FLL — Full House Resorts, Inc.

Summary of Full House Resorts Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Q4 2025 Revenues: $75.4 million, up from $73 million in Q4 2024 (5.6% growth on a comparable basis).
• Adjusted EBITDA: Increased to $10.7 million from $10.4 million in Q4 2024. Adjusted EBITDA growth was approximately 23% when excluding one-time items from the previous year.
• American Place Performance: Revenues rose 11% to $32 million, with adjusted property EBITDA up 29% to $8.7 million for Q4 2025.
• Full Year 2025 Results: Total revenues reached $124 million (up 13%), and adjusted property EBITDA was $34.3 million (up 17%).

2. Strategic Updates and Business Highlights

• American Place: The temporary casino is expected to achieve $50 million in run-rate EBITDA, with the permanent facility projected to reach $100 million. The company is finalizing foundation drawings to begin construction soon.
• Chamonix: A fully formed management team has been established, leading to improved performance metrics. The property is seeing growth in customer loyalty and has introduced a new Mexican restaurant, enhancing the guest experience.
• Marketing Initiatives: New marketing strategies are being implemented to drive customer engagement, particularly targeting the Colorado Springs market.
• Sports Wagering: The business is performing well, generating around $7 million in EBITDA, with a focus on maintaining strong partnerships, particularly with Circa in Illinois.

3. Forward Guidance and Outlook

• Growth Expectations: The company anticipates continued growth in adjusted property EBITDA at American Place in 2026. The management team is optimistic about Chamonix's potential as it stabilizes and improves operations.
• Financing for Permanent Casino: The company is in discussions for financing the permanent American Place facility, with expectations to finalize arrangements by mid-2026.

4. Bad News, Challenges, or Points of Concern

• Chamonix Performance: Despite improvements, Chamonix reported a small adjusted property EBITDA loss in Q4 2025, attributed to seasonal weakness and prior management inefficiencies. There is a need for ongoing operational improvements to enhance profitability.
• Competitive Pressures: The company faces competition from established casinos in the region, particularly in Illinois and Colorado. The performance of Rising Sun remains stable, but the future of its operations is uncertain due to legislative changes.
• Market Penetration: While there is potential for growth, the company must effectively market to attract customers from nearby urban centers, particularly in Colorado Springs.

5. Notable Q&A Insights

• Chamonix's Revenue Growth: Management acknowledged previous marketing missteps that inflated prior revenues but expressed confidence in the new management team and marketing strategies to drive future growth.
• Rising Sun Casino: The company continues to generate profits from Rising Sun, but legislative changes may complicate future operations. Management is cautious about the upcoming referendums for potential relocations.
• American Place Financing: Management confirmed that they are pursuing financing options that will not involve equity sales and are optimistic about securing favorable terms.
• Customer Segmentation: The focus on higher-end customers at Chamonix is yielding positive results, but management is also attentive to middle and lower-tier segments to maximize revenue.

Overall, Full House Resorts is navigating a transitional period with strategic initiatives aimed at enhancing profitability and market presence, while addressing operational challenges in certain properties.