a hotel perspective, x the GVR, the impact of having about 21 thousand rooms out in the quarter from GVR. The hotel same store hotel performed very well. For the quarter, Q2. We like the trends there. We like trends in occupancy, ADR. We outpaced the strip from an ADR perspective. And then as we look into the future into Q3 and then look at forward group sales bookings we see green shoots and positive performance. Keeping in mind that the GVR rooms are going to come online in mid-September, and that is really going to, you know, put wind in the sails for us from a destination perspective. Stephen Cootey: Sure. Maybe to tackle the second question, Joe. I mean, in terms of this, probably, 3 or 4 items that are that are going on right now around Durango. So from a Roy Horn perspective, that was the construction we talked about. Earlier this year. That has been since completed. That was the connection really, the infrastructure connectivity into the multifamily development that is going up right next to Durango. But you know, both the westbound on ramp, eastbound on ramp are kicking off, actually. In June 2026 and expected to, you know, expected to last pretty much the next year. As well as the triple left on Durango South. So 3 of the major infrastructure projects are just kicking off. Got it. And the same thing at Red Rock as well as at Green Valley, yes. Joe Stauff: And the incremental $8 million that you are spending, just a clarification, you know, if you are kicking off a marketing campaign is it fair to say that some level of spending might stick in that corporate line, say, in fourth quarter out you know, to maintain that marketing campaign to some degree? Lorenzo J. Fertitta: If you are referring to the million, I mean, this. We look. Me and Frank, the it started as a family business. The business has been around for 50 years. We thought that the anniversary was a great opportunity for us to kick off so called branding campaign, to reinforce our position in the market here in the locals market, a market that was really created by our dad. And we just felt like that it was the perfect point to kick off something like that. We have had a ton of good feedback, and there is been a lot of media coverage, and PR and earned media as well. Along with the media spend that we have in the marketplace around the brand campaign, which also right now is featuring a lot of our long term team members, some of which have been with us almost 50 years. So, look, we think that we are gonna get benefit from this for a lot of years to come. We have done this in the past. We have had, you know, a number of different brand campaigns from we love locals to you know, we have been doing it for a long time, and we just felt like it made sense to do it around the 50th anniversary. Look, They do cost money, and it is a charge that is gonna hit the quarter in the third quarter. But overall, we think it is the right thing to do for the long term benefit of the business. Joe Stauff: Makes sense. Thank you. Operator: The next question comes from Steven Pizzella with Deutsche Bank. Please go ahead. Steven Pizzella: Hey, good afternoon, everybody, and thank you for taking our questions. As some of the ROI projects come back online and start contributing, how should we think about how fast the ROI projects ramp as we build a bridge in our models into 2027? Stephen Cootey: I think we have always been pretty consistent in terms of targeting, the you know, these projects over a 3-year lifespan. So the first year generally is around 10%. The first project is the major project coming online is Really the green, you know, Green Valley, which should be online as of Q4. Steven Pizzella: Okay. Thanks. So just as a follow-up, have you seen any impact from the strip operators becoming more aggressive on value, including all inclusive offerings and promotional packages, has demand in the locals market remain largely insulated? Scott Kreeger: Hey, Steven. This is Scott. First of all, you know, we love what the strip did this summer by you know, kind of offering them all of if you will, for value packages. I think it only helps the city You know, we provide value every day. it is in the core of what we do. You know, our model is a high frequency model. Frank J. Fertitta: So, you know, we make sure that but value is relative. Value is just about price. Yeah. Based on convenience, value, and friendly service the fact that our employees know our customers there is a relationship there. We have kinda been asked this question literally you know, ever since we went public the first time in 1.99 thousand. it is the same thing. The locals want to be the convenient value oriented it is consistently delivering to them what they want. And so no, I do not believe that we have seen any impact on us as a company from that. But I do think it is good for the strip long term to offer value to their customers. You know? So net, it should long term be good. Steven Pizzella: Thank you. Appreciate it. Operator: The next question comes from David Katz with Jefferies. Please go ahead. David Katz: You know, first, I wanted to, you know, I am looking ahead, seeing a lot of these projects sort of get to their you know, final stages and in good form. You know, how soon might we be talking about kind of the next casino project and you know, where it would be in you know, we are just anxious to start modeling that stuff in. Lorenzo J. Fertitta: Sure. This is Lorenzo. I think consistent with what we have been talking about