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FULL HOUSE RESORTS INC (FLL)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 revenue of $73.9M rose 0.6% y/y but fell 1.5% q/q; diluted EPS was $(0.29), and Adjusted EBITDA was $11.1M as American Place set record net revenue while Chamonix’s full run-rate costs weighed on consolidated profitability .
  • Results missed S&P Global consensus: revenue $73.9M vs $77.9M*, Adjusted EBITDA $11.1M vs $13.7M*, and EPS $(0.29) vs $(0.20)*, driven by continued Chamonix ramp costs and lighter contracted sports wagering versus prior-year acceleration . Values retrieved from S&P Global.
  • Management highlighted: record quarter at American Place ($30.7M revenue), Chamonix sequential cost cuts (~$1.2M in Q2 vs Q1) with ~$4–5M annualized savings identified, and marketing revamp now underway in Q3 .
  • Liquidity remained adequate: $32.1M cash, $450M senior secured notes due 2028 (callable), and $25M drawn on the revolver; financing options for the permanent American Place include bonds, alternatives (REIT/private), and timing flexibility .
  • Near-term stock catalysts: continued outperformance at American Place (poker room addition, database growth), evidence of sustained EBITDA positivity at Chamonix into 2H25, and visibility on permanent Waukegan financing progress .

What Went Well and What Went Wrong

What Went Well

  • American Place delivered record net revenue ($30.7M, +12.7% y/y) and record operating profit; management expects 2025 American Place EBITDA growth “~20%” and noted July growth “~30%” y/y with a poker room ready pending regulatory green light .
  • Chamonix costs fell by ~$1.2M sequentially (Q2 vs Q1) and ~$4M in annualized savings have been identified; management indicated July was EBITDA-positive and expects continued improvement as marketing revamps scale in Q3 .
  • Cash/liquidity remained solid with $32.1M cash; operator of the Indiana sports skin reversed its exit and prepaid through 2031 for $1.5M, providing cash flow visibility in the contracted sports segment .

What Went Wrong

  • Consolidated results missed Street: revenue ($73.9M vs $77.9M*), Adjusted EBITDA ($11.1M vs $13.7M*), and EPS ($(0.29) vs $(0.20)*) as Chamonix’s ramp-phase inefficiencies outweighed American Place strength. Values retrieved from S&P Global.
  • West segment Adjusted Segment EBITDA was $(1.1)M vs $0.9M LY, reflecting Chamonix’s early-stage inefficiencies; contracted sports wagering revenue/EBITDA declined y/y on prior-year accelerated revenue that did not repeat .
  • Silver Slipper revenue declined y/y amid reduced comping and a temporary parking garage closure over a key weekend, though management said EBITDA would have been flat excluding a non-cash item .

Financial Results

Consolidated Summary (oldest → newest)

MetricQ2 2024Q1 2025Q2 2025
Revenue ($M)$73.492 $75.058 $73.946
Diluted EPS ($)$(0.25) $(0.27) $(0.29)
Adjusted EBITDA ($M)$14.141 $11.487 $11.134

Q2 2025 Actual vs S&P Global Consensus

MetricActual (Q2 2025)Consensus* (Q2 2025)Result
Revenue ($M)$73.946 $77.869*MISS
Adjusted EBITDA ($M)$11.134 $13.711*MISS
Diluted EPS ($)$(0.29) $(0.200)*MISS
Values retrieved from S&P Global.

Segment Breakdown (Q2; oldest → newest)

SegmentRevenue ($M) Q2 2024Revenue ($M) Q2 2025Adj. Segment EBITDA ($M) Q2 2024Adj. Segment EBITDA ($M) Q2 2025
Midwest & South$55.458 $57.802 $12.275 $12.757
West$15.151 $14.485 $0.865 $(1.138)
Contracted Sports Wagering$2.883 $1.659 $2.577 $1.611

Key KPIs (Q2 2025)

KPIQ2 2025
American Place revenue ($M)$30.7 (record)
Cash & equivalents ($M)$32.1
Senior secured notes due 2028 ($M)$450.0
Revolver drawn ($M)$25.0
Identified annualized cost savings at Chamonix ($M)>$4.0

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Chamonix OpEx run-rate savingsOngoingN/A>$4M annualized identified New
Chamonix profitability cadence2H25N/AEBITDA positive in July; aim to sustain with marketing revamp New qualitative
American Place initiatives2H25N/APoker room addition pending regulatory OK; continued awareness ramp New qualitative
Contracted sports wagering (IN skin)2025–2031Operator notice to discontinue (Jan 2025)Operator reversed decision; prepaid $1.5M through Dec 2031 Positive change
Permanent American Place timing/financing2025–2027Break ground 2H25; finance via bond marketMultiple financing paths; foundation permit submitted; bond market window dependent Maintained with added flexibility

Note: No formal quantitative revenue/EPS guidance provided.

