Las Vegas-based casino operator Red Rock Resorts (RRR) is navigating a challenging operational period as it undergoes multiple property renovations throughout summer 2025. According to a recent SWOT analysis, while the disruptions may temporarily affect customer traffic and earnings, analysts maintain a confident long-term outlook for the company.
In Q1 2025, Red Rock reported $215 million in EBITDA, exceeding expectations by 3%, and $498 million in total revenue, slightly above consensus. However, segments such as food and beverage and hotel services showed a modest year-over-year decline, attributed in part to renovation activity and high comparables from the prior year.
The company is actively expanding its footprint in the Las Vegas Valley, with recent openings like the Durango property, which delivered a 16% return on investment in 2024. Its development pipeline suggests further growth ahead, positioning Red Rock to capitalize on the region’s residential and tourist demand.
Despite short-term challenges—such as construction-related disruptions and increasing local market competition—Red Rock's financials remain healthy. Analysts project EBITDA growth of 5% in 2026 and free cash flow exceeding $520 million, supported by a manageable 4.1x leverage ratio as of Q1.
With price targets ranging between $43 and $59, Red Rock Resorts continues to be seen as a stable, long-term play in the U.S. local gaming market.
