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Red Rock Resorts’ $385 Million Durango Bet: Can It Restore Growth?

Red Rock Resorts reported its first quarter of fiscal 2026 results with mixed outcomes across key financial metrics. The company’s Las Vegas operations posted net revenue of $499.5 million, reflecting a modest increase of 0.9% year-over-year. Adjusted EBITDA for the same segment declined by 1.5% to $232.4 million, and the adjusted EBITDA margin dropped by 113 basis points to 46.5%. Consolidated net revenue rose 1.9% to $507.3 million, though consolidated adjusted EBITDA decreased 1.2% to $212.6 million, with the margin compressing by 129 basis points to 41.9%. Operating free cash flow conversion stood at 50.3%, resulting in $107 million or $1.03 per share, with cash generation supporting both growth initiatives and shareholder returns, including dividends and share repurchases totaling approximately $170.5 million.