Red Rock Resorts, Inc. · NASDAQ:RRR
Red Rock Resorts — Q2 2025 Earnings Presentation
65 slides from Red Rock Resorts's earnings presentation, Jul 29, 2025
Slide 1: Investor Presentation
I N V E S T O R P R E S E N TAT I O N PRIVATE & CONFIDENTIAL
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements, that reflect current views of Red Rock Resorts, Inc. (the “Company”) with respect to, among other things, our operations and financial performance, all of which are subject to known and unknown risks, uncertainties and other factors t
Slide 3: Alignment Between Shareholders and Management
ALIGNMENT BETWEEN SHAREHOLDERS AND MANAGEMENT ENTREPRENEURIAL SPIRIT ▪ Created and developed the Las Vegas Locals market, the second largest gaming market in the United States STABLE LEADERSHIP ▪ Frank Fertitta III and Lorenzo Fertitta lead Red Rock Resorts, which has grown from one property with 90
Slide 4: A Roadmap of Growth
A ROADMAP OF GROWTH NEVADA LOCALS GAMING RED ROCK RESORTS THE RIGHT PLACE THE RIGHT MARKET THE RIGHT COMPANY FOR GROWTH FOR GROWTH FOR GROWTH ▪ Consistently leading the nation in ▪ Largest regional gaming market in ▪ Strategically positioned population expansion nation properties within Las Vegas Va
Slide 5: Las Vegas Continues to Grow
LAS VEGAS CONTINUES TO GROW red rock resorts
Slide 6: Population Growth
POPULATION GROWTH NEVADA IS CONSISTENTLY EXPANDING AND LEADS THE NATION NEVADA’S POPULATION GREW BY 40% BETWEEN 2004 AND 2024 Nevada was the third fastest growing state in #3 the nation over the course of the last two decades Source: U.S. Census Bureau 6
Slide 7: Population Growth
POPULATION GROWTH LAS VEGAS IS ONE OF THE FASTEST GROWING AREAS IN THE NATION Clark County Population Historical Projected 3.0 +449K Millions 2.8 Las Vegas’ population has 2.6 grown by approximately 2.4 4.3 new people per hour 2.2 of every day for the 2.0 last 20 years 1.8 1.6 1.4 1.2 '00 '04 '08 '1
Slide 8: Population Growth
POPULATION GROWTH OLDER CONSUMERS ARE EXPECTED TO CONTINUE GROWING Clark County Population Growth Total Population 65 and Over 81.1% Residents aged 65+ are projected to grow more than 4.1x faster in the next 5 years than the total population in Clark County 21.4% 15.4% 3.8% 2010-2025 2025-2030 Sourc
Slide 9: Population Growth
POPULATION GROWTH MEDIAN HOUSEHOLD INCOME FOR 65+ WILL ALSO GROW QUICKLY Clark County Median Household Income Growth Total Population 65 and Over 75.6% The median household 61.0% income for older consumers is expected to grow by 6.9% to $59,358 between 2025 and 2030 7.1% 6.9% 2000-2025 2025-2030 Sou
Slide 10: Housing Market
HOUSING MARKET TRENDS INDICATE CONTINUED GROWTH Clark County Housing Units Historical Projected 1.2 +180K Millions 1.1 Clark County will 1.0 add nearly 180,000 0.9 housing units over the next 15 years 0.8 0.7 0.6 0.5 '00 '04 '08 '12 '16 '20 '24 '28 '32 '36 Source: SalesTraq; Clark County Comprehensi
Slide 11: Housing Market
HOUSING MARKET TRENDS INDICATE CONTINUED GROWTH Southern Nevada Resale Home Prices Single-Family Condo/Townhouse $500 Thousands Southern Nevada $400 homeowners have seen $300 +$21,000 in equity gains $200 $100 over the last year (as of $0 Q1 2025), $7,900 more '09 '12 '15 '18 '21 '24 than the U.S. a
Slide 12: Housing Market
HOUSING MARKET MORE STABLE THAN DURING THE GREAT RECESSION Negative Equity in Nevada Q1 2010 Q1 2025 72.7% 0.8% 80% Only 0.9% of mortgages 70% 60% in Nevada were more 50% than 90 days delinquent 40% as of Q1 2025 30% 20% 10% 0% '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 Source:
