Full House Resorts (FLL) Q2 2026 earnings review
Strong Flow-Through at American Place, But Financing Delays Cap the Celebration
Full House Resorts posted a solid Q2 2026, with consolidated revenues accelerating 5.6% year-over-year to $78.1 million and Adjusted EBITDA jumping 19.5% to $13.3 million. The core story remains bifurcated: American Place is an absolute cash engine (revenues +13.4%), while Chamonix is finally showing real turnaround traction, shrinking its property EBITDA loss to near zero. However, the critical catalyst—closing the ~$300M financing to build the permanent American Place casino—remains delayed, with management admitting legal documentation is taking longer than expected. The extension of the temporary operating license through February 2029 removes a near-term cliff but underscores the delayed timeline to the permanent facility's target opening in H2 2028.
🐂 Bull Case
The temporary American Place casino continues to exceed expectations, driving a 13.4% YoY revenue surge. It remains the anchor of the company's profitability and will retain its massive 'Sprung structure' as an event space for five years post-permanent opening.
The aggressive cost-cutting and revamped marketing strategies implemented over the past year are working. Chamonix/Bronco Billy's Adjusted Property EBITDA improved by $1.1 million YoY, generating positive returns in May and June.
🐻 Bear Case
Management previously anticipated financing the permanent American Place 'within weeks' in Q1. In Q2, this shifted to noting that 'legal work has taken longer to document than expected.' The H2 2028 opening date pushes the $100M EBITDA target further into the distance.
Grand Lodge operations are suffering double-digit revenue declines (-10.8%) due to Hyatt renovations, and Rising Star faced a 42-hour power outage, dragging down total property performance and masking core growth.
⚖️ Verdict: ⚪
Neutral. Operational execution at Chamonix and American Place is genuinely impressive, resulting in stable, accelerating margins. However, the entire long-term equity thesis hinges on securing permanent financing in a volatile high-yield debt environment. Until that deal is inked, the stock faces an overhang.
Key Themes
American Place Momentum Accelerating
The Midwest & South segment remains the operational powerhouse, growing segment EBITDA 4.7% to $13.4M. The temporary American Place facility set all-time property records in Q2, with revenues rising 13.4% YoY. Furthermore, the Waukegan City Council approved a plan to keep the temporary casino's Sprung structure for five years after the permanent facility opens, creating the largest regional event space to funnel additional traffic to the casino.
Chamonix Turnaround Realizing Traction
Chamonix operations are reversing previous losses. Revenues at Chamonix/Bronco Billy's grew 11.7% to $13.0M. More importantly, the Adjusted Property EBITDA metric improved by 92.6% from a loss of $(1.2)M in 25Q2 to a loss of just $(0.1)M in 26Q2. Management noted a modest loss in April was fully offset by positive contributions in May and June, indicating the property is finally scaling the operational leverage curve with the help of digital marketing and database growth tech.
Operating Leverage and Cost Discipline
Consolidated SG&A expenses actually decreased slightly to $27.7M (down from $27.9M YoY), while revenues grew by $4.1M. This aggressive cost discipline allowed a 5.6% revenue increase to translate into a 19.5% Adjusted EBITDA increase, a sign of stable and highly effective management of ordinary run-rate expenses across the portfolio.
Permanent American Place Financing Pushed Back
In the prior quarter, management confidently projected that financing for the ~$300M permanent American Place facility would be finalized 'within weeks'. In the Q2 release, this has shifted to 'legal work has taken longer to document than expected.' While they secured a critical extension to operate the temporary facility until February 2029, the macro high-yield debt market clearly remains a frictional barrier to closing.
Grand Lodge Disruption Outweighing Turnaround Rhetoric
Despite the positive narrative surrounding Chamonix, the West Segment remains a net drag with an Adjusted Segment EBITDA of $(0.1)M. A significant factor is Grand Lodge Casino, which saw revenues drop 10.8% to $2.6M YoY and property EBITDA flip to negative. Ongoing construction at the host Hyatt Regency Lake Tahoe Resort is to blame, and this pain will persist as amenities aren't expected to be complete until late 2027.
Contracted Sports Wagering Declines
High-margin contracted sports wagering revenue decelerated, falling to $1.5 million in 26Q2 from $1.7 million a year ago. Management cited the loss of an active sports skin. While a minor part of top-line revenue, these are near 100% margin dollars, meaning the absolute drop hits EBITDA flow-through directly.
Other KPIs
Improved from $(10.4) million a year ago, primarily due to higher operating income ($2.3M vs $(0.1)M). The company's heavy debt load ($450M senior notes) continues to result in significant interest expenses ($10.8M in the quarter), keeping the bottom line firmly in negative territory.
Corporate-level unallocated costs improved YoY from $(2.1) million. The reduction in overhead contributed directly to the consolidated EBITDA beat and highlights tighter cost controls at the headquarters level.
Consists of $33.4 million in cash and cash equivalents and $15.0 million available on the $40.0 million revolving credit facility. The company is preserving its dry powder ahead of the massive capex requirements for the permanent American Place.
Guidance
Stable. The company expects the permanent facility to require 18 to 24 months of construction once financing is finalized. The timeline targets a launch in H2 2028. To bridge this gap, the company successfully acquired state approval to operate the temporary facility until February 2029.
Key Questions
Financing Legal Hurdles
You noted that legal documentation for the permanent American Place financing is taking longer than expected. Can you provide specific details on what terms or structures are causing the bottleneck, and is the blended cost of debt trending higher than previously anticipated?
Chamonix Run-Rate
Chamonix generated positive EBITDA in May and June. Given the traditional seasonality of the Colorado gaming market, do you anticipate Chamonix can maintain positive Adjusted Property EBITDA through the upcoming shoulder season in Q4 and Q1?
Lake Tahoe Concessions
With the Hyatt Regency Lake Tahoe renovations expected to last until late 2027, what mitigation strategies or rent concessions are in place to limit the cash burn at the Grand Lodge Casino during this prolonged disruption?