Earnings release
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Monarch Casino & Resort Reports Record Second Quarter 2026 Financial Results PUBLISHED JUL 20, 2026 5:23PM EDT Declares Cash Dividend of $0.30 per Share Payable on September 15, 2026 RENO, Nev.,July 20, 2026(GLOBE NEWSWIRE) --Monarch Casino & Resort, Inc.(Nasdaq: MCRI) (“Monarch” or “the Company”) today reported operating results for the second quarter endedJune 30, 2026, as summarized below: ($ in thousands, except per share data and percentages) Three Months EndedJune 30, Six Months EndedJune 30, 2026 2025 Increase 2026 2025 Increase Net revenue $142,597 $136,914 4.2% $279,147 $262,308 6.4% Net income(1)(2) 32,523 27,008 20.4% 60,115 46,872 28.3% Adjusted EBITDA(3) $52,999 $51,289 3.3% $101,950 $92,420 10.3% Basic EPS $1.82 $1.47 23.8% $3.37 $2.55 32.2% Diluted EPS(1)(2) $1.78 $1.44 23.6% $3.30 $2.50 32.0% (1) For the three months endedJune 30, 2026Net income and Diluted EPS were positively impacted by$2.4 million, or$0.13per diluted EPS, from excess tax benefit on stock options compensation, resulting in a lower effective tax rate (17.4% in the second quarter of 2026 and 23.5% in the second quarter of 2025);(2) For the six months endedJune 30, 2026Net income and Diluted EPS were positively impacted by$2.6 million, or$0.14per diluted EPS, from excess tax benefit on stock options compensation, resulting in a lower effective tax rate (19.7% in the first six months of 2026 and 23.1% in the first six months of 2025);(3) Definitions, disclosures and reconciliations of non-GAAP financial information are included later in the release. CEO CommentJohn Farahi, Co-Chairman and Chief Executive Officer of Monarch, commented: “Monarch delivered record second- quarter financial results. Second quarter net revenue increased 4.2% year-over-year reflecting growth in casino, F&B and hotel revenue. Adjusted EBITDA grew 3.3% compared to the same period last year. The second-quarter 2026 adjusted EBITDA margin remained near record levels at 37.2%, inclusive of a rise in employee benefit expenses, compared to 37.5% in Q2 2025. The second quarter revenue and adjusted EBITDA growth highlights our ability to drive sustained growth from our two properties. “We continue to focus on excellence by delivering exceptional product and service to our guests, while maintaining operational efficiency. We remain committed to ongoing capital investments that enhance both properties and set the standard for luxury casino resorts inNorthern NevadaandColorado. “Monarchʼs strong operating results and positive trends allows us to continue to return capital to stockholders. In the second quarter of 2026, we returned$5.4 millionto stockholders through our quarterly cash dividend. At the same time, we increased our cash position by$18.1 million.” Summary of 2026 Second Quarter Operating ResultsIn the second quarter of 2026, the Company generated net revenue of$142.6 millioncompared to$136.9 millionin the corresponding prior-year period. Casino revenue increased 2.5% compared to the same prior- year period, food and beverage (“F&B”) increased 3.1% and hotel revenue increased 13.0%, compared to the same prior-year period. F&B and hotel revenues benefited from higher available rooms at Atlantis in the second quarter of 2026 compared to the same period in 2025 and expanded convention and group business. Selling, general and administrative (“SG&A”) expense for the second quarter of 2026 was$28.6 millioncompared to$26.8 millionin the corresponding prior-year period. As a percentage of net revenue, SG&A expense increased slightly to 20.0% from 19.6% in the corresponding prior-year period. Casino operating expense as a percentage of casino revenue decreased slightly to 35.5% during the second quarter of 2026 from 35.7% in the corresponding prior-year period primarily due to improved labor management and operational efficiency. During the second quarter of 2026, F&B operating expense as a percentage of F&B revenue increased to 72.9% from 70.3% in the corresponding prior-year period due to increases in labor and product cost per cover. Hotel operating expense as a percentage of hotel revenue decreased to 32.1% in the second quarter of 2026 compared to 34.3% in the corresponding prior-year period, primarily due to an increase in Average Daily Rate and improved costs per occupied room in the current period compared to the same period in the prior year. Net income for the second quarter of 2026 increased 20.4% and diluted EPS increased 23.6% compared to the same period last year. The Company generated consolidated Adjusted EBITDA of$53.0 millionin the second quarter of 2026, which represents a$1.7 million, or 3.3% increase, compared to the same prior-year period.
