FH
FULL HOUSE RESORTS INC (FLL)·Q1 2025 Earnings Summary
Executive Summary
- Q1 2025 delivered steady top-line growth: revenue rose 7.3% year over year to $75.1M, while net loss narrowed to $(9.8)M and diluted EPS improved to $(0.27) from $(0.33) . Adjusted EBITDA was $11.5M, modestly below Q1 2024 due to ramp costs in Colorado .
- Against Wall Street, FLL posted a small beat on revenue and EPS, with Adjusted EBITDA essentially in line; consensus revenue ~$74.19M vs actual $75.06M, EPS consensus $(0.29) vs actual $(0.27), EBITDA consensus ~$11.57M vs reported $11.49M (near-flat) (values retrieved from S&P Global)* .
- American Place momentum accelerated: March gaming revenue hit a property record $10.9M; the database surpassed 100,000 members, and marketing upgrades are underway to deepen database-driven growth .
- Silver Slipper improved operations under new leadership, lifting operating income by $0.6M despite a $0.7M revenue decline; Chamonix revenue grew 33.9% YoY, while management identified “several million dollars” of annual cost savings to support profitability in seasonally stronger Q2/Q3 .
- Strategic catalysts: breaking ground on the permanent American Place in 2H 2025 (target opening by Aug 2027), Colorado profitability expected in Q2, and debt market flexibility to refinance 2028 notes and fund build-out without near-term equity issuance .
What Went Well and What Went Wrong
What Went Well
- American Place set a new monthly record with $10.9M March gaming revenue and surpassed 100,000 loyalty members; CEO: “we not only crossed $10 million… we nearly reached $11 million” and “our player database… surpassing 100,000 members” .
- Silver Slipper operational turnaround: “operating income improved by $0.6 million despite a $0.7 million decline in revenues… refreshed a large portion of the slot floor” .
- Colorado revenue growth: West segment revenues up 19.8% to $15.6M; Chamonix/Bronco Billy’s revenues +33.9% YoY with a new GM already identifying “several million dollars” of annual cost savings .
What Went Wrong
- Chamonix profitability still pressured: West segment Adjusted Segment EBITDA was $(2.5)M vs $(0.1)M last year, reflecting ramp inefficiencies and snowy weather .
- Elevated cost base and taxes: American Place expenses increased for advertising, expanded food options, and higher gaming tax rate with revenue growth .
- Contracted sports wagering exposure: operator exits to be effective in CO (June 2025) and IN (Dec 2025) with uncertainty about replacing on similar terms .
Financial Results
Headline Financials (oldest → newest)
Q1 2025 vs Prior Year and vs Estimates
Values retrieved from S&P Global*
Segment Performance (Q1 2025)
KPIs
Guidance Changes
Earnings Call Themes & Trends
Management Commentary
- “Our three largest properties – American Place, Silver Slipper, and Chamonix – all made meaningful strides during the first quarter.”
- “In March 2025, we not only crossed $10 million of monthly gaming revenue for the first time, but we nearly reached $11 million.”
- “Expenses [at American Place] reflect production costs for new advertisements… an increase in overall advertising… and additional labor costs… [and] the gaming tax rate… increased due to higher casino revenues.”
- “Revenues grew 33.9% year-over-year [in Colorado]… we’ve identified several million dollars of annual cost savings… we expect positive results… as we move into… spring and summer.”
- “We intend to break ground in the second half of this year… [and] open the permanent [American Place] by August of 2027.”
Q&A Highlights
- Colorado profitability trajectory: Management expects positive EBITDA in Q2, more in Q3, and profitability for the year; identified low-hanging cost reductions and management changes to accelerate bottom-line improvement .
- American Place margins: Temporary facility margins nearing ~30%; permanent facility expected mid-30% due to scale and elimination of modular rents .
- Financing strategy: Plan to refinance callable 2028 notes and expand revolver; bond market improving; backup private equity facility available; aversion to near-term equity at current stock levels .
- Regulatory timing: No legal deadline to open permanent facility, only to operate temporary until April 2027 (target opening Aug 2027); legislature reprieve possible if needed .
- Sports wagering: CO/IN skins likely discontinued; replacement on similar terms unlikely; focus remains on core casinos .
Estimates Context
- Q1 2025 revenue exceeded consensus by ~$0.87M ($75.06M vs
$74.19M), and EPS was modestly better ($(0.27) vs $(0.291)); Adjusted EBITDA was essentially in line ($11.49M actual vs ~$11.57M consensus) (values retrieved from S&P Global)* . - Directionally, estimate updates should reflect: continued American Place ramp, expected Colorado profitability in Q2, and sustained operational improvements at Silver Slipper .
Values retrieved from S&P Global*
Key Takeaways for Investors
- American Place’s ramp is the core earnings driver; record March performance and database growth underpin durable trajectory into the permanent build .
- Colorado is shifting from growth-at-any-cost to disciplined profitability; identified cost savings and seasonality favor Q2/Q3 earnings inflection .
- Silver Slipper’s leadership change is yielding tangible margin gains even with lighter revenue—evidence of operational discipline .
- Near-term financing risk appears manageable: callable notes, improving bond market, backup facility, and no need for equity at current levels per management .
- Key 2025 catalysts: ground-breaking for permanent American Place in 2H, visible margin lift at Chamonix, and ongoing American Place marketing/data strategy .
- Watch sports wagering contract roll-offs in CO/IN—limited earnings impact, but replacement terms likely less favorable, reinforcing focus on core properties .
- Liquidity position supports execution: $30.7M cash, revolver extended to 2027; maintenance capex modest and cash taxes not expected through at least 2029 .