Red Rock Resorts delivered second quarter results that were well received by investors, despite a year-over-year revenue decline. Management attributed the performance to steady demand in the Las Vegas locals market, resilience across gaming and non-gaming businesses, and the continued ramp of the Durango property. CFO Stephen Cootey highlighted that "our Las Vegas operations delivered the second highest second quarter net revenue and adjusted EBITDA in our history," pointing to solid execution even with construction-related disruptions.
Is now the time to buy RRR? Find out in our full research report (it’s free for active Edge members).
Red Rock Resorts (RRR) Q2 CY2026 Highlights:
- Revenue: $510.3 million vs analyst estimates of $499.1 million (3% year-on-year decline, 2.2% beat)
- Adjusted EPS: $0.66 vs analyst expectations of $0.74 (11% miss)
- Adjusted EBITDA: $208 million vs analyst estimates of $196.5 million (40.8% margin, 5.9% beat)
- Operating Margin: 26.8%, down from 32% in the same quarter last year
- Market Capitalization: $3.55 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Red Rock Resorts’s Q2 Earnings Call
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Ben Chaikin (Mizuho): Asked about intra-quarter demand trends and potential June softness. President Scott Kreeger explained, “We are very consistent across all 3 months of the quarter,” highlighting a pickup from World Cup events in June.
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Trey Bowers (Wells Fargo): Inquired about quantifying construction disruption and associated top-line impacts. CFO Stephen Cootey detailed that Green Valley Ranch’s disruption was roughly $7 million and emphasized these are temporary and offset by long-term benefits.
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Joe Stauff (Susquehanna): Sought clarity on regional and destination demand as well as the effect of local roadwork. Kreeger noted positive trends in both drive-in and fly-in markets, with expectations for improvement as renovations conclude.
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Steven Pizzella (Deutsche Bank): Requested insight into the ramp speed of ROI projects and the impact of Strip promotions on locals demand. Cootey reiterated a typical three-year ramp, while Fertitta stated that local demand remains insulated from Strip promotions.
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Dan Politzer (JPMorgan): Asked about operating expense pressures and expected margin lift post-renovation. Cootey cited utility costs and labor as near-term drags but called the margin compression “an anomaly” tied to temporary disruptions, with expectations for improvement as renovations finish.
Catalysts in Upcoming Quarters
In upcoming quarters, our team will closely watch (1) the impact of completed renovations on guest volumes and property-level profitability, (2) the pace at which new tavern locations drive incremental customer engagement, and (3) indications that ongoing construction disruption is abating as major projects are finalized. The progress of new development initiatives and management’s ability to manage cost pressures will also be key markers of execution.
Red Rock Resorts currently trades at $61.29, down from $64.27 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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