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Credit Facility and LiquidityAs ofJune 30, 2026, the Company had cash and cash equivalents of$138.3 millionand no borrowings against its credit facility. Capital expenditures of$5 millionin the second quarter of 2026 were funded from operating cash flow and included costs related to ongoing maintenance capital projects at both properties. OnJune 15, 2026, the Company paid a cash dividend of$0.30per share to its stockholders of record as ofJune 1, 2026for a total of$5.4 million. The cash dividend was funded from operating cash flow. Monarch believes its strong balance sheet and free cash flow favorably positions the Company to continue investing in its properties, share repurchases and paying cash dividends. The Company has been diligently evaluating potential M&A transactions, which it believes could drive additional long-term value for stockholders. Quarterly Dividend DeclarationThe Company today announced a cash dividend of$0.30per share of its outstanding common stock. The dividend is payable onSeptember 15, 2026to stockholders of record as ofSeptember 1, 2026. This cash dividend is part of the previously announced annual cash dividend of$1.20per share payable in quarterly payments and subject to quarterly review and evaluation by the Companyʼs Board of Directors. Forward Looking StatementsThis press release contains forward-looking statements within the meaning of the safe harbor provisions of theU.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "plan," "believe," "expect," "seem," "look," "look forward," "positioning," "future," "will," "confident" and similar references to future periods. Example of forward-looking statements include, among others, statements we make regarding: (i) the continuing strength of our balance sheet and our expected free cash flow; (ii) our expectations regarding continuing our dividend payments in the future; (iii) our expectations regarding the cash flow we expect to generate to fund our cash dividends to stockholders; and, (iv) our beliefs regarding the impact of our capital investment strategy and evaluation of potential strategic transactions on our long term success. Actual results and future events and conditions may differ materially from those described in any forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include, without limitation: adverse impacts of outbreaks of contagious diseases on our business, financial condition and operating results; actions taken by government officials at the federal, state and/or local level with respect to the containment of disease outbreaks, including, without limitation, temporary or extended shutdowns, travel restrictions, social distancing and shelter-in-place orders; our ability to manage guest safety concerns in connection with an outbreak of contagious diseases; our ability to maintain compliance with the terms and conditions of our credit facilities and other material contracts in the event of any unexpected or unplanned events, such as temporary or extended shutdowns; access to available and reasonable financing on a timely basis; our ability to maintain strong working relationships with our regulators, employees, lenders, suppliers, insurance carriers, customers, and other stakeholders; impacts of any uninsured losses; changes in guest visitation or spending patterns due to economic conditions, health, international relations or other concerns; construction factors, including delays, disruptions, availability of labor and materials, increased costs of labor and materials, contractor disagreements, zoning issues, environmental restrictions, soil and water conditions, weather and other hazards, site access matters, building permit issues and other regulatory approvals or issues; ongoing disagreements over costs of and responsibility for delays and other construction related matters with our general contractor atMonarch Casino Resort Spa Black Hawk,PCL Construction Services, Inc.(“PCL”), including, as previously reported, the litigation against us by such contractor; the judgment entered in PCLʼs favor and against Monarch in the above-mentioned litigation in the amount of$74,627,657(the “Judgment”), in Case No. 2019cv33368 in theDistrict Court for the State of Colorado,City and County of Denver(the “Court”), including the outcome of any post-judgment motions filed by PCL in the Court for further release; the outcome of our appeal of the Judgment; our potential need to post other bonds or other forms of surety to support our legal remedies; risks related to development and construction activities (including disputes with and defaults by contractors and subcontractors, construction, equipment or staffing problems and delays, shortages of materials or skilled labor, environmental, health and safety issues, weather and other hazards, site access matters, and unanticipated cost increases); our ability to generate