Why Is Red Rock Resorts (RRR) Down 9.1% Since Last Earnings Report?

It has been about a month since the last earnings report for Red Rock Resorts (RRR). Shares have lost about 9.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Red Rock Resorts due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Red Rock Resorts Q4 Earnings & Revenues Beat Estimates

Red Rock Resorts reported fourth-quarter 2025 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top line increased year over year, while the bottom line declined compared with the prior-year period.

Q4 Earnings & Revenues

In the quarter under review, adjusted earnings per share (EPS) came in at 75 cents, topping the Zacks Consensus Estimate of 41 cents by 82.9%. In the prior-year quarter, the company recorded an adjusted EPS of 76 cents.

Quarterly revenues of $511.8 million also surpassed the Zacks Consensus Estimate of $501 million and grew 3.2% year over year from $495.7 million. The company benefited from strong casino revenues and a $3.7 million contribution from Native American management fees.

Segmental Details of Red Rock Resorts

Las Vegas Operations: During fourth-quarter 2025, the segment’s revenues totaled $505 million, up 2.5% from $492.6 million in the prior-year quarter. Adjusted EBITDA was $231.1 million, up 3.2% from $223.9 million reported in the year-ago quarter.

Native American Management: The company reported revenues and adjusted EBITDA of $3.7 million, reflecting cumulative development fee recognition.

Operating Highlights

Net income in the quarter came in at $84.6 million, down from $87.7 million in the prior-year quarter. Adjusted EBITDA came in at $213.3 million, marking a 5.4% year-over-year increase from $202.4 million. The adjusted EBITDA margin expanded to 41.7%, an increase of 90 basis points from the prior-year period, underscoring operating efficiency and cost discipline.

Other Financial Details

As of Dec. 31, 2025, Red Rock Resorts had cash and cash equivalents of $142.5 million, compared with $164.4 million as of Dec. 31, 2024. Outstanding debt at the fourth-quarter end was $3.4 billion, compared with $3.35 billion as of Dec 31, 2024.

The board declared a cash dividend of $0.26 per share, payable on March 31, 2026, reflecting management’s continued commitment to shareholder returns.

RRR’s 2025 Highlights

Revenues in 2025 amounted to $2.01 billion compared with $1.94 billion in 2024.

Net income in 2025 came in at $355.7 million compared with $291.3 million reported in 2024.

In 2025, diluted EPS came in at $3.12 compared with $2.53 reported in the previous year.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted 6.12% due to these changes.

VGM Scores

Currently, Red Rock Resorts has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Red Rock Resorts has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Red Rock Resorts is part of the Zacks Gaming industry. Over the past month, Take-Two Interactive (TTWO), a stock from the same industry, has gained 3.5%. The company reported its results for the quarter ended December 2025 more than a month ago.

Take-Two reported revenues of $1.76 billion in the last reported quarter, representing a year-over-year change of +27.9%. EPS of $1.23 for the same period compares with $0.72 a year ago.

For the current quarter, Take-Two is expected to post earnings of $0.56 per share, indicating a change of -48.6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

Take-Two has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.

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This article originally published on Zacks Investment Research (zacks.com).

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