Core Insights - Golden Entertainment reported a quarterly loss of $0.18 per share, missing the Zacks Consensus Estimate of a loss of $0.08, and compared to earnings of $0.18 per share a year ago, indicating an earnings surprise of -125.00% [1] - The company posted revenues of $154.82 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.98% and down from $161.23 million year-over-year [2] - Golden Entertainment shares have declined approximately 32.8% since the beginning of the year, contrasting with the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $167.48 million, and for the current fiscal year, it is $0.31 on revenues of $648.32 million [7] - The estimate revisions trend for Golden Entertainment was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Gaming industry, to which Golden Entertainment belongs, is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - GameSquare Holdings, Inc., another company in the same industry, is expected to report a quarterly loss of $0.03 per share, reflecting a year-over-year change of +78.6% [9]

Revenue Performance - Total revenues for the three months ended September 30, 2025, decreased by $6.4 million, or 4%, compared to the prior year period, primarily due to declines in food and beverage, rooms, and other revenues [121]. - For the nine months ended September 30, 2025, total revenues decreased by $23.3 million, or 5%, with declines in gaming, food and beverage, rooms, and other revenues [122]. - Total revenues for the three months ended September 30, 2025, were $154.8 million, a decrease of $6.4 million, or 4%, compared to the prior year [137]. - Nevada Casino Resorts revenues decreased by $6.5 million, or 7%, for the three months ended September 30, 2025, primarily due to lower gaming and room revenues [138]. - Revenues for Nevada Taverns decreased by $0.3 million, or 1%, for the three months ended September 30, 2025, primarily due to decreases in food and beverage and other revenues [144]. Gaming Operations - Gaming revenues increased by $1.4 million during the same period, driven mainly by the Nevada Taverns segment [121]. - Nevada Locals Casinos revenues increased by $0.4 million, or 1%, for the three months ended September 30, 2025, driven by higher gaming revenues [142]. Operating Income and Expenses - Total operating income for the three months ended September 30, 2025, was $882, a significant decrease from $6,728 in the prior year [120]. - The net loss for the three months ended September 30, 2025, was $4.7 million, compared to a net income of $5.2 million in the prior year [120]. - Operating expenses decreased by $1.4 million, or 1.9%, for the three months ended September 30, 2025, primarily due to decreases in food and beverage and rooms operating expenses [123]. - For the nine months ended September 30, 2025, operating expenses decreased by $9.5 million, or 4%, mainly from declines in gaming, food and beverage, and rooms operating expenses [124]. - Selling, general and administrative (SG&A) expenses decreased by $1.5 million, or 3%, for the three months ended September 30, 2025, attributed to lower utility, legal, and advertising costs [125]. - SG&A expenses for the nine months ended September 30, 2025, decreased by $8.9 million, or 5%, influenced by trends observed in the previous quarter [126]. EBITDA and Financial Metrics - Adjusted EBITDA for the three months ended September 30, 2025, was $30.5 million, down $3.5 million, or 10%, from the previous year [137]. - Adjusted EBITDA for the nine months ended September 30, 2025 decreased by $2.2 million, or 10%, compared to the prior year period, attributed to higher labor costs and cost of goods [145]. Cash Flow and Financing - As of September 30, 2025, the company had $58.3 million in cash and cash equivalents and $205 million in borrowing availability under its $240 million Revolving Credit Facility [148]. - Net cash provided by operating activities increased by $3.0 million, or 4%, to $72.8 million for the nine months ended September 30, 2025, compared to the prior year [151]. - Net cash used in investing activities was $32.8 million for the nine months ended September 30, 2025, primarily related to capital expenditures at Nevada Casino Resorts [152]. - Net cash used in financing activities decreased by $314.5 million, or 89%, to $39.5 million for the nine months ended September 30, 2025, primarily due to the repayment of 2026 Unsecured Notes [153]. - The weighted-average effective interest rates on outstanding borrowings under the Credit Facility were 6.60% and 6.62% for the three and nine months ended September 30, 2025, respectively [169]. Strategic Actions and Market Conditions - The company completed the sale of its distributed gaming operations in Nevada for cash consideration of $213.5 million on January 10, 2024 [107]. - The company acquired the operations of Great American Pub for $7.3 million on April 22, 2024, adding two tavern locations to its portfolio [108]. - The company may pursue expansion opportunities in existing or new markets, which could require substantial investments funded through cash flows or additional financing [160]. - The company anticipates continued challenges in hotel occupancy rates impacting overall revenue performance [121]. - The company’s operating results are significantly affected by economic conditions and consumer spending, with potential declines adversely impacting revenues [149]. - The decrease in other revenues was influenced by changes in revenue recognition from certain taverns transitioning from fixed rental fees to gaming revenues [145].

Exhibit 99.1 As of September 30, 2025, the Company's total principal amount of debt outstanding was $430.1 million, consisting primarily of $391 million in outstanding term loan borrowings and $35 million in outstanding borrowings under the Company's revolving credit facility. As of September 30, 2025, the Company had cash and cash equivalents of $58.3 million and $205 million of remaining availability under its revolving credit facility. Forward-Looking Statements This press release contains forward-lookin ...