sufficient operating cash flow to help finance our expansion plans; changes in laws mandating increases in minimum wages and employee benefits; changes in laws and regulations permitting expanded and other forms of gaming in our key markets; the effects of local and national economic, credit and capital market conditions on the economy in general and on the gaming industry and our business in particular, including predictions for a potential recession; the effects of labor shortages on our market position, growth and financial results; the potential of increases in state and federal taxation; the potential of increased regulatory and other burdens; guest acceptance of our expanded facilities once completed and the resulting impact on our market position, growth and financial results; competition in our target market areas; the impact of the recently enacted tariffs on our business, including the potential increase in our operating costs;
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Additional information concerning potential factors that could adversely affect all forward-looking statements, including the Company's financial results, is included in ourSecurities and Exchange Commissionfilings, including our most recent annual report on Form 10-K and quarterly reports on Form 10-Q, which are available on our website atwww.monarchcasino.com. AboutMonarch Casino & Resort, Inc.Monarch Casino & Resort, Inc., through its subsidiaries, owns and operates theMonarch Casino Resort Spa("Monarch Black Hawk") inBlack Hawk, Colorado, approximately 40 miles west ofDenverand theAtlantis Casino Resort Spa("Atlantis"), a hotel/casino facility inReno, Nevada. For additional information on Monarch, visit the Company's website atwww.monarchcasino.com. Atlantis features 817 guest rooms and suites, and approximately 61,000 square feet of casino space. The casino features approximately 1,200 slot and video poker machines; approximately 33 table games, including blackjack, craps, roulette, and others; a race and sports book; a 24-hour live keno lounge; and a poker room. It also includes eight food outlets; two gourmet coffee and pastry bars; a retail store; a 30,000 square foot health spa and salon with an enclosed year-round pool; an 8,000 square-foot family entertainment center; and approximately 52,000 square feet of banquet, convention and meeting room space. Monarch Black Hawkfeatures 516 guest rooms and suites, and approximately 60,000 square feet of casino space. The resort offers approximately 1,100 slot machines; 37 table games; a poker room; keno; and a sports book. It also includes 10 bars and lounges, as well as four dining options: a twenty-four-hour full-service restaurant, a buffet-style restaurant, theMonarch Chophouse(a fine-dining steakhouse), and Bistro Mariposa (elevated Southwest cuisine), banquet and meeting room space, a retail store, a concierge lounge and an upscale spa and enclosed year-round pool located on the top floor of the tower. The resort is connected to a nine-story parking structure with approximately 1,350 parking spaces, and additional valet parking, with total property capacity of approximately 1,500 spaces. Contacts:John FarahiChief Executive Officer775/824-4401 orJFarahi@monarchcasino.com Joseph Jaffoni,Christin ArmacostJCIR212/835-8500 ormcri@jcir.com - financial tables follow - MONARCH CASINO & RESORT, INC.AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data, unaudited) Three months endedJune 30, Six months endedJune 30, 2026 2025 2026 2025 Revenues Casino $ 81,540 $ 79,589 $ 161,286 $ 152,484 Food and beverage 33,179 32,191 64,880 62,213 Hotel 21,585 19,110 40,541 35,818 Other 6,293 6,024 12,440 11,793 Net revenues 142,597 136,914 279,147 262,308 Operating expenses Casino 28,920 28,449 57,653 55,966 Food and beverage 24,182 22,636 47,226 44,945 Hotel 6,920 6,556 13,742 12,852 Other 3,133 3,073 6,332 6,151 Selling, general and administrative 28,564 26,786 56,318 53,976 Depreciation and amortization 10,664 13,571 21,131 26,786 Other Operating Items, net 1,591 944 3,176 1,415 Total operating expenses 103,974 102,015 205,578 202,091 Income from operations 38,623 34,899 73,569 60,217 Interest income, net 742 392 1,340 708 Income before income taxes 39,365 35,291 74,909 60,925 Provision for income taxes (6,842) (8,283) (14,794) (14,053) Net income $ 32,523 $ 27,008 $ 60,115 $ 46,872 Earnings per share of common stock Basic $ 1.82 $ 1.47 $ 3.37 $ 2.55 Diluted $ 1.78 $ 1.44 $ 3.30 $ 2.50 Weighted average number of common shares and potential common shares outstanding Basic 17,873 18,383 17,858 18,416 Diluted 18,261 18,723 18,237 18,776 MONARCH CASINO & RESORT, INC.AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (In thousands, except per share data) broad-based inflation, including wage inflation; and the impact of the conflicts taking place inUkraine,Israel,Iran, other areas of theMiddle Eastand other parts of the world.
