Full House Resorts (NASDAQ: FLL ) has experienced some rollercoaster price action since I last wrote about the regional casino operator back in May. During June and July, FLL stock experienced a sharp surge higher, largely due to a frenzy surrounding insider buying.Analyst’s Disclosure:I/we have a beneficial long position in the shares of FLL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (o ...

Full House Resorts (NASDAQ: FLL ) has experienced some rollercoaster price action since I last wrote about the regional casino operator back in May. During June and July, FLL stock experienced a sharp surge higher, largely due to a frenzy surrounding insider buying.Analyst’s Disclosure:I/we have a beneficial long position in the shares of FLL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (o ...

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis for Full House Resorts, Inc [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including operations, balance sheets, equity, and cash flows, along with detailed notes on accounting policies and segment information [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This table provides a summary of revenues, operating costs, operating income/loss, interest expense, net loss, and basic/diluted loss per share for the three and six months ended June 30, 2025 and 2024 | (In thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $ 73,946 | $ 73,492 | $ 149,004 | $ 143,416 | | Operating costs and expenses | 74,020 | 71,177 | 148,340 | 141,707 | | Operating (loss) income | (74) | 2,315 | 664 | 1,709 | | Interest expense, net | (10,354) | (11,023) | (20,651) | (21,273) | | Net loss | $ (10,383) | $ (8,629) | $ (20,148) | $ (19,901) | | Basic loss per share | $ (0.29) | $ (0.25) | $ (0.56) | $ (0.57) | | Diluted loss per share | $ (0.29) | $ (0.25) | $ (0.56) | $ (0.57) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This table presents the company's assets, liabilities, and stockholders' equity as of June 30, 2025, and December 31, 2024 | (In thousands, except share data) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | **ASSETS** | | | | Current assets | $ 43,321 | $ 53,412 | | Property and equipment, net | 429,897 | 446,674 | | Total Assets | $ 651,537 | $ 673,334 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Current liabilities | $ 69,060 | $ 67,455 | | Long-term debt, net | 467,474 | 468,139 | | Total Liabilities | 630,326 | 632,837 | | Total Stockholders' Equity | 21,211 | 40,497 | | Total Liabilities and Stockholders' Equity | $ 651,537 | $ 673,334 | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This section details changes in common stock, additional paid-in capital, accumulated deficit, and total equity from January 1, 2025, to June 30, 2025 | (In thousands) | Balance, January 1, 2025 | Net loss (Q1 2025) | Net loss (Q2 2025) | Balance, June 30, 2025 | | :------------- | :----------------------- | :----------------- | :----------------- | :--------------------- | | Common Stock | $ 4 | — | — | $ 4 | | Add. Paid-in Cap | $ 115,781 | $ 1,060 | $ 594 | $ 116,643 | | Acc. Deficit | $ (75,288) | $ (9,765) | $ (10,383) | $ (95,436) | | Total Equity | $ 40,497 | $ (9,765) | $ (10,383) | $ 21,211 | - Stockholders' equity decreased from **$40.497 million** at January 1, 2025, to **$21.211 million** at June 30, 2025, primarily due to net losses of **$9.765 million** in Q1 2025 and **$10.383 million** in Q2 2025[10](index=10&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines net cash flows from operating, investing, and financing activities, and the overall change in cash for the six months ended June 30, 2025 and 2024 | (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Net cash (used in) provided by operating activities | $ (1,595) | $ 5,723 | | Net cash used in investing activities | $ (3,802) | $ (33,925) | | Net cash used in financing activities | $ (2,693) | $ (895) | | Net decrease in cash, cash equivalents and restricted cash | $ (8,090) | $ (29,097) | | Cash, cash equivalents and restricted cash, end of period | $ 32,131 | $ 44,697 | - Cash used in operating activities was **$1.6 million** for the six months ended June 30, 2025, a decrease from **$5.7 million** provided in the prior-year period, primarily due to timing of working capital spending and decreased operating income[12](index=12&type=chunk)[155](index=155&type=chunk) - Capital expenditures, net of changes in payables, significantly decreased from **$33.9 million** in H1 2024 to **$6.2 million** in H1 2025, reflecting the completion of Chamonix construction[12](index=12&type=chunk)[156](index=156&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [Note 1. Organization](index=9&type=section&id=Note%201.%20Organization) This note describes Full House Resorts, Inc.'s casino operations, segments, and recent strategic developments - Full House Resorts, Inc. operates six casinos across Midwest & South (American Place, Silver Slipper, Rising Star) and West (Bronco Billy's, Chamonix, Grand Lodge) segments, plus contracted sports wagering operations[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) - Key developments include the phased opening of Chamonix in October 2024, the sale of Stockman's Casino in April 2025, and an extension of the Indiana sports wagering skin through December 2031[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) [Note 2. Basis of Presentation and Significant Accounting Policies](index=10&type=section&id=Note%202.