Slide 13: Housing Market
HOUSING MARKET MORE STABLE THAN DURING THE GREAT RECESSION Adjustable Rate Mortgages January 2007 September 2024 24.9% 2.5% Adjustable-rate 100% mortgages are less prevalent, mitigating 75% financial exposure 50% during times of rising interest rates 25% 0% '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '1
Slide 14: Quality of Life
QUALITY OF LIFE LAS VEGAS’ LOW COST OF LIVING MAKES IT ATTRACTIVE TO LIVE IN Cost of Living Among Metropolitan Areas in the Western U.S. (Indexed to Las Vegas) Q1 2025 COMPOSITE INDEX HOUSING INDEX San Francisco, CA 166.8 239.4 Other western Los Angeles, CA 156.3 220.9 metro areas are up to San Dieg
Slide 15: Quality of Life
QUALITY OF LIFE FAVORABLE TAX CLIMATE IS PRO-BUSINESS & BENEFICIAL FOR RESIDENTS Marginal Income Tax Rates IDAHO OREGON 5.695% 9.9% No corporate or personal income taxes ranks UTAH Nevada in the top third CALIFORNIA NEVADA 4.55% of all U.S. states for 13.3% 0.0% business tax climate NEW MEXICO 5.9%
Slide 16: Quality of Life
QUALITY OF LIFE NEVADA’S TAX AND BUSINESS ENVIRONMENT IS FAVORABLE Best State for New Corporate Investment Based on Tax and Business Climate Nevada 24% Nevada is the Arizona 21% Wyoming 14% #1 state for new Utah 11% corporate investment Montana 8% in the Western United Idaho 7% States based on its t
Slide 17: Quality of Life
QUALITY OF LIFE DEBT PER CAPITA IS DECREASING WHILE MEDIAN INCOME INCREASES Nevada Household Debt Per Capita Inflation-Adjusted (Q1 2025=100) $130,000 $110,000 Debt per capita in Nevada $90,000 has decreased by 44.7% ($56,594) since 2008 $69,970 $70,000 $50,000 $30,000 '03 '05 '07 '09 '11 '13 '15 '1
Slide 18: Labor Market
LABOR MARKET DYNAMICS ARE ROBUST Las Vegas Employment Distribution Leisure and Hospitality Trade, Transportation, and Utilities +76,100 jobs added to Professional and Business Services the market over the last Education and Health Services three years, led by 1.2M Government leisure and hospitality,
Slide 19: Labor Market
LABOR MARKET LAS VEGAS JOB MARKET IS GROWING Employment Growth 30 Largest MSAs | 2019-2025 25% 20% 15% 11.5% 10% 5% U.S. Average: +5.8% 0% -5% Source: Bureau of Labor Statistics. Note: Employment growth based on data from June 2019 and 2025. 19
Slide 20: The Locals Gaming Market Is a Prime Growth Opportunity
THE LOCALS GAMING MARKET IS A PRIME GROWTH OPPORTUNITY 20
Slide 21: Locals Gaming Market
LOCALS GAMING MARKET LAS VEGAS IS THE LARGEST REGIONAL GAMING MARKET Top 10 United States Commercial Gaming Markets By Gross Gaming Revenue | 2024 Las Vegas Strip Las Vegas Locals $3.2B The Las Vegas Locals Atlantic City NJ gaming market is Chicagoland IL/IN the second largest Baltimore-Washington D
Slide 22: Discretionary Income
DISCRETIONARY INCOME PERSONAL INCOME GROWTH SIGNIFICANTLY OUTPACING POPULATION GROWTH Personal Income Las Vegas Metro Area $180 $164 B Billions $160 Personal incomes $140 expanded by 6.3% CAGR $120 during the past decade $100 and 4.7% during the $80 past 20 years $60 $40 $20 $0 '12 '13 '14 '15 '16 '
Slide 23: Locals Gaming Market
LOCALS GAMING MARKET FUTURE GROWTH POTENTIAL Locals Gross Gaming Revenue Potential 2035(e) $6.2B 2035(e) 1.9% of personal income $5.2B 2030(e) 2035(e) in Southern Nevada is 2030(e) $4.3B 2030(e) $4.4B $4.0B spent on locals gaming 2025(a) $3.7B 2025(a) 2025(a) activities ($3.2B of $3.2B $3.2B $3.2B g
Slide 24: High Barriers to Entry and Stable Regulatory Environment Characterize Locals Market
