$142.6M Revenue, $53.0M EBITDA: John Farahi and Dora Ditchev Lead Monarch’s Record Q2
Most gaming operators chase scale. Monarch Casino & Resort just posted record second-quarter numbers with exactly two properties, and the margin profile explains why that decision keeps working.
For the quarter ended 30 June 2026, Monarch reported net revenue of $142.6 million against $136.9 million a year earlier, a 4.2% rise. Net income reached $32.5 million, up 20.4%, while adjusted EBITDA came in at $53.0 million, a 3.3% increase on Q2 2025.
Diluted EPS landed at $1.78 versus $1.44, a 23.6% jump. Part of that gap is worth flagging honestly. Net income and diluted EPS were helped by $2.4 million, or $0.13 per diluted share, from an excess tax benefit on stock options compensation. That pushed the effective tax rate down to 17.4% from 23.5% in the prior year period. Strip that out and the operating story is still solid, but the headline EPS growth flatters it.
Across the six months, net revenue reached $279.1 million, up 6.4%, with net income of $60.1 million and adjusted EBITDA of $101.95 million, a 10.3% increase.
Hotel and F&B Revenue Growth Outpaced Casino Performance
The revenue mix is where this quarter gets interesting. Casino revenue rose 2.5%. Food and beverage rose 3.1%. Hotel revenue rose 13.0%.
Monarch attributed the F&B and hotel strength to higher available rooms at Atlantis compared with the same period in 2025, alongside expanded convention and group business. Hotel operating expense as a percentage of hotel revenue fell to 32.1% from 34.3%, driven by a higher Average Daily Rate and improved cost per occupied room.
F&B moved the other way. Operating expense as a share of F&B revenue climbed to 72.9% from 70.3%, on higher labour and product cost per cover.
Adjusted EBITDA Margin and Cost Control at Monarch
Adjusted EBITDA margin held near record levels at 37.2%, down slightly from 37.5% in Q2 2025, with the company citing a rise in employee benefit expenses. SG&A reached $28.6 million against $26.8 million, moving from 19.6% to 20.0% of net revenue. Casino operating expense as a share of casino revenue improved marginally to 35.5% from 35.7%, which the company credited to labour management and operational efficiency.
Monarch Casino Dividend Declaration and Balance Sheet Position
The Board declared a $0.30 per share cash dividend payable on 15 September 2026 to holders of record as of 1 September 2026, part of the previously announced $1.20 annual dividend. The $0.30 dividend paid on 15 June returned $5.4 million to stockholders, funded from operating cash flow.
Monarch closed the quarter with $138.3 million in cash and no borrowings against its credit facility. Capital expenditure was $5 million, covering maintenance projects at both properties. Cash position grew by $18.1 million during the quarter.
What This Means for Operators and Investors
CEO John Farahi framed the quarter around sustained growth from two properties. The commercial read is that non-gaming revenue is now carrying the growth, and Monarch is converting room availability into ADR rather than discounting for occupancy.
Future Outlook for Monarch Casino and Resort
Monarch stated it has been diligently evaluating potential M&A transactions it believes could drive long-term stockholder value. Set against that, the company continues to disclose the $74,627,657 judgment entered in favour of PCL Construction Services in Colorado district court, which Monarch is appealing. Any capital deployment story runs alongside that unresolved liability.
The question for the rest of 2026 is whether Monarch buys growth or keeps compounding it from the two assets it already owns.
Source: Monarch Casino & Resort Inc