%20Basis%20of%20Presentation%20and%20Significant%20Accounting%20Policies) This note outlines the basis of financial statement presentation and significant accounting policies, including stock-based compensation and new accounting pronouncements - Stock-based compensation for the six months ended June 30, 2025, was **$0.4 million**, significantly lower than **$1.4 million** in the prior-year period, primarily due to a **$0.8 million** reversal of previously recognized 2024 costs because certain performance criteria were not met[25](index=25&type=chunk) - The Company adopted the 2025 Equity Incentive Plan, authorizing **2,300,000 new shares**, succeeding the 2015 Plan to maintain flexibility in its compensation program[26](index=26&type=chunk) - The Company is evaluating the impact of new accounting pronouncements ASU 2023-09 (Income Taxes) and ASU 2024-03 (Disaggregation of Income Statement Expenses), with planned adoption for annual periods ending December 31, 2025, and December 15, 2026, respectively[27](index=27&type=chunk)[28](index=28&type=chunk) [Note 3. Receivables, net](index=12&type=section&id=Note%203.%20Receivables,%20net) This note details the composition of accounts receivable and the provision for credit losses | (In thousands) | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | Casino | $ 349 | $ 653 | | Hotel | 19 | 13 | | Other Operations | 3,291 | 3,042 | | Contracted Sports Wagering | 5 | 1,017 | | Other | 1,053 | 514 | | Total Accounts Receivable | 4,717 | 5,239 | | Less: Provision for credit losses | (162) | (138) | | Accounts receivable, net | $ 4,555 | $ 5,101 | - The provision for credit losses increased from **$138 thousand** at January 1, 2025, to **$162 thousand** at June 30, 2025, with a current period provision of **$33 thousand**[32](index=32&type=chunk) [Note 4. Disposition](index=13&type=section&id=Note%204.%20Disposition) This note describes the sale of Stockman's Casino, including the proceeds and associated gain or loss - The Company completed the sale of Stockman's Casino in two phases: real property for **$7.0 million** (closed September 2024, **$1.9 million** gain) and remaining operating assets for **$2.2 million** (closed April 2025, **$0.2 million** loss for H1 2025)[35](index=35&type=chunk) | (In thousands) | March 31, 2025 | | :------------- | :------------- | | **ASSETS** | | | Current assets held for sale | $ 278 | | Property and equipment, net | 378 | | Goodwill | 1,809 | | Other intangible assets, net | 4 | | Valuation Allowance - Transaction Costs | (212) | | Total assets held for sale, net | $ 2,257 | | **LIABILITIES** | | | Total liabilities related to assets held for sale | $ 75 | [Note 5. Leases](index=13&type=section&id=Note%205.%20Leases) This note provides information on the company's operating and finance leases, including lease assets, liabilities, and total lease costs - The Company has significant operating leases for land, casino, and office space, with terms up to **97 years**, including contingent rent provisions for Silver Slipper and American Place[37](index=37&type=chunk)[38](index=38&type=chunk)[40](index=40&type=chunk) - The Grand Lodge Casino lease was extended through December 31, 2034, with annual rent increasing by **2% annually** after January 2025. The corporate office lease was extended through April 2030[45](index=45&type=chunk)[46](index=46&type=chunk) | (In thousands) | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | **Lease Assets** | | | | Operating lease ROU assets, net | $ 54,531 | $ 55,957 | | Finance lease ROU assets, net | 305 | 976 | | Total lease assets | $ 59,002 | $ 61,178 | | **Lease Liabilities** | | | | Current operating lease obligations | $ 4,084 | $ 4,226 | | Current finance lease obligations | 1,011 | 1,610 | | Noncurrent operating lease obligations | 51,448 | 52,324 | | Noncurrent finance lease obligations | 791 | 1,095 | | Total lease liabilities | $ 57,334 | $ 59,255 | | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total lease costs | $ 2,849 | $ 2,724 | $ 5,872 | $ 5,404 | [Note 6. Long-Term Debt](index=18&type=section&id=Note%206.%20Long-Term%20Debt) This note details the company's long-term debt, including senior secured notes and the revolving credit facility | (In thousands) | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | Revolving Credit Facility due 2027 | $ 25,000 | $ 27,000 | | 8.25% Senior Secured Notes due 2028 | 450,000 | 450,000 | | Less: Unamortized debt issuance costs and discounts/premiums, net | (7,526) | (8,861) | | Total Long-Term Debt, net | $ 467,474 | $ 468,139 | - The Company has **$450.0 million** in **8.25% Senior Secured Notes due 2028**, which were increased through additional offerings in 2022 and 2023 to fund projects like Chamonix and American Place[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk) - The revolving credit facility with Capital One was extended to January 1, 2027, and has **$25.0 million** outstanding at June 30, 2025, with an interest rate of SOFR plus **3.00%** (or base rate plus **2.00%**)[62](index=62&type=chunk)[63](index=63&type=chunk)[65](index=65&type=chunk) [Note 7. Customer Contract Liabilities](index=20&type=section&id=Note%207.%20Customer%20Contract%20Liabilities) This note presents the breakdown and changes in customer contract liabilities, including chip liability, players club points, and sports wagering | (In thousands) | Outstanding Chip Liability | Players Club Points | Contracted Sports Wagering | Progressive Jackpots and Other | | :------------- | :------------------------- | :------------------ | :------------------------- | :----------------------------- | | Balance at January 1, 2025 | $ 683 | $ 930 | $ 10,404 | $ 5,767 | | Balance at June 30, 2025 | $ 622 | $ 999 | $ 6,567 | $ 5,901 | | Increase (Decrease) | $ (61) | $ 69 | $ (3,837) | $ 134 | - Contracted sports wagering liabilities decreased by **$3.837 million** for the six months ended June 30, 2025, indicating a reduction in deferred revenues from these contracts[68](index=68&type=chunk) [Note 8. Income Taxes](index=22&type=section&id=Note%208.