Full House Resorts Inc.
03/16/2026 | Press release | Distributed by Public on 03/16/2026 12:55
Annual Report for Fiscal Year Ending December 31, 2025 (Form 10-K)
Management's Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion of our results of operations and financial condition should be read together with the other financial information and consolidated financial statements included in this Form 10-K. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from the results anticipated in the forward-looking statements as a result of a variety of factors, including those discussed in Part I, Item 1A. "Risk Factors"and elsewhere in this Annual Report on Form 10-K. The results of operations for the periods reflected herein are not necessarily indicative of results that may be expected for future periods. Full House Resorts, Inc., together with its subsidiaries, may be referred to as "Full House," the "Company," "we," "our" or "us."
Executive Overview
Headquartered in Las Vegas, Nevada, we have gaming operations domestically in Nevada, Colorado, Illinois, Indiana, and Mississippi. Our primary business is the ownership and/or operation of casino and related hospitality and entertainment facilities, which includes offering, among other amenities, casino gambling, hotel accommodations, dining, golf, RV camping, sports betting, entertainment and retail outlets.
The following table identifies our segments, along with properties and their locations as of December 31, 2025:
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Segments and Properties |
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Locations |
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Midwest & South |
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American Place Casino ("American Place") |
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Waukegan, IL (northern suburb of Chicago) |
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Silver Slipper Casino and Hotel ("Silver Slipper") |
Hancock County, MS (near New Orleans) |
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Rising Star Casino Resort ("Rising Star") |
Rising Sun, IN (near Cincinnati) |
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West* |
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|
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Chamonix Casino Hotel ("Chamonix") and |
Cripple Creek, CO |
|
|
Grand Lodge Casino ("Grand Lodge"), |
Incline Village, NV |
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Contracted Sports Wagering |
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|
|
Three idle sports wagering websites ("skins") |
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Colorado |
|
One active sports wagering website ("skin"), plus two others that are currently idle |
|
Indiana |
|
One active sports wagering website ("skin") |
|
Illinois |
__________
| * | On April 1, 2025, we completed our sale of Stockman's Casino. |
We currently operate six casinos: five on real estate that we own or lease, and one located within a hotel owned by a third party. Additionally, we currently benefit from two active sports wagering websites (referred to as skins), one in Indiana and one in Illinois. The sports skin in Illinois has significantly greater value than each of the sports skins in Indiana and Colorado due to the larger population of Illinois and fewer permitted sports skins.
In February 2023, we opened our temporary American Place facility. We have begun the design work for the permanent gaming facility that we plan to build on adjoining land.
In October 2024, we completed the phased opening of Chamonix, our newest property, located adjacent to our existing Bronco Billy's Casino.
In April 2025, we completed the sale of Stockman's to a privately-owned company.
In July 2025, we agreed with an operator to extend its use of our active sports wagering skin in Indiana through December 2031, and such operator fully prepaid its remaining term for the Indiana skin.
Our financial results are dependent upon the number of patrons that we attract to our properties and the amounts those guests spend per visit. While we provide credit at some of our casinos where permitted by gaming regulations, most of our revenues are cash-based, through customers wagering with cash or paying for non-gaming services with cash or credit cards. Our revenues are primarily derived from slot machines, but also include other gaming activities, including table games, keno and sports betting. In addition, we derive a significant amount of revenue from our hotels and our food and beverage outlets. We also derive revenues from our golf course and ferry boat service at Rising Star, our RV parks owned at Rising Star and managed at Silver Slipper (through August 2025), and retail outlets and entertainment. We often provide hotel rooms, food and beverages, entertainment, ferry usage, and golf privileges to customers on a complimentary basis; the value of such services is included as revenue in those categories, offset by contra-revenue in the casino revenue category. As a result, the casino revenues in our financial statements reflect patron gaming wins and losses, reduced by the retail value of complimentary services, the value of free play provided to customers, the value of points earned by casino customers that can be redeemed for services or free play, and adjustments for certain progressive jackpots offered by the Company.
