Red Rock Resorts Reports Record First-Quarter Revenue Amid Construction Disruptions

Written by

Share on social media

Red Rock Resorts started 2026 with record first-quarter net revenue of $507.3 million, helped by solid Las Vegas demand and continued momentum at newer assets such as Durango.

Key Takeaways:
  • Red Rock Resorts posts a record first-quarter net revenue of $507.3 million
  • Construction delays at Durango and Green Valley Ranch impact margins
  • The company maintains aggressive capital returns and advances Durango North project

The company said, in their filings, adjusted EBITDA came in at $212.6 million, its second-best first quarter on record, even as profitability slipped 1.2% from a year earlier and margins narrowed. 

Net income was $42.9 million, or 73 cents a share, topping analyst expectations.

Construction Weighs on Near-Term Margin

Management said the main drag on results remains construction-related disruption across the portfolio, especially at Durango and Green Valley Ranch. 

Stephen Cootey, the company’s chief financial officer, told analysts: “Moving from Q1 to Q2, generally we’re down 8%-9%.”

“As we start bringing cranes, cement trucks, and start erecting steel at our Durango site, we’re anticipating another $2 million-$3 million of disruption starting next quarter.” 

This second phase of development intends to add 275,000 square feet and is set to last approximately 18 months. 

Even so, Red Rock said hotel, food and beverage, and gaming spend remained resilient, while the promotional environment was described as stable.

Capital Returns Stay Aggressive

The operator generated $107 million in operating free cash flow and returned about $170.5 million to shareholders through dividends and buybacks according to the call.

It ended the quarter with a net debt-to-EBITDA ratio of 4.07 times, a level management said it aims to keep around four times, barring attractive growth opportunities. 

The company also continues to advance Durango North, which is slated to open in summer 2027 and is expected to add gaming capacity and amenities aimed at repeat visits.

Red Rock’s revenue in Q2 of 2025 was $526.3 million, up 8.2% from the previous year.