Core Insights - Golden Entertainment reported a net loss of $4.7 million for Q3 2025, a significant decline from a net income of $5.2 million in Q3 2024, indicating a challenging financial environment for the company [2][9] - The company's revenues decreased to $154.8 million in Q3 2025 from $161.2 million in Q3 2024, reflecting a year-over-year decline of approximately 3.9% [2][9] - Adjusted EBITDA for Q3 2025 was $30.5 million, down from $34.0 million in Q3 2024, representing a decrease of about 10.3% [2][9] Financial Performance - Total revenues for Q3 2025 were $154.8 million, compared to $161.2 million in Q3 2024, with a breakdown showing gaming revenues of $77.1 million, food and beverage revenues of $39.6 million, and room revenues of $25.4 million [2][11] - The company reported total expenses of $153.9 million for Q3 2025, slightly down from $154.5 million in Q3 2024, with notable expenses in gaming and food and beverage sectors [10][11] - The net loss per share for Q3 2025 was $0.18, compared to a net income per share of $0.18 in Q3 2024, indicating a complete reversal in profitability [2][10] Debt and Liquidity - As of September 30, 2025, Golden Entertainment had total debt of $430.1 million, primarily consisting of $391 million in term loan borrowings and $35 million in revolving credit facility borrowings [4] - The company had cash and cash equivalents of $58.3 million and $205 million of remaining availability under its revolving credit facility, indicating a reasonable liquidity position despite the losses [4] Dividend Information - The company declared a quarterly cash dividend of $0.25 per share on October 3, 2025, with the next dividend scheduled for January 6, 2026, reflecting a commitment to return capital to shareholders [3]

Core Points - The event "Scale The STRAT" is scheduled for February 22, 2026, where participants will climb 1,455 steps of The STRAT Hotel, Casino & Tower to support the American Lung Association in Nevada [6][7][8] - Registration is open with a fee of $35 per climber and a fundraising minimum of $200, with day-of registration available for $50 [8][9] - The event aims to raise funds for lung health education, research, and advocacy for cleaner air [7][8] Company Overview - The STRAT Hotel, Casino & Tower has undergone a full reinvention since Golden Entertainment, Inc. took ownership in late 2017, featuring 2,427 guest rooms and an 80,000-square-foot casino [13] - The STRAT Tower stands at 1,149 feet and includes various attractions such as a rotating dining room, observation deck, and thrill rides [13] - The STRAT is involved in community health initiatives, hosting events like Scale The STRAT to support lung health programs [10][11]

Core Insights - Strategic Gaming Management, LLC (SGM) has completed the acquisition of Sunland Park Racetrack & Casino for $301 million, followed by a sale-leaseback transaction with Gaming and Leisure Properties, Inc. [1][2] - This acquisition marks SGM's third purchase in two years, enhancing its portfolio of regional gaming assets with strong customer bases and competitive advantages [2] - The new leadership appointments include Matthew Flandermeyer as CFO and Fred Heinrich as President of Sunland Park, both expected to drive growth and operational success [3][4] Acquisition Details - The acquisition of Sunland Park includes 738 slots and 12 electronic gaming terminals across 25,000 square feet of gaming space, along with a 1-mile Thoroughbred and Quarter Horse track [2] - Sunland Park is recognized as a leading property in the New Mexico Gaming and Racing ecosystem and hosts the prestigious Sunland Park Derby [2] Leadership Changes - Matthew Flandermeyer, previously CFO of Golden Entertainment, brings extensive financial leadership experience to SGM, having overseen significant growth during his tenure [3] - Fred Heinrich, who has served as General Counsel & Compliance Officer, will now oversee operations and strategic direction at Sunland Park [4] Company Background - Strategic Gaming Management, LLC operates four properties across Nevada, South Dakota, and New Mexico, focusing on high-quality gaming assets [5] - Founded in 2009 by J. Grant Lincoln, the company has a history of growth and acquisitions, positioning itself as a significant player in the regional gaming market [5]

Core Viewpoint - Golden Entertainment, Inc. will release its third quarter financial results for 2025 on November 6, 2025, after market close, and will host a conference call and webcast for the public [1] Group 1 - The financial results announcement is scheduled for after market hours on November 6, 2025 [1] - A conference call and simultaneous webcast will take place at 5:00 pm ET (2:00 pm PT) on the same day [1] - The conference call will be accessible to the general public via a dedicated phone line [1]

Core Insights - The article does not provide specific company or industry insights, focusing instead on disclosures and disclaimers related to investment positions and advice [1][2] Group 1 - There are no stock, option, or similar derivative positions held by the analyst in any mentioned companies [1] - The article expresses personal opinions and is not compensated beyond Seeking Alpha [1] - The views may not reflect those of Seeking Alpha as a whole, and the analysts may not be licensed or certified [2]