HIGH BARRIERS TO ENTRY AND STABLE REGULATORY ENVIRONMENT CHARACTERIZE LOCALS MARKET HIGH BARRIERS TO ENTRY ▪ Nevada law (SB 208) significantly limits the development of casinos outside of the Strip ▪ Red Rock owns most of the major off-strip gaming development sites in Las Vegas Valley STABLE REGULA
Slide 25: Best-in-Class Operator With Best-in-Class Locations
BEST-IN-CLASS OPERATOR WITH BEST-IN-CLASS LOCATIONS 25
Slide 26: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS ▪ Best-in-Class Assets in Best-in-Class Locations ▪ Durable Business Model Built to Drive Free Cash Flow ▪ Significant Capacity for Growth ▪ Owned Growth Pipeline with High Barriers to Entry ▪ Proven Track Record of Returning Capital to Shareholders ▪ Strong Financial Perfo
Slide 27: Current Properties
CURRENT PROPERTIES CONVENIENTLY LOCATED 19 Strategically distributed properties 27
Slide 28: Regional Entertainment Centers
REGIONAL ENTERTAINMENT CENTERS IRREPLACEABLE ASSETS GENERATE REPEAT VISITATION GAMING & SPORTS BETTING RESORTS/HOTELS DINING & ENTERTAINMENT ▪ 16,447 Slots ▪ 3,030 Rooms ▪ 175 Restaurants, Bars and Lounges ▪ 320 Table Games ▪ World-Class Pools and Spas ▪ 33 Live Entertainment ▪ State-of-the-Art Race
Slide 29: The Red Rock Advantage
THE RED ROCK ADVANTAGE A REPUTATION BUILT BY GUESTS AND TEAM MEMBERS LOYAL GUESTS LONG-TERM TEAM MEMBERS #1 locals loyalty program We take care of our team members; as a result, we believe we have one of the highest retention 75% of local carded slot revenue generated rates in the industry by guests
Slide 30: Recurring Revenue Stream
RECURRING REVENUE STREAM GENERATED BY LOYAL SLOT CUSTOMERS 1-3 VISITS PER MONTH 25% OF SLOT REVENUE 4-7 VISITS PER MONTH 75% of local carded slot revenue generated by guests who visit 26% 4+ times per month OF SLOT REVENUE 8+ VISITS PER MONTH 49% OF SLOT REVENUE Note: Slot revenue and percentages ar
Slide 31: We Continue to Reinvest in Our Existing Properties
WE CONTINUE TO REINVEST IN OUR EXISTING PROPERTIES THE QUALITY OF OUR ASSETS DIFFERENTIATES US FROM OUR COMPETITION ▪ Best-in-class assets with amenities for all ages and income levels ▪ No deferred maintenance capital and over $6B invested across the Las Vegas Valley ▪ Investments in existing prope
Slide 32: Stable Maintenance Capital Profile
STABLE MAINTENANCE CAPITAL PROFILE Capital Expenditures Maintenance Capital Investment Capital $800M $700M $600M Assets well-maintained $500M with no deferred $400M maintenance capital $300M $200M $100M $0M (1) 2019 2020 2021 2022 2023 2024 2025 Guidance Note: Represents consolidated results for Red
Slide 33: Extracting Value From Our Real Estate
EXTRACTING VALUE FROM OUR REAL ESTATE A DURANGO CASE STUDY DCF Valuation (2) $3.5B+ Durango Expected to Generate $3.1B Over 3x Return on Investment $2.5B $800.0M $23.8M $30.8M $7.0M Original Land Purchased & Entitled Excess Land Sale Project Cost $128M EBITDA $160M EBITDA $180M+ EBITDA Analyst Conse
Slide 34: Red Rock Resorts Owns All Its Real Estate
RED ROCK RESORTS OWNS ALL ITS REAL ESTATE 7 461 CURRENT LARGE PROPERTIES ACRES READY FOR DEVELOPMENT Boulder Station Las Vegas Blvd South of Cactus 123 Durango Casino & Resort Viva 95 Green Valley Ranch Losee 67 Palace Station Inspirada 63 Red Rock Resort Town Center 58 Santa Fe Station Skye Canyon
Slide 35: Uniquely Positioned to Capitalize on Future Growth
UNIQUELY POSITIONED TO CAPITALIZE ON FUTURE GROWTH Future Inspirada Development Site 35
Slide 36: Red Rock Resorts Owns the Best Organic Growth Pipeline in Gaming
