Full House Resorts’ Earnings Call Flags Waukegan Timeline Shifts, Financing Delays, and Chamonix EBITDA Outlook Discrepancies

Date of Call: Aug 6, 2026

Financials Results

• Revenue: Consolidated revenues grew 5.6% in Q2 2026. American Place revenue rose 13.4% to $34.8M.

Guidance:

• Expect to complete refinancing, including new debt transaction, in Q3 2026.
• American Place temporary facility to operate until February 2029, with minimal downtime transitioning to permanent casino.
• Expect massive improvement in Chamonix's win per position per day over 18 months, aiming for Blackhawk average.
• Expect to get new revolver credit facility done, with commitments from four banks.

Business Commentary:

Revenue and EBITDA Growth:

• Full House Resorts reported a 5.6% increase in consolidated revenues and a 19.5% rise in adjusted EBITDA for the second quarter.
• This growth was primarily driven by the strong performance of the American Place property, where revenues increased by 13.4% to $34.8 million, and adjusted property EBITDA rose by 13.8% to $10.1 million.

Property-Specific Performance:

• American Place achieved its best quarter ever, with gaming revenue surpassing $12 million in May 2026 for the first time.
• Chamonix also contributed positively with revenues rising almost 12% due to new marketing strategies and branding efforts.

Operational Challenges and Improvements:

• Rising Star faced a 42-hour power outage due to a downed power line, impacting its earnings, while Silver Slipper slightly improved its adjusted property EBITDA by eliminating unprofitable business segments.
• The company's efforts to enhance the high-end gaming experience at Chamonix included hiring experienced personnel and focusing on increasing the win per position per day metric.

Financing and Development Progress:

• Full House Resorts completed legislative and regulatory steps necessary for extending the temporary casino's operation until February 2029 and secured commitments for a new revolver from four banks.
• The company is progressing on the construction plans for the permanent casino, with significant planning and site work underway, although the complex financing process is still pending completion.

Sentiment Analysis:

Overall Tone: Positive

• "We had a strong quarter of growth led by our two newest properties... adjusted EBITDA increased 19.5%." "American Place had its best quarter ever." "We expect to make massive improvement over the coming 18 months." "We are confident we can get this done in the third quarter."

Q&A:

• Question from Jordan Bender (Citizens Bank): Over the years operating the temporary casino, has your thinking changed around the size and scope of the permanent casino?
  Response: Design refined with inputs from competitors; basic project same but evolved in small ways like adding a food hall and learning from other casinos' layouts.

• Question from Jordan Bender (Citizens Bank): Will you get any business interruption insurance proceeds from the Dow and power lines during the quarter?
  Response: No, as business interruption insurance requires property damage, which did not occur.

• Question from Will (Craig-Hallum): What's your confidence in getting the financing done within the next quarter?
  Response: High confidence, but process is complex; target is to complete all paperwork and get it done in Q3.

• Question from Will (Craig-Hallum): Talk about improvements at Bronco Billies given profitability improved.
  Response: Blocking and tackling includes upgrading food service (e.g., new Mexican restaurant Don Juan's), removing slot machines from a bar tap, and adding a high-end casino director.

• Question from Chad Bannon (Macquarie): What is your appetite for M&A given chatter in the market?
  Response: Not high on the list due to focus on Colorado and building American Place; would consider only if very cheap and organizationally feasible.

• Question from Chad Bannon (Macquarie): How should we think about flow through and margin opportunity at American Place as it grows?
  Response: EBITDA margin in the mid-30s for permanent casino after removing rents and construction costs; current margins ~29% plus, with steady growth expected.

• Question from John DeCree (CBRE): Assuming financing is ready in Q3, how quickly would you start hard construction and what's the timeline?
  Response: Timeline still 18-24 months; likely opening in Q3 2028, with sequential work on plans and site prep.

• Question from John DeCree (CBRE): What is the cost of all-in financing?
  Response: Cost of borrowing is in high single digits, blended, with some components in low double digits; similar to peers.

Contradiction Point 1

Timeline for Financing Completion and Permanent Casino Opening

It directly impacts expectations regarding the production timeline and delivery capabilities of a key product, potentially influencing company revenue and investor expectations.

What were CBRE's earnings? - John DeCree (CBRE)

2026Q2: Timeline remains 18-24 months... likely favoring the 24-month mark (opening in Q3 2028). - Adam Campbell(CEO), Lewis Fanger(CFO)

If financing is secured in Q3, when can construction on the permanent casino begin, and what is the revised timeline? - John DeCree (CBRE)

2026Q2: The timeline remains 18-24 months... leaning more toward 24 months (opening in Q3 2028). - Dan Lee(CEO), Lewis Fanger(CFO)

Contradiction Point 2

Financing Timeline and Construction Start

It involves changes in financial forecasts, specifically regarding the expected timeline for financing completion, which are critical indicators for investors.

Will (Craig-Hallum) - Will (Craig-Hallum)

2026Q2: Key Steps Completed... The legal paperwork... is largely done. Timeline: Targeting completion in Q3 2026... - Adam Campbell(CEO), Lewis Fanger(CFO)

How confident are you in completing the refinancing within the next quarter? - Ryan Sigdahl (Craig-Hallum Capital Group)

2026Q1: Should hear something in the next couple weeks is fantastic. - Daniel Lee(CEO)

Contradiction Point 3

Waukegan Permanent Casino Opening Timeline

It reflects inconsistencies in the product roadmap and supply chain execution, affecting strategic planning and market confidence.

John DeCree (CBRE) - John DeCree (CBRE)

2026Q2: Timeline remains 18-24 months from start of construction... favoring the 24-month mark (opening in Q3 2028). - Adam Campbell(CEO), Lewis Fanger(CFO)

If financing is secured by Q3, when can construction on the permanent casino begin, and what is the revised timeline? - Sam (Macquarie, for Chad Beynon)

2026Q1: Growth will take time, likely a few years, but they expect steady progress even during construction. - Daniel Lee(CEO)

Contradiction Point 4

Performance Outlook for the Chamonix Property

It involves changes in financial forecasts, specifically regarding the expected EBITDA margin trajectory for a key property, which are critical indicators for investors.

Will (Craig-Hallum) - Will (Craig-Hallum)

2026Q2: Win per Position... aim to reach Blackhawk average of $330 (~$30M EBITDA) or a 15% premium (~$40M EBITDA) over the next 18 months. - Adam Campbell(CEO)

What specific "blocking and tackling" improvements at Chamonix and Silver Slipper contributed to sequential profitability improvements? - Ryan Sigdahl (Craig-Hallum Capital Group)

20260306-2025 Q4: ...the property is in a strong market position... It will be a significant, though perhaps modest, profit contributor in 2026, with growth expected to accelerate. - Daniel Lee(CEO)

Contradiction Point 5

Timeline and Financing for Permanent American Place Casino

It involves changes in financial forecasts, specifically regarding the expected financing cost and deal structure, which are critical indicators for investors.

John DeCree (CBRE) - John DeCree (CBRE)

2026Q2: Blended cost is in the high single digits for a leveraged company, with some components in low double digits. - Adam Campbell(CEO)

What is the all-in cost of financing? - David Bain (Texas Capital Bank)

20260306-2025 Q4: The financing cost is viewed as acceptable (not as low as 5% but not as high as 15%). - Daniel Lee(CEO), Lewis Fanger(CFO)