We set minimum and maximum betting limits for our slot machines and table games based on market conditions, customer demand and other factors. Our gaming revenues are derived from a broad base of guests that includes both high- and low-stakes players. At Silver Slipper, our on-site sports book operations are in partnership with a company specializing in race and sports betting. At Rising Star, Chamonix/Bronco Billy's (through June 2025), and American Place, we have contracted with other companies to operate our online sports wagering skins under their own brands in exchange for a percentage of revenues, as defined, subject to annual minimum amounts; the same company that utilizes our online sports skin in Illinois also operates our on-site sports book at American Place. Our operating results may also be affected by, among other things, overall economic conditions affecting the disposable income of our guests, weather conditions affecting access to our properties, achieving and maintaining cost efficiencies, taxation and other regulatory changes, and competitive factors, including but not limited to, additions and improvements to the competitive supply of gaming facilities, as well as pandemics and similar widespread health emergencies.
We may experience significant fluctuations in our quarterly operating results due to seasonality, variations in gaming hold percentages, and other factors. Consequently, our operating results for any quarter, especially contrasted with different seasonal quarters, are not necessarily comparable. Results for any particular quarter or year may not be indicative of future periods' results.
Our market environment is highly competitive and capital-intensive. Nevertheless, there are significant restrictions and barriers to entry vis-à-vis opening new casinos in most of the markets in which we operate. We rely on the ability of our properties to generate operating cash flow to pay interest, repay debt, and fund maintenance and certain growth-related capital expenditures. We continuously focus on improving the operating margins of our existing properties through a combination of revenue growth and expense management. We also assess growth and development opportunities, which include capital investments at our existing properties, the development of new properties, and the acquisition of existing properties.
Recent Developments
Stockman's Sale. On August 28, 2024, we entered into an agreement to sell the operating assets of Stockman's for aggregate cash consideration of $9.2 million, plus certain working capital adjustments at closing. The asset sale was completed in two phases: the sale of Stockman's real property for $7.0 million, which closed in the second half of 2024 at a $1.9 million gain; and the sale of certain remaining operating assets for $2.2 million, which closed on April 1, 2025 at a $0.2 million loss. Accordingly, as of April 1, 2025, we no longer own or operate Stockman's Casino.
Extension of Contracted Sports Wagering Agreement in Indiana. In January 2025, we received notice that our contracted sports betting operator in Colorado and Indiana was discontinuing its operations in those states, to be effective in June 2025 and December 2025, respectively. In July 2025, such operator reversed its decision to discontinue its Indiana operations and fully prepaid its remaining term for the Indiana skin through December 2031 for a negotiated fee of $1.5 million.
Progress Toward Construction of the Permanent American Place Facility. In September 2025, the Waukegan City Council unanimously approved our revised site plans. Our architects are also nearing completion of working drawings for the building's foundation. With these drawings, we will seek building permits and begin construction, anticipated in March or April 2026. Foundation work, while not cost intensive, requires several months to complete. By starting construction now, funding it with internal sources, we believe we can accelerate the opening of the permanent casino, anticipated in approximately 18 to 24 months. A bill was also recently introduced in the Illinois legislature to extend the date that our temporary American Place casino is permitted to operate by 18 months beyond August 2027. This bill, if passed, will ensure that there will be no gap in tax revenue or employment prior to the opening of our permanent casino facility. We received a similar extension in 2023 when our project was delayed due to a lawsuit from a competitor. Such lawsuit was resolved in January 2025.
Key Performance Indicators
We use several key performance indicators to evaluate the operations of our properties. These key operating measures are presented as supplemental disclosures because management uses these measures to better understand period-over-period fluctuations in our casino and hotel operating revenues and as a measure of our performance. These key performance indicators include the following and are disclosed in our discussions, where applicable, for certain jurisdictions on segment performance:
Gaming revenue indicators:
Slot coin-in is the gross dollar amount wagered in slot machines and table game drop is the total amount of cash or credit exchanged into chips at table games for use by our customers. Slot coin-in and table game drop are indicators of volume, and are monitored on a consolidated basis in relation to slot and table game win. Such metrics can be influenced by marketing activity and are not necessarily indicative of profitability trends.
