Red Rock Resorts Reports $507.3 Million Revenue in Q1 2026, Net Income Declines

Red Rock Resorts, Inc. reported a net revenue of $507.3 million for the first quarter of 2026, reflecting a 1.9% increase from $497.9 million in the same period of 2025. The growth was primarily driven by a 2.2% rise in casino revenues, which totaled $340.5 million, and a 1.2% increase in food and beverage revenues, amounting to $90.3 million. However, room revenues experienced a decline of 9.3%, falling to $45.5 million, attributed to ongoing renovations at the Green Valley Ranch property. The company's operating income decreased to $143.7 million, down 6.9% from $154.4 million year-over-year.

In terms of profitability, net income attributable to Red Rock Resorts was $42.9 million, a decrease of 4.2% from $44.7 million in the prior year. The decline in net income was influenced by increased selling, general, and administrative expenses, which rose by 9.2% to $114.4 million, and a significant increase in depreciation and amortization expenses, which were up 15.6% to $55.9 million. The effective tax rate for the quarter was 13.7%, slightly higher than the 13.0% reported in the previous year.

Strategically, Red Rock continues to expand its operations through its partnership with the North Fork Rancheria of Mono Indians, where it is developing a gaming and entertainment facility in California. The company recognized $4.7 million in management and development fees related to this project during the quarter. Additionally, Red Rock has been active in its stock repurchase program, buying back 635,657 shares for approximately $38.3 million during the first quarter, with $486 million remaining authorized for future repurchases.

Operationally, Red Rock's Las Vegas properties reported a slight increase in customer engagement, with a consistent average daily rate of $202.66 and an occupancy rate of 89.4%. The company also noted a strong performance in slot play, with a 1.2% increase in slot handle. However, the overall market conditions remain uncertain due to inflation and rising interest rates, which could impact future performance. The company maintains a cautious outlook, emphasizing its focus on local guests and operational discipline to navigate these challenges.

Looking ahead, Red Rock Resorts anticipates capital expenditures between $260 million and $310 million for 2026, alongside required debt service payments and dividends. The company believes that its current cash reserves, along with cash generated from operations and available borrowings, will be sufficient to meet its operational and capital needs in the near term. However, it acknowledges the potential risks posed by economic fluctuations and competitive pressures in the gaming industry.