Red Rock Resorts, Inc.

Second-quarter Las Vegas net revenue was $503.2 million, down 2% year over year, and adjusted EBITDA was $227.5 million, down 5%, with adjusted EBITDA margin of 45.2%, down 143 basis points. Consolidated second-quarter net revenue was $510.3 million, down 3% year over year, and adjusted EBITDA was $208 million, down 9.3%, with adjusted EBITDA margin of 40.8%, down 281 basis points. The company generated $100 million of operating free cash flow in the quarter, or $0.95 per share, and $206.7 million year to date, or $1.97 per share. Cash and cash equivalents were $136.5 million, total principal debt outstanding was $3.6 billion, net debt was $3.5 billion, and net debt to EBITDA was 4.21x. For full-year 2026, capex is still expected to be $375 million to $425 million, including $275 million to $300 million of investment capital and $100 million to $125 million of maintenance capital. Management said Q3 is typically softer seasonally and often down about 10% from Q2 to Q3. They also guided to about $2.5 million of Durango disruption in Q3, while Green Valley Ranch should regain its full hotel product in September and North Fork remains on pace for an early Q4 2026 opening, with total all-in costs expected to remain about $750 million.

Management’s tone was confident and focused on long-term value creation through reinvestment in the core portfolio. Lorenzo Fertitta emphasized that Red Rock is a development company with multiple projects in motion, including new builds and a master-planned expansion at Durango, and said the company is working through pricing and design with contractors. He also framed the 50th anniversary brand campaign as both a celebration and a long-term marketing investment to reinforce the company’s position in the locals market.

Stephen Cootey highlighted another quarter of strong free cash generation, with $100 million of operating free cash flow and $206.7 million year to date, while noting 48% conversion of adjusted EBITDA into free cash flow in Q2. He pointed to the balance sheet with $136.5 million of cash, $3.6 billion of debt, and 4.21x net debt to EBITDA, and said the company returned about $198 million to shareholders through dividends and buybacks year to date. He also detailed 2026 capital spending guidance of $375 million to $425 million and said the $8 million anniversary marketing expense will hit third-quarter corporate expense.

Analysts focused on quarter cadence, disruption from construction and roadwork, promotional intensity, demand by customer tier, and the timing of future project ramp-ups. Management said the quarter was fairly consistent month to month, with April stronger than May and June but only modestly so, and June traffic got a lift from the World Cup. They said local demand was stable across higher- and lower-worth customers, that the locals promotional environment remains rational, and that the temporary disruption from Green Valley and Durango should ease as projects come online, with GVR’s full hotel product back in September and North Fork opening in early Q4 2026.