the last couple quarters, we are currently working on, multiple projects from a design standpoint, both new build greenfield projects We have got 2 that we are actively working on right now, and gonna have to figure out determine which 1 is going to go first as well as a master plan expansion that we have been working on to add rooms and a spa facility at Durango. Obviously, on the heels of after potentially after opening this expansion that we have going on now, has all the different entertainment components. We are currently working with multiple GCs, out in the market to, determine pricing as we have, for the most part, kind of decided on scope of the various projects. So right now, we are kind of actively trying to get our head around, where pricing could potentially come up. And whether or not, you know, we need to make any changes to design or, know, be anything, and we are just working through it. You know? We are we are hoping to have, more information as we kind of turn the corner and get into the early part of 2027. And, you know, believe me, we are as anxious as anybody to get going with another project. We are a development company. We have had our best success by building projects from the ground up. We have been able to have some of the highest returns in the gaming industry. You know, by doing that and, obviously, off the success we have had with Durango, we are anxious and ready to go, but these things just take time to gestate and we have got to kind of slot them in, at the right time. But we are actively working on it and have more news to come shortly. David Katz: Appreciate that. And as my follow-up, I just wanted to ask about the advent of major sports in the valley, right? I mean, the, you know, the a's are coming. There we heard some talk this quarter about, you know, an NBA facility, which has been talked about for a while? What strategy, if any, makes sense in leaning into those, you know, major sports in the valley, and do you get any, you know, tangible benefit from it? Lorenzo J. Fertitta: I think I mean, I think there is a number of different benefits we get. Obviously, you know, there is a lot of interest as these professional teams come to Las Vegas. They generate and draw a lot of fans, which helps the overall hotel room base for the city. Us specifically, we have had a lot of success, partnering up with the Golden Knights. Know, we do a lot of promotional, activity around them. there is a large fan base and a lot of affinity for the Knights here. Obviously, the Raiders have been great as well. And the visiting teams, what? Stay at our property? Yeah. We do have a lot of the visiting NFL teams that stay at our properties And I think you are gonna see more of the same with the A's. And potentially with an NBA franchise, coming to Las Vegas. And I think you start to get just that amount of heft and that amount of activity. And, you know, Las Vegas is really turning into an events city. Know? that is where really what is driving a lot of these weekends is you know, what is the big event, whether it is a major sporting event, a fight, entertainment, obviously. So there always seems to be something going on. We have been a critical mass that is net gonna be a positive for the city of Las Vegas. Which we are, you know, a micro cosm of the entire city and how it is doing. And it and it helps our high-end play too. I mean, we get a lot of we are starting to develop a lot more robust business on our high end table games play. And anytime there is a large boxing event or UFC event, we see a lot of benefit from that. People flying in want to stay with us. At Red Rock Durango and GVR. And, you know, from a local guest standpoint, I think our casino marketing department does a good job, you know, taking a lot of our higher-end local guests to Golden Knights games and to Raider games and really just use them, you know, as the other casino properties do, as a benefit and amenity to, you know, create brand loyalty and as a way to, excite our guests about staying with us or playing with us. So overall, it is just a big net benefit. David Katz: Appreciate that. Thank you. Operator: The next question comes from Brandt Montour with Barclays. Christy: Hey, guys. it is Christie on for Brandt. Thanks for taking our question. Just as it relates to the next growth phases at GVR and Sunset that are coming online in 2026 and into 2027. What percent of the enhancements would you say would be coming online by year end 2026? Stephen Cootey: In terms of in terms of the second piece, well, in terms of the majority, the first piece of Sunset will be coming online. Really, the only real remaining pieces of the Leticia's and RosaLitas. Right? Those are the only 2 real remaining items. The rest of the items, can be seen coming online. maybe bingo is gonna be late this year, but then the rest of the remaining items will be 2027 from a Green Valley perspective. We are really focused on getting the hotel across the finish line. So that is the asset that you are going to see placed in service in 2026 with the remainder coming online in 2027. Christy: Got it. Thank you. And then and just a clarification. On the seasonality comments. Either in relation to 3Q, but more specifically 4Q, I know in the past, you guys have said that April from March is up 10% to 11% sequentially. Is that a consolidated comment? Or is that specific to Las Vegas operations, Las Vegas operations, I think that is gonna be a much more important distinction as we open up North Fork to