PART I. FINANCIAL INFORMATION This section presents the company's unaudited consolidated financial statements and management's discussion and analysis for the reporting period [ITEM 1. FINANCIAL STATEMENTS (Unaudited)](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(Unaudited)) This section presents the unaudited consolidated financial statements of Golden Entertainment, Inc. for the periods ended June 30, 2025, and December 31, 2024, including balance sheets, statements of operations, shareholders' equity, and cash flows [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and shareholders' equity at specific points in time | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total assets | $1,045,870 | $1,079,906 | | Total liabilities | $602,575 | $605,679 | | Total shareholders' equity | $443,295 | $474,227 | - **Total assets** decreased by **$34,036 thousand** (**3.15%**) from December 31, 2024, to June 30, 2025, primarily due to decreases in cash and cash equivalents, property and equipment, and operating lease right-of-use assets[8](index=8&type=chunk) - **Total shareholders' equity** decreased by **$30,932 thousand** (**6.52%**) from December 31, 2024, to June 30, 2025, mainly driven by an accumulated deficit increase[8](index=8&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) This statement details the company's revenues, expenses, and net income over specific reporting periods | Metric (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 | $163,620 | $167,334 | $324,463 | $341,381 | | Total expenses | $151,704 | $153,799 | $301,478 | $247,704 | | Operating income | $11,916 | $13,535 | $22,985 | $93,677 | | Net income | $4,632 | $623 | $7,131 | $42,586 | | Basic EPS | $0.18 | $0.02 | $0.27 | $1.48 | | Diluted EPS | $0.17 | $0.02 | $0.26 | $1.40 | - **Net income** for the three months ended June 30, 2025, significantly increased to **$4,632 thousand** from **$623 thousand** in the prior year, while for the six months, it decreased to **$7,131 thousand** from **$42,586 thousand**, primarily due to a large gain on sale of business in the prior year[10](index=10&type=chunk) - **Operating income** for the six months ended June 30, 2025, decreased substantially to **$22,985 thousand** from **$93,677 thousand** in the prior year, largely influenced by the gain on sale of business in 2024[10](index=10&type=chunk) [Consolidated Statements of Shareholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) This statement outlines changes in the company's equity accounts, including common stock, additional paid-in capital, and accumulated deficit | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Common Stock | $262 | $265 | | Additional Paid-In Capital | $479,166 | $481,810 | | Accumulated Deficit | $(36,133) | $(7,848) | | Total Shareholders' Equity | $443,295 | $474,227 | - **Total shareholders' equity** decreased by **$30,932 thousand** from December 31, 2024, to June 30, 2025, primarily due to share repurchases (**$22,253 thousand**) and cash dividends paid (**$13,267 thousand**), partially offset by net income[13](index=13&type=chunk)[150](index=150&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement categorizes cash inflows and outflows from operating, investing, and financing activities | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $45,980 | $47,296 | | Net cash (used in) provided by investing activities | $(25,310) | $162,969 | | Net cash used in financing activities | $(26,087) | $(319,227) | | Change in cash and cash equivalents | $(5,417) | $(108,962) | | Balance, end of period | $52,308 | $88,638 | - **Net cash used in investing activities** shifted from a **$162,969 thousand** inflow in 2024 (due to business sale proceeds) to a **$25,310 thousand** outflow in 2025, reflecting capital expenditures[15](index=15&type=chunk)[149](index=149&type=chunk) - **Net cash used in financing activities** significantly decreased by **$293,140 thousand** (**91.8%**) in 2025 compared to 2024, primarily due to the redemption of **$276.5 million** in senior notes in the prior year[15](index=15&type=chunk)[150](index=150&type=chunk) [Condensed Notes to Consolidated Financial Statements](index=8&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on the company's business, accounting policies, segment information, debt, equity, and other financial matters [Note 1 — Nature of Business and Basis of Presentation](index=8&type=section&id=Note%201%20%E2%80%94%20Nature%20of%20Business%20and%20Basis%20of%20Presentation) This note describes the company's operations, reportable segments, and the basis for financial statement preparation - Golden Entertainment, Inc. operates a diversified entertainment platform with eight casino properties and **72 branded taverns** in Nevada[20](index=20&type=chunk) - The company conducts business through three reportable segments: **Nevada Casino Resorts**, **Nevada Locals Casinos**, and **Nevada Taverns**[21](index=21&type=chunk) - The company completed the sale of its distributed gaming operations in Nevada on January 10, 2024, for **$213.5 million**[22](index=22&type=chunk) - On April 22, 2024, the company acquired two Great American Pub tavern locations for **$7.3 million**, integrating them into the **Nevada Taverns** segment[23](index=23&type=chunk) [Note 2 — Divestitures](index=9&type=section&id=Note%202%20%E2%80%94%20Divestitures) This note details the financial impact and specifics of the company's divested operations - The sale of distributed gaming operations in Nevada on January 10, 2024, resulted in **$2.3 million** in transaction costs for the six months ended June 30, 2024[32](index=32&type=chunk) | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Distributed Gaming - Nevada Revenues | $— | $6,019 | | Distributed Gaming - Nevada Pretax income | $— | $476 | [Note 3 — Property and Equipment, Net](index=10&type=section&id=Note%203%20%E2%80%94%20Property%20and%20Equipment%2C%20Net) This note provides a breakdown of the company's property and equipment, including depreciation | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Property and equipment, net | $731,678 | $750,894 | | Accumulated depreciation | $(513,634) | $(581,165) | - **Property and equipment, net**, decreased by **$19,216 thousand** (**2.56%**) from December 31, 2024, to June 30, 2025[36](index=36&type=chunk) - Depreciation expense for **property and equipment** was **$43.6 million** for the six months ended June 30, 2025, comparable to **$43.7 million** in the prior year period[36](index=36&type=chunk) [Note 4 — Goodwill and Intangible Assets, Net](index=10&type=section&id=Note%204%20%E2%80%94%20Goodwill%20and%20Intangible%20Assets%2C%20Net) This note details the company's goodwill and intangible