10-Q · April 30, 2026
Monarch Casino reported strong Q1 2026 results with revenue of $136.6 million, increasing 8.9% year-over-year. Diluted EPS also rose significantly to $1.52, marking a 44.8% increase year-over-year, driven by growth…
Earnings analysis · 10-Q
MCRI earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
Monarch delivered solid Q2 growth, with revenue up 4.2% to $142.6 million, operating income up to $38.6 million from $34.9 million, and diluted EPS up 23.6% to $1.78. Hotels were the principal growth engine, while…
Read full summary
Monarch delivered solid Q2 growth, with revenue up 4.2% to $142.6 million, operating income up to $38.6 million from $34.9 million, and diluted EPS up 23.6% to $1.78. Hotels were the principal growth engine, while casino and F&B revenue also increased, although F&B cost pressure and higher SG&A constrained margin quality. Liquidity is strong given $79.2 million of six-month operating cash flow, $12.6 million of capex, and no funded credit-facility debt, but the disputed PCL judgment continues to generate interest accruals and legal expense.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.78
- Operating margin
- 27.1%
- Segment
- Casino revenue: increased 2.5% year over year, driven primarily by higher visitation and gaming volume.
- Segment
- Food and beverage revenue: increased 3.1% year over year; revenue per cover rose 2.0% and covers increased 1.1%.
- Segment
- Hotel revenue: increased 13.0% year over year; occupancy increased to 83.7% from 79.6% and ADR increased $7.01 to $196.43.
- Segment
- Other revenue: increased 4.5% year over year, primarily from commissions at both properties and Monarch Black Hawk spa revenue.
What stood out
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Revenue reached $142.6M
Q2 net revenue was $142.6 million, up $5.7 million, or 4.2%, year over year. Revenue also increased from $137 million in Q1 2026.
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EPS and net income accelerated
Net income rose 20.4% to $32.5 million and diluted EPS increased 23.6% to $1.78 from $1.44. EPS also rose from $1.52 in Q1 2026.
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Operating profit expanded
Income from operations increased to $38.6 million from $34.9 million; this equates to an approximately 27.1% operating margin on $142.6 million of revenue, versus 25.5% in Q2 2025.
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Hotel business led growth
Hotel revenue grew 13.0%, the strongest disclosed operating category. Q2 occupancy reached 83.7% versus 79.6%, ADR increased to $196.43 from $189.42, and RevPAR rose to $177.94 from $162.57.
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Cash conversion and capex improved
Six-month operating cash flow increased to $79.2 million from $70.6 million, while capex fell to $12.6 million from $28.4 million. The resulting six-month cash generation before capex was approximately $66.6 million.
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Balance sheet remains unlevered
The company had no outstanding balance under its credit facility at June 30, 2026, and reported a 0.0:1.0 total leverage ratio versus a maximum permitted 1.5:1.0.
What to watch
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F&B margin pressure intensified
Food-and-beverage operating expense increased to 72.9% of F&B revenue from 70.3%, as labor and product cost per cover increased; this offset part of the segment's 3.1% revenue growth.
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SG&A grew faster than revenue
SG&A rose to $28.6 million from $26.8 million and increased to 20.0% of revenue from 19.6%, driven by payroll taxes tied to option exercises, legal costs, property taxes, and repairs and maintenance.
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PCL judgment continues to accrue costs
Construction litigation remains a financial overhang: Monarch accrued $1.1 million of interest on the disputed PCL judgment in Q2 and incurred $0.4 million in related professional-service fees.
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Competitive and labor headwinds persist
Management cites wage inflation, California tribal-gaming growth, and aggressive Northern Nevada promotions as risks to Atlantis revenue and margins. Casino operating expense was 35.5% of casino revenue, only modestly improved from 35.7%.
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No new material risk-factor changes
There were no material changes to risk factors previously disclosed in the 2025 Form 10-K, according to Item 1A.
Management's outlook
No quantitative revenue or EPS outlook was provided in the 10-Q. Management expects anticipated operating cash flow to fund operations, capital expenditures and authorized dividends over the 12 months following the filing, subject to economic, competitive, regulatory and other risks.
Earlier filings 4
10-K · February 24, 2026
Monarch reported full-year 2025 net revenues of $545,125 (in thousands), up from $522,186 in 2024, with income from operations rising to $127,495 (in thousands) and net income of $101,392 (in thousands), driving diluted…
10-Q · July 29, 2025
Monarch reported Q2 net revenues of $136,914,000, up from $128,143,000 in Q2 2024 (+$8.8M, ~6.8%), with income from operations rising to $34,899,000 (vs $29,513,000). Diluted EPS was $1.44 (vs $1.19 prior year), and the…
10-Q · May 2, 2025
Monarch reported Q1 net revenues of $125,394,000 and diluted EPS of $1.05, up versus the prior-year quarter. Operating income increased to $25,318,000 and the company generated $36,462,000 of operating cash flow while…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.