Oct 22, 2026 earnings call — Quarterly results, renovations and capital returns
Companywide revenue down approximately 1% in Q3, but adjusted revenue grew 2%.
Revenue $1.0B (est $1.0B) · EPS $1.67 (est $1.67)
Key quotes
"Our Las Vegas local segment, results in the third quarter were impacted by increased softness in destination business to Las Vegas."
"Building on the success of our recent investments and capital projects, we continue to invest in our properties across the country."
"Our financial position remains strong. With leverage of 2.2x at the end of the quarter supporting our balanced approach to capital allocation."
Analyst Q&A 13
Las Vegas locals growth next year
Q (Steven Pizzella · Deutsche Bank): Could the Las Vegas local segment grow next year and how much did destination and Suncoast affect results?
A: Management said they expect modest growth in Las Vegas locals EBITDAR next year, but it depends on destination trends. Suncoast had rooms out of service in Q4 and Q1, so its contribution will be modest until rooms fully come online.
"Basically, I think we believe that we could see modest growth next year in Las Vegas locals EBITDAR." — Josh Hirsberg (CFO)
Destination softness cause and outlook
Q (Steven Wieczynski · Stifel): Why did destination weakness intensify in Q3 and why do you think it will improve in Q4? Also, is M&A appetite changing and does online/managed guidance still hold?
A: They said Q3 destination softness was stronger than earlier quarters and summer seasonality made it worse. They remain disciplined on M&A and unchanged in appetite, and for online and managed segments they point toward the high end of previously given guidance.
"So I think you heard it correct, which is, you know, our view is that the softness in destination was a little stronger or intensified in Q3 vis-a-vis Q1 and Q2." — Keith E. Smith (CEO)
Cadence impact and skill-game removal
Q (Barry Jonas · Truist): How much of the 3% growth in Vegas locals came from Cadence Crossing, and will removing skill-based games in Pennsylvania help operations?
A: Cadence contributes to growth but is not the majority—about a third and still ramping, expected to hit full stride in Q1. On Pennsylvania, they expect uplift at Valley Forge from the removal of skill-based games, but it is early and they have no reportable numbers yet.
"Cadence is definitely helping, but it is not the majority of it." — Josh Hirsberg (CFO)
Why Q4 could improve for locals
Q (Daniel Politzer · JPMorgan): What gives you confidence that Q4 will be better for Las Vegas locals and is returning to flat or growth realistic?
A: They pointed to strong core performance excluding Orleans and Suncoast, rooms returning at the Orleans, and that Q3 weakness was amplified by summer seasonality. They said destination trends should revert to prior patterns and they do not claim precise timing beyond cautious optimism.
"we are not suggesting it is going to be flat, not suggesting it is going to grow not even saying it is going to be less bad." — Josh Hirsberg (CFO)
Margins after Suncoast renovation
Q (David Bain · Texas Capital Bank): Once Suncoast renovations finish, can locals margins return to 2025 levels and are there promotional or labor risks?
A: They said ex-Suncoast and Orleans margins were around 47% in the soft quarter and historically near 50% in other quarters, and they are comfortable thinking about that 50% margin next year. Suncoast is essentially done except for rooms, which will have a small ongoing impact.
"Suncoast is for all intent and purpose done with the exception of the rooms." — Keith E. Smith (CEO)
Orleans renovation purpose and storms/airfares
Q (Benjamin Chaiken · Mizuho): What are you solving with the Orleans investment and can you separate the impact of storms versus higher airfares on downtown results?
A: They said the Orleans room remodels are maintenance CapEx and the property needs a broad renovation after about 30 years to stay competitive. On storms and airfares, both hit simultaneously: multiple storms affected Hawaii and airfares spiked, then began to recede but remain high.
"In those-- just, you know, we have 1.8 thousand hotel rooms there, so it took a long time to get through." — Keith E. Smith (CEO)
Competitive promotions and OpEx control
Q (Joe Stauff · Susquehanna): Has competitive promotion around Orleans stabilized and are there any special OpEx issues for Q4?
A: They said OpEx control is due to focused management and discipline with no special accruals. On competition, they have adjusted operations to manage promotional pressure and choose not to aggressively promote; instead they invest in profitable customers and are renovating Orleans to stay competitive.
"we are choosing not to be aggressive in terms of promoting just to drive revenue." — Josh Hirsberg (CFO)
Consumer trends across regions
Q (Lizzie Dove · Goldman Sachs): How are consumer trends, gas prices, and the broader environment affecting locals in Midwest, South, and Las Vegas quarter to date?
A: They said core customers and unrated play grew and ADT/spend from core customers was up mid single digits, while lower-end database segments were softer and more sensitive to inflation and gas prices. They see similar consumer behavior across regions and no major differences.
"We saw good growth in ADT or spend from our core customers." — Keith E. Smith (CEO)
Balance sheet, buybacks and M&A flexibility
Q (Trey Bowers · Wells Fargo): Does a dislocated stock change your M&A calculus, and would you break out destination from locals reporting?
A: They said decisions depend on facts and circumstances but having low leverage gives flexibility to pursue acquisitions without sacrificing buybacks or investments. They do not plan to separately break out destination in near term and view it as a small part of the diversified portfolio.
"We have used the word balanced approach to capital allocation and we are serious when we say it." — Keith E. Smith (CEO)
Position on iGaming legalization
Q (David Katz · Jefferies): Would you support iGaming legalization in Virginia or other states and embrace it operationally?
A: They said they support properly regulated, properly taxed, legalized iGaming and view it as complementary to their business based on over a decade of experience. How they would brand or deploy it depends on facts and circumstances in each market.
"you know, properly regulated, properly taxed, legalized. Yes. We are supportive of iGaming." — Keith E. Smith (CEO)
Chicago BLT/Latimer opportunity
Q (Chad Beynon · Macquarie): How do you view the Latimer distributed gaming opportunity in Chicago and could it move the needle?
A: They evaluate Latimer like any other opportunity; it is a smaller part of the business and must be considered in context with other opportunities. It is on the radar but not expected to be a significant driver for the overall company.
"we evaluate that just like we would evaluate any other opportunities." — Josh Hirsberg (CFO)
Core locals seasonality and election risk
Q (Brandt Montour · Barclays): Excluding destination, will the core locals business follow normal seasonality and could Nevada midterm elections hurt results?
A: They prefer to discuss year-over-year trends and expect similar growth excluding Orleans and Suncoast, noting many moving pieces make sequential comments hard. They do not expect the Nevada elections to have a material impact on the business.
"we really do not see that having a material impact on the business 1 way or the other." — Keith E. Smith (CEO)
Investing in online business vs casinos
Q (John DeCree · CBRE): What would make you invest more capital in online versus land-based projects, and could online become a bigger part of the company?
A: They said the online business already performs at a high level with strong margins and efficient customer acquisition, so they do not need to push harder now. M&A or bigger investments in online must offer high returns and be additive, and they will pursue bite-size deals that extend long-term growth.
"I think as we think about today's online business, it is performing at a very high level, strong margins that we are comfortable with what our CPAs are in terms of what we are paying to acquire customers." — Keith E. Smith (CEO)