Red Rock Resorts (RRR) Q4 2025 earnings summary

Executive summary

• Achieved ninth consecutive record quarter for net revenue and adjusted EBITDA in Q4 2025, with Las Vegas operations leading performance and full-year net revenues rising 3.7% to $2.01 billion.

• Maintains a durable business model with high free cash flow conversion and a proven track record of returning capital to shareholders.

• Owns all real estate and development sites, providing significant capacity for organic growth and high barriers to entry.

• Durango Casino Resort continues to expand the locals market, with recent expansions and new amenities driving incremental play and positive customer response.

• Ongoing investments in core properties, including Sunset Station and Green Valley Ranch, are aimed at maintaining competitive positioning and capturing market share from the Strip.

Financial highlights

• Q4 2025 net revenues reached $511.8 million, up 3.2% year-over-year; full-year 2025 net revenues were $2.01 billion, up 3.7%.

• Q4 2025 adjusted EBITDA was $213.3 million (45.8% margin), up 5.4%; full-year adjusted EBITDA was $848.6 million (42.2% margin), up 6.6%.

• Q4 2025 Las Vegas operations net revenues were $505 million, up 2.5%; adjusted EBITDA was $231.1 million, up 3.2%; full-year Las Vegas net revenues reached $1.98 billion, up 2.9%; adjusted EBITDA was $915.9 million, up 4.2%.

• Net income for 2025 was $355.7 million, up 22.1% year-over-year.

• Free cash flow conversion: 62% of adjusted EBITDA in Q4 ($131.5 million), 55% for the year ($466.3 million); TTM operating free cash flow per share was $4.44.

Outlook and guidance

• Guidance for 2026 includes continued reinvestment in existing properties and ongoing expansion at Durango and other development sites.

• Near-term disruption expected from ongoing construction at Durango, Sunset Station, and Green Valley Ranch, with $9 million disruption projected for Q1 2026 at Green Valley Ranch.

• Capital spend for 2026 expected between $375-$425 million, with $275-$300 million in investment capital and $100-$125 million in maintenance capital.

• Confident in ability to grow Las Vegas EBITDA in 2026 despite construction disruptions.

• Regular quarterly dividend of $0.26 per share and special dividend of $1.00 per share declared for early 2026.