Red Rock Resorts Q3 Revenue Rises as EBITDA Falls and Stock Awards Drive Loss

Red Rock Resorts, Inc. reported higher third-quarter revenue but lower adjusted EBITDA and a net loss, as narrower Las Vegas margins and increased corporate costs offset revenue growth. The company also highlighted ongoing investment in its existing properties and development pipeline, including the October opening of the North Fork Mono Casino in California.

For the three months ended September 30, 2026, net revenue rose 2.8% to $488.7 million from $475.6 million a year earlier. Adjusted EBITDA declined 4.3% to $182.6 million, while the consolidated adjusted EBITDA margin narrowed to 37.4% from 40.1%.

Red Rock recorded a net loss of $17.7 million, compared with net income of $76.9 million in the third quarter of 2025. The company said the loss primarily reflected $79.1 million of share-based compensation tied to its 50th-anniversary stock awards and $6.9 million of one-time anniversary-related expenses. Total share-based compensation was $89.8 million, up from $7.3 million a year earlier.

Las Vegas revenue rises as margins narrow

Las Vegas operations generated net revenue of $479.1 million, up 2.3% from $468.6 million. The presentation described the result as the segment’s highest net revenue for comparable quarters and its second-highest adjusted EBITDA for such periods.

Las Vegas adjusted EBITDA nevertheless decreased to $204.6 million from $209.4 million. The segment’s adjusted EBITDA margin fell to 42.7% from 44.7%. Gaming remained the core of the business, accounting for 67% of third-quarter revenue excluding development fees.

Native American operations contributed $6.2 million of revenue and $5.1 million of adjusted EBITDA, compared with $3.9 million for both measures a year earlier. Corporate and other adjusted EBITDA was negative $27.0 million, versus negative $22.4 million in the prior-year quarter.

Cash flow supports property investment and shareholder returns

Operating free cash flow was $81.7 million in the third quarter, equal to $0.77 per share and 45% of EBITDA. For the trailing 12 months, operating free cash flow totaled $419.9 million, or $3.98 per share, representing a 51% conversion rate.

At September 30, Red Rock had $3.75 billion of total debt and $128.3 million of cash, resulting in net debt of $3.62 billion. Based on trailing-12-month EBITDA of $816.6 million, gross leverage was 4.59 times and net leverage was 4.43 times.

The company continues to pay a quarterly dividend of $0.26 per share. It said it has returned more than $1 billion to shareholders through dividends since 2021 and $795 million through share repurchases and tender activity over the same period. Red Rock had $459 million remaining under its $900 million share-repurchase authorization.

Expansion remains a central operating priority

Red Rock is investing in additions and renovations across its Las Vegas portfolio, including a new high-limit room, parking garage and continued expansion at Durango Casino & Resort. Work is also underway at Green Valley Ranch and Sunset Station.

Beyond its existing properties, the company owns seven development sites in Las Vegas and Reno covering 462 acres. A CBRE valuation dated September 30 placed the land’s value at more than $950 million. Management said more than 70% of projected Clark County population growth is expected within three miles of a Red Rock property or one of its six Las Vegas development sites.

The North Fork Mono Casino opened on October 27, 2026, which the company said was on time and on budget. The Central California property has more than 2,400 slot machines and 40 table games. Red Rock is entitled to a management fee equal to 30% of “net revenue” and a 4% development fee. The company reported that $110.5 million of invested capital had already been returned, with an $86.1 million note balance remaining.

Red Rock’s growth case is tied closely to Southern Nevada’s population, income and housing trends. The presentation estimated that the Las Vegas locals gaming market generated $3.3 billion of gross gaming revenue on a trailing-12-month basis through September 2026, equal to about 1.9% of the region’s estimated personal income.

Near-term operating conditions include roadwork and construction around Durango, Red Rock Resort and Green Valley Ranch. The company said the infrastructure projects should improve access but are currently causing disruption. Red Rock also cautioned that its forward-looking expectations are subject to operational, financial, market and industry risks that could cause actual results to differ materially.