Slot win is the difference between customer wagers and customer winnings on slot machines. Table game hold is the difference between the amount of money or markers exchanged into chips and customer winnings paid. Slot win and table game hold percentages represent the relationship between slot win and coin-in and table game win and drop. Both the slot win and table game hold percentages are monitored on a consolidated basis in our evaluation of Company performance.
Room revenue indicators:
Hotel occupancy rate is an indicator of the utilization of our available rooms. Complimentary room sales, or the retail value of accommodations furnished to customers on a complimentary basis, are included in the calculation of the hotel occupancy rate.
Adjusted EBITDA, Adjusted Segment EBITDA, Adjusted Segment EBITDA Margin and Adjusted Property EBITDA:
Management uses Adjusted EBITDA as a measure of our performance. For a description of Adjusted EBITDA, see "Non-GAAP Financial Measure." We utilize Adjusted Segment EBITDA as the measure of segment profitability in assessing performance and allocating resources at the reportable segment level. For information regarding our operating segments, see Note 12to the consolidated financial statements set forth in Part II, Item 8."Financial Statements and Supplementary Data." Additionally, we use Adjusted Segment EBITDA Margin, which is calculated by dividing Adjusted Segment EBITDA by the segment's total revenues.
Adjusted Property EBITDA is defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, impairment charges, asset write-offs, recoveries, gain (loss) from asset sales and disposals, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each property.
Results of Operations ─ 2025 Compared to 2024
Consolidated operating results
The following tables summarize our consolidated operating results for the years ended December 31, 2025 and 2024:
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Year Ended |
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(In thousands, except percentages) |
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December 31, |
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Increase / |
|||||
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2025 |
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2024 |
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(Decrease) |
|||
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Revenues |
|
$ |
302,376 |
|
$ |
292,065 |
3.5 |
% |
|
|
Operating expenses |
|
299,252 |
|
289,315 |
3.4 |
% |
|||
|
Operating income |
|
3,124 |
|
2,750 |
13.6 |
% |
|||
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Interest expense, net |
|
|
42,741 |
|
|
43,201 |
|
(1.1) |
% |
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Other |
|
|
50 |
|
|
- |
|
N.M. |
|
|
Income tax expense |
|
530 |
|
221 |
139.8 |
% |
|||
|
Net loss |
|
$ |
(40,197) |
|
$ |
(40,672) |
1.2 |
% |
|
__________
N.M. Not meaningful.
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Year Ended |
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(In thousands, except percentages) |
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December 31, |
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Increase / |
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2025 |
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2024 |
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(Decrease) |
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Casino revenues |
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Slots |
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$ |
191,178 |
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$ |
180,827 |
5.7 |
% |
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Table games |
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38,261 |
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35,632 |
7.4 |
% |
|||
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Other |
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821 |
|
421 |
95.0 |
% |
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230,260 |
|
216,880 |
6.2 |
% |
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Non-casino revenues, net |
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Food and beverage |
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39,302 |
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41,871 |
(6.1) |
% |
|||
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Hotel |
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16,023 |
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15,709 |
2.0 |
% |
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Other |
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16,791 |
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17,605 |
(4.6) |
% |
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72,116 |
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75,185 |
(4.1) |
% |
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Total revenues |
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$ |
302,376 |
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$ |
292,065 |
3.5 |
% |
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Year Ended |
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(In thousands, except percentages) |
December 31, |
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Increase / |
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2025 |
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2024 |
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(Decrease) |
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Slot coin-in |
$ |
3,179,684 |
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$ |
3,076,528 |
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3.4 |
% |
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Slot win(1) |
$ |
240,884 |
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$ |
233,622 |
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3.1 |
% |
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Slot hold percentage(2) |
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7.6 |
% |
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7.6 |
% |
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- |
pts |
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Table game drop |
$ |
219,250 |
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$ |
202,987 |
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8.0 |
% |
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Table game win(1) |
$ |
39,280 |
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$ |
36,349 |
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8.1 |
% |
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Table game hold percentage(2) |
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17.9 |
% |
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17.9 |
% |
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- |
pts |
__________
| (1) | Does not reflect reductions in casino revenues from "discretionary comps." For details on our customer loyalty programs, see Note 2to the consolidated financial statements set forth in Part II, Item 8. "Financial Statements and Supplementary Data." |
| (2) | The three-year averages for slot hold percentage and table game hold percentage were 7.5% and 18.1%, respectively. Longer-term hold percentages can vary due to a number of factors, including the addition of relatively new properties like Chamonix and American Place, or changes in our game mix. |
The following discussion is based on our consolidated financial statements for the years ended December 31, 2025 and 2024.
Revenues. Consolidated total revenues increased by 3.5% (or $10.3 million) in 2025. Such increase was primarily due to growth at our two newer properties, American Place and Chamonix, where operations continue to ramp up. This increase was partially offset by the sale of Stockman's Casino in April 2025 and renovation-related disruptions at the Hyatt Lake Tahoe, which houses our Grand Lodge Casino.
Operating expenses. Consolidated operating expenses increased by 3.4% (or $9.9 million) in 2025, primarily due to the ramp-up of operations mentioned above at American Place and Chamonix, which resulted in increased casino and selling, general and administrative expenses. At American Place, casino expenses rose $6.6 million compared to the prior year, largely due to costs associated with increased volumes. At Chamonix, selling, general and administrative expenses increased $4.7 million due to its phased opening and fewer operating amenities for much of the prior year.
See further information within our reportable segments described below.
Interest expense, net. Interest expense, net, consists of the following:
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Year Ended |
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(In thousands) |
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December 31, |
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2025 |
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2024 |
||
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Interest expense (excluding bond fee amortization and discounts/premiums) |
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$ |
40,910 |
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$ |
42,091 |
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Amortization of debt issuance costs and discounts/premiums |
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2,963 |
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2,987 |
||
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Capitalized interest |
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(884) |
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(1,114) |
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Interest income and other |
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(248) |
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(763) |
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$ |
42,741 |
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$ |
43,201 |
The decrease in net interest expense for 2025 was primarily due to reductions in interest rates applied to the revolving credit facility than in the prior year. Offsetting some of the decrease was a reduction in capitalized interest, as Chamonix's phased opening was completed in October 2024. Additionally, as we invested cash into Chamonix's construction, our cash balances were lower during 2025, resulting in reduced interest income.
Income taxes. Our effective income tax rates for the years ended December 31, 2025 and 2024 were (1.3%) and (0.5%), respectively. Our tax rates differ from the statutory rate of 21.0%, primarily due to the effects of changes in our valuation allowance, state taxes, and items that are permanently treated differently for GAAP and tax purposes. During 2025, we continued to provide a valuation allowance against our deferred tax assets ("DTAs"), net of any available deferred tax liabilities, as applicable, based on our analysis of the timing of reversal of such deferred taxes. For 2025, the valuation allowance was $49.0 million, compared to $35.6 million for 2024. In future years, if it is determined that we meet the "more likely than not" threshold of utilizing our DTAs, then we may reverse some or all of our valuation allowance against our DTAs.
We do not expect to pay any federal income taxes or receive any federal tax refunds related to our 2025 results. Similarly, we do not expect to pay income taxes related to any states the Company operates in. Any future federal taxable income is expected to result in the utilization of our net operating loss carryforwards, which can be used to offset 80% of taxable income. Due to the level of uncertainty regarding sufficient prospective income as measured under GAAP, we maintain a valuation allowance against our DTAs, as mentioned above. See Note 9to the consolidated financial statements set forth in Part II, Item 8."Financial Statements and Supplementary Data" for a more detailed discussion.
In July 2025, new U.S. tax legislation ("H.R. 1") was signed into law, which makes permanent many of the tax provisions enacted in 2017, as part of the Tax Cuts and Jobs Act, that were set to expire at the end of 2025. In addition, H.R. 1 makes changes to certain U.S. corporate tax provisions, but many are generally not effective until 2026. We are still in the process of evaluating the new tax legislation, but we do not expect it to have a material impact on the results of our operations.
Operating Results - Reportable Segments
We manage our casinos based primarily on geographic regions within the United States and type of income. For more information, please refer to our earlier discussion within the "Executive Overview"section.
The following table presents detail by segment of our consolidated revenues and Adjusted EBITDA (see "Non-GAAP Financial Measure"for more information). Additionally, management uses Adjusted Segment EBITDA as its measure of segment profitability in accordance with GAAP.
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(In thousands, except percentages) |
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Year Ended |
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December 31, |
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Increase / |
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2025 |
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2024 |
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(Decrease) |
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Revenues |
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Midwest & South |
$ |
231,464 |
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$ |
219,626 |
5.4 |
% |
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West |
63,645 |
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63,648 |
- |
% |
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Contracted Sports Wagering |
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|
7,267 |
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8,791 |
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(17.3) |
% |
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$ |
302,376 |
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$ |
292,065 |
3.5 |
% |
||
|
Adjusted Segment EBITDA and |
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Midwest & South |
$ |
49,116 |
|
$ |
45,737 |
7.4 |
% |
||
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West |
(2,429) |
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(1,302) |
(86.6) |
% |
||||
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Contracted Sports Wagering |
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|
6,956 |
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|
9,503 |
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(26.8) |
% |
|
Adjusted Segment EBITDA |
53,643 |
|
53,938 |
(0.5) |
% |
||||
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Corporate |
(5,512) |
|
(5,290) |
(4.2) |
% |
||||
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Adjusted EBITDA |
$ |
48,131 |
|
$ |
48,648 |
(1.1) |
% |
||
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Adjusted Segment EBITDA Margin |
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Midwest & South |
|
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21.2 |
% |
|
20.8 |
% |
0.4 |
pts |
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West |
|
|
(3.8) |
% |
|
(2.0) |
% |
(1.8) |
pts |
|
Contracted Sports Wagering |
|
|
95.7 |
% |
|
108.1 |
% |
(12.4) |
pts |
Midwest & South
Our Midwest & South segment includes Silver Slipper, Rising Star and American Place. Compared to 2024, total revenues in 2025 increased by 5.4% (or $11.8 million), primarily due to the continued ramp-up of operations at American Place. This more than offset modest revenue declines at Silver Slipper, where the property's new management team has focused on eliminating unprofitable business, and Rising Star.
Casino revenue in 2025 increased by 8.7% (or $14.7 million), largely due to the ramp-up of operations at American Place. Slot revenue rose by 8.6% (or $12.0 million). Table games revenue in 2025 increased by 7.7% (or $2.3 million).
Non-casino revenue declined by 5.7% (or $2.9 million), largely due to decreases in food and beverage revenue at Silver Slipper. Food and beverage revenue declined by 5.1% (or $1.8 million), primarily due to the discontinuation of unprofitable promotional programs at Silver Slipper. Hotel revenues for the segment declined in 2025 by 14.6% (or $1.2 million) due to lower guest volumes at Silver Slipper and Rising Star, as American Place does not currently have a hotel.
Adjusted Segment EBITDA increased by 7.4% (or $3.4 million) from the prior year, benefiting from revenue growth at American Place as mentioned above. Partially offsetting these improvements were an increase in overall advertising activity, additional labor costs related to expanded food options, and a higher average gaming tax rate due to higher casino revenues, all at American Place.
West
Our West segment includes Chamonix, Bronco Billy's, Grand Lodge, and Stockman's (until the completion of its sale in April 2025). The market in Cripple Creek, Colorado, is typically seasonal, favoring the summer months. Our Nevada operations have historically been seasonal, with the summer months accounting for a disproportionate share of annual revenues. Additionally, snowfall levels during the winter months can often affect operations, as Grand Lodge is located near several major ski resorts. While Grand Lodge typically benefits from a "good" snow year, resulting in extended periods of operation at the nearby ski areas, excessive snow levels can also result in challenging driving conditions or the closure of roads leading to the property.
Total segment revenues were flat at $63.6 million, reflecting the sale of Stockman's Casino in April 2025 and renovation-related disruptions at the Hyatt Lake Tahoe, which houses our Grand Lodge Casino. Revenues at our Colorado operations increased by 11.2% (or $5.0 million), from $44.2 million in 2024 to $49.1 million in 2025, reflecting a continued ramp-up of operations at Chamonix.
Casino revenue decreased by 2.8% (or $1.3 million), as the declines mentioned above in our Nevada operations offset increases from a fully-open Chamonix in 2025. Slot revenue declined by 3.9% (or $1.6 million) during 2025, compared to 2024. However, table games revenue improved by 5.8% (or $0.3 million), attributable mostly to expanded table games operations at Chamonix/Bronco Billy's.
Non-casino revenue improved by 8.5% (or $1.3 million) for 2025. Food and beverage revenues declined by $0.8 million, as we sold Stockman's in April 2025. Hotel revenues increased by $1.5 million during 2025, reflecting the continuing ramp-up of operations at Chamonix. This hotel revenue increase was attributed to higher average daily room rates at Chamonix. Total occupied room-nights declined to 48,319 room-nights in 2025 from 59,816 room-nights in 2024, as Chamonix's marketing efforts in 2024 focused on offering lower-priced or complimentary rooms to help build the property's marketing database and overall awareness. To broaden Chamonix's appeal, we have recently focused on more targeted marketing campaigns, strengthened our group sales team, expanded our entertainment options, and continued to leverage our extensive amenities.
Adjusted Segment EBITDA declined by 86.6% (or $1.1 million) in 2025, compared to the prior year. Operational improvements at Chamonix were offset by renovation-related impacts at Grand Lodge and the sale of Stockman's Casino. As the Company's newest property, Chamonix is early in its expected ramp-up, with operations expected to continue improving in the coming quarters and years. In March 2025, we hired a new general manager to lead our Chamonix and Bronco Billy's operations, with a focus on profitable revenue growth and reducing inefficiencies. Those efforts led to improved operational efficiency at Chamonix in the second half of 2025 versus the second half of 2024.
Contracted Sports Wagering
The Contracted Sports Wagering segment consists of our on-site and online sports wagering skins in Colorado, Indiana and Illinois.
In 2025, we had fewer active sports wagering skins than in 2024. As a result, this segment's revenues declined by 17.3%, from $8.8 million in 2024 to $7.3 million in 2025, and Adjusted Segment EBITDA declined by 26.8%, from $9.5 million to $7.0 million. At December 31, 2025, we had two active skins, compared to three active skins at December 31, 2024.
Corporate
Corporate expenses were $5.5 million and $5.3 million in 2025 and 2024, respectively, reflecting growth in the Company's operations. This includes the addition of our Chief Marketing Officer in May 2025, among other new hires to our corporate team during the year.
Non-GAAP Financial Measure
"Adjusted EBITDA" is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, impairment charges, asset write-offs, recoveries, gain (loss) from asset sales and disposals, project development and acquisition costs, and non-cash share-based compensation expense. Adjusted EBITDA information is presented solely as supplemental disclosure to measures reported in accordance with generally accepted accounting principles in the United States of America ("GAAP") because management believes this measure is (i) a widely used measure of operating performance in the gaming and hospitality industries and (ii) a principal basis for valuation of gaming and hospitality companies. In addition, a version of Adjusted EBITDA (known as Consolidated Cash Flow) is utilized in the covenants within our credit facility, although not necessarily defined in the same way as above. Adjusted EBITDA is not, however, a measure of financial performance or liquidity under GAAP. Accordingly, this measure should be considered supplemental and not a substitute for net income (loss) or cash flows as an indicator of our operating performance or liquidity.
The following table presents a reconciliation of net loss to Adjusted EBITDA:
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(In thousands) |
Year Ended |
||||
|
|
December 31, |
||||
|
|
2025 |
|
2024 |
||
|
Net loss |
$ |
(40,197) |
|
$ |
(40,672) |
|
Income tax expense |
|
530 |
|
|
221 |
|
Interest expense, net |
|
42,741 |
|
|
43,201 |
|
Other |
|
50 |
|
|
- |
|
Operating income |
|
3,124 |
|
|
2,750 |
|
Project development costs |
|
310 |
|
|
368 |
|
Preopening costs |
|
- |
|
|
2,464 |
|
Depreciation and amortization |
|
42,609 |
|
|
42,101 |
|
Loss on disposal of assets |
|
32 |
|
|
18 |
|
Loss (gain) on sale of Stockman's, net of impairment |
|
320 |
|
|
(1,926) |
|
Stock-based compensation, net |
|
1,736 |
|
|
2,873 |
|
Adjusted EBITDA |
$ |
48,131 |
|
$ |
48,648 |
The following tables present reconciliations of operating income (loss) to Adjusted Segment EBITDA and Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2025 |
|||||||||||||||||||||
|
(In thousands) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
||
|
|
|
|
|
|
|
|
|
|
|
|
Loss on |
|
|
|
|
Stock- |
|
Segment |
|||
|
|
|
Operating |
|
Depreciation |
|
Loss on |
|
Sale of |
|
Project |
|
Based |
|
EBITDA and |
|||||||
|
|
|
Income |
|
and |
|
Disposal |
|
Stockman's, |
|
Development |
|
Compensation, |
|
Adjusted |
|||||||
|
|
|
(Loss) |
|
Amortization |
|
of Assets |
|
net |
|
Costs |
|
net |
|
EBITDA |
|||||||
|
Reporting segments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midwest & South |
|
$ |
24,352 |
|
$ |
24,732 |
|
$ |
32 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
49,116 |
|
West |
|
(20,565) |
|
17,816 |
|
- |
|
320 |
|
- |
|
- |
|
(2,429) |
|||||||
|
Contracted Sports Wagering |
|
|
6,956 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
6,956 |
|
|
|
10,743 |
|
42,548 |
|
32 |
|
320 |
|
- |
|
- |
|
53,643 |
|||||||
|
Other operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
(7,619) |
|
61 |
|
- |
|
- |
|
310 |
|
1,736 |
|
(5,512) |
|||||||
|
|
|
$ |
3,124 |
|
$ |
42,609 |
|
$ |
32 |
|
$ |
320 |
|
$ |
310 |
|
$ |
1,736 |
|
$ |
48,131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
|
Year Ended December 31, 2024 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
(In thousands) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment |
||||||||||||||||||||||||||||||||||||||
|
|
|
Operating |
|
Depreciation |
|
Loss on |
|
Gain on |
|
Project |
|
|
|
Stock- |
|
EBITDA and |
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
Income |
|
and |
|
Disposal |
|
Sale of |
|
Development |
|
Preopening |
|
Based |
|
Adjusted |
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
(Loss) |
|
Amortization |
|
of Assets |
|
Stockman's |
|
Costs |
|
Costs |
|
Compensation |
|
EBITDA |
|||||||||||||||||||||||||||||||||||||||||||
|
Reporting segments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||
|
Midwest & South |
|
$ |
20,631 |
|
$ |
24,969 |
|
$ |
18 |
|
$ |
- |
|
$ |
- |
|
$ |
119 |
|
$ |
- |
|
$ |
45,737 |
|||||||||||||||||||||||||||||||||||
|
West |
|
(18,718) |
|
16,997 |
|
- |
|
(1,926) |
|
- |
|
2,345 |
|
- |
|
(1,302) |
|||||||||||||||||||||||||||||||||||||||||||
|
Contracted |
|
|
9,503 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
9,503 |
|||||||||||||||||||||||||||||||||||
|
|
|
11,416 |
|
|
41,966 |
|
|
18 |
|
|
(1,926) |
|
|
- |
|
|
2,464 |
|
|
- |
|
53,938 |
|||||||||||||||||||||||||||||||||||||
|
Other operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
Corporate |
|
(8,666) |
|
|
135 |
|
|
- |
|
|
- |
|
|
368 |
|
|
- |
|
|
2,873 |
|
|
(5,290) |
||||||||||||||||||||||||||||||||||||
|
|
|
$ |
2,750 |
|
$ |
42,101 |
|
$ |
18 |
|
$ |
(1,926) |
|
$ |
368 |
|
$ |
2,464 |
|
$ |
2,873 |
|
$ |
48,648 |
|||||||||||||||||||||||||||||||||||
Liquidity and Capital Resources
Cash Flows
As of December 31, 2025, we had $40