%20Income%20Taxes) This note discusses effective income tax rates, valuation allowances, and the impact of new tax legislation | Effective Income Tax Rates | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | | :------------------------- | :------------------------------- | :----------------------------- | :------------------------------- | :----------------------------- | | Rate | 0.9% | (0.6)% | 0.9% | (1.7)% | - Changes in effective income tax rates were primarily due to projections for pre-tax book income in 2025, changes in valuation allowances, and the release of deferred tax liabilities from the Stockman's intangible asset sale[69](index=69&type=chunk) - The Company continues to maintain a valuation allowance against deferred tax assets, as it has not met the 'more likely than not' threshold for their realizability, which does not affect actual taxes paid[70](index=70&type=chunk) - New U.S. tax legislation (OBBBA) signed in July 2025 makes permanent many 2017 tax provisions and introduces corporate tax changes effective 2026; the Company does not expect a material impact on operations[72](index=72&type=chunk) [Note 9. Commitments and Contingencies](index=22&type=section&id=Note%209.%20Commitments%20and%20Contingencies) This note outlines legal proceedings and the estimated reconciliation payment for the Illinois gaming license - The Company is involved in various legal proceedings but does not expect a material effect on its financial position or results of operations[73](index=73&type=chunk) - A 'Reconciliation Payment' for the Illinois gaming license, estimated at **$50.7 million**, is due to the Illinois Gaming Board, with annual installments expected to begin in February 2026[74](index=74&type=chunk)[76](index=76&type=chunk) | (In thousands) | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | Estimated IGB Reconciliation Fee | $ 50,717 | $ 46,039 | | Less: Amount representing interest | (8,498) | (11,173) | | Present value of IGB Reconciliation Fee | $ 42,219 | $ 34,866 | [Note 10. Earnings (Loss) Per Share](index=23&type=section&id=Note%2010.%20Earnings%20(Loss)%20Per%20Share) This note presents basic and diluted earnings per share calculations and related weighted-average common shares | (In thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss ─ basic | $ (10,383) | $ (8,629) | $ (20,148) | $ (19,901) | | Weighted-average common shares ─ basic | 36,055 | 34,710 | 35,944 | 34,650 | | Basic loss per share | $ (0.29) | $ (0.25) | $ (0.56) | $ (0.57) | | Diluted loss per share | $ (0.29) | $ (0.25) | $ (0.56) | $ (0.57) | - Anti-dilutive share-based awards excluded from diluted EPS calculation were **3,394 thousand** for Q2 2025 and **3,249 thousand** for H1 2025[77](index=77&type=chunk) [Note 11. Segment Information](index=23&type=section&id=Note%2011.%20Segment%20Information) This note provides financial data for the company's reportable segments: Midwest & South, West, and Contracted Sports Wagering - The Company manages three reportable segments: Midwest & South (American Place, Silver Slipper, Rising Star), West (Bronco Billy's, Chamonix, Grand Lodge), and Contracted Sports Wagering[16](index=16&type=chunk)[78](index=78&type=chunk) - Adjusted Segment EBITDA is the primary measure of segment profitability used by the CEO for performance assessment and resource allocation[80](index=80&type=chunk)[82](index=82&type=chunk) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | **Revenues** | | | | | | Midwest & South | $ 57,802 | $ 55,458 | $ 114,976 | $ 110,088 | | West | 14,485 | 15,151 | 30,089 | 28,185 | | Contracted Sports Wagering | 1,659 | 2,883 | 3,939 | 5,143 | | **Adjusted Segment EBITDA** | | | | | | Midwest & South | $ 12,757 | $ 12,275 | $ 25,865 | $ 24,958 | | West | (1,138) | 865 | (3,606) | 731 | | Contracted Sports Wagering | 1,611 | 2,577 | 3,791 | 4,512 | | **Adjusted Segment EBITDA Margin** | | | | | | Midwest & South | 22.1 % | 22.1 % | 22.5 % | 22.7 % | | West | (7.9)% | 5.7 % | (12.0)% | 2.6 % | | Contracted Sports Wagering | 97.1 % | 89.4 % | 96.2 % | 87.7 % | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition, operating results, liquidity, and capital resources, including an executive overview, recent developments, and segment performance [Executive Overview](index=29&type=section&id=Executive%20Overview) This section provides a high-level summary of the company's business, operational focus, and factors influencing financial results - The Company's primary business is owning and operating casino and hospitality facilities, with revenues mainly from slot machines, table games, hotels, and food and beverage[96](index=96&type=chunk)[102](index=102&type=chunk) - Operations are highly competitive and capital-intensive, relying on operating cash flow to service debt and fund capital expenditures. The company focuses on improving operating margins and assessing growth opportunities[105](index=105&type=chunk) - Financial results are subject to seasonality, gaming hold percentages, economic conditions, weather, regulatory changes, and competitive factors[103](index=103&type=chunk)[104](index=104&type=chunk) [Recent Developments](index=30&type=section&id=Recent%20Developments) This section highlights key recent events, including asset dispositions and contract extensions - The sale of Stockman's Casino was completed