Financial Data and Key Metrics Changes - The second quarter net revenue was $513.3 million, up 6.2% from the prior year [8] - Adjusted EBITDA was $239.4 million, up 7.3% from the prior year, with an adjusted EBITDA margin of 46.7%, an increase of 47 basis points [8] - Consolidated net revenue, including $10 million from the North Fork project, was $526.3 million, up 8.2% from the prior year [8] - Adjusted EBITDA on a consolidated basis was $229.4 million, up 13.7% from the prior year, with an adjusted EBITDA margin of 43.6%, an increase of 212 basis points [9] - The company generated $124.3 million in operating free cash flow, bringing year-to-date cumulative free cash flow to $217.3 million [9] Business Line Data and Key Metrics Changes - The gaming segment achieved the highest revenue and profitability in the company's history, driven by strong visitation and spend per visit [10] - The hotel division recorded its highest second quarter revenue and profit, supported by increased average daily rate (ADR) and occupancy [10] - The food and beverage division also achieved near-record results, benefiting from higher cover counts across outlets [10] - Group Sales and Catering delivered near-record second quarter revenue and profit, with positive momentum expected to continue [11] Market Data and Key Metrics Changes - The Las Vegas locals market showed continued strength, with the company focusing on core local guests while also attracting regional and national customers [9] - The opening of the Durango Casino Resort added over 108,000 new customers to the database, expanding the Las Vegas locals market [5] Company Strategy and Development Direction - The company is focused on reinvesting in existing properties to enhance amenities and deliver best-in-class customer service while returning capital to shareholders [7] - Significant investments are being made in the Durango Casino Resort, Sunset Station, and Green Valley Ranch properties [13][16] - The company is strategically positioned with over 450 acres of developable land in desirable locations throughout the Las Vegas Valley, supporting long-term growth [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the business and long-term growth prospects, despite expected seasonal visitation patterns and construction disruptions [11] - The company anticipates full revenue recovery over the next couple of years, supported by strong demographic growth in the Las Vegas Valley [6] - Management highlighted the positive impact of tax legislation on discretionary income for customers, which is expected to benefit the company [38][41] Other Important Information - The company declared a regular cash dividend of $0.25 per Class A common share and a special dividend of $1 per Class A common share [19] - Total distributions to LLC unitholders were approximately $200.3 million, including share repurchases totaling $31 million [12] Q&A Session Summary Question: Can you unpack where you're finding incremental operating leverage and any impact from renovations on EBITDA? - Management noted strength across all business lines, with the best table and slot hold in company history and record hotel revenue and profitability [24] Question: What is the timeline for construction disruption? - Management indicated that the bulk of disruption is expected in Q3 and Q4, with some impacts already seen at Green Valley [32][34] Question: How are new customer sign-ups performing, especially in light of the Strip's slowdown? - Management reported strong positive performance across all segments, with significant growth in new sign-ups, particularly from the Durango property [47] Question: What is the expected impact of tax relief on the locals market? - Management expects the tax legislation to enhance discretionary income for customers, benefiting the company [38] Question: What are the expectations for group bookings in Q4 and 2026? - Management reported positive forward bookings with mid-twenty percent increases in group sales [53] Question: How is the company insulated from hotel rate compression seen on the Strip? - Management explained that while they remain competitive, hotel revenue only represents about 10% of overall revenue, with the majority coming from gaming [61] Question: What is the ideal leverage range for the company moving forward? - Management expressed comfort with the current leverage position, supported by a flexible credit agreement and no near-term debt maturities [101]