assets, including changes due to amortization | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total Goodwill | $86,540 | $86,540 | | Intangible Assets, Net | $52,047 | $53,387 | - **Goodwill** balances remained unchanged across all segments from December 31, 2024, to June 30, 2025[39](index=39&type=chunk) - **Intangible assets, net**, decreased by **$1,340 thousand** (**2.51%**) from December 31, 2024, to June 30, 2025, primarily due to amortization of player relationships and non-compete agreements[41](index=41&type=chunk) [Note 5 — Accrued Liabilities](index=12&type=section&id=Note%205%20%E2%80%94%20Accrued%20Liabilities) This note presents a breakdown of the company's accrued liabilities at the reporting dates | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total accrued liabilities | $29,638 | $29,637 | | Gaming liabilities | $11,961 | $11,963 | | Cash dividends payable | $6,540 | $6,641 | - **Total accrued liabilities** remained relatively stable at **$29,638 thousand** as of June 30, 2025, compared to December 31, 2024[42](index=42&type=chunk) [Note 6 — Long-Term Debt, Net and Finance Leases](index=13&type=section&id=Note%206%20%E2%80%94%20Long-Term%20Debt%2C%20Net%20and%20Finance%20Leases) This note outlines the company's long-term debt structure, finance leases, and associated interest rates | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Term Loan B-1 | $392,000 | $394,000 | | Revolving credit facility | $40,000 | $20,000 | | Total long-term debt and finance leases | $436,949 | $417,643 | | Long-term debt, net and finance leases | $423,272 | $405,278 | - **Long-term debt, net and finance leases** increased by **$17,994 thousand** (**4.44%**) from December 31, 2024, to June 30, 2025, primarily due to an increase in revolving credit facility borrowings[43](index=43&type=chunk) - The weighted-average effective interest rate on the Credit Facility was **6.60%** for both the three and six months ended June 30, 2025[47](index=47&type=chunk) - The company redeemed and repaid in full its **$375 million** **7.625%** Senior Notes due 2026 on April 15, 2024, incurring a **$4.4 million** loss on debt extinguishment[48](index=48&type=chunk) [Note 7 — Shareholders' Equity and Stock Incentive Plans](index=13&type=section&id=Note%207%20%E2%80%94%20Shareholders'%20Equity%20and%20Stock%20Incentive%20Plans) This note details changes in shareholders' equity, including share repurchases, dividends, and stock-based compensation - The company repurchased **788 thousand shares** of common stock for **$22,253 thousand** during the six months ended June 30, 2025, under its **$200 million** share repurchase program[50](index=50&type=chunk)[51](index=51&type=chunk) - As of June 30, 2025, **$77.2 million** remained available under the share repurchase program[50](index=50&type=chunk) - A recurring quarterly cash dividend of **$0.25 per share** was declared, with **$6,540 thousand** paid on July 9, 2025, for the quarter ended June 30, 2025[53](index=53&type=chunk) | Metric (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 share-based compensation expense | $2,052 | $2,346 | $4,942 | $5,387 | [Note 8 — Income Tax](index=17&type=section&id=Note%208%20%E2%80%94%20Income%20Tax) This note provides information on the company's income tax benefit or provision and effective tax rates | Metric (in thousands, except for tax rate) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income before income tax benefit (provision) | $4,189 | $479 | $7,759 | $69,935 | | Income tax benefit (provision) | $443 | $144 | $(628) | $(27,349) | | Effective tax rate | (10.6)% | (30.1)% | 8.1% | 39.1% | - The **effective income tax rates** for the three and six months ended June 30, 2025, were (**10.6%**) and **8.1%**, respectively, differing from the federal rate of **21.0%** primarily due to excess tax benefits on option exercises[62](index=62&type=chunk) - New U.S. tax legislation (OBBBA) was signed into law, making permanent many sunsetting tax provisions from 2017, but the company does not expect a material impact on its financial statements[64](index=64&type=chunk) [Note 9 — Financial Instruments and Fair Value Measurements](index=18&type=section&id=Note%209%20%E2%80%94%20Financial%20Instruments%20and%20Fair%20Value%20Measurements) This note describes the fair value measurements of the company's financial instruments, particularly debt | Debt Type (in thousands) | Carrying Amount (June 30, 2025) | Fair Value (June 30, 2025) | Fair Value Hierarchy | | :----------------------- | :------------------------------ | :------------------------- | :------------------- | | Term Loan B-1 | $392,000 | $393,470 | Level 2 | | Revolving Credit Facility | $40,000 | $39,400 | Level 2 | | Finance lease liabilities | $2,995 | $2,995 | Level 3 | | Notes payable | $1,954 | $1,954 | Level 3 | | Total debt | $436,949 | $437,819 | | - The **fair value** of **Term Loan B-1** and **Revolving Credit Facility** is based on Level 2 inputs (observable market data), while finance lease liabilities and notes payable are Level 3 (unobservable inputs, estimated at carrying value)[67](index=67&type=chunk) [Note 10 — Commitments and Contingencies](index=19&type=section&id=Note%2010%20%E2%80%94%20Commitments%20and%20Contingencies) This note discloses the company's legal proceedings, claims, and other contingent liabilities - The company is involved in various lawsuits, claims, and legal proceedings in the ordinary course of business, but believes their resolution should not have a material adverse effect on its financial condition[70](index=70&type=chunk) - Aggregate contingent payments recognized as gaming expenses under participation agreements were **$3.9 million** for the six months ended June 30, 2024[69](index=69&type=chunk) [Note 11 — Segment Information](index=19&type=section&id=Note%2011%20%E2%80%94%20Segment%20Information) This note presents financial data by the company's reportable operating segments, including revenues and Adjusted EBITDA - The company operates through three reportable