RED ROCK RESORTS OWNS THE BEST ORGANIC GROWTH PIPELINE IN GAMING ▪ 100% ownership of all developable real estate ▪ 7 owned development sites located in growing areas within Las Vegas and Reno ▪ Sites feature convenient ingress/egress and proximity to major highways ▪ Sites have ample acreage for fut
Slide 37: Locations Strategically Positioned Across Valley
LOCATIONS STRATEGICALLY POSITIONED ACROSS VALLEY ▪ Our 7 large properties are located in faster growing, higher-income areas of the valley ▪ Sites feature convenient ingress / egress and proximity to major highways Source: Claritas 37
Slide 38: Locations Strategically Positioned Across Valley
LOCATIONS STRATEGICALLY POSITIONED ACROSS VALLEY ▪ Our 7 large properties are located in faster growing, higher-income areas of the valley ▪ Sites feature convenient ingress / egress and proximity to major highways ▪ Our 12 small properties provide additional distribution around the valley Source: C
Slide 39: Locations Strategically Positioned Across Valley
LOCATIONS STRATEGICALLY POSITIONED ACROSS VALLEY ▪ Our 7 large properties are located in faster growing, higher-income areas of the valley ▪ Sites feature convenient ingress / egress and proximity to major highways ▪ Our 12 small properties provide additional distribution around the valley ▪ Our 6 d
Slide 40: Locations Strategically Positioned Across Valley
LOCATIONS STRATEGICALLY POSITIONED ACROSS VALLEY ▪ Our 7 large properties are located in faster growing, higher-income areas of the valley ▪ Sites feature convenient ingress / egress and proximity to major highways ▪ Our 12 small properties provide additional distribution around the valley ▪ Our 6 d
Slide 41: What's Next...
WHAT’S NEXT... red rock resorts
Slide 42: Owned Development Pipeline: Cactus
OWNED DEVELOPMENT PIPELINE OUR CACTUS DEVELOPMENT SITE ▪ Prominent location with unobstructed views and easy ingress/egress from both the I-15 freeway and Las Vegas Blvd ▪ Larger site offers more flexibility to design resort to accommodate anticipated residential growth as well as increased regional
Slide 43: Owned Development Pipeline: Inspirada
OWNED DEVELOPMENT PIPELINE OUR INSPIRADA DEVELOPMENT SITE ▪ Site offers direct access to I-15 from St. Rose, Via Inspirada, Sloan interchange, via Nobila Road ▪ +2.5 million SF Haas Automation facility moving forward to the north on Via Inspirada, with estimated completion in 2026. Plans to create o
Slide 44: Owned Development Pipeline: Skye Canyon
OWNED DEVELOPMENT PIPELINE OUR SKYE CANYON DEVELOPMENT SITE ▪ Direct access to the US 95 via Oso Blanco Road on the north and Skye Canyon Park Drive to the south ▪ Adjacent to the Skye Canyon master planned community with 9,000 homes upon build out ▪ Directly across the US 95 is the Sunstone master
Slide 45: Owned Development Pipeline: Losee
OWNED DEVELOPMENT PIPELINE OUR LOSEE DEVELOPMENT SITE ▪ Tule Springs community spans over 1,200 acres and is master planned for over 8,600 homes, with 2,000 of those homes reserved for active adults 55+ ▪ Additional housing developments including 956 multifamily units currently under construction (3
Slide 46: Growth Capital Investment Beyond Nevada
GROWTH CAPITAL INVESTMENT BEYOND NEVADA 46
Slide 47: North Fork Opportunity
NORTH FORK OPPORTUNITY MOST CONVENIENT AND ACCESSIBLE LOCATION IN CENTRAL CALIFORNIA We have successfully developed and managed Native American casinos for over 20 years 47
Slide 48: North Fork Opportunity
NORTH FORK OPPORTUNITY ▪ 305 acres directly adjacent to Highway 99 (75,000+ vehicles per day) ▪ 4.2 million plus people located within 2 hours of development site ▪ 2,460 total slot machines ▪ 44 table games ▪ 2 restaurants ▪ Food Court with exciting options ▪ Construction underway with opening expe
