Business Context and Reporting Period
Company: Full House Resorts, Inc. (FLL)
Filing Type: Form 10-Q (Unaudited)
Reporting Period: Quarter and six months ended June 30, 2026
Operations: The Company owns, leases, and operates casinos and hospitality facilities in Nevada, Colorado, Illinois, Indiana, and Mississippi. Key properties include American Place (IL), Silver Slipper (MS), Rising Star (IN), Chamonix/Bronco Billy's (CO), and Grand Lodge (NV). The Company also operates contracted sports wagering "skins."
Key Financial Metrics
| Metric (in thousands) | 3 Months Ended Jun 30, 2026 |
6 Months Ended Jun 30, 2026 |
|---|---|---|
| Total Revenues | $78,064 | $152,485 |
| Operating Income | $2,270 | $4,620 |
| Net Loss | $(8,694) | $(16,844) |
| Adjusted EBITDA | $13,307 | $26,477 |
| Cash and Equivalents | $33,408 | $33,408 |
| Long-Term Debt (Principal) | $475,000 | $475,000 |
| Net Cash Used in Operating Activities | N/A | $(1,378) |
Note: Long-term debt principal includes $450 million in Senior Secured Notes and $25 million in Revolving Credit Facility borrowings.
Material Changes vs. Prior Period
- Revenue Growth: Total revenues increased 5.6% ($4.1 million) for the quarter and 2.3% ($3.5 million) for the six months compared to the prior year. Growth was driven by American Place and Chamonix, partially offset by the sale of Stockman's Casino in April 2025.
- Profitability Improvement: Operating income improved from a loss of $74,000 in the prior-year quarter to a profit of $2.27 million. Net loss narrowed by 16.3% for the quarter and 16.4% for the six months.
- Segment Performance:
- Midwest & South: Revenues up 5.6% (quarter) and 4.7% (six months); Adjusted Segment EBITDA up 4.7% and 9.0% respectively, driven by American Place.
- West: Revenues up 7.3% (quarter) but down 3.2% (six months) due to the Stockman's sale. Adjusted Segment EBITDA improved significantly (91.8% quarter-over-quarter) due to Chamonix ramp-up and expense efficiencies.
- Contracted Sports Wagering: Revenues declined 9.2% (quarter) and 23.9% (six months) due to having one fewer active skin compared to the prior year.
- Interest Expense: Net interest expense increased 4.7% for the quarter and 2.8% for the six months, primarily due to higher average balances on the revolving credit facility and reduced capitalized interest.
Guidance, Outlook, and Risks
- American Place Permanent Facility: The Illinois Gaming Board approved an extension for the temporary facility through February 17, 2029. Sitework for the permanent facility (estimated budget ~$302 million) has begun. The Company expects to open the permanent facility in the second half of 2028.
- Liquidity: Management believes current cash balances ($33.4 million), available credit facility capacity, and operating cash flows are sufficient for the next 12 months. However, significant capital investment for the permanent American Place facility will likely require additional financing.
- Debt Maturity: The $450 million Senior Secured Notes mature in February 2028. The Revolving Credit Facility matures in August 2027.
- Risks: Potential delays in the permanent American Place construction due to regulatory approvals, weather, or supply chain issues. The Company maintains a valuation allowance against deferred tax assets due to uncertainty regarding future taxable income.
Investor Verification Checklist
- Financing for American Place: Verify the Company's ability to secure the ~$302 million required for the permanent facility construction before the temporary facility extension expires in 2029.
- Debt Refinancing: Monitor the status of refinancing the $450 million Senior Secured Notes maturing in February 2028.
- Chamonix Ramp-Up: Assess whether the West segment's Adjusted Segment EBITDA improvement is sustainable as Chamonix continues to ramp operations.
- Sports Wagering Contracts: Review the status of idle sports wagering skins and the potential to replace terminated contracts to restore revenue in that segment.
- Illinois License Fee: Confirm the payment schedule and impact of the $56.8 million "Reconciliation Payment" to the Illinois Gaming Board on future cash flows.