in April 2025 for **$9.2 million**, resulting in a **$0.2 million** loss for the six months ended June 30, 2025[106](index=106&type=chunk) - The active sports wagering agreement in Indiana was extended through December 2031, with the operator prepaying **$1.5 million** for the remaining term[107](index=107&type=chunk) [Key Performance Indicators](index=31&type=section&id=Key%20Performance%20Indicators) This section defines the primary metrics used to evaluate the company's operational and financial performance - Key gaming revenue indicators include slot coin-in, table game drop (volume indicators), slot win, and table game hold (profitability indicators)[109](index=109&type=chunk)[110](index=110&type=chunk) - Hotel occupancy rate is used to evaluate room utilization, including complimentary room sales[111](index=111&type=chunk) - Adjusted EBITDA, Adjusted Segment EBITDA, and Adjusted Segment EBITDA Margin are used to assess performance and allocate resources, with Adjusted Segment EBITDA being the GAAP measure of segment profitability[112](index=112&type=chunk)[113](index=113&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) This section analyzes the company's consolidated and segment-specific financial performance for the reporting periods [Consolidated Operating Results](index=32&type=section&id=Consolidated%20Operating%20Results) This section provides a detailed analysis of the company's overall revenues, operating expenses, and net loss | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Revenues | $ 73,946 | $ 73,492 | $ 149,004 | $ 143,416 | | Operating Expenses | 74,020 | 71,177 | 148,340 | 141,707 | | Operating (loss) income | (74) | 2,315 | 664 | 1,709 | | Net loss | $ (10,383) | $ (8,629) | $ (20,148) | $ (19,901) | - Consolidated total revenues increased by **0.6%** for Q2 2025 and **3.9%** for H1 2025, driven by the ramp-up of American Place and Chamonix, despite the sale of Stockman's[120](index=120&type=chunk) - Consolidated operating expenses increased by **4.0%** for Q2 2025 and **4.7%** for H1 2025, primarily due to increased casino and selling, general and administrative expenses at American Place and Chamonix[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Slot coin-in | $ 787,467 | $ 775,776 | $ 1,543,755 | $ 1,500,625 | | Slot win | $ 60,776 | $ 59,269 | $ 117,527 | $ 112,402 | | Slot hold percentage | 7.7 % | 7.6 % | 7.6 % | 7.5 % | | Table game drop | $ 53,815 | $ 47,811 | $ 108,340 | $ 94,739 | | Table game win | $ 8,715 | $ 8,593 | $ 19,056 | $ 17,853 | | Table game hold percentage | 16.2 % | 18.0 % | 17.6 % | 18.8 % | [Interest Expense](index=34&type=section&id=Interest%20Expense) This section discusses the company's net interest expense and the factors influencing its changes | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Interest expense, net | $ 10,354 | $ 11,023 | $ 20,651 | $ 21,273 | - Net interest expense decreased for both three- and six-month periods ended June 30, 2025, primarily due to lower interest rates and a reduced outstanding balance on the revolving credit facility[125](index=125&type=chunk) [Income Tax Expense](index=35&type=section&id=Income%20Tax%20Expense) This section analyzes the company's income tax provision and effective tax rates | Income Tax (Benefit) Provision | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | | :----------------------------- | :------------------------------- | :----------------------------- | :------------------------------- | :----------------------------- | | Amount (in thousands) | $ (95) | $ 111 | $ (79) | $ 337 | | Effective Tax Rate | 0.9% | (0.6)% | 0.9% | (1.7)% | - The changes in effective income tax rates were mainly due to projections for pre-tax book income in 2025, valuation allowance adjustments, and the release of deferred tax liabilities from the Stockman's sale[126](index=126&type=chunk) [Operating Results – Reportable Segments](index=35&type=section&id=Operating%20Results%20%E2%80%93%20Reportable%20Segments) This section provides a detailed breakdown of revenues and Adjusted Segment EBITDA for each of the company's operating segments [Midwest & South](index=37&type=section&id=Midwest%20%26%20South) This section details the financial performance of the Midwest & South segment, including revenue and EBITDA drivers - Midwest & South segment revenues increased by **4.2%** (Q2 2025) and **4.4%** (H1 2025), driven by continued growth at American Place, offsetting declines at Silver Slipper and Rising Star[132](index=132&type=chunk) - Casino revenue increased by **7.2%** (Q2 2025) and **7.4%** (H1 2025), with slot revenue up **9.6%** (Q2 2025) and **8.1%** (H1 2025)[133](index=133&type=chunk) - Adjusted Segment EBITDA rose by **3.9%** (Q2 2025) and **3.6%** (H1 2025), benefiting from American Place's growth and Silver Slipper's operational expense reductions, partially offset by increased advertising and labor costs at American Place[135](index=135&type=chunk) [West](index=37&type=section&id=West) This section details the financial performance of the West segment, including revenue and EBITDA, considering new property ramp-ups and asset sales - West segment revenues declined by **4.4%** (Q2 2025) but rose by **6.8%** (H1 2025), reflecting revenue growth at Chamonix and the impact of Stockman's sale[137](index=137&type=chunk) - Casino revenue declined by **6.9%** (Q2 2025) and **1.4%** (H1 2025) due to Stockman's sale, while table games revenue increased significantly by **45.7%** (Q2 2025) and **29.6%** (H1 2025) due to expanded operations at Chamonix/Bronco Billy's[138](index=138&type=chunk) - Adjusted Segment EBITDA for the West segment