segments: **Nevada Casino Resorts**, **Nevada Locals Casinos**, and **Nevada Taverns**[71](index=71&type=chunk) - **Adjusted EBITDA** is the primary metric used by the chief operating decision maker to assess segment performance and allocate resources[78](index=78&type=chunk)[79](index=79&type=chunk) | Segment (in thousands) | Total Revenues (3M Jun 2025) | Adjusted EBITDA (3M Jun 2025) | Adjusted EBITDA Margin (3M Jun 2025) | | :--------------------- | :--------------------------- | :---------------------------- | :----------------------------------- | | Nevada Casino Resorts | $98,196 | $25,970 | 26% | | Nevada Locals Casinos | $38,911 | $18,063 | 46% | | Nevada Taverns | $26,255 | $5,877 | 22% | | Segment (in thousands) | Total Revenues (6M Jun 2025) | Adjusted EBITDA (6M Jun 2025) | Adjusted EBITDA Margin (6M Jun 2025) | | :--------------------- | :--------------------------- | :---------------------------- | :----------------------------------- | | Nevada Casino Resorts | $192,417 | $50,739 | 26% | | Nevada Locals Casinos | $77,742 | $35,928 | 46% | | Nevada Taverns | $53,725 | $13,225 | 25% | [Note 12 — Related Party Transactions](index=26&type=section&id=Note%2012%20%E2%80%94%20Related%20Party%20Transactions) This note details transactions between the company and its related parties, including lease agreements - The company leases office space from an entity partially owned by its Chairman and CEO, Blake L. Sartini, with rent expense of **$0.1 million** for the three months ended June 30, 2025[91](index=91&type=chunk) - The company sublets a portion of its headquarters to Sartini Enterprises, Inc., controlled by Mr. Sartini, with rental income of less than **$0.1 million** for the three and six months ended June 30, 2025[92](index=92&type=chunk) - No costs were incurred under aircraft time-sharing agreements with Sartini Enterprises, Inc. for the three and six months ended June 30, 2025[95](index=95&type=chunk) [Note 13 — Subsequent Events](index=28&type=section&id=Note%2013%20%E2%80%94%20Subsequent%20Events) This note discloses significant events that occurred after the balance sheet date but before the financial statements were issued - Subsequent to June 30, 2025, the Board of Directors authorized a quarterly cash dividend of **$0.25 per share** payable on October 3, 2025[53](index=53&type=chunk)[97](index=97&type=chunk) - New U.S. tax legislation (OBBBA) was signed into law, but is not expected to have a material impact on the company's financial statements[64](index=64&type=chunk)[97](index=97&type=chunk) [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) This section provides management's perspective on the company's financial performance, liquidity, and capital resources for the three and six months ended June 30, 2025, compared to the prior year [Overview](index=29&type=section&id=Overview) This section provides an executive summary of the company's business, recent strategic activities, and operational segments - Golden Entertainment, Inc. operates a diversified entertainment platform, including eight casino properties and **72 branded taverns** in Nevada[102](index=102&type=chunk) - The company sold its distributed gaming operations in Nevada on January 10, 2024, for **$213.5 million**[103](index=103&type=chunk) - Acquired two Great American Pub tavern locations on April 22, 2024, for **$7.3 million**, integrating them into the **Nevada Taverns** segment[104](index=104&type=chunk) [Operations](index=29&type=section&id=Operations) This section describes the company's operational structure and the characteristics of its various business segments - As of June 30, 2025, the company operates through three reportable segments: **Nevada Casino Resorts**, **Nevada Locals Casinos**, and **Nevada Taverns**[105](index=105&type=chunk) | Segment | Location | Casino Space (Sq. ft.) | Slot Machines | Table Games | Hotel Rooms | | :-------------------- | :---------------- | :--------------------- | :------------ | :---------- | :---------- | | Nevada Casino Resorts | Las Vegas, Laughlin, NV | 217,350 | 2,429 | 81 | 5,371 | | Nevada Locals Casinos | Las Vegas, Pahrump, NV | 151,857 | 1,839 | 18 | 631 | | Nevada Taverns | Nevada | — | 1,138 | — | — | | **Totals** | | **370,216** | **5,506** | **99** | **6,002** | [Nevada Casino Resorts](index=30&type=section&id=Nevada%20Casino%20Resorts) This section details the operations and customer base of the company's destination casino resort properties in Nevada - This segment includes destination casino resort properties like The STRAT, Aquarius, and Edgewater, catering to a regional drive-in customer base[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) - These properties feature a large number of hotel rooms and offer various food and beverage outlets and entertainment venues[107](index=107&type=chunk) - Operations of Colorado Belle Casino Resort have been suspended since March 2020, and its gaming license was surrendered on June 30, 2023[110](index=110&type=chunk) [Nevada Locals Casinos](index=30&type=section&id=Nevada%20Locals%20Casinos) This section describes the operations and target market of the company's casino properties catering to local customers in Nevada - This segment comprises casino properties like Arizona Charlie's Boulder, Arizona Charlie's Decatur, Gold Town Casino, Lakeside Casino & RV Park, and Pahrump Nugget Hotel Casino, targeting local customers within a five-mile radius[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) - These properties typically have higher frequency of customer visits, limited hotel rooms, and revenues primarily generated from slot machine play[111](index=111&type=chunk) [Nevada Taverns](index=31&type=section&id=Nevada%20Taverns) This section outlines the business model and offerings of the company's branded tavern locations in the Las Vegas metropolitan area - The **Nevada Taverns** segment consists of **72 branded tavern locations**, primarily in the Las Vegas metropolitan area, offering a casual, upscale environment with food, craft beer, and