Financial Data and Key Metrics Changes - In Q2 2025, the company's Las Vegas operations achieved net revenue of $513.3 million, a 6.2% increase year-over-year, and adjusted EBITDA of $239.4 million, up 7.3% from the previous year [6][7] - Consolidated net revenue, including $10 million from the North Fork project, was $526.3 million, reflecting an 8.2% increase year-over-year, while adjusted EBITDA was $229.4 million, up 13.7% [6][7] - The adjusted EBITDA margin for the quarter was 43.6%, an increase of 212 basis points from the prior year [7] Business Line Data and Key Metrics Changes - The gaming segment reported the highest revenue and profitability in the company's history, driven by strong visitation and spending per visit [8] - The hotel division recorded its highest second-quarter revenue and profit, supported by increased average daily rates (ADR) and occupancy [8] - The food and beverage division achieved near-record results, benefiting from higher cover counts across outlets [8] Market Data and Key Metrics Changes - The Durango Casino Resort has added over 108,000 new customers since its opening in December 2023, contributing to the growth of the Las Vegas locals market [4] - The company expects full revenue recovery over the next couple of years, supported by strong demographic growth in the Las Vegas Valley, particularly in Summerlin [5] Company Strategy and Development Direction - The company is focused on reinvesting in existing properties to enhance amenities and improve customer service while returning capital to shareholders [5] - Significant investments are being made in the Durango Casino Resort, Sunset Station, and Green Valley Ranch properties, with ongoing renovations expected to drive future growth [11][13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the business and long-term growth prospects, despite expected seasonal visitation patterns and construction disruptions [9][10] - The company anticipates that recent tax legislation will enhance discretionary income for customers, positively impacting the locals market [34][36] Other Important Information - The company declared a regular cash dividend of $0.25 per Class A common share and a special dividend of $1 per Class A common share [16] - Year-to-date capital expenditures are projected to be between $325 million and $375 million, with a focus on investment capital for ongoing projects [11] Q&A Session Summary Question: Can you unpack where you're finding incremental operating leverage? - Management noted strength across all business lines, with the best table and slot hold in company history and record hotel revenue and profitability [22] Question: Any impact from renovations in the quarter? - Minimal impact was reported from renovations, with most disruption expected in Q3 and Q4 due to ongoing construction [24][30] Question: What is the timing of construction disruption? - Management indicated that the bulk of disruption would occur in Q3 and Q4, particularly at Green Valley Ranch [30] Question: How does the new tax legislation affect the locals market? - Management expects the tax legislation to increase discretionary income for customers, benefiting the company [34][36] Question: What are the trends in new customer sign-ups? - The company reported strong growth in new customer sign-ups, particularly from the Durango property, which added 108,000 new customers [44] Question: What is the outlook for group sales and catering? - Positive forward bookings were noted, with mid-twenty percent increases in group sales expected [49] Question: How is the company positioned regarding hotel rate competition? - Management acknowledged competitive pressures but emphasized that hotel revenue represents only about 10% of overall revenue [56] Question: What is the ideal leverage range for the company? - Management expressed comfort with the current leverage position, supported by a flexible credit agreement [94] Question: How do new customers from Durango behave compared to existing customers? - New customers from Durango exhibit similar behavior to existing customers but tend to have higher spending on food and beverage [100][102]

