Monarch Casino Reports Record Q2 2025 Results, Boosted by Casino Revenue and Margin Expansion

Monarch Casino & Resort reported record financial results for the second quarter of 2025, highlighted by a 6.8% yearly increase in revenue and a 19.1% increase in net income year-over-year.

Net revenue for the quarter rose to $136.9 million, a 6.8% increase from the $128.1 million reported in Q2 2024. Net income climbed 19.1% to $27.0 million, while diluted earnings per share (EPS) rose 21.0% year-over-year to $1.44.

In addition, the company posted strong comparable sales (comps) in terms of EBITDA and earnings per share, prompting a positive investor reaction and a 22% stock jump in the afternoon session.

Casino Revenue Leads While Hotel Segment Softens

The quarterly growth was primarily driven by strong casino performance, with the sector experiencing a 12.1% year-over-year increase in revenue. CEO John Farahi said the Black Hawk, CO property continued to increase market share, especially among mid-to-upper-tier guests from the Denver and Boulder metro areas.

Food and beverage revenue also grew. While the 1.1% increase was modest, it signals stable performance for the sector. In contrast, hotel revenue declined by 3.1%, with the company attributing the poor results to softer convention and group business.

Farahi highlighted that the Atlantis property in Reno, NV, underwent a $100 million redesign and upgrade of the hotel rooms. He added that the U.S. News & World Report 2025 Best Hotels ranked Atlantis the No. 1 hotel in Reno.

Strong Balance Sheet Enables Shareholder Returns

Monarch also posted strong EBITDA results. Adjusted EBITDA was $51.3 million, a 16.8% year-over-year increase, with EBITDA margins improving to 37.5%, up from 34.3% last year.

Farahi credited technology focus and operational efficiencies for the 320 basis points margin improvements.

During the quarter, Monarch returned capital to shareholders through both dividends and share repurchases:

• 240,395 shares repurchased, totaling approximately $19.8 million
• Quarterly dividend of $0.30 per share declared

As of June 30, 2025, the Company had cash and cash equivalents of $71.6 million and no debt. Expenditures, including those related to the Atlantis redesign, were $12.4 million in Q2, which were fully funded from operating cash flow.

According to management, the strong balance sheet enables the company to reinvest in its properties and return excess capital to shareholders. Additionally, the company states that it continuously evaluates potential M&A transaction opportunities.

Analysts Raise Targets Following Strong Earnings Beat

Monarch’s strong second-quarter performance—particularly the margin expansion and record EBITDA—reinforces investor confidence.

Truist Financial gave the stock a “buy” rating and raised the price target for Monarch’s shares from $100 to $105.

Wells Fargo upgraded Monarch’s stock from Underweight to Equal Weight, citing strong execution and consistent performance. It also increased Monarch’s price target to $89.00 and raised its fiscal year 2025-2027 EBITDA estimates by 5-6%.

Stifel maintained its Hold rating, noting an improvement if prospects of merger and acquisitions or a stock pullback arise. Still, the investment company increased Monarch’s 2025 and 2026 adjusted EBITDA estimates by 5% and target share price from $81.00 to $92.00.

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