up to **15 slot machines**[114](index=114&type=chunk) - Following the sale of distributed gaming operations, slot machines in taverns are owned and operated by an independent third party, with Golden receiving a percentage of gaming revenue[114](index=114&type=chunk) [Results of Operations (Consolidated)](index=31&type=section&id=Results%20of%20Operations) This section provides a consolidated analysis of the company's revenues, expenses, and net income for the reporting periods | Metric (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 | $163,620 | $167,334 | $324,463 | $341,381 | | Total expenses | $151,704 | $153,799 | $301,478 | $247,704 | | Operating income | $11,916 | $13,535 | $22,985 | $93,677 | | Net income | $4,632 | $623 | $7,131 | $42,586 | - **Total revenues** decreased by **$3.7 million** (**2%**) for the three months and **$16.9 million** (**5%**) for the six months ended June 30, 2025, primarily due to lower occupancy rates at **Nevada Casino Resorts** and the exclusion of distributed gaming operations[117](index=117&type=chunk)[118](index=118&type=chunk) - **Operating income** decreased by **$1.6 million** (**11.9%**) for the three months and **$70.7 million** (**75.5%**) for the six months ended June 30, 2025, largely impacted by the prior year's gain on sale of business[116](index=116&type=chunk) - Non-operating expense, net, decreased by **$5.3 million** (**41%**) for the three months and **$8.5 million** (**36%**) for the six months, mainly due to reduced interest expense and the absence of debt extinguishment losses from the prior year[128](index=128&type=chunk) [Revenues, Adjusted EBITDA and Adjusted EBITDA Margin by Reportable Segment](index=34&type=section&id=Revenues%2C%20Adjusted%20EBITDA%20and%20Adjusted%20EBITDA%20Margin%20by%20Reportable%20Segment) This section presents a detailed breakdown of financial performance metrics for each of the company's operating segments - **Adjusted EBITDA** is a key metric used by management and investors to measure core operating results and determine executive compensation[130](index=130&type=chunk) | Segment (in thousands) | Revenues (3M Jun 2025) | Revenues (3M Jun 2024) | Adj. EBITDA (3M Jun 2025) | Adj. EBITDA (3M Jun 2024) | Adj. EBITDA Margin (3M Jun 2025) | Adj. EBITDA Margin (3M Jun 2024) | | :--------------------- | :--------------------- | :--------------------- | :------------------------ | :------------------------ | :------------------------------- | :------------------------------- | | Nevada Casino Resorts | $98,196 | $101,093 | $25,970 | $27,392 | 26% | 27% | | Nevada Locals Casinos | $38,911 | $37,866 | $18,063 | $16,928 | 46% | 45% | | Nevada Taverns | $26,255 | $28,152 | $5,877 | $7,791 | 22% | 28% | | Total Adjusted EBITDA | | | $38,440 | $41,192 | | | | Segment (in thousands) | Revenues (6M Jun 2025) | Revenues (6M Jun 2024) | Adj. EBITDA (6M Jun 2025) | Adj. EBITDA (6M Jun 2024) | Adj. EBITDA Margin (6M Jun 2025) | Adj. EBITDA Margin (6M Jun 2024) | | :--------------------- | :--------------------- | :--------------------- | :------------------------ | :------------------------ | :------------------------------- | :------------------------------- | | Nevada Casino Resorts | $192,417 | $202,105 | $50,739 | $54,283 | 26% | 27% | | Nevada Locals Casinos | $77,742 | $76,857 | $35,928 | $34,464 | 46% | 45% | | Nevada Taverns | $53,725 | $55,959 | $13,225 | $15,352 | 25% | 27% | | Distributed Gaming | $— | $6,019 | $— | $484 | | | | Total Adjusted EBITDA | | | $76,021 | $82,184 | | | [Nevada Casino Resorts (Segment Performance)](index=35&type=section&id=Nevada%20Casino%20Resorts%20(Segment%20Performance)) This section details the revenue and Adjusted EBITDA performance of the Nevada Casino Resorts segment - **Revenues** decreased by **$2.9 million** (**3%**) for the three months and **$9.7 million** (**5%**) for the six months ended June 30, 2025, primarily due to lower occupancy rates[134](index=134&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) - **Adjusted EBITDA** decreased by **$1.4 million** (**5%**) for the three months and **$3.5 million** (**7%**) for the six months, mainly due to higher labor costs and lower visitation[136](index=136&type=chunk)[137](index=137&type=chunk) [Nevada Locals Casinos (Segment Performance)](index=37&type=section&id=Nevada%20Locals%20Casinos%20(Segment%20Performance)) This section details the revenue and Adjusted EBITDA performance of the Nevada Locals Casinos segment - **Revenues** increased by **$1.0 million** (**2.8%**) for the three months and **$0.9 million** (**1%**) for the six months ended June 30, 2025, driven by higher gaming and other revenues[138](index=138&type=chunk)[139](index=139&type=chunk) - **Adjusted EBITDA** increased by **$1.1 million** (**7%**) for the three months and **$1.5 million** (**4%**) for the six months, primarily due to reduced operating expenses[138](index=138&type=chunk)[139](index=139&type=chunk) [Nevada Taverns (Segment Performance)](index=37&type=section&id=Nevada%20Taverns%20(Segment%20Performance)) This section details the revenue and Adjusted EBITDA performance of the Nevada Taverns segment - **Revenues** decreased by **$1.9 million** (**7%**) for the three months and **$2.2 million** (**4%**) for the six months ended June 30, 2025, due to lower visitation and changes in revenue recognition for certain taverns[140](index=140&type=chunk)[141](index=141&type=chunk) - **Adjusted EBITDA** decreased by **$1.9 million** (**25%**) for the three months and **$2.1 million** (**14%**) for the six months, mainly due to higher labor costs and cost of goods[140](index=140&type=chunk)[141](index=141&type=chunk) [Distributed Gaming (Segment Performance)](index=37&type=section&id=Distributed%20Gaming%20(Segment%20Performance)) This section reports on the performance of the distributed gaming segment prior to its divestiture - This segment was divested on January 10, 2024, resulting in no revenues or **Adjusted EBITDA** for the periods ended June 30, 2025, compared to prior