Under CEO John Farahi: Monarch Casino & Resort Reports $136.6M Revenue, Margins Expand to 35.8% in Q1

Monarch Casino & Resort, Inc. opened 2026 with a quarter that leaned more on efficiency than aggressive revenue growth. While revenue still moved higher, the bigger story was on the margin side, where disciplined operations pushed earnings ahead at a faster pace.

Adjusted EBITDA rose 19% in the first quarter, clearly outpacing the 8.9% increase in revenue. That gap reflects a business that is tightening execution rather than simply relying on higher volumes.

Margin expansion stands out

Net revenue for the period came in at $136.6m, with steady contributions across the board. Casino revenue grew 9.4%, and hotel revenue was stronger at 13.5%, helped by better room availability and a pickup in convention activity.

Even so, the real momentum showed up in profitability. EBITDA reached $49.0m, and margins widened to 35.8%, up by 300 basis points. Net income climbed 38.9%, which underlines how much of the performance was driven by operating leverage rather than just demand.

Costs moving in the right direction

Several cost lines improved during the quarter:

• SG&A dropped to 20.3% of revenue (previously 21.7%)
• Casino operating costs came down to 36.0% (from 37.7%)
• Hotel and F&B costs also showed better control

These shifts point to tighter labour management and improved spend per customer. What stands out is that the improvements weren’t isolated – they showed up across multiple areas of the business, suggesting a broader operational reset.

Mix shift helping margins

On the property side, hotel and F&B performance benefited from a higher room count at Atlantis and the return of group and convention demand. That type of business usually carries better margins, which helps lift overall profitability.

Casino growth, meanwhile, remained steady rather than exceptional. This suggests that non-gaming segments are playing a bigger role in supporting margins than they have in the past.

Strong balance sheet, steady returns

Monarch finished the quarter with $120.1m in cash and no drawn debt, keeping its balance sheet relatively conservative.

The company continued to return capital:

• $17.6m was used for share buybacks
• The quarterly dividend remained at $0.30 per share

Capex was limited to $7.6m and mainly focused on maintenance, with no immediate indication of major expansion plans.

M&A still an open question

Management said it is reviewing potential acquisition opportunities, but did not go into detail. With only two core properties, external growth remains an obvious gap in the longer-term strategy.

Outlook: Margins now the key focus

The quarter makes it clear that Monarch can expand margins when execution is tight. The next question is how sustainable that is.

Key factors to watch include:

• Whether labour efficiencies can hold as wages rise
• Continued strength in hotel and group-driven demand
• Competitive pressure across regional gaming markets

With limited near-term investment needs and a solid cash position, the company has room to keep returning capital. Longer term, though, growth will likely depend on whether it expands its footprint – organically or through M&A.

Source: Monarch Casino & Resort, Inc.