Q2 Growth for Full House Resorts Slows to a Mere 0.6%
In the gaming industry, Full House Resorts has reported a slight increase in revenue for Q2 2025, but the company's losses have deepened compared to the same period last year. The financial outlook shows a 0.6% increase in total revenue to $73.9 million, with casino operations remaining the biggest revenue contributor at about $57 million.
The American Place Casino facility delivered record revenue of $30.7 million, up 13%, and the Colorado operations saw a 7.8% revenue increase compared to the prior year. These improvements are attributed to the operational ramp-up at American Place Casino and Chamonix Casino Hotel.
However, the company’s net losses deepened by 20.3% to $10.38–10.4 million. This reflects operational challenges at certain properties and inefficiencies, particularly at the Chamonix location. Shares dropped over 14% following the earnings announcement, reflecting investor concerns over profitability and unprofitable trading strategies.
Full House Resorts is addressing these issues through several strategies. A new management team at Chamonix is focusing on rectifying inefficiencies and ramping up marketing efforts intended to drive growth, expected to progress through Q3 2025. The company is also actively implementing cost-cutting measures, notably $1.2 million in cost savings during Q2 at Chamonix, aiming for over $4 million in annualized cost reductions through operational efficiency improvements.
The company is optimistic about revenue growth driven by expanding poker room offerings and marketing initiatives, although it has not provided specific quantitative guidance for upcoming quarters. However, the timeline for full profitability recovery, especially at Chamonix, remains uncertain.
Looking back, Q2 2022 saw a different picture for Full House Resorts. The company reported a revenue increase but losses widened compared to the same period in 2021. Adjusted EBITDA for Q2 2022 was $11.1 million, down from $14.1 million in the same period in 2021. The net loss for Q2 2022 was $10.4 million, up from $8.6 million in the same period in 2021.
Despite these challenges, the company is moving forward with plans for a permanent American Place facility, driven by its location in a densely populated area, the absence of a premium local gaming option, and positive results from other casinos transitioning from temporary to permanent venues.
In conclusion, Full House Resorts is navigating a challenging period, with modest revenue growth primarily due to strong casino performance at select properties, but worsening losses and operational hurdles at others. The company is addressing these issues through management changes, cost reductions targeting millions in savings, and growth initiatives centered on poker and marketing enhancements. The timeline for full profitability recovery, especially at Chamonix, remains uncertain.
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