was negative **$(1.1) million** in Q2 2025 and **$(3.6) million** in H1 2025, down from positive figures in prior periods, reflecting Stockman's sale and early inefficiencies at Chamonix[140](index=140&type=chunk) [Contracted Sports Wagering](index=38&type=section&id=Contracted%20Sports%20Wagering) This section details the financial performance of the Contracted Sports Wagering segment, focusing on revenue and EBITDA trends - Contracted Sports Wagering revenues declined by **$1.2 million** (Q2 2025) and **$1.2 million** (H1 2025) due to fewer active sports wagering skins[142](index=142&type=chunk) - Adjusted Segment EBITDA for Contracted Sports Wagering declined by **$1.0 million** (Q2 2025) and **$0.7 million** (H1 2025)[142](index=142&type=chunk) [Corporate](index=38&type=section&id=Corporate) This section outlines changes in corporate-level expenses and their contributing factors - Corporate expenses increased by **$0.5 million** in Q2 2025 due to higher third-party professional services fees, but decreased by **$0.2 million** in H1 2025 due to lower accrued bonus compensation and certain professional services fees[143](index=143&type=chunk) [Non-GAAP Financial Measure (Adjusted EBITDA)](index=39&type=section&id=Non-GAAP%20Financial%20Measure%20(Adjusted%20EBITDA)) This section defines and reconciles Adjusted EBITDA, a non-GAAP measure used for evaluating operating performance - Adjusted EBITDA is a non-GAAP measure used by management to evaluate operating performance in the gaming and hospitality industries, excluding interest, taxes, depreciation, amortization, preopening, impairment, asset write-offs, gains/losses from asset sales, project development, acquisition costs, and non-cash share-based compensation[144](index=144&type=chunk) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $ (10,383) | $ (8,629) | $ (20,148) | $ (19,901) | | Operating (loss) income | (74) | 2,315 | 664 | 1,709 | | Adjusted EBITDA | $ 11,134 | $ 14,141 | $ 22,621 | $ 26,550 | [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, cash flow activities, debt obligations, and future capital requirements [Cash Flows](index=42&type=section&id=Cash%20Flows) This section analyzes the company's cash flows from operating, investing, and financing activities - At June 30, 2025, the Company had **$32.1 million** in cash and equivalents. Management believes current cash, available credit, and operating cash flows will be sufficient for the next 12 months[154](index=154&type=chunk) - Cash used in operations was **$1.6 million** for H1 2025, compared to **$5.7 million** provided in H1 2024, primarily due to working capital timing and decreased operating income[155](index=155&type=chunk) - Cash used in investing activities significantly decreased from **$33.9 million** in H1 2024 to **$3.8 million** in H1 2025, reflecting the completion of Chamonix construction[156](index=156&type=chunk) - Cash used in financing activities was **$2.7 million** in H1 2025, compared to **$0.9 million** in H1 2024, primarily due to a **$2.0 million** net paydown of the Credit Facility[157](index=157&type=chunk) [Other Factors Affecting Liquidity](index=42&type=section&id=Other%20Factors%20Affecting%20Liquidity) This section discusses additional factors impacting the company's liquidity, including debt and future obligations - The Company has significant outstanding debt, with principal maturing in February 2028. Additional financing may be required for planned capital expenditures, such as the permanent American Place facility[158](index=158&type=chunk)[164](index=164&type=chunk) - The estimated long-term obligation for the Illinois gaming license is **$50.7 million**, with a discounted present value of **$42.2 million**, and annual payments expected to begin in 2026[162](index=162&type=chunk) - The Hyatt Lake Tahoe lessor has an option to purchase the Grand Lodge leasehold interest and related casino operating assets at any time prior to lease expiration[167](index=167&type=chunk) [Off-balance Sheet Arrangements](index=43&type=section&id=Off-balance%20Sheet%20Arrangements) This section confirms the absence of material off-balance sheet arrangements - The Company has no material off-balance sheet arrangements that are reasonably likely to have a current or future material effect on its financial condition or results of operations[168](index=168&type=chunk) [Critical Accounting Estimates and Policies](index=43&type=section&id=Critical%20Accounting%20Estimates%20and%20Policies) This section notes any significant changes in critical accounting estimates and policies - There have been no significant changes in the Company's critical accounting estimates and policies since December 31, 2024[169](index=169&type=chunk) [Forward-Looking Statements](index=44&type=section&id=Forward-Looking%20Statements) This section provides a cautionary statement regarding forward-looking information and associated risks - This report contains forward-looking statements regarding growth strategies, construction budgets, operational performance, financing, debt refinancing, capital investments, marketing efforts, and regulatory impacts[170](index=170&type=chunk) - These statements are based on current beliefs and expectations and are subject to inherent uncertainties, risks, and changes in circumstances that could cause actual results to differ materially[171](index=171&type=chunk) - The Company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law[172](index=172&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section addresses the company's exposure to market risks - This item is not applicable to the Company[173](index=173&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) This section reports on the effectiveness of the company's disclosure controls and internal control over financial reporting - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[174](index=174&type=chunk) - There have been no material changes in internal control over financial reporting during the last fiscal quarter[176](index=176&type=chunk) [Item 5. Other Information](index=46&type=section&id=Item%205.