Golden Entertainment Reports Q2 2025 Financial Results with Revenue Decline

Golden Entertainment, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $163.6 million, a decrease of 2% from $167.3 million in the same period last year. The decline was attributed to lower revenues in food and beverage and room services, which fell by $2 million each, alongside a slight decrease in other revenues. However, gaming revenue saw a modest increase of $0.5 million, primarily driven by the performance of the company's Nevada Locals properties. For the first half of 2025, total revenues were $324.5 million, down 5% from $341.4 million in the prior year.

The company's operating income for the second quarter was $11.9 million, down from $13.5 million a year earlier, while net income rose to $4.6 million compared to $623,000 in the same quarter of 2024. This increase in net income was largely due to a significant reduction in non-operating expenses, which fell by 41% year-over-year, primarily from lower interest expenses and the absence of costs related to debt extinguishment that were incurred in the previous year. The effective tax rate for the quarter was -10.6%, influenced by excess tax benefits from option exercises.

In terms of strategic developments, Golden Entertainment completed the acquisition of Great American Pub, which includes two tavern locations in Nevada, for $7.3 million in April 2024. This acquisition is expected to enhance the company's presence in the tavern segment, which currently comprises 72 branded taverns primarily located in the greater Las Vegas area. The company also divested its distributed gaming operations in Nevada in January 2024 for $213.5 million, which has impacted revenue comparisons year-over-year.

Operationally, the company reported a total of 5,506 slot machines across its casino properties and taverns as of June 30, 2025. The Nevada Casino Resorts segment generated $98.2 million in revenue, while the Nevada Locals Casinos and Nevada Taverns segments reported $38.9 million and $26.3 million, respectively. The Adjusted EBITDA for the second quarter was $38.4 million, down from $41.2 million in the prior year, reflecting the overall revenue decline and increased operational costs.

Looking ahead, Golden Entertainment anticipates that its cash and cash equivalents, along with cash flows from operations and available borrowing under its revolving credit facility, will be sufficient to meet capital requirements over the next 12 months. The company has declared a recurring quarterly cash dividend of $0.25 per share, reflecting its commitment to returning capital to shareholders. However, management remains cautious about potential impacts from economic conditions and consumer spending trends on future performance.