Monarch Casino & Resort confirms it is evaluating M&A opportunities

Monarch Casino & Resort (MCRI) traded slightly lower in the premarket session on Tuesday after the casino operator reported second quarter results.

Company-generated revenue rose 4.1% year over year to $142.6M. Casino revenue increased 2.5% during the quarter compared to the same prior-year period, food and beverage increased 3.1%, and hotel revenue increased 13.0%. F&B and hotel revenues benefited from higher available rooms at Atlantis in the second quarter of 2026 compared to the same period a year ago, as well as expanded convention and group business.

Adjusted EBITDA rose 3.3% to $53M, and diluted EPS was reported at $1.78 vs. $1.66 consensus and $1.44 a year ago.

On the balance sheet, the company had cash and cash equivalents of $138.3M at the end of the quarter and no borrowings against its credit facility. Capital expenditures of $5M in the quarter were funded from operating cash flow and included costs related to ongoing maintenance capital projects at both properties.

Monarch (MCRI) believes its strong balance sheet and free cash flow favorably position the company to continue investing in its properties, share repurchases, and paying cash dividends. "We remain committed to ongoing capital investments that enhance both properties and set the standard for luxury casino resorts in Northern Nevada and Colorado," highlighted CEO John Farahi.

Notably, the company has been diligently evaluating potential M&A transactions, which it believes could drive additional long-term value for shareholders.

Shares of MCRI showed a 1.0% decline in premarket action.