Monarch Casino & Resort Reports All-Time Record Quarterly Financial Results
Monarch Casino & Resort Inc. reported operating results for the third quarter ended September 30, 2025.
John Farahi, Co-Chairman and Chief Executive Officer of Monarch, said: “In the third quarter of 2025, Monarch delivered all-time record quarterly financial results. Net revenue increased 3.6% year-over-year to $142.8 million, reflecting growth in casino, food and beverage, and hotel revenues.
“On a year-over-year basis, we improved casino, food and beverage, and hotel expense margins reflecting our focus on marketing initiatives, streamlining processes, and utilizing technology. Adjusted EBITDA increased 8.3% year-over-year to an all-time quarterly record of $54.8 million. Adjusted EBITDA margin increased by approximately 170 basis point to 38.4% in the third quarter of 2025 from 36.7% in the third quarter of 2024.
“At Atlantis in Reno, we remain committed to the ongoing enhancement of the property to ensure that we consistently deliver a fresh, high-quality product to our guests. We believe that our elevated product, combined with exceptional guest service, will continue to drive increased guest visitation and sustained revenue growth.
“At Monarch Black Hawk, revenue growth during the third quarter was primarily driven by another period of market share gains. We believe, that the property’s position as the premier luxury casino resort in Colorado will continue to attract mid-to-upper-tier guests from the Denver and Boulder metro areas and support its future growth.”
Summary of 2025 Third Quarter Operating Results
In the third quarter of 2025, the Company generated net revenue of $142.8 million compared to $137.9 million in the corresponding prior-year period. Casino revenue increased 5.0%, food and beverage (F&B) revenue increased 2.9% and hotel revenues increased 3.9%, all compared to the same prior-year period.
Selling, general and administrative (SG&A) expense for the third quarter of 2025 was $27.5 million compared to $27.2 million in the corresponding prior-year period. As a percentage of net revenue, SG&A expense decreased to 19.3% from 19.7% in the corresponding prior-year period. Casino operating expense as a percentage of casino revenue decreased to 35.8% during the third quarter of 2025 from 36.3% in the corresponding prior-year period, primarily due to improved labor management and operational efficiencies. During the third quarter of 2025, F&B operating expense as a percentage of F&B revenue decreased to 69.9% from 72.8% in the corresponding prior-year period due to labor efficiency, as well as increases in F&B revenue per cover. Hotel operating expense as a percentage of hotel revenue declined to 31.4% in the third quarter of 2025 compared to 33.8% in the corresponding prior-year period primarily due to higher Average Daily Rate.
Net income for the third quarter of 2025 increased 14.4%. Diluted EPS increased 15.0%, compared to the same period last year primarilly due to the increase in net income. In the third quarter of 2025, the Company generated all-time quarterly record consolidated Adjusted EBITDA of $54.8 million, which represents a $4.2 million, or 8.3% increase, compared to the same prior-year period.
Credit Facility and Liquidity
As of September 30, 2025, the Company had cash and cash equivalents of $107.6 million and no borrowings against its credit facility.
Capital expenditures of $5.4 million in the third quarter of 2025 were funded from operating cash flow and included expenditures related to the now completed redesign and upgrade of guest rooms at Atlantis, as well as ongoing maintenance capital expenditures at both of the Company’s properties.
On September 15, 2025, the Company paid a cash dividend of $0.30 per share to stockholders of record as of September 1, 2025. The cash dividend was also funded from operating cash flow.
In the third quarter of 2025, the Company purchased, on the open market, 111,169 shares of its common stock for an aggregate amount of $11.3 million under its Repurchase Plan. The purchases were funded from operating cash flow. As of September 30, 2025, the Company has authorization to purchase up to 1,598,476 additional shares under the existing Repurchase Plan authorization.
Monarch believes its strong balance sheet and free cash flow favorably position the Company to continue investing in its properties and returning capital to stockholders through cash dividends and share repurchases. The Company continuously evaluates potential M&A transaction opportunities, which, if executed, could drive additional long-term value for stockholders.
Quarterly Dividend Declaration
The Company announced a cash dividend of $0.30 per share of its outstanding common stock. The dividend is payable on December 15, 2025 to stockholders of record as of December 1, 2025. This cash dividend is part of the previously announced annual cash dividend of $1.20 per share payable in quarterly payments and subject to quarterly review and evaluation by the Company’s Board of Directors.