year[142](index=142&type=chunk) [Adjusted EBITDA Margin](index=37&type=section&id=Adjusted%20EBITDA%20Margin) This section analyzes the profitability margins across the company's operating segments - **Adjusted EBITDA** margins for **Nevada Casino Resorts** and **Nevada Locals Casinos** remained consistent for the three and six months ended June 30, 2025[143](index=143&type=chunk) - **Nevada Taverns** segment experienced a lower **Adjusted EBITDA** margin due to increased labor costs and reduced visitation[143](index=143&type=chunk)[144](index=144&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's financial position, cash flow generation, and ability to meet its short-term and long-term obligations - As of June 30, 2025, the company had **$52.3 million** in cash and cash equivalents and **$200 million** in borrowing availability under its **$240 million** **Revolving Credit Facility**[145](index=145&type=chunk)[168](index=168&type=chunk) - Management believes current liquidity sources are sufficient to meet capital requirements for the next **12 months**[145](index=145&type=chunk) - The company may seek additional debt or equity financing to enhance liquidity or fund future acquisitions[147](index=147&type=chunk) [Cash Flows](index=39&type=section&id=Cash%20Flows) This section provides a detailed analysis of the company's cash inflows and outflows from operating, investing, and financing activities - **Net cash provided by operating activities** decreased by **$1.3 million** (**3%**) to **$46.0 million** for the six months ended June 30, 2025, primarily due to timing of working capital spending[148](index=148&type=chunk) - **Net cash used in investing activities** was **$25.3 million** in 2025, compared to **$163.0 million** provided in 2024 (due to the sale of distributed gaming operations)[149](index=149&type=chunk) - **Net cash used in financing activities** decreased by **$293.1 million** (**92%**) to **$26.1 million** in 2025, mainly due to the prior year's **$276.5 million** repayment of senior notes[150](index=150&type=chunk) [Long-Term Debt](index=39&type=section&id=Long-Term%20Debt) This section details the company's long-term debt structure, including credit facilities and outstanding balances - The company's senior secured credit facility includes a **$400 million** **Term Loan B-1** and a **$240 million** **Revolving Credit Facility**[44](index=44&type=chunk)[151](index=151&type=chunk) - As of June 30, 2025, **$392 million** of **Term Loan B-1** and **$40 million** of **Revolving Credit Facility** borrowings were outstanding[44](index=44&type=chunk)[167](index=167&type=chunk) [Share Repurchase Program](index=39&type=section&id=Share%20Repurchase%20Program) This section outlines the company's share repurchase activities and remaining authorization under its program - The company has a **$200 million** share repurchase program, with **$77.2 million** remaining availability as of June 30, 2025[50](index=50&type=chunk)[152](index=152&type=chunk) - Repurchases can be made in open market transactions, block trades, or private transactions, and the program can be suspended at any time[152](index=152&type=chunk) [Other Items Affecting Liquidity](index=39&type=section&id=Other%20Items%20Affecting%20Liquidity) This section discusses additional factors influencing the company's liquidity, such as capital expenditures and expansion plans - The company performs ongoing refurbishment and maintenance at its facilities, funding capital expenditures through operating cash flows and the **Revolving Credit Facility**[155](index=155&type=chunk) - Potential expansion opportunities in existing or new markets may require substantial investments, funded by cash flows, the **Revolving Credit Facility**, or additional financing[157](index=157&type=chunk) [Critical Accounting Policies and Estimates](index=40&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights the significant accounting judgments and estimates used in preparing the financial statements - The preparation of financial statements requires estimates and assumptions, particularly for acquisition accounting, long-lived assets, goodwill, intangible assets, revenue recognition, income taxes, and share-based compensation[158](index=158&type=chunk) - As of October 1, 2024, the estimated fair value of an indefinite-lived trade name in the **Nevada Casino Resorts** segment did not significantly exceed its carrying value, indicating potential future impairment risk[159](index=159&type=chunk) - No material changes to critical accounting policies and estimates occurred during the three and six months ended June 30, 2025[160](index=160&type=chunk) [Seasonality](index=40&type=section&id=Seasonality) This section discusses how seasonal factors, such as holidays and weather, impact the company's business operations and revenues - The company's businesses are affected by seasonal factors, including holidays, weather, and travel conditions[161](index=161&type=chunk) - Nevada casino properties and taverns typically experience lower revenues during the summer due to high temperatures and increased local vacation activity[161](index=161&type=chunk) - Branded taverns generally see higher revenues in the fall, coinciding with professional sports seasons[161](index=161&type=chunk) [Recently Issued Accounting Pronouncements](index=40&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) This section addresses the potential impact of new accounting standards on the company's financial reporting - The company is evaluating ASU No. 2023-09 (Income Taxes) and ASU No. 2024-03/2025-01 (Expense Disaggregation Disclosures) but does not expect a material impact on its financial statements[29](index=29&type=chunk)[30](index=30&type=chunk)[162](index=162&type=chunk) [Regulation and Taxes](index=41&type=section&id=Regulation%20and%20Taxes) This section outlines the extensive regulatory environment and tax considerations affecting the company's gaming operations - The company's business is subject to extensive regulation by state gaming