Red Rock Resorts (RRR) Q1 2026 earnings summary

Executive summary

• Achieved record or near-record net revenue in Las Vegas for Q1 2026, with Las Vegas operations leading performance and driving 1.9% year-over-year growth to $507.3 million, despite headwinds from higher costs, construction, and macroeconomic factors.

• Adjusted EBITDA for Q1 2026 was $212.6 million, down 1.2% year-over-year, with Las Vegas segment contributing $232.4 million.

• Ongoing investments in property expansions, renovations, and new amenities, including Durango, Green Valley Ranch, and Sunset Station, support long-term growth and customer engagement.

• Maintains a durable business model with high free cash flow conversion, sustainable high margins, and robust local and regional customer trends.

• Significant growth pipeline with 100% ownership of developable real estate and a proven track record of 20%+ IRR on greenfield projects.

Financial highlights

• Q1 2026 consolidated net revenues: $507.3M, up 1.9% year-over-year; Las Vegas operations net revenue: $499.5M, up 0.9%.

• Adjusted EBITDA: $212.6M (margin 41.9%), down 1.2% year-over-year; Las Vegas Adjusted EBITDA: $232.4M, down 1.5%.

• Casino revenues rose to $340.5M; food & beverage revenues $90.3M; room revenues declined to $45.5M due to renovations.

• Net income attributable to shareholders was $42.9M, down 4.2% year-over-year; earnings per diluted share $0.73.

• Converted 50.3%–57% of adjusted EBITDA to operating free cash flow, generating $107M ($1.03/share) in Q1 and $484.4M ($4.64/share) TTM.

Outlook and guidance

• Stable trends expected in core slot and table business for Q2, with a return to typical seasonal patterns and continued reinvestment in properties.

• Ongoing construction at Durango, Sunset Station, Green Valley Ranch, and North Fork, with North Fork expected to open in Q4 2026.

• Full-year 2026 capital spend expected between $260M and $425M, with $275M–$300M in investment capital and $100M–$125M in maintenance capital.

• Declared a $0.26 per share dividend for Q2 2026, payable June 30, 2026.

• Management expects sufficient liquidity for the next twelve months.