Monarch Casino & Resort (MCRI) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $27.6 million, up 38.9% year-over-year; diluted EPS rose 44.8% to $1.52 per share.

• Net revenues increased 8.9% to $136.6 million compared to Q1 2025, driven by growth across all major segments.

• Adjusted EBITDA rose 19.0% to $49.0 million, with margin improving by 300 basis points to 35.8%.

• Increased market share at both Atlantis (Reno, NV) and Monarch Black Hawk (Black Hawk, CO) properties.

• Returned capital to shareholders via $17.6 million in share repurchases and a $0.30 per share dividend.

Financial highlights

• Casino revenue grew 9.4% year-over-year, with improved market share and lower operating expense ratio (36.0% vs. 37.7%).

• Food and beverage revenue increased 5.6%, with a 4.5% rise in revenue per cover and a 1.1% increase in covers.

• Hotel revenue rose 13.5% due to more available rooms, though ADR and occupancy declined slightly.

• SG&A expense as a percentage of net revenue decreased to 20.3% from 21.7% year-over-year.

• Depreciation and amortization expense fell to $10.5 million from $13.2 million year-over-year.

Outlook and guidance

• Management expects continued strength at both properties, supported by local economic growth and expanded operations.

• Confident in opportunities to increase revenue and reduce costs through ongoing investments and technology.

• Inflationary pressures and competitive promotional activity may impact revenue growth and margins.

• Anticipated operating cash flows are expected to sustain operations, capital expenditures, and dividend distributions for the next twelve months.

• Evaluating potential M&A transactions for long-term value creation.