our guests in Q4. Stephen Cootey: Okay. Christy: Great. Thanks, guys, so much. Operator: The next question comes from Barry Jonas with Truist. Please go ahead. Jeremy: Hi. This is Jeremy on for Barry. Thanks for taking our questions. Can you talk about the promotional environment in the locals market right now? And any changes in competitive behavior? Scott Kreeger: Hey, Jeremy. it is Scott. Yeah. As we have talked about in previous quarters, it is very rational. And so we do not see any change in the market nor anything that would change us to or make us change our strategy. Jeremy: Got it. And then how has the tavern business trended? Have you seen any notable cross sell customers sourced there to your casino properties? Thanks. Scott Kreeger: So we are we just opened up our 6 of 8 taverns. We have 2 more to go, 1 in October, 1 at the end of the year. We got into the tavern business for a couple of key business reasons, 1 of which was to get entrance into underpenetrated areas around the valley. And so we do see incremental pickup in new customers that are new to brand. And we also do see crossover play with customers that go to our big boxes as well. So far, we like the performance of the taverns, and we are excited about the 2 additional taverns to come online by the end of the year. Jeremy: Thank you. Operator: The next question comes from Dan Politzer with JPMorgan. Please go ahead. Dan Politzer: I wanted to touch on OpEx a bit. I mean, you talk a little bit about what you are seeing in terms of labor, utilities, insurance? We have heard that some of those trends have been getting better. And then I guess more broadly, as you think about those investments ramping and taking into account the OpEx environment, how should we think about the margin lift into 2027? Stephen Cootey: Sure. I will start. From a labor perspective, you know, we are in line with, you know, salary and wages up around 3% year over year. Utilities continue, particularly, continue to be a drag, you know, on you know, on OpEx. And my sense is we will continue to be a drag for the remainder of the year. In terms of margin, when you take a look at our margin, our margin was down year over year, but that was primarily due to Green Valley Ranch disruption, which we will, you know, we will be getting our full suite of product back, you know, at the end of September. there is also the absence of the North Fork catch up payment that we recognized per prior year, and in addition, there is several onetime repair and maintenance items and contributions we made during the quarter. And so I think this was kind of an anomaly from a margin perspective. We are hopefully getting back. Dan Politzer: Got it. And then I am sorry if I missed it, but were there any share repurchases in the quarter? And if not, was there any reason for that? Stephen Cootey: No. No. I think we have been very consistent with a balanced approach. You know, we are taking a balanced approach to capital allocation. This quarter, we heavily spent on our existing projects, both you know, Durango cleaning up Durango Garage, which still have the retention payments, as well as Rounding Out Sunset and Green Valley Ranch project spend. Got it. Got it. Dan Politzer: Thanks so much. No problem. Operator: This concludes our question and answer session. I would like to turn the conference back over to Stephen Cootey for any closing remarks. Stephen Cootey: Well, thank you, everyone, for joining the call, and we look forward to talking to you in about 90 days. Take care. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Red Rock Resorts, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Red Rock Resorts wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Red Rock Resorts. The Motley Fool has a disclosure policy. Red Rock Resorts (RRR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Delivered the second-highest Q2 net revenue and adjusted EBITDA in company history, despite facing the strongest year-over-year comparison on record. Performance was driven by meaningful growth in carded spend per visit and higher net theoretical win across local, regional, and national customer segments. Durango established itself as a significant growth driver, validating the strategy that best-in-class integrated resorts expand the total market rather than just redistributing existing demand. Management attributed margin compression primarily to temporary construction disruption at Green Valley Ranch, which removed over 21,000 room nights from inventory. The Las Vegas locals market remains resilient with stable trends in core slot and table business across all customer wealth tiers. Strategic investments in the 'From Vegas for Vegas' brand campaign and 50th-anniversary events are viewed as long-term equity building for the company's local market position. Durango North expansion remains on schedule for a second-half 2027 opening, supported by significant residential growth in Southwest Las Vegas. The North Fork project is on track for an early fourth-quarter 2026 opening, with slot machine installation already underway following the first phase of podium turnover. Management expects Q3 to follow historical seasonal patterns, typically resulting in a 10% sequential revenue decline from Q2. Construction disruption impacts are projected at approximately $2.5 million for Durango in Q3, continuing quarterly until the project completes in late 2027. Active design work is underway for two new greenfield projects and a master plan expansion at Durango, with further details expected in early 2027. A one-time $8 million anniversary and brand marketing expense will be recognized in third-quarter corporate expenses. Green Valley Ranch experienced a $7 million disruption impact in Q2 due to hotel renovations, slightly lower than the previously estimated $9 million. Ongoing infrastructure projects by the Nevada Department of Transportation (NDOT) near Durango, Green Valley, and Red Rock properties continue to present temporary access challenges. Utility costs continue to be a persistent drag on operating expenses and are expected to remain a headwind for the remainder of the year. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted slot revenue remained very consistent across all three months of the quarter. June benefited from a significant traffic pickup driven by property-level activations and promotions surrounding the World Cup. Management stated the locals market remains insulated from Strip promotional activity, as their model relies on high-frequency, relationship-based service and convenience. Increased value packages on the Strip are viewed as a net positive for the city's overall health without negatively impacting Red Rock's core customer base. The tavern segment is being used to penetrate submarkets that are currently underserved by the company's large-scale 'big box' properties. Early results show successful cross-selling, with taverns sourcing new-to-brand customers who eventually visit the larger integrated resorts. The company is currently working with multiple general contractors to determine pricing and scope for two potential new builds. Management emphasized their identity as a development company, aiming to slot in the next project to maintain their historical high returns on ground-up builds.

Red Rock Resorts (RRR) reported $510.26 million in revenue for the quarter ended June 2026, representing a year-over-year decline of 3%. EPS of $0.67 for the same period compares to $0.95 a year ago. The reported revenue represents a surprise of +2.77% over the Zacks Consensus Estimate of $496.53 million. With the consensus EPS estimate being $0.33, the EPS surprise was +103.03%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Red Rock Resorts performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Operating Revenues- Casino: $338.31 million versus the four-analyst average estimate of $328.43 million. The reported number represents a year-over-year change of -1.9%. Operating Revenues- Room: $46.66 million compared to the $46.98 million average estimate based on four analysts. The reported number represents a change of -8.9% year over year. Operating Revenues- Other: $28.46 million compared to the $25.94 million average estimate based on four analysts. The reported number represents a change of +9.9% year over year. Operating Revenues- Food and Beverage: $93.03 million compared to the $91.4 million average estimate based on four analysts. The reported number represents a change of -1.4% year over year. Net Revenue- Native American: $3.81 million versus the three-analyst average estimate of $3.17 million. Net Revenue- Las Vegas operations: $503.16 million compared to the $492.3 million average estimate based on three analysts. The reported number represents a change of -2% year over year. Net Revenue- Corporate and other: $3.3 million versus the three-analyst average estimate of $3.01 million. The reported number represents a year-over-year change of +9.8%. Adjusted EBITDA- Corporate and other: $-22.3 million versus the four-analyst average estimate of $-21.14 million. Adjusted EBITDA- Las Vegas operations: $227.53 million compared to the $209 million average estimate based on four analysts. Adjusted EBITDA- Native American: $2.81 million compared to the $2.77 million average estimate based on three analysts. View all Key Company Metrics for Red Rock Resorts here>>> Shares of Red Rock Resorts have returned +0.9% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Red Rock Resorts, Inc. (RRR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Las Vegas Operations Net Revenue: $503.2 million, down 2% from the prior year second quarter. Las Vegas Operations Adjusted EBITDA: $227.5 million, down 5% from the prior year second quarter. Las Vegas Operations Adjusted EBITDA Margin: 45.2%, a decrease of 143 basis points from the prior year. Consolidated Net Revenue: $510.3 million (includes $3.8 million from North Fork project), down 3% from the prior year second quarter. Consolidated Adjusted EBITDA: $208 million (includes $2.8 million from North Fork project), down 9.3% from the prior year second quarter. Consolidated Adjusted EBITDA Margin: 40.8%, a decrease of 281 basis points from the prior year. Operating Free Cash Flow: $100 million or $0.95 per share for the quarter; $206.7 million or $1.97 per share year-to-date. Cash and Cash Equivalents: $136.5 million at the end of the second quarter. Total Debt: $3.6 billion principal amount outstanding, resulting in net debt of $3.5 billion. Net Debt to EBITDA Ratio: 4.21 times as of the end of the quarter. Capital Spend: $139.8 million in the quarter, including $94.4 million in investment capital and $45.4 million in maintenance capital. Year-to-Date Capital Spend: $257 million, including $181.6 million in investment capital and $75.4 million in maintenance capital. Shareholder Returns: Approximately $198 million returned to shareholders through dividends and share repurchases during the year. Quarterly Dividend: $0.26 per Class A common share