Core Insights - Monarch Casino & Resort, Inc. reported record financial results for the third quarter of 2025, achieving the highest quarterly revenue, net income, and EBITDA in its 32-year history [1][2][8] Financial Performance - Net revenue for Q3 2025 was $142.8 million, a 3.6% increase from $137.9 million in Q3 2024 [1][5] - Net income rose by 14.4% to $31.6 million compared to $27.6 million in the same period last year [1][8] - Adjusted EBITDA reached an all-time quarterly record of $54.8 million, reflecting an 8.3% increase from $50.6 million in Q3 2024 [1][8] - Basic EPS increased by 15.3% to $1.73, while diluted EPS rose by 15.0% to $1.69 [1][8] Revenue Breakdown - Casino revenue increased by 5.0%, food and beverage revenue grew by 2.9%, and hotel revenue rose by 3.9% year-over-year [5][8] - SG&A expenses for Q3 2025 were $27.5 million, slightly up from $27.2 million in Q3 2024, but as a percentage of net revenue, it decreased to 19.3% from 19.7% [6][8] Operational Efficiency - Casino operating expenses as a percentage of casino revenue decreased to 35.8% from 36.3% year-over-year, attributed to improved labor management and operational efficiencies [6][7] - Food and beverage operating expenses as a percentage of revenue decreased to 69.9% from 72.8%, while hotel operating expenses declined to 31.4% from 33.8% [7] Capital Management - As of September 30, 2025, the company had cash and cash equivalents of $107.6 million and no borrowings against its credit facility [9] - Capital expenditures for Q3 2025 totaled $5.4 million, funded from operating cash flow, including upgrades to guest rooms at Atlantis [9][11] - The company declared a cash dividend of $0.30 per share, payable on December 15, 2025, as part of an annual cash dividend of $1.20 per share [10][13] Share Repurchase Program - In Q3 2025, the company repurchased 111,169 shares for $11.3 million under its Repurchase Plan, funded from operating cash flow [11]

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Core Points - Monarch Casino & Resort, Inc. will release its 2025 third quarter financial results on October 21, 2025, after market close [1] - The company operates two main properties: Monarch Casino Resort Spa in Black Hawk, Colorado, and Atlantis Casino Resort Spa in Reno, Nevada [2] Property Overview - Monarch Black Hawk features 516 guest rooms and suites, approximately 60,000 square feet of casino space, 1,000 slot machines, 43 table games, and various dining options including a fine-dining steakhouse [3] - Atlantis Casino Resort Spa includes 817 guest rooms and suites, around 61,000 square feet of casino space, 1,200 slot and video poker machines, and a variety of food outlets and entertainment facilities [4]

Core Insights - Spa Monarch has been ranked the 2 Best Hotel Spa in the United States for two consecutive years by USA Today's 10Best Readers' Choice Travel Awards, highlighting its status as a premier wellness destination [1][2] - The spa has received recognition for three consecutive years, previously ranking 4th in 2023, showcasing its consistent excellence in luxury and guest satisfaction [2] Company Overview - Monarch Casino Resort Spa is located in Black Hawk, Colorado, and offers upscale accommodations, fine dining, an expansive casino, and the nationally recognized Spa Monarch [5] - The resort aims to deliver unforgettable guest experiences by blending luxury, relaxation, and entertainment in the Rocky Mountains [5] Unique Offerings - Spa Monarch features a variety of award-winning amenities, including a rooftop pool, fire pits, aqua spa, mountain stone bath, and innovative therapies such as brine inhalation and light spectrum treatments [3][4] - The spa also includes herbal steam rooms and an experiential shower with sensory effects, enhancing the overall guest experience [3]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents Monarch Casino & Resort's unaudited consolidated financial statements for Q2 and YTD 2025 and 2024, including income, balance, equity, and cash flow statements with notes [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Q2 2025 net revenues rose to **$136.9 million** and net income to **$27.0 million**; YTD net revenues reached **$262.3 million** and net income **$46.9 million** Consolidated Statements of Income Highlights (In thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Revenues** | $136,914 | $128,143 | $262,308 | $249,800 | | **Income from Operations** | $34,899 | $29,513 | $60,217 | $53,323 | | **Net Income** | $27,008 | $22,682 | $46,872 | $40,957 | | **Diluted EPS** | $1.44 | $1.19 | $2.50 | $2.12 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$705.8 million** by June 30, 2025, while total liabilities decreased, raising stockholders' equity to **$539.2 million** Consolidated Balance Sheet Highlights (In thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $102,537 | $90,422 | | **Property and Equipment, net** | $576,025 | $575,287 | | **Total Assets** | $705,786 | $691,583 | | **Total Current Liabilities** | $139,520 | $146,463 | | **Total Liabilities** | $166,539 | $173,835 | | **Total Stockholders' Equity** | $539,247 | $517,748 | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity grew to **$539.2 million** by June 30, 2025, driven by **$46.9 million** net income, offset by **$11.0 million** dividends and **$20.0 million** stock repurchases - Key changes in stockholders' equity for the six months ended June 30, 2025 include: net income of $19.9M in Q1 and $27.0M in Q2, dividend payments totaling $11.0M, and common stock repurchases of $20.0M[12](index=12&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was **$70.6 million** for YTD 2

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Overview: Monarch Casino (MCRI) - Monarch Casino currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting a favorable outlook compared to the market [3] Performance Metrics - MCRI shares have increased by 21.36% over the past week, while the Zacks Gaming industry has remained flat [5] - Over the past month, MCRI's price change is 22.39%, significantly outperforming the industry's 5.72% [5] - In the last quarter, MCRI shares rose by 36.48%, and over the past year, they gained 52.58%, compared to the S&P 500's increases of 22.7% and 15.9%, respectively [6] Trading Volume - The average 20-day trading volume for MCRI is 150,974 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for MCRI have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $5.15 to $5.45 [9] - For the next fiscal year, three estimates have also moved upwards, indicating positive sentiment [9] Conclusion - Given the strong performance metrics and positive earnings outlook, MCRI is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling investment option [11]

Core Insights - Monarch Casino & Resort (NASDAQ: MCRI) saw a stock surge of 20% on July 17, 2025, reaching a new 52-week peak, significantly outperforming the S&P 500 [2] - The company reported record Q2 2025 adjusted EBITDA of $51.3 million, a 16.8% year-over-year increase, exceeding consensus estimates by $12.8 million [3] - Despite the stock rally, Monarch remains reasonably valued compared to the S&P 500, with a price-to-sales ratio of 3.0 and a price-to-earnings ratio of 25.6 [4] Financial Performance - Casino revenue grew by 12.1% due to strong demand and efficiency improvements from a $100 million renovation at Atlantis, while hotel revenue decreased by 3.1% [3] - Q2 net income increased by 19.1% to $27 million, with earnings per share (EPS) growing by 21% to $1.44 [3] - The company returned capital to shareholders through a $0.30 dividend and $19.8 million in stock buybacks [3] Valuation Metrics - Monarch's three-year revenue compound annual growth rate (CAGR) is 7.1%, surpassing the S&P 500's 5.5% [4] - The company has an operating margin of 17.9% and a net income margin of 14.1%, indicating strong profitability [4] - Monarch's debt-to-equity ratio is only 0.9%, significantly lower than the S&P 500 average of 19.4% [5] Market Sensitivity - Monarch stock has shown significant volatility during economic downturns, with notable declines of 41.8% during the 2022 inflation shock and 75.1% during the 2020 COVID crash [6][7] - Despite historical volatility, the company's fundamentals support a long-term investment outlook [7]

Core Viewpoint - Monarch Casino (NASDAQ:MCRI) is identified as an undervalued investment opportunity, with analysts highlighting its potential for significant returns over the past year [2]. Company Summary - The investment thesis for Monarch Casino has been supported by multiple analysts, indicating a consensus on its undervaluation [2]. - The positive performance of Monarch Casino is noted, suggesting that the investment strategy is yielding favorable results [2]. Industry Summary - The broader context of the gaming and casino industry is implied, with a focus on identifying undervalued assets within this sector [2].

Company Performance - Monarch Casino (MCRI) shares have increased by 24.5% over the past month and reached a new 52-week high of $113.88 [1] - The stock has gained 32.9% since the beginning of the year, outperforming the Zacks Consumer Discretionary sector's 11.9% and the Zacks Gaming industry's 18.9% [1] Earnings and Revenue - Monarch Casino has consistently exceeded earnings expectations, reporting an EPS of $1.44 against a consensus estimate of $1.22 in its last earnings report [2] - For the current fiscal year, the company is projected to achieve earnings of $5.27 per share on revenues of $537.3 million, reflecting a 6.25% increase in EPS and a 2.89% increase in revenues [3] - The next fiscal year is expected to see earnings of $5.47 per share on revenues of $549.6 million, indicating a year-over-year change of 3.73% in EPS and 2.29% in revenues [3] Valuation Metrics - The stock trades at 19.9 times the current fiscal year EPS estimates, below the peer industry average of 23.9 times [7] - On a trailing cash flow basis, the stock trades at 13.3 times compared to the peer group's average of 11.2 times [7] Zacks Rank and Style Scores - Monarch Casino holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions [8] - The company has a Value Score of B, and both Growth and Momentum Scores are A, resulting in a combined VGM Score of A [6][9] Industry Comparison - Accel Entertainment, Inc. (ACEL) is a notable peer with a Zacks Rank of 2 (Buy) and strong style scores [10] - ACEL is expected to post earnings of $0.86 per share on revenues of $1.33 billion for the current fiscal year, having beaten consensus estimates by 33.33% last quarter [11] - The Gaming industry is positioned in the top 38% of all industries, suggesting favorable conditions for both MCRI and ACEL [12]

Core Viewpoint - Monarch Casino (MCRI) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates in determining stock price movements, making it a valuable tool for investors [2][3]. - The correlation between earnings estimate revisions and stock price movements is strong, largely due to institutional investors who adjust their valuations based on these estimates [3]. Business Improvement Indicators - The upgrade in Zacks Rank for Monarch Casino reflects an improvement in the company's underlying business, which is expected to drive the stock price higher as investors recognize this trend [4]. - Analysts have raised their earnings estimates for Monarch Casino, with the Zacks Consensus Estimate for the fiscal year ending December 2025 projected at $5.15 per share, showing a 0.4% increase over the past three months [7]. Zacks Rank System Overview - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a proven track record of performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The system maintains a balanced distribution of ratings, ensuring that only the top 20% of stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [8][9].