Red Rock Resorts, Inc. Q1 FY2026 earnings call

1. First quarter was strong across key measures, Las Vegas ops had highest first quarter net revenue and second-highest adjusted EBITDA. 2. Durango's performance and revenue backfill at core properties, with successful expansion and positive guest feedback. 3. Advancing Durango North expansion, scheduled to open summer 2027, cost ~$385M. 4. Progress on Sunset Station podium refresh, on budget, with remaining amenities to come online in 2026. 5. Green Valley Ranch room and convention space renovations, with West Tower and convention spaces complete, East Tower renovation ongoing. 6. North Fork construction progressing, on pace for early fourth quarter 2026 open, cost ~$750M.

Las Vegas operations: First quarter net revenue $499.5M, up 0.9% y/y; adjusted EBITDA $232.4M, down 1.5% y/y; adjusted EBITDA margin 46.5%, down 113 bps. Consolidated: Net revenue $507.3M, up 1.9% y/y; adjusted EBITDA $212.6M, down 1.2% y/y; adjusted EBITDA margin 41.9%, down 129 bps. Non-gaming: Hotel and food & beverage divisions strong, with hotel near record results and food & beverage second-best first-quarter revenue and third-best profit.

1. Expect continued near-term disruption from construction at Durango, Sunset Station, and Green Valley Ranch. 2. For full year 2026, expect capital spend between $375 - $425M, including $275 - $300M investment and $100 - $125M maintenance. 3. Confident in business strength and investments supporting long-term growth.

1. Headwinds in first quarter including higher gas prices, air travel disruption, and construction impacts. 2. Construction disruption at various properties may impact operations and performance.

Q: Quantify impact of higher gas prices and air travel in 1Q and 2Q thus far, and seasonality.

A: Higher gas prices had no impact in Q1 and early April; air travel disruption due to TSA, majority guests drive from regional states. Seasonally, Q1 is peak, Q2 typically down 8-9%, with $9M disruption in Q2 from GVR and $2-3M from Durango next quarter.

Q: Follow up on Durango disruption beyond next quarter.

A: Early days of $385M construction, expecting more significant disruption through summer to completion, ~$2-3M estimate.

Q: Tax refunds impact on business.

A: Tax bill provided more discretionary income, saw positive trends in April.

Q: Update on Greenfield projects.

A: Progressing on Sunset and Green Valley projects, working on two additional greenfield projects, with 7 development properties in Las Vegas area.

Q: North Fork property ramp.

A: Expected to be profitable from day one, with potential shorter ramp than typical Las Vegas casino, ramping up database and revenue base.

Q: GVR room renovation disruption and hotel demand.

A: Disruption includes room and gaming revenue, GVR hotel revenue positive despite 10% inventory offline, West Tower and banquet space well-received.

Q: Gas prices impact on foot traffic and consumer behavior.

A: March affected by gas prices and TSA, April tracking well.

Q: Construction disruption and player crossover.

A: Players can crossover to adjacent properties, monitored from database perspective.

Q: Leverage and greenfield projects.

A: Comfortable with leverage around 4.07 times, expecting return on capital from new investments.

Q: K-shape recovery and customer segments.

A: Food and beverage and gaming show strength, focus on value propositions for all demographics.

Q: Promotional environment and World Cup impact.

A: Promotional environment stable, World Cup has comprehensive plan for sports book viewing.