Growth & Market Opportunity - Nevada's population grew by 40% between 2004 and 2024[17] - Residents aged 65+ are projected to grow 4.1x faster than the total population in Clark County between 2025 and 2030[22] - The median household income for older consumers is expected to grow by 6.9% between 2025 and 2030[25] - The Las Vegas Locals gaming market is the second largest in the nation, generating $3.2 billion in gross gaming revenue in 2024[64] Red Rock Resorts Strengths - The company has 19 strategically distributed properties[85] - 75% of local carded slot revenue is generated by guests who visit 4+ times per month[88, 90] - Red Rock Resorts owns land holdings ready for development valued at over $950 million[102] - The company's Durango project is expected to generate over 3x return on investment[99] Financial Performance & Capital Allocation - 60% of EBITDA has been converted to operating free cash flow since reopening in 2Q 2020[159] - The company's net debt stands at $3.288723 billion with a net leverage of 3.96x as of Q2 2025[163] - Las Vegas operations achieved record-high EBITDA of $239.444 million in Q2 2025, with an adjusted EBITDA margin of 46.7%[171]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Red Rock Resorts reported strong Q2 2025 growth in consolidated net revenues, net income, and Adjusted EBITDA Q2 2025 Consolidated Financial Performance (YoY) | Metric | Q2 2025 | Q2 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Revenues | $526.3 million | $486.4 million | +$39.9 million | +8.2% | | Net Income | $108.3 million | $69.8 million | +$38.5 million | +55.1% | | Adjusted EBITDA | $229.4 million | $201.7 million | +$27.7 million | +13.7% | [Balance Sheet and Dividend](index=1&type=section&id=Balance%20Sheet%20and%20Dividend) The company maintained a solid cash position and declared a quarterly cash dividend, while managing its principal debt - The Company's cash and cash equivalents were **$145.2 million**, and total principal debt outstanding was **$3.4 billion** at the end of Q2 2025[4](index=4&type=chunk) - A cash dividend of **$0.25 per Class A common share** was declared for Q3 2025, payable on September 30, 2025, to stockholders of record as of September 15, 2025[5](index=5&type=chunk) - Prior to the dividend payment, Station Holdco LLC will make a total distribution of approximately **$27.6 million** to its unit holders[6](index=6&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) The company's strong performance was driven by growth in Las Vegas Operations and contributions from Native American Management [Las Vegas Operations](index=1&type=section&id=Las%20Vegas%20Operations) Las Vegas operations demonstrated robust growth in net revenues and Adjusted EBITDA, reflecting strong regional market performance Q2 2025 Las Vegas Operations Performance (YoY) | Metric | Q2 2025 | Q2 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Revenues | $513.3 million | $483.2 million | +$30.1 million | +6.2% | | Adjusted EBITDA | $239.4 million | $223.1 million | +$16.3 million | +7.3% | [Native American Management](index=1&type=section&id=Native%20American%20Management) The Native American Management segment contributed $10.0 million in net revenues and Adjusted EBITDA from development fees - Net revenues and Adjusted EBITDA from Native American management activities were **$10.0 million** for Q2 2025[3](index=3&type=chunk)[17](index=17&type=chunk) - This revenue is characterized as a cumulative catch-up related to development fees[3](index=3&type=chunk) [Detailed Financial Statements](index=4&type=section&id=Detailed%20Financial%20Statements) The detailed financial statements provide a comprehensive breakdown of the company's Q2 2025 performance, including key income statement figures and Adjusted EBITDA reconciliation [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The condensed consolidated statements of income highlight Q2 2025 net revenues, operating income, net income, and diluted earnings per share Q2 2025 Statement of Income Highlights (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net Revenues** | **$526,273** | **$486,403** | | Casino Revenue | $344,796 | $319,629 | | Operating Income | $168,028 | $140,234 | | Net Income | $108,253 | $69,810 | | Net Income Attributable to RRR | $56,404 | $35,676 | | Diluted EPS | $0.95 | $0.59 | [Reconciliation of Net Income to Adjusted EBITDA](index=5&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) This section details the reconciliation of Q2 2025 net income to Adjusted EBITDA, outlining key adjustments like depreciation, interest expense, and income tax Q2 2025 Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Description | Amount | | :--- | :--- | | **Net Income** | **$108,253** | | Depreciation and amortization | $47,988 | | Share-based compensation | $8,723 | | Write-downs and other, net | $4,010 | | Interest expense, net | $50,632 | | Change in fair value of derivative instruments | $2,305 | | Gain on Native American development | ($8,476) | | Provision for income tax | $15,924 | | **Adjusted EBITDA** | **$229,359** | [Other Information](index=2&type=section&id=Other%20Information) This section provides details on the upcoming conference call, the company's business overview, and disclosures regarding forward-looking statements and risks - A conference call to discuss financial results is scheduled for **4:30 p.m. Eastern Time** on the day of the announcement[8](index=8&type=chunk) - Red Rock Resorts, through its interest in Station Casinos, is the leading provider of gaming, hospitality, and entertainment to residents of Las Vegas, Nevada[10](index=10&type=chunk) - The press release includes forward-looking statements and warns that actual results may differ materially due to various risks, including inflation, interest rates, and competition[11](index=11&type=chunk)[12](index=12&type=chunk)

The Company's Board of Directors has declared a cash dividend of $0.25 per Class A common share for the third quarter of 2025. The dividend will be payable on September 30, 2025 to all stockholders of record as of the close of business on September 15, 2025. Net revenues and adjusted EBITDA from Native American management activities were $10.0 million for the second quarter of 2025, representing a cumulative revenue catch-up related to development fees. Balance Sheet Highlights The Company's cash and cash e ...

