Red Rock Resorts announced impressive third-quarter earnings on Tuesday, with net income increasing by 38.8% to $76.9 million. The Las Vegas-centric casino operator outlined its expansion strategy for the Durango property while also enhancing its share repurchase program.
Net revenues for the quarter rose 1.6% to $475.6 million for the period ending September 30, 2025, up from $468 million the previous year. Adjusted EBITDA saw a 4.5% increase to $190.9 million. The company noted that this quarter marked its ninth consecutive record for net revenue and the fifth consecutive quarter of record adjusted cash flow.
In its core market of Las Vegas, the company generated $468.6 million in net revenue, reflecting a year-on-year growth of 0.8%. Additionally, adjusted EBITDA rose 3.4% to $209.4 million, with Native American operations contributing $3.9 million in development fee income.
The company concluded the quarter with $129.8 million in cash and equivalents, alongside total debt of $3.4 billion. Its Board has approved a quarterly cash dividend of $0.26 per share, payable on December 31 to shareholders on record as of December 15.
Red Rock also announced that its Board has authorized an additional $300 million for its existing $600 million share repurchase program, extending the initiative through December 31, 2027. As of October 28, the company had $573 million still available for repurchases.
The impressive quarterly performance reflects the strength, consistency, and long-term earning potential of our operational market,” stated Stephen Cootey, Executive Vice President, Chief Financial Officer, and Treasurer.
Red Rock is set to embark on a $385 million second-phase expansion of its Durango location starting in January 2026. This 18-month project will enlarge the resort’s north podium by over 275,000 square feet, adding nearly 400 slot machines, new gaming areas, and entertainment amenities under a guaranteed maximum price contract.
“Powered by strong market fundamentals and rapid development in the adjacent area, this expansion phase will significantly enhance the northern section of the existing facility by over 275,000 square feet,” Cootey remarked.
“This expansion will incorporate nearly 400 new slot machines and additional gaming options to the casino floor, along with a variety of new amenities tailored to improve guest experience, including a state-of-the-art 36-lane bowling center, luxury cinemas, fresh dining concepts, and a variety of entertainment venues designed to encourage repeat visits.”
Additionally, the company is nearing the completion of a $120 million expansion expected to finish by year-end, which includes 25,000 square feet of additional gaming space, 230 extra slot machines, and a covered parking garage accommodating 2,000 vehicles.
“We are thrilled to initiate this next growth phase at Durango,” Cootey added. “Once completed, the property will be even better positioned to capture more market share and foster sustained growth in the local area.”
Red Rock continues to focus on its commitment to the Las Vegas local market.
“In contrast to the Strip, our operations don’t depend heavily on tourism or conventions, nor are they hotel-centric,” remarked Scott Kreeger, President of Red Rock Resorts. “Instead, our locals market is built on a gaming-centric business approach that offers compelling value to both local patrons and visiting guests.”