authorities, and changes in laws could materially affect operations[163](index=163&type=chunk) - The gaming industry is a significant source of tax revenues, and potential changes in tax law could adversely impact the company's financial position[164](index=164&type=chunk) [Off Balance Sheet Arrangements](index=41&type=section&id=Off%20Balance%20Sheet%20Arrangements) This section confirms the absence of material off-balance sheet arrangements that could significantly impact the company's financial condition - The company has no off-balance sheet arrangements that are material to its financial condition, revenues, expenses, results of operations, liquidity, capital expenditures, or capital resources[165](index=165&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=41&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section outlines the company's primary market risk exposure, which is interest rate risk associated with its variable-rate long-term debt, specifically the senior secured credit facility - The primary market risk exposure is interest rate risk from variable-rate long-term debt, mainly the senior secured credit facility[166](index=166&type=chunk) - As of June 30, 2025, outstanding variable-rate debt included **$392 million** from **Term Loan B-1** and **$40 million** from the **Revolving Credit Facility**, with a weighted-average effective interest rate of **6.60%**[167](index=167&type=chunk) - A **50 basis point** increase in the applicable interest rate would increase annual interest incurred by **$2.2 million**[167](index=167&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=41&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) This section confirms the effectiveness of the company's disclosure controls and procedures as of June 30, 2025, and states that there have been no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[170](index=170&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[171](index=171&type=chunk) PART II. OTHER INFORMATION This section includes disclosures on legal proceedings, risk factors, equity security sales, and other miscellaneous information [ITEM 1. LEGAL PROCEEDINGS](index=41&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section refers to the detailed discussion of the company's legal proceedings within the financial statement notes - Information regarding legal proceedings is contained in Note 10 — Commitments and Contingencies in Part I, Item 1: Financial Statements[172](index=172&type=chunk) [ITEM 1A. RISK FACTORS](index=41&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section directs readers to the comprehensive risk factors discussed in the company's Annual Report on Form 10-K, noting no material changes in the current reporting period - Readers should consider risk factors discussed in Part I, Item 1A of the Annual Report, as they could materially affect the business[173](index=173&type=chunk) - No material changes to the risk factors described in the Annual Report have occurred[173](index=173&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=42&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section details the company's common stock repurchase activity for the three months ended June 30, 2025, under its authorized share repurchase program - The company repurchases common stock under a Board-authorized share repurchase program, which can be suspended or discontinued at any time[175](index=175&type=chunk) | Period | Total Number of Shares Purchased | Average Price per Share | | :--------------- | :------------------------------- | :---------------------- | | April 1-30, 2025 | — | $— | | May 1-31, 2025 | 321,516 | $28.67 | | June 1-30, 2025 | 192,634 | $28.13 | | **Total** | **514,150** | **$28.47** | - As of June 30, 2025, **$77.2 million** remained available for repurchase under the program[176](index=176&type=chunk) [ITEM 5. OTHER INFORMATION](index=42&type=section&id=ITEM%205.%20OTHER%20INFORMATION) This section confirms that the company's directors and officers did not adopt or terminate any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the quarter - Directors and officers did not adopt or terminate any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[178](index=178&type=chunk) [ITEM 6. EXHIBITS](index=43&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q, including certifications and XBRL-related documents - Exhibits include certifications from the CEO and CFO (Sections 302 and 906 of Sarbanes-Oxley Act) and various Inline XBRL documents[179](index=179&type=chunk) [SIGNATURES](index=44&type=section&id=SIGNATURES) This section contains the required signatures from the company's principal executive, financial, and accounting officers, certifying the filing of the Quarterly Report on Form 10-Q - The report is signed by Blake L. Sartini (Chairman of the Board and CEO), Charles H. Protell (President and CFO), and Viktoryia G. Pulliam (Senior Vice President and Chief Accounting Officer)[181](index=181&type=chunk)[182](index=182&type=chunk)

Core Viewpoint - Golden Entertainment reported quarterly earnings of $0.17 per share, exceeding the Zacks Consensus Estimate of $0.14 per share, marking an earnings surprise of +21.43% [1][2] Financial Performance - The company posted revenues of $163.62 million for the quarter ended June 2025, which was 1.49% below the Zacks Consensus Estimate and a decrease from $167.33 million year-over-year [2] - Over the last four quarters, Golden Entertainment has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [2] Stock Performance - Golden Entertainment shares have declined approximately 14.9% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $160.9 million, and for the current fiscal year, it is $0.45 on revenues of $654.06 million [7] - The trend of estimate revisions for Golden Entertainment was unfavorable prior to the earnings release, which may impact future stock movements [6][5] Industry Context - The Gaming industry, to which Golden Entertainment belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [8]