Red Rock Resorts Posts Record Q1 Net Revenue, 50.3% EBITDA-to-Cash Conversion
Red Rock Resorts generated record first-quarter net revenue and its second-highest Q1 adjusted EBITDA, despite a 1.2% year-over-year EBITDA decline. The company converted 50.3% of adjusted EBITDA into $107 million of operating free cash flow ($1.03/share) and held $134 million in cash as it expands the Durango property.
1. Q1 Financial Performance
Red Rock Resorts reported its highest-ever first-quarter net revenue alongside its second-largest Q1 adjusted EBITDA in company history. Adjusted EBITDA edged down 1.2% year-over-year, reflecting modest pressure on profitability despite top-line gains.
2. Free Cash Flow and Liquidity
The company converted 50.3% of adjusted EBITDA into operating free cash flow, generating $107 million or $1.03 per share in the quarter. Cash and cash equivalents totaled $134 million at quarter end, bolstering the company’s liquidity position.
3. Durango and Property Expansion
The Durango property continues to drive incremental play and validate its growth thesis, even as ongoing construction is expected to cause a $2–3 million headwind through mid-2027. Elsewhere, new phases at Suncoast, Green Valley Ranch and Sunset Station are on track to add amenities throughout 2026.
4. External Headwinds and Outlook
Higher gas prices and regional air travel disruptions had minimal impact on first-quarter results, with most guests driving from nearby states. Management expects stable promotional dynamics versus Strip operators and maintains flexibility to increase leverage for growth opportunities.