%20Other%20Information) This section provides other material information not covered elsewhere, such as trading arrangements - No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025[177](index=177&type=chunk) [PART II OTHER INFORMATION](index=37&type=section&id=PART%20II%20OTHER%20INFORMATION) This section contains additional information not included in the financial statements, such as legal proceedings, risk factors, and exhibits [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management does not expect a material adverse effect on its financial position or operations - The Company is party to various legal proceedings but does not expect a material adverse effect on its financial position or results of operations[178](index=178&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024, were reported - No material changes to risk factors were reported from the Annual Report on Form 10-K for the year ended December 31, 2024[179](index=179&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details inducement equity awards of restricted shares granted to employees, exempt from registration under Section 4(a)(2) of the Securities Act of 1933 - The Compensation Committee approved inducement equity awards totaling **82,288 restricted shares** to four employees between November 2024 and May 2025[181](index=181&type=chunk) - These awards were granted outside the 2015 Equity Incentive Plan as a material inducement for employment and were issued under Section 4(a)(2) of the Securities Act of 1933, exempt from registration[182](index=182&type=chunk) [Item 6. Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including employment agreements, officer certifications, and Inline XBRL documents - Exhibits include employment agreements for Daniel R. Lee, Lewis A. Fanger, and Elaine L. Guidroz, along with certifications from the principal executive and financial officers (31.1, 31.2, 32.1, 32.2)[183](index=183&type=chunk) - The filing also includes various Inline XBRL documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE) and the Cover Page Interactive Data File (104)[183](index=183&type=chunk) [Signatures](index=39&type=section&id=Signatures) This section contains the required signatures of the Chief Executive Officer and Chief Financial Officer for the Form 10-Q, dated August 7, 2025 - The report was signed by Daniel R. Lee, Chief Executive Officer, and Lewis A. Fanger, Chief Financial Officer, on August 7, 2025[189](index=189&type=chunk)

Financial Data and Key Metrics Changes - The company reported record revenue of $30.7 million for the second quarter, an increase of approximately 13% compared to the previous year [6][7] - Adjusted property EBITDA reached $8.9 million, up 17% year-over-year [7] - The company expects approximately 20% growth in EBITDA for the full year 2025 compared to 2024 [9] Business Line Data and Key Metrics Changes - American Place's gaming revenue continues to grow, with a significant increase in customer sign-ups, now exceeding 107,000 [8] - Chamonix's gaming revenue remains stable, with negligible impact on the overall city’s gaming revenues, indicating an undersaturated market [10][11] - Silver Slipper experienced a revenue decline of $1.6 million due to reduced comping levels, but adjusted property EBITDA remained flat except for a one-time non-cash accounting item [15] Market Data and Key Metrics Changes - The company noted that the gaming market in Colorado is growing, with no new competition on the horizon, which is beneficial for future revenue growth [51] - The overall gaming revenues in Colorado have been increasing, with the company capturing 100% of the growth in the state over the past six months [51] Company Strategy and Development Direction - The company is focused on enhancing customer awareness and improving amenities at American Place to drive growth [8] - Management changes at Chamonix are expected to lead to improved marketing strategies and cost savings, with a focus on building revenues [13][14] - The company is exploring refinancing options for existing debt and is closely monitoring the debt markets for favorable conditions [16][17] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of American Place and Chamonix, citing ongoing improvements in customer engagement and operational efficiencies [9][12] - The management team acknowledged the challenges faced in the early stages of property operations but remains optimistic about long-term profitability [53][54] Other Important Information - The company is working on relocating its license in Indiana, which could provide significant benefits to the state and the company [34] - The management team is focused on improving marketing strategies, including transitioning to email marketing to reduce costs [82] Q&A Session Summary Question: What are some early factors to determine success and earnings ramp at the property in Colorado? - Management highlighted cost structure reductions and the importance of building a targeted marketing strategy to capture the underserved market [37][41] Question: Can you provide an update on the timeline and financing for Waukegan? - Management indicated that starting construction by year-end is crucial and that they are prepared to seek extensions if necessary [71][75] Question: How has business evolved in terms of revenues during the quarter? - Management confirmed that American Place has shown consistent revenue growth, while Chamonix is in a turnaround phase with a focus on cost savings and revenue generation [108][116]

