Red Rock Resorts Swings to Q3 Loss on Employee Stock Awards

Red Rock Resorts reported a third-quarter net loss despite higher revenue. The Station Casinos parent said Nov. 3 that it lost $17.7 million in the quarter ended Sept. 30. That compares with net income of $76.9 million a year earlier.

The swing came mainly from one-time employee stock awards tied to the company's 50th anniversary. Net revenue rose 2.8% to $488.7 million. Diluted loss per Class A share was $0.17, compared with diluted earnings of $0.68 a year earlier.

How 50th Anniversary Stock Awards Drove the Third-Quarter Loss

The loss stems from stock awards granted to almost all of the company's full-time and part-time employees. Red Rock recorded $79.1 million in share-based compensation expense tied to the grant. It also booked $6.9 million in other one-time anniversary costs.

According to its quarterly SEC filing, the shares were awarded Sept. 9 and had a grant-date fair value of $72.4 million.

The awards vested immediately, so the full cost landed in the third quarter.

That $79.1 million figure also covers related payroll taxes.

Eligible workers received $1,000 in Class A stock for every year of service. Nearly 10,000 Station Casinos employees qualified. "Our Team Members are at the heart of everything we do," said Vice Chairman Lorenzo Fertitta.

Rises Modestly While Adjusted EBITDA Falls 4.3%

Revenue from the company's core business grew modestly in the quarter. Net revenue from Las Vegas operations climbed 2.2% to $479.1 million. Casino, food and beverage, and room revenue all increased year over year. The largest category, casino revenue, reached $323.9 million, up 1.4%. Other revenue rose 9.9%.

Consolidated adjusted EBITDA fell 4.3% to $182.6 million. The measure tracks earnings before interest, taxes, depreciation and amortization, and it excludes items such as share-based compensation. That is why the $79.1 million stock award expense doesn't appear in the figure. It does include $5.8 million of the $6.9 million in one-time anniversary expenses. Las Vegas adjusted EBITDA slipped 2.3% to $204.6 million.

Revenue from Native American activities jumped 59% to $6.2 million. Station manages North Fork Mono Casino in Madera County, California, for the North Fork Rancheria of Mono Indians. The casino opened Oct. 27, after the quarter closed.

$0.26 Dividend Declared as Debt Rises and Nine-Month Profit Falls

Red Rock's board declared a quarterly cash dividend of $0.26 per Class A share, according to the company's earnings release. The dividend is payable Dec. 31 to stockholders of record as of Dec. 15. Station Holdco, which owns Station Casinos and is 59% owned by Red Rock, will first make a matching $0.26 per-unit distribution to its unit holders. That distribution totals about $29.2 million.

Red Rock ended September with $128.3 million in cash and cash equivalents. Total principal debt outstanding stood at $3.7 billion, up from $3.4 billion a year earlier. Through the first nine months, net revenue reached $1.51 billion, up 0.4% from the same period in 2025. Nine-month net income fell to $141.6 million from $271.1 million.