declared. Sunset Station Project Cost: Total project cost remains $87 million. Green Valley Ranch Project Cost: Total project cost estimated at approximately $56 million. North Fork Project Cost: Total all-in costs expected to remain approximately $750 million. North Fork Note Receivable: Approximately $83.4 million outstanding from the tribe as of quarter end. Warning! GuruFocus has detected 8 Warning Signs with RRR. Is RRR fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Red Rock Resorts Inc (NASDAQ:RRR) delivered the second-highest second-quarter net revenue and adjusted EBITDA in its history, demonstrating strong operational resilience despite tough year-over-year comparisons. The Durango property continues to perform exceptionally well, validating the company's strategy of investing in best-in-class integrated resorts to expand the Las Vegas locals market. The company maintains a strong balance sheet with a net debt-to-EBITDA ratio of 4.21 times and generated $100 million in operating free cash flow during the quarter, supporting shareholder returns. Red Rock Resorts Inc (NASDAQ:RRR) is executing a robust development pipeline, including the Durango North expansion, Sunset Station and Green Valley Ranch renovations, and the North Fork project, all on schedule and on budget. The company is seeing stable trends in its core slot and table business, with growth in carded spend per visit and higher net theoretical win across customer segments, indicating healthy demand. Management is actively working on multiple new greenfield projects and a master plan expansion at Durango, positioning the company for future growth opportunities. The 50th anniversary brand campaign is expected to generate long-term goodwill and positive top-line effects, with early feedback being encouraging. Red Rock Resorts Inc (NASDAQ:RRR) experienced a 2% decline in Las Vegas net revenue and a 5% decline in adjusted EBITDA year-over-year, impacted by construction disruptions and a strong prior-year comparison. The Green Valley Ranch hotel renovation reduced available room nights by over 21,000, causing approximately $7 million in temporary disruption to revenue and profitability. Ongoing construction at Durango, Sunset Station, and Green Valley Ranch, along with offsite infrastructure projects, is expected to continue causing operational disruption, with Durango alone guiding for $2.5 million in Q3 impacts. The company anticipates a seasonal decline of approximately 10% from Q2 to Q3, which is typically one of its softer quarters. The promotional environment in the Las Vegas locals market remains irrational, with competitors engaging in aggressive promotional activity, though Red Rock Resorts Inc (NASDAQ:RRR) maintains its strategy. The company incurred $8 million in one-time anniversary and brand marketing expenses in Q3, which will negatively impact corporate expenses for the quarter. Utilities, particularly electricity, continue to be a drag on operating expenses, and this is expected to persist for the remainder of the year. Q: Can you provide a breakdown of the quarter's performance, particularly regarding any softness in June and the impact of the World Cup? A: Scott Kreeger (President) noted that slot revenue, the primary business driver, was very consistent across all three months of the quarter. While April was slightly better than May and June by a few percentage points in race/sportsbook and table games, the overall trends were stable. Lorenzo Fertitta (Vice Chairman) added that the World Cup in June provided a significant pickup in traffic, as the properties leaned into activations and promotions for the event, which was a positive for the month. Q: What is the expected financial impact of construction disruptions at your properties, and how should we model this for the upcoming quarters? A: Stephen Cootey (CFO) detailed that Green Valley Ranch experienced approximately $7 million in temporary disruption during Q2, slightly lower than the previously guided $9 million, primarily due to the loss of 21,000 room nights and associated revenue. Durango saw minimal disruption in Q2, but the company maintains its guidance of about $2.5 million in disruption for Q3 and each subsequent quarter until the project completes in the back half of 2027. These impacts are temporary and offset by long-term investment benefits. Q: How should we think about the seasonality of the business, specifically regarding Q3 and Q4 performance? A: Stephen Cootey (CFO) stated that Q3 is typically one of the softer quarters, with a usual sequential decline of about 10% from Q2 to Q3. Regarding Q4, he clarified that the historical guidance of a 10% to 11% sequential increase applies specifically to Las Vegas operations, a distinction that becomes more important with the North Fork project opening in Q4. Q: Are you seeing any notable differences in spending behavior between your lower-worth and higher-worth customers in the current economic environment? A: Stephen Cootey (CFO) responded that trends are stable across the entire business, including both slots and tables, and this stability spans from high-end to low-end customers. There has been no notable divergence in behavior between different customer segments. Q: What is your view on the upcoming F1 race in Las Vegas, and does it present any opportunities for your properties? A: Lorenzo Fertitta (Vice Chairman) explained that F1 is primarily a tourist-driven event and does not generate significant local interest or "move the needle" for their