Nasdaq:RRR
Red Rock Resorts, Inc.
A leading Nevada-based hospitality giant combining massive real estate assets with high-margin gaming operations to drive resilient cash flow.
Key Metrics
Investment Thesis
Bull Case
Strong operating cash flow conversion from earnings suggests high quality earnings despite heavy financing outflows, while recent net income recovery in 2025 indicates operational resilience; the company's dominant market position in Nevada allows for sustained revenue growth as discretionary travel rebounds.
Bear Case
The massive cash outflow from financing activities of -$385.6M and total liabilities nearly matching total assets suggest elevated financial distress risk; high interest expense relative to operating profit could erode margins if rates remain elevated or if free cash flow declines.
About Red Rock Resorts, Inc.
Red Rock Resorts, Inc. operates as a diversified resort operator primarily serving Nevada's Las Vegas market with integrated gaming, hotel, dining, and entertainment facilities.
Analysis
Management Discussion
The company generated $609.5M in operating cash flow supporting a net profit of $355.7M, yet reported a net change in cash of -$21.9M due to heavy capital investments and debt servicing; while revenue grew to $2.01B, the balance sheet shows current liabilities exceeding current assets, highlighting liquidity management challenges.
Industry Overview
The hospitality and gaming industry is cyclical and highly sensitive to macroeconomic conditions, consumer confidence, and regulatory landscapes within Nevada and other jurisdictions.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.66B | $1.72B | $1.94B | $2.01B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $1.66B | $1.72B | $1.94B | $2.01B |
| Operating Expenses | $1.10B | $1.17B | $1.37B | $1.41B |
| Operating Income | $561.3M | $558.7M | $568.7M | $597.4M |
| G&A | $353.0M | $374.5M | $432.3M | $441.3M |
| Stock-Based Comp | $17.5M | $19.7M | $30.9M | $32.1M |
| D&A | $128.4M | $132.5M | $187.1M | $197.4M |
| Depreciation | $126.8M | $131.0M | $185.5M | $192.3M |
| Amortization | $1.6M | $1.6M | $1.6M | $1.6M |
| Other OpEx | $749.4M | $790.9M | $938.0M | $972.7M |
| Non-Operating Income | $-126.4M | $-177.9M | $-240.5M | $-195.1M |
| Interest Expense | $129.9M | $181.0M | $228.8M | $201.9M |
| Pre-Tax Income | $434.9M | $380.8M | $328.2M | $402.3M |
| Income Tax | $44.5M | $43.0M | $36.9M | $46.6M |
| Continuing Ops | $390.4M | $337.8M | $291.3M | $355.7M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $390.4M | $337.8M | $291.3M | $355.7M |
| Minority Interest | $184.9M | $161.8M | $137.2M | $167.6M |
| Net to Common | $205.5M | $176.0M | $154.1M | $188.1M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $221.0M | $282.3M | $295.4M | $286.8M |
| Cash & Equivalents | $117.3M | $137.6M | $164.4M | $142.5M |
| Inventory | $13.2M | $15.3M | $16.4M | $17.9M |
| Prepaid Expenses | $24.0M | $28.2M | $22.5M | $23.3M |
| Other Current Assets | $66.5M | $101.3M | $92.1M | $103.1M |
| Long-Term Assets | $3.12B | $3.67B | $3.75B | $3.88B |
| PP&E (Net) | $2.20B | $2.77B | $2.78B | $2.97B |
| Intangibles | $84.4M | $82.8M | $81.2M | $80.1M |
| Goodwill | $195.7M | $195.7M | $195.7M | $195.7M |
| Operating Leases | $30.8M | $30.5M | $28.2M | $28.1M |
| Other LT Assets | $618.9M | $591.5M | $663.1M | $604.6M |
| Total Assets | $3.35B | $3.95B | $4.05B | $4.17B |
| Current Liabilities | $293.2M | $349.2M | $325.2M | $363.2M |
| Accounts Payable | $11.4M | $25.4M | $31.8M | $21.6M |
| Current Debt | $26.1M | $26.1M | $52.9M | $17.2M |
| Current Leases | $4.8M | $6.1M | $6.4M | $5.9M |
| Other Current Liab | $16.3M | $11.1M | $22.3M | $132.9M |
| Long-Term Liabilities | $3.02B | $3.36B | $3.41B | $3.47B |
| Long-Term Debt | $2.96B | $3.30B | $3.35B | $3.38B |
| LT Operating Leases | $29.7M | $29.4M | $28.1M | $28.7M |
| Other LT Liab | $31.9M | $30.3M | $30.8M | $64.4M |
| Total Liabilities | $3.31B | $3.71B | $3.74B | $3.83B |
| Shareholders' Equity | $32.2M | $243.9M | $306.8M | $332.3M |
| Paid-In Capital | $0 | $7.3M | $18.6M | $0 |
| Retained Earnings | $43.2M | $160.9M | $195.8M | $207.7M |
| Total L&E | $3.35B | $3.95B | $4.05B | $4.17B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $390.4M | $337.8M | $291.3M | $355.7M |
| Non-Cash Adjustments | $145.7M | $115.0M | $231.4M | $228.9M |
| Working Capital Changes | $6.1M | $41.6M | $25.6M | $24.9M |
| Cash from Operations | $542.2M | $494.3M | $548.3M | $609.5M |
| Cash from Investing | $-442.1M | $-653.9M | $-321.8M | $-245.8M |
| Share Buybacks | $141.5M | $0 | $3.9M | $79.0M |
| Dividends Paid | $116.7M | $58.6M | $118.4M | $120.8M |
| Cash from Financing | $-290.0M | $179.8M | $-199.7M | $-385.6M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-190.0M | $20.3M | $26.8M | $-21.9M |
| Beginning Cash | $307.3M | $117.3M | $137.6M | $164.4M |
| Ending Cash | $117.3M | $137.6M | $164.4M | $142.5M |
Frequently Asked Questions
How does Red Rock Resorts, Inc. make money?
Primary revenue streams include casino gaming, hotel accommodations, food and beverage services, and ancillary entertainment offerings such as concerts and events.
What are the main risks for RRR?
High leverage profile with substantial long-term debt creates sensitivity to interest rate hikes and refinancing risk; regulatory changes or economic downturns could sharply reduce discretionary gaming spending; significant cash outflows for financing activities indicate ongoing capital pressure.
What is RRR's competitive advantage?
Significant scale in the Las Vegas market provides strong pricing power, a vast proprietary real estate portfolio lowers capital expenditure needs relative to competitors, and diverse property mix mitigates reliance on single venues.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.