Earnings Call Themes & Trends

TopicQ4 2024 (Q-2)Q1 2025 (Q-1)Q2 2025 (Current)Trend
American Place momentum27.5% Q4 revenue growth; strong ramp March gaming rev hit $10.9M; margins ~30% Record Q2 revenue $30.7M; expect ~20% FY25 EBITDA growth; July up ~30% Improving
Chamonix ramp & profitabilityRevenues +160% in 2024; early inefficiencies Cost cuts underway; target profitability in 2025 ~$1.2M q/q cost reduction; >$4M annualized savings; July EBITDA positive Improving
Marketing & technology (AI)Enhanced efforts after full opening Hired CMO; database marketing upgrade Moving from physical mail to email; exploring AI for database; heavy digital buys Scaling
Sports wagering contractsEarly terminations/accelerated revenue in 2024 Two states exiting (CO/IN) noticed in Jan Indiana skin prepaid through 2031 ($1.5M); segment down y/y on non-recurring 2024 items Stabilizing mix
Financing/Cap structureRevolver extended; plan to refinance for permanent Bond market watch; ample runway into 2026 Multiple paths (bonds, REIT/private); foundation permit filed; timing flexible Optionality maintained
Indiana license relocationN/ALegislative study authorized/signed Working through commission study; sees benefits for Fort Wayne/Indianapolis Advancing

Management Commentary

  • “American Place continued its strong ramp in operations, delivering record net revenue and operating profit in the second quarter.”
  • “We are expecting to have something like 20% growth for the full year [American Place EBITDA]… July alone… probably up about 30%.”
  • “Operating expenses [at Chamonix] were $1,200,000 lower versus [Q1 2025], implying nearly $5,000,000 of annual cost synergies… we are not yet done growing revenues.”
  • “We’re moving from expensive physical mailers to email… the open rate and response on email is just as good… making that transition [at Chamonix].”
  • “There’s different AI programs that we can use to improve our marketing… spending less on network TV and more on targeted internet banner ads.”
  • “We have multiple ways to finance [the permanent American Place]… bond market… REIT… backup private equity facility… we do have it.”

Q&A Highlights

  • Chamonix profitability: Management cited ~$1.2M sequential OpEx reduction, ~$5M annualized savings identified, and July EBITDA positive; incremental gains expected as marketing and midweek group sales scale .
  • American Place trajectory: Database surpassed 107k; poker room ready pending approval; July strong; 2025 EBITDA growth around 20% envisioned .
  • Marketing strategy shift: Transitioning from costly physical mailers to email; building in-house marketing capability; leveraging AI for database cleanup and targeting .
  • Financing flexibility/timing: Windows in high-yield market monitored; alternatives (REIT/private) available; foundation permit submitted; state flexibility expected if temporary-to-permanent timing gap emerges .
  • Portfolio notes: Silver Slipper normalizing comp levels and managing one-off facility issues; Tahoe impacted by hotel-side renovations; contracted sports mix stabilizing with Indiana prepayment .

Estimates Context

  • Q2 2025 performance vs Street: revenue $73.9M vs $77.9M*, Adjusted EBITDA $11.1M vs $13.7M*, EPS $(0.29) vs $(0.20)*—broad misses tied to Chamonix ramp inefficiencies and non-repeating contracted sports acceleration from 2024 . Values retrieved from S&P Global.
  • Revisions risk: If early Q3 commentary (July) strength at American Place and EBITDA positivity at Chamonix persist, Street may lift 2H margin assumptions; however, sustained West segment profitability will be key to re-rating .

Key Takeaways for Investors

  • American Place continues to outperform with record revenue ($30.7M) and expanding database; near-term uplift from poker room and ongoing awareness ramp should support sustained growth .
  • Chamonix inflected on costs (EBITDA-positive July), with >$4M in annualized savings identified and marketing now ramping; proof of sustained quarterly profitability would be a key stock catalyst .
  • Q2 misses vs consensus largely reflect Chamonix ramp and non-repeatable sports revenue—watch for 2H margin normalization as cost actions flow through .
  • Balance sheet is manageable near term (cash $32.1M; revolver $25M; notes callable); multiple financing avenues exist for Waukegan permanent build, reducing execution risk .
  • Contracted sports wagering headwinds are moderating with Indiana prepayment through 2031 ($1.5M), improving visibility .
  • Medium-term upside stems from: (1) permanent American Place (larger, higher-margin footprint), (2) Chamonix’s revenue ramp and midweek group business, and (3) potential relocation of Indiana asset to a stronger market .

Values retrieved from S&P Global where marked with an asterisk (*).