properties. Unlike the World Cup, which resonated with local fans, F1 does not warrant leaning into participation. He noted that F1 is better suited for the higher-end properties on the Las Vegas Strip. Q: Can you provide an update on the road construction and infrastructure projects around Durango and other properties, and how is demand trending? A: Scott Kreeger (President) noted positive demand trends in the gaming database, regional drive markets, and fly markets, with hotel performance outpacing the Strip in ADR. Stephen Cootey (CFO) provided an update on infrastructure, stating that while the Roy Horn project is complete, three major projectsthe westbound and eastbound on-ramps and the triple left on Durango Southare just kicking off in June 2026 and are expected to last about a year, impacting Durango, Red Rock, and Green Valley Ranch. Q: With several ROI projects coming online, how quickly should we expect them to contribute to financial results as we build our models into 2027? A: Stephen Cootey (CFO) reiterated the company's consistent approach of targeting a three-year lifespan for these projects, with the first year generally contributing around 10% of the total return. The first major project to come online is Green Valley Ranch, which should be fully operational by Q4. Q: Have you seen any impact from Strip operators becoming more aggressive with value offerings and promotional packages? A: Scott Kreeger (President) stated that the company welcomes the Strip's value packages as they benefit the city overall. However, he emphasized that the locals market remains insulated because their model is based on high-frequency, convenience, and friendly service, not just price. He noted this question has been asked since the company went public in 1993, and the locals' preference for convenient, value-oriented properties has remained consistent. Q: When might we hear about the next major casino project, and where would it be located? A: Lorenzo Fertitta (Vice Chairman) said the company is actively working on multiple projects, including two greenfield builds and a master plan expansion at Durango to add rooms and a spa. They are currently working with general contractors to determine pricing and scope. More information is expected as they turn the corner into early 2027, as they are anxious to proceed with another ground-up development following Durango's success. Q: How is the promotional environment in the local market, and what is the performance of the Tavern business? A: Scott Kreeger (President) described the promotional environment as "very irrational" but stated there has been no change in the market or their strategy. Regarding taverns, six of eight have opened, with two more expected by the end of the year. The taverns are successfully attracting new customers to the brand and driving crossover play to the larger casino properties, and performance so far is encouraging. Q: Can you discuss the current OpEx environment, including labor, utilities, and insurance, and how this impacts margins? A: Stephen Cootey (CFO) noted that labor costs are in line with expectations, up about 3% year-over-year. Utilities, particularly electricity, continue to be a drag on OpEx for the remainder of the year. The margin decline in Q2 was primarily due to Green Valley Ranch disruption, the absence of a prior-year North Fork catch-up payment, and one-time repair and maintenance items, which he characterized as an anomaly. Q: Were there any share repurchases in the second quarter, and if not, why? A: Stephen Cootey (CFO) confirmed there were no share repurchases in Q2, explaining that the company is taking a balanced approach to capital allocation. The quarter's capital was heavily deployed toward existing projects, including Durango garage retention payments and rounding out Sunset Station and Green Valley Ranch project spend.For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Red Rock Resorts, Inc.? Here are five stocks we like better. Second-quarter results declined year over year amid renovation and construction disruptions, with Las Vegas revenue down 2% to $503.2 million and adjusted EBITDA down 5% to $227.5 million. Despite the declines, management called it the company’s second-highest second-quarter performance historically. Core gaming trends remained stable, while hotel and food-and-beverage results benefited from strong demand; however, the Green Valley Ranch renovation reduced revenue and profitability by an estimated $7 million. The East Tower is expected to reopen in September. Red Rock maintained its 2026 capital-spending outlook of $375 million to $425 million and said expansion projects remain on schedule, including the $750 million North Fork project targeted for an early fourth-quarter 2026 opening. The company has returned approximately $198 million to shareholders year to date through dividends and buybacks. Dallas Mavericks purchase turns LVS stock into a cheaper bet Red Rock Resorts (NASDAQ:RRR) reported second-quarter results that declined from a year earlier but remained among the strongest second-quarter performances in the company’s history, as its Las Vegas operations navigated renovation and construction-related disruption at several properties. Las Vegas operations generated net revenue of $503.2 million, down 2% from the prior-year quarter, while adjusted EBITDA declined 5% to $227.5 million. The segment’s adjusted EBITDA margin was 45.2%, down 143 basis points year over year. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control On a consolidated basis, including contributions from the North Fork project, revenue fell 3% to $510.3 million and adjusted EBITDA decreased 9.3% to $208 million. Consolidated adjusted EBITDA margin was 40.8%, a year-over-year decline of 281 basis points. Chief Financial Officer Stephen Cootey said the Las Vegas business delivered its second-highest second-quarter revenue and adjusted EBITDA in company history, behind only the prior-year period. He said the company saw higher carded spend per visit and net theoretical win across local, regional and national customer segments. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? President Scott Kreeger said slot revenue, the company’s largest source of business, was relatively consistent across April, May and June. April performed better than May and June in race and sportsbook and table games, he said, but the differences were limited. Cootey said World Cup-related promotions and activations during June helped drive traffic at the company’s properties. Management said it was seeing stable trends in core slot and table operations entering the second half of the year. → Why Rare Earth Processing Could Be the Real 2027 Opportunity The company also reported strength in hotel and food-and-beverage revenue, though the Green Valley Ranch hotel renovation removed more than 21,000 available room nights during the quarter. Cootey said the reduction affected hotel, gaming and food-and-beverage revenue and profitability, estimating the Green Valley Ranch disruption at about $7 million, compared with a previously anticipated $9 million impact. Kreeger said same-store hotel performance excluding Green Valley Ranch was strong, with favorable occupancy and average daily rate trends. He added that the company’s average daily rate outpaced the Las Vegas Strip during the quarter. The East Tower at Green Valley Ranch is expected to return to service in September, completing renovations to the property’s rooms and suites. Management said demand and spending trends remained stable across customer segments, including higher-end and lower-end guests. Kreeger said the company had not experienced an impact from Strip operators’ value packages, arguing that Red Rock’s locals-focused business is supported by convenience, service and value. Red Rock Resorts is managing construction at Durango, Sunset Station and Green Valley Ranch, alongside state infrastructure work near several properties. Cootey said Durango experienced little disruption in the second quarter, but the company continues to expect approximately $2.5 million of disruption in the third quarter and in subsequent quarters until work is completed in the second half of 2027. The Durango North expansion remains on schedule for opening in the second half of 2027. Management said the property’s performance has supported its view that new integrated resorts can grow the Las Vegas locals market rather than merely shift demand among existing operators. At Sunset Station, the company recently reopened the Gaudi Bar and plans to open Stoney’s Rockin’ Country, a country-western bar and nightclub, in the coming weeks. The broader $87 million redevelopment includes theater improvements, a permanent bingo location, and redevelopment of former buffet space into a steak club, steakhouse and high-limit gaming area. The project is expected to continue through 2026 and into 2027. Green Valley Ranch’s next redevelopment phase includes a casino-floor refresh, food-and-beverage enhancements and entertainment upgrades. That work is expected to continue into 2027 and carries an estimated $56 million cost. Meanwhile, the North Fork project remains on track for an early fourth-quarter 2026 opening. Cootey said the project is fully financed, remains on budget and is expected to have total all-in costs of about $750 million. Red Rock’s outstanding note receivable from the tribe was approximately $83.4 million at quarter-end. The company generated $100 million of operating free cash flow during the quarter, or $0.95 per share, representing 48% of adjusted EBITDA. Year-to-date operating free cash flow totaled $206.7 million, or $1.97 per share. Cash and cash equivalents totaled $136.5 million at quarter-end. Total principal debt outstanding was $3.6 billion, resulting in net debt of $3.5 billion. Net debt to EBITDA was 4.21 times. Quarterly capital spending was $139.8 million, including $94.4 million of investment capital and $45.4 million of maintenance capital. Full-year 2026 capital spending guidance was maintained at $375 million to $425 million. Red Rock Resorts said it has returned approximately $198 million to shareholders year to date through dividends and share repurchases. Its board declared a quarterly cash dividend of $0.26 per Class A common share, payable Sept. 30 to shareholders of record as of Sept. 15. Looking ahead, Cootey said the third quarter is historically one of the company’s softer seasonal periods, with Las Vegas operations typically down about 10% sequentially from the second quarter. Management noted, however, that fourth-quarter comparisons will be affected by the expected North Fork opening. The company also plans to record approximately $8 million of one-time 50th anniversary and brand-marketing expense in third-quarter corporate expense. The campaign, branded “From Vegas, For Vegas, Always Vegas,” is intended to reinforce the company’s position in the Las Vegas locals market, according to management. Red Rock Resorts, Inc (NASDAQ: RRR) is a publicly traded gaming and hospitality company headquartered in Summerlin, Nevada. The company owns and operates a diversified portfolio of full-service casino resorts and neighborhood gaming properties in the Las Vegas valley. Its core business activities include resort hotel accommodations, casino gaming, food and beverage operations, entertainment and convention services designed to meet the needs of both leisure and business travelers. The company's flagship resort, Red Rock Casino Resort & Spa, features a full range of table games, slot machines, a luxury spa, convention space, multiple signature restaurants and live entertainment venues. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Red Rock Resorts Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Casino and entertainment operator Red Rock Resorts recently reported quarterly results, following expectations that its revenue for the period would show a 5.2% year-on-year decline. Analysts largely kept their forecasts intact ahead of the release, suggesting they saw no major change in the company’s underlying operating outlook despite the anticipated revenue pressure. We’ll now examine how the expected year-on-year revenue decline shapes Red Rock Resorts’ broader investment narrative and future earnings profile. Outshine the giants: these 17 early-stage AI stocks could fund your retirement. To own Red Rock Resorts, you have to be comfortable with a focused Las Vegas locals story, backed by seasoned management and active capital returns. The expected 5.2% revenue decline this quarter does not materially alter the near term earnings catalyst, but it does keep attention on how resilient local demand really is. The biggest risk remains the company’s heavy dependence on the Las Vegas economy, which can quickly influence both visitation and spending levels. The recent update on the company’s multi year share repurchase program is most relevant in this context, as it shows management continuing to reduce the share count despite near term revenue pressure. For investors, this capital allocation stance can magnify the impact of any future earnings recovery, but it also raises questions about how much financial flexibility the company retains if local conditions weaken more than expected. Yet even with these support factors, Red Rock Resorts’ concentrated exposure to the Las Vegas locals market is a risk investors should be aware of because... Read the full narrative on Red Rock Resorts (it's free!) Red Rock Resorts' narrative projects $2.3 billion revenue and $254.4 million earnings by 2029. This requires 3.8% yearly revenue growth and about a $68.2 million earnings increase from $186.2 million today. Uncover how Red Rock Resorts' forecasts yield a $71.82 fair value, a 9% upside to its current price. One member of the Simply Wall St Community currently estimates Red Rock Resorts’ fair value at US$117.02 per share, well above recent trading levels. You can compare that view with the concentration risk in the Las Vegas locals market and decide how it might influence the company’s future earnings resilience. Explore another fair value estimate on Red Rock Resorts - why the stock might be worth as much as 78% more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Red Rock Resorts research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Our free Red Rock Resorts research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Red Rock Resorts' overall financial health at a glance. Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped: The latest GPUs need a type of rare earth metal called Terbium and there are only 29 companies in the world exploring or producing it. Find the list for free. Invest in the nuclear renaissance through our list of 88 elite nuclear energy infrastructure plays powering the global AI revolution. We've uncovered the 7 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RRR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Red Rock Resorts (RRR) came out with quarterly earnings of $0.67 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.95 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +103.03%. A quarter ago, it was expected that this company would post earnings of $0.54 per share when it actually produced earnings of $0.73, delivering a surprise of +35.19%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Red Rock Resorts, which belongs to the Zacks Gaming industry, posted revenues of $510.26 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.77%. This compares to year-ago revenues of $526.27 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Red Rock Resorts shares have added about 5.9% since the beginning of the year versus the S&P 500's gain of 11%. While Red Rock Resorts has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Red Rock Resorts was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.28 on $481.7 million in revenues for the coming quarter and $1.52 on $2.02 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Gaming is currently in the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, GDEV Inc. (GDEV), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $1.08 per share in its upcoming report, which represents a year-over-year change of +20%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. GDEV Inc.'s revenues are expected to be $115 million, down 4.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Red Rock Resorts, Inc. (RRR) : Free Stock Analysis Report GDEV Inc. (GDEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research