Q1 2026 Red Rock Resorts Inc Earnings Call Transcript
Key Points
- Red Rock Resorts Inc (RRR) reported the highest first-quarter net revenue and the second-highest first-quarter adjusted EBITDA in its history, demonstrating strong performance despite external challenges.
- The Durango property continues to expand and drive incremental play, reinforcing its position as a meaningful growth driver in RRR's portfolio.
- RRR's hotel and food and beverage divisions delivered strong results, achieving near-record revenue and profitability.
- The company successfully converted 50.3% of its adjusted EBITDA into operating free cash flow, generating $107 million or $1.03 per share.
- RRR returned approximately $170.5 million to shareholders through dividends and share repurchases, showcasing its commitment to disciplined capital allocation.
- Adjusted EBITDA for the first quarter was down 1.2% from the prior year's first quarter, indicating a slight decline in profitability.
- The adjusted EBITDA margin decreased by 129 basis points from the prior year, reflecting some margin pressure.
- RRR anticipates continued near-term disruption from ongoing construction at several properties, which could impact operational performance.
- The company's net debt-to-EBITDA ratio stands at 4.07 times, indicating a relatively high level of leverage.
- Higher gas prices and air travel disruptions were noted as headwinds, although their impact was deemed minimal in the first quarter.
Good day, and welcome to the Red Rock Resorts first-quarter 2026 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Mr. Stephen Cootey, Executive Vice President, Chief Financial Officer and Treasurer of Red Rock Resorts. Please go ahead
Thank you, operator, and good afternoon, everyone. Thank you for joining us today for Red Rock Resorts first-quarter 2026 earnings conference call. Joining me on the call today are Frank Lorenzo Fertitta, Scott Kreeger and our executive management team.
I'd like to remind everyone that our call today will include forward-looking statements under the safe harbor provisions of the United States federal securities laws. Developments and results may differ from those projected.
During this call, we will also discuss non-GAAP financial measures. For definitions and complete reconciliation of these figures to GAAP,
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