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June 30, 2026 December 31, 2025 ASSETS (unaudited) Current assets Cash and cash equivalents $ 138,261 $ 96,468 Receivables, net of provision for credit losses 9,569 11,067 Income taxes receivable 5,042 3,013 Inventories 8,299 9,089 Prepaid expenses and other 7,680 9,616 Total current assets 168,851 129,253 Property and equipment, net 545,040 556,668 Goodwill 25,111 25,111 Intangible assets, net 2,159 1,817 Total assets $ 741,161 $ 712,849 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 41,884$ 44,924 Construction accounts payable 48,355 50,209 Accrued expenses 48,663 54,049 Short-term lease liability 953 1,019 Total current liabilities 139,855 150,201 Deferred income taxes 11,626 11,626 Long-term lease liability 11,838 12,279 Other long-term liabilities 1,073 1,073 Total liabilities 164,392 175,179 Stockholders' equity Preferred stock,$.01par value, 10,000,000 shares authorized; none issued - - Common stock,$.01par value, 30,000,000 shares authorized; 19,829,049 shares issued and 17,922,521 outstanding atJune 30, 2026 19,544,290 shares issued and 17,819,020 outstanding atDecember 31, 2025 198 195 Additional paid-in capital 83,276 76,038 Treasurystock, 1,906,528 shares atJune 30, 2026and 1,725,270 shares atDecember 31, 2025 (153,930) (136,411) Retained earnings 647,225 597,848 Total stockholders' equity 576,769 537,670 Total liabilities and stockholders' equity $ 741,161 $ 712,849 MONARCH CASINO & RESORT, INC.AND SUBSIDIARIES RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (In thousands, unaudited) The following table sets forth a reconciliation of Adjusted EBITDA, a non-GAAP financial measure, to net income, a GAAP financial measure: Three Months EndedJune 30, Six Months EndedJune 30, 2026 2025 2026 2025 Net income $ 32,523 $ 27,008 $ 60,115 $ 46,872 Expenses: Stock-based compensation 2,121 1,875 4,074 4,002 Depreciation and amortization 10,664 13,571 21,131 26,786 Provision for income taxes 6,842 8,283 14,794 14,053 Interest income, net (742) (392) (1,340) (708) Construction litigation expenses(2) 430 916 777 1,363 Principal judgement on construction litigation accrual(2) 1,116 - 2,220 - Other litigation expense accrual(2) 65 - 163 - Lobbying expense to oppose the expansion of iGaming(2) 61 22 176 50 Loss (gain) on disposition of assets(2) (81) 6 (160) 2 Adjusted EBITDA(1) $ 52,999 $ 51,289 $ 101,950 $ 92,420 (1) Adjusted EBITDA, a non-GAAP financial measure, consists of net income plus loss (gain) on disposal of assets, provision for income taxes, stock-based compensation expense, other one-time charges, construction litigation expenses, acquisition expenses, interest expense, depreciation and amortization less interest income, any benefit for income taxes and gain on disposal of assets. Adjusted EBITDA should not be construed as an alternative to operating income (as determined in accordance with US Generally Accepted Accounting Principles), as an indicator of the Company's operating performance, as an alternative to cash flows from operating activities (as determined in accordance with US GAAP) or as a measure of liquidity. This measure enables comparison of the Company's performance over multiple periods, as well as against the performance of other companies in our industry that report Adjusted EBITDA, although some companies do not calculate this measure in the same manner and, therefore, the measure as presented may not be comparable to similarly titled measures presented by other companies.(2) Amount included in the "Other operating items, net" in the Consolidated Statement of Income.