Slide 49: North Fork Construction Progress
NORTH FORK CONSTRUCTION PROGRESS Opening expected in fourth quarter 2026 49
Slide 50: Investment in Existing Properties
INVESTMENT IN EXISTING PROPERTIES STIMULATES GROWTH AND REPEAT VISITATION 50
Slide 51: Ongoing Renovations at Sunset Station
ONGOING RENOVATIONS AT SUNSET STATION BEFORE AFTER 51
Slide 52: Upcoming Renovations at Sunset Station
UPCOMING RENOVATIONS AT SUNSET STATION 52
Slide 53: Upcoming Room Remodel at Green Valley Ranch
UPCOMING ROOM REMODEL AT GREEN VALLEY RANCH 53
Slide 54: Upcoming Room Remodel at Green Valley Ranch
UPCOMING ROOM REMODEL AT GREEN VALLEY RANCH 54
Slide 55: Upcoming Room Remodel at Green Valley Ranch
UPCOMING ROOM REMODEL AT GREEN VALLEY RANCH 55
Slide 56: Proven Track Record of Returning Capital to Shareholders
PROVEN TRACK RECORD OF RETURNING CAPITAL TO SHAREHOLDERS 56
Slide 57: Strong Free Cash Flow Generation
STRONG FREE CASH FLOW GENERATION FUELS FUTURE GROWTH AND RETURN OF CAPITAL TO SHAREHOLDERS ($ thousands) 3Q24 4Q24 1Q25 2Q25 TTM EBITDA 182,709 202,398 215,080 229,359 829,546 less: Cash Interest (78,288) (40,781) (63,168) (38,734) (220,971) less: Cash Taxes (13,993) (6,700) - (20,300) (40,993) 60%
Slide 58: Low-Cost Capital Structure
LOW-COST CAPITAL STRUCTURE PROVIDES PLATFORM FOR GROWTH Amount as of ($ thousands) Spread Rate(1) Maturity 6/30/2025 Cash 145,201 Revolver S + 1.50% 5.83% Mar-29 155,000 Term Loan B(2) S + 2.00% 6.33% Mar-31 1,550,375 Senior Secured Debt $1,705,375 Stable and low-cost Senior Notes (2028) 4.50% Feb-2
Slide 59: Balanced Approach to Returning Capital to Shareholders
BALANCED APPROACH TO RETURNING CAPITAL TO SHAREHOLDERS INVESTMENT IN LONG TERM DIVIDENDS SHARE REPURCHASES GROWTH PROJECTS ▪ Red Rock Resorts has ▪ Implemented $0.25 per ▪ Returned $676 million to generated outsized share quarterly dividend shareholders through returns for investors, with in March 2
Slide 60: Strong Financial Performance With Sustainable High Margins
STRONG FINANCIAL PERFORMANCE WITH SUSTAINABLE HIGH MARGINS 60
Slide 61: Q2 2025 Operating Results
Q2 2025 OPERATING RESULTS ($ in thousands) Three Months Ended June 30, 2025 2024 Net revenues Las Vegas operations $ 513,262 $ 483,209 Native American management 10,008 - Reportable segment net revenues 523,270 483,209 Q2 2025 stands out as a Corporate and other 3,003 3,194 strong quarter, with Las
Slide 62: Gaming Centric Business Model
GAMING CENTRIC BUSINESS MODEL DRIVING MARGIN PERFORMANCE RED ROCK Q2-25 LAS VEGAS STRIP 67% OF REVENUE GENERATED BY HIGH MARGIN CAESARS LAS VEGAS WYNN LAS VEGAS MGM LAS VEGAS GAMING 26% 23% 22% Gaming Non-Gaming Source: RRR Q2-25 Company filings and annual 2024 10-K filings for MGM, Wynn and Caesars
Slide 63: Stable and Proven Margin Performance
STABLE AND PROVEN MARGIN PERFORMANCE OPERATIONAL DISCIPLINE DRIVES SUSTAINABLE MARGINS Quarterly EBITDA and EBITDA Margin PRE-CLOSURE PERFORMANCE PERFORMANCE SINCE REOPENING 53.6% 50.1% 49.8% 49.5% 49.3% 48.7% 48.6% 48.6% 48.0% 47.7% 47.5% 47.3% 46.9% 46.8% 46.7% 46.2% 46.2% 45.5% 45.4% 43.6% 36.3%
Slide 64: Appendix
red rock resorts APPENDIX 64
Slide 65: Net Income to Adjusted EBITDA Reconciliation
NET INCOME TO ADJUSTED EBITDA RECONCILIATION Consolidated Results for RRR ($ in thousands) Three Months Ended June 30, 2025 2024 Net income (loss) $ 108,253 $ 69,810 Adjustments Depreciation and amortization 47,988 46,703 Share-based compensation 8,723 11,806 Write-downs and other, net 4,010 2,193 I