Red Rock Resorts Reports 1.8% Revenue Increase to $497.9 Million in Q1 2025

Red Rock Resorts, Inc. reported a slight increase in net revenues for the first quarter of 2025, totaling $497.9 million, up from $488.9 million in the same period last year, marking a 1.8% increase. The company's casino revenue was a significant contributor, rising by 5.2% to $333.2 million, while food and beverage, room, and other revenues saw declines of 4.3%, 5.1%, and 2.7%, respectively. Operating income for the quarter was $154.4 million, a marginal decrease from $155.5 million in the prior year, reflecting a stable operating margin of 31%.

In terms of profitability, net income attributable to Red Rock Resorts increased by 4.5% to $44.7 million, compared to $42.8 million in the previous year. The company’s effective tax rate for the quarter was 13.0%, up from 7.4% in the same period last year, primarily due to changes in the tax treatment of its income. Interest expenses decreased to $51.1 million from $57.2 million, attributed to reduced borrowings. The company also reported a significant increase in depreciation and amortization expenses, which rose by 7.7% to $48.3 million, reflecting new assets placed in service.

Strategically, Red Rock Resorts is advancing its Native American development project in partnership with the North Fork Rancheria of Mono Indians, which is expected to include a gaming and entertainment facility in California. The project, with an estimated total cost of $750 million, is anticipated to open in mid-2026. The company has already begun construction and has received a partial repayment of $110.5 million on its advances related to the project.

Operationally, Red Rock Resorts reported a 4.5% increase in the number of guests served in its restaurants, although the average guest check decreased by 2.9%. The hotel segment saw occupancy rates improve to 90.4%, up from 88.0% in the prior year, despite a decrease in average daily rates and revenue per available room. The company continues to focus on its core local guests while also attracting regional and out-of-town visitors, which has contributed to consistent operating results.

Looking ahead, Red Rock Resorts remains cautiously optimistic about its performance, acknowledging the potential impacts of inflation and economic uncertainties on consumer behavior. The company plans to continue leveraging its operational discipline and customer engagement strategies to drive growth. With $150.6 million in cash and cash equivalents and significant borrowing capacity under its credit facility, Red Rock is well-positioned to meet its capital requirements and operational needs in the near term.