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) Consolidated revenue slightly increased, but net loss widened and Adjusted EBITDA decreased due to Chamonix's operational costs, prompting cost-saving and marketing initiatives Q2 2025 Consolidated Financial Summary | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $73.9 million | $73.5 million | +0.6% | | Net Loss | $(10.4) million | $(8.6) million | +20.9% | | Diluted Loss Per Share | $(0.29) | $(0.25) | +16.0% | | Adjusted EBITDA | $11.1 million | $14.1 million | -21.2% | - American Place Casino continued its **strong growth**, achieving **record net revenue and operating profit** in Q2 2025, driven by growing awareness in the Chicago suburbs, with future plans including adding a poker room[1](index=1&type=chunk)[3](index=3&type=chunk) - A new management team at Chamonix focused on operational efficiency in Q2, identifying over **$4 million in annual expense reductions**, and launched revamped marketing efforts in Q3 to drive revenue growth[4](index=4&type=chunk) [Segment Performance Analysis](index=2&type=section&id=Segment%20Performance%20Analysis) Midwest & South segment grew, while West and Contracted Sports Wagering segments declined due to asset sale, Chamonix inefficiencies, and prior-year accelerated revenue [Midwest & South](index=2&type=section&id=Midwest%20%26%20South) This segment showed revenue and Adjusted Segment EBITDA growth, primarily driven by American Place Casino's record performance Midwest & South Segment Performance (Q2 2025 vs Q2 2024, in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $57.8 | $55.5 | +4.2% | | Adjusted Segment EBITDA | $12.8 | $12.3 | +3.9% | - Growth was primarily driven by American Place, where revenues rose **12.7%** from Q2 2024 to an **all-time property record of $30.7 million**[10](index=10&type=chunk) [West](index=2&type=section&id=West) The West segment experienced revenue decline and an Adjusted Segment EBITDA loss, influenced by a casino sale and Chamonix's initial operational inefficiencies West Segment Performance (Q2 2025 vs Q2 2024, in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $14.5 | $15.2 | -4.4% | | Adjusted Segment EBITDA | $(1.1) | $0.9 | N/A | - The revenue decrease was primarily due to the **sale of Stockman's Casino** in April 2025, and the **Adjusted Segment EBITDA loss** reflects **initial inefficiencies** from the ramp-up phase of Chamonix[10](index=10&type=chunk) [Contracted Sports Wagering](index=2&type=section&id=Contracted%20Sports%20Wagering) This segment saw significant declines in revenue and Adjusted Segment EBITDA, largely due to accelerated revenue in the prior-year period from a ceased operation Contracted Sports Wagering Segment Performance (Q2 2025 vs Q2 2024, in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $1.7 | $2.9 | -41.4% | | Adjusted Segment EBITDA | $1.6 | $2.6 | -38.5% | - The decline reflects a prior-year period that included **$0.9 million of accelerated revenue** from an online sports wagering "skin" that ceased operations[10](index=10&type=chunk) [Financial Condition](index=2&type=section&id=Financial%20Condition) The company maintained a cash position of $32.1 million, with $450.0 million in senior secured notes and a reduced revolving credit facility balance Liquidity and Capital Resources as of June 30, 2025 (in millions) | Item | Amount | | :--- | :--- | | Cash and cash equivalents | $32.1 | | Senior secured notes due 2028 | $450.0 | | Outstanding revolving credit facility | $25.0 | [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) This section provides unaudited consolidated statements of operations, including detailed revenue and expense breakdowns, and reconciliations of GAAP to non-GAAP measures [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) This sub-section details the company's unaudited consolidated statements of operations for the second quarter of 2025 and 2024 Q2 2025 Consolidated Statement of Operations Highlights (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total Revenues** | **$73,946** | **$73,492** | | Casino Revenues | $56,983 | $54,685 | | Total Operating Costs | $74,020 | $71,177 | | **Operating (Loss) Income** | **$(74)** | **$2,315** | | Interest Expense, net | $(10,354) | $(11,023) | | **Net Loss** | **$(10,383)** | **$(8,629)** | | **Diluted Loss Per Share** | **$(0.29)** | **$(0.25)** | [Reconciliation of Non-GAAP Measures](index=5&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This sub-section reconciles GAAP net loss to non-GAAP Adjusted EBITDA, providing insights into core operating performance - The company uses non-GAAP measures like **Adjusted EBITDA** to provide supplemental information on **core operating performance**, excluding items such as depreciation, amortization, interest expense, taxes, and preopening costs[11](index=11&type=chunk)[15](index=15&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (Q2 2025 vs Q2 2024, in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net loss** | **$(10,383)** | **$(8,629)** | | Income tax (benefit) provision | (95) | (79) | | Interest expense, net | 10,354 | 11,023 | | Operating (loss) income | (74) | 2,315 | | Depreciation and amortization | 10,588 | 10,326 | | Preopening costs | — | 757 | | Stock-based compensation, net | 594 | 740 | | Other adjustments | 26 | 3 | | **Adjusted EBITDA** | **$11,134** | **$14,141** | [Forward-Looking Statements and Company Information](index=9&type=section&id=Forward-Looking%20Statements%20and%20Company%20Information) This section includes a safe harbor statement on forward-looking information, detailing inherent risks and uncertainties, and a description of the company's gaming facility portfolio - The press release contains **forward-looking statements** concerning growth projects, operational performance, and financing, which are subject to **inherent risks and uncertainties** like debt management, construction risks, and macroeconomic conditions[24](index=24&type=chunk) - Full House Resorts owns, leases, develops, and operates gaming facilities including **American Place (Illinois)**, **Silver Slipper (Mississippi)**, **Chamonix and Bronco Billy's (Colorado)**, **Rising Star (Indiana)**, and **Grand Lodge (Nevada)**[25](index=25&type=chunk)

Core Insights - The article emphasizes the importance of in-depth research in the casino and gaming sector, highlighting the value of actionable insights for investors [1] - Howard Jay Klein, with 30 years of experience in major casino operations, leads a group focused on providing research for investments in the casino, online betting, and entertainment industries [2] Company Insights - Howard Jay Klein has a background with notable casinos such as Ballys, Trump Taj Mahal, Mohegan Sun, and Caesars Palace, indicating a strong foundation in the industry [2] - The House Edge, led by Klein, serves as a platform for sharing actionable research, suggesting a focus on value investing and management quality [2] Industry Insights - The casino and gaming sector is characterized by a network of intelligence that spans from customer-facing employees to senior management, indicating a comprehensive understanding of the market dynamics [2] - The article suggests that the sector is ripe for investment opportunities, particularly through informed research and analysis [1][2]

Company Leadership Changes - Full House Resorts, Inc. has promoted Lewis Fanger to President, Chief Financial Officer, and Treasurer, effective July 11, 2025 [1] - The title of President was previously held by Daniel Lee, who is the Company's Chief Executive Officer [1] Company Growth and Development - Under the leadership of Daniel Lee, Full House Resorts has transformed from a small regional casino operator to one of the fastest-growing companies in the industry over the past ten years [2] - Lewis Fanger's financial leadership has been instrumental in the company's growth, enabling improvements in existing assets and expansions through new developments such as American Place and Chamonix [2] Company Overview - Full House Resorts owns, leases, develops, and operates gaming facilities across the United States, including properties like American Place in Illinois, Silver Slipper Casino in Mississippi, and Chamonix Casino Hotel in Colorado [4]

Financial Performance - Total revenues increased by 33.8% from $44.4 million to $59.4 million[8] - The Temporary generated $20.3 million in revenue[8] - Adjusted EBITDA declined from $12.1 million to $10.5 million[8] - The Temporary contributed $4.1 million to Adjusted EBITDA in 2Q23[8] - Midwest & South total revenues increased from $32.936 million to $49.911 million[40] - Midwest & South Adjusted Segment EBITDA increased from $9.149 million to $9.391 million[40] The Temporary Operations - The Temporary's table games revenue was third in the state in July[15] - Same-store revenues for Midwest & South excluding The Temporary decreased from $32.936 million to $29.584 million[42] - Same-store Adjusted Segment EBITDA for Midwest & South excluding The Temporary decreased from $9.149 million to $5.258 million[42] Chamonix Project - The Chamonix project is a $250 million project in Cripple Creek, Colorado[21] - Opening of Chamonix is scheduled for December 26, 2023[21]

Chamonix Casino Resort - Chamonix construction is essentially complete, with the jewelry store opening recently[4] - The grand opening weekend has just concluded[4] - The first broad post-opening advertising campaign is starting this week[4, 9, 10] - Chamonix's hotel occupancy has shown strong improvement since the introduction of new amenities in May 2024[14] Financial Performance (Three Months Ended September 30, 2024 vs 2023) - Midwest & South revenues decreased from $52.553 million to $54.510 million[29] - West revenues increased from $11.085 million to $19.387 million[29] - Contracted Sports Wagering revenues decreased significantly from $7.905 million to $1.790 million[29] - Midwest & South Adjusted Segment EBITDA decreased from $11.750 million to $10.249 million[29] - West Adjusted Segment EBITDA decreased from $2.308 million to $1.198 million[29] - Contracted Sports Wagering Adjusted Segment EBITDA decreased significantly from $7.852 million to $2.037 million[29]

Core Insights - The article discusses the investment positions held by the analyst in FLL and GDEN stocks, indicating a bullish outlook on these companies [1]. Company Analysis - FLL has been identified as a stock of interest, with the analyst holding a beneficial long position, suggesting confidence in its future performance [1]. - GDEN is also highlighted as a stock in which the analyst has a long position, further indicating a positive sentiment towards its market potential [1]. Industry Context - The article does not provide specific industry-wide trends or data, focusing instead on individual stock positions and opinions [1].