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Red Rock Resorts due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Red Rock Resorts is expected to report quarterly earnings of $0.40 per share, reflecting a year-over-year decrease of 32.2% [3]. - Revenues are projected to be $485.25 million, a slight decline of 0.2% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.75% higher in the last 30 days, indicating a reassessment by analysts [4]. - Despite the upward revision, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.90%, suggesting a bearish outlook [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with positive readings being more reliable [9][10]. - Red Rock Resorts currently has a Zacks Rank of 3, making it challenging to predict an earnings beat [12]. Historical Performance - In the last reported quarter, Red Rock Resorts exceeded expectations with earnings of $0.80 per share, a surprise of +70.21% [13]. - The company has beaten consensus EPS estimates in each of the last four quarters [14]. Industry Comparison - Boyd Gaming, a competitor in the gaming industry, is expected to report earnings of $1.67 per share, a year-over-year increase of 5.7%, with revenues projected at $980.29 million, up 1.3% [18][19]. - Boyd Gaming has a positive Earnings ESP of +0.82% and has consistently beaten consensus EPS estimates in the past four quarters [19].

Core Insights - The article compares Boyd Gaming (BYD) and Red Rock Resorts (RRR) to determine which stock is more attractive to value investors [1] Valuation Metrics - Boyd Gaming has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision compared to Red Rock Resorts, which has a Zacks Rank of 3 (Hold) [3] - BYD has a forward P/E ratio of 12.40, significantly lower than RRR's forward P/E of 34.84 [5] - The PEG ratio for BYD is 2.90, while RRR's PEG ratio is 5.75, suggesting BYD is more reasonably priced relative to its expected earnings growth [5] - BYD's P/B ratio is 4.91, compared to RRR's P/B of 15.76, indicating that BYD is valued more attractively in terms of market value versus book value [6] - These metrics contribute to BYD receiving a Value grade of A, while RRR has a Value grade of C [6] Earnings Outlook - Boyd Gaming is noted for its improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]

Group 1 - The Hecht Commodity Report is a comprehensive service covering market movements of 20 different commodities, providing bullish, bearish, and neutral calls along with directional trading recommendations and actionable ideas for traders [1] - The author of the report actively participates in commodities markets through futures, options, ETF/ETN products, and commodity equities, with positions that can change on an intraday basis [2] Group 2 - The article does not provide specific investment recommendations or advice, emphasizing that past performance is not indicative of future results [3]

Core Viewpoint - Red Rock Resorts, Inc. will announce its financial results for the second quarter of 2025 on July 29, 2025, followed by a conference call at 4:30 p.m. ET [1] Group 1: Financial Results Announcement - The financial results for Q2 2025 will be released on July 29, 2025 [1] - A conference call will take place on the same day at 4:30 p.m. ET, including prepared remarks and a Q&A session [1] Group 2: Conference Call Details - Participants can join the conference call by dialing (888) 317-6003 for domestic calls or (412) 317-6061 for international calls, with a passcode of 7806086 [2] - A live audio webcast will be available on the company's website [2] Group 3: Replay Information - A replay of the conference call will be accessible until August 5, 2025, by calling (877) 344-7529 or (412) 317-0088 with conference ID: 5193703 [3] - An audio archive of the call will also be available on the company's website [3] Group 4: Company Overview - Red Rock Resorts is a holding company that manages Station Casinos LLC, a leading provider of gaming and entertainment in Las Vegas [4] - Station Casinos operates various properties in the Las Vegas valley, offering a range of amenities including restaurants, entertainment venues, and traditional casino gaming [4] - The company owns and operates multiple casino resorts and has a 50% interest in Barley's Casino & Brewing Company and other establishments [4]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) RED ROCK RESORTS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the trans ...