MCRI earnings analysis
What we found in MCRI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
- 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%.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- 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 they said about what is next.
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.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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