Monarch Casino Surpasses Estimates in Q2 2025 with 21% EPS Jump, 6.8% Revenue Growth

Monarch Casino & Resort reported Q2 2025 financial results, with GAAP EPS at $1.44, exceeding the $1.20 estimate, and revenue at $136.9 million, surpassing the $129.8 million estimate. Casino revenue grew 12.1%, while hotel revenue declined 3.1% due to reduced convention business. Adjusted EBITDA margin expanded by 320 basis points to 37.5%, reflecting improved efficiencies and cost controls.

Monarch Casino & Resort (MCRI) has reported robust financial results for the second quarter of 2025, with net revenue increasing 6.8% to $136.9 million, surpassing the $129.8 million estimate. The company's earnings per share (EPS) reached $1.44, exceeding the $1.20 estimate [1]. The quarterly performance was driven by a 12.1% growth in casino revenue, while hotel revenue declined 3.1% due to reduced convention business.

Adjusted EBITDA margin expanded by 320 basis points to 37.5%, reflecting improved efficiencies and cost controls. The company's net income increased 19.1% to $27.0 million, while diluted EPS grew 21.0% to $1.44 per share [2]. The strong financial performance was supported by a robust balance sheet, with $71.6 million in cash and no debt as of June 30, 2025.

Monarch Casino & Resort also returned capital to shareholders through dividends and share repurchases. The company declared a quarterly dividend of $0.30 per share and repurchased 240,395 shares for $19.8 million [1]. Additionally, the company completed a $100 million redesign of the Atlantis hotel rooms in Reno, NV, which was ranked as the No. 1 hotel in Reno by U.S. News & World Report 2025 [2].

Analysts have responded positively to the company's strong Q2 2025 results. Truist Financial upgraded the stock to a "buy" rating and raised the price target to $105. Wells Fargo upgraded the stock from "Underweight" to "Equal Weight" and increased the price target to $89.00 [1]. Stifel maintained its Hold rating but increased the 2025 and 2026 adjusted EBITDA estimates by 5% and raised the target share price from $81.00 to $92.00 [2].

References:
[1] https://casinobeats.com/2025/07/18/monarch-casino-q2-2025-earnings/
[2] https://www.stocktitan.net/news/MCRI/monarch-casino-resort-reports-record-second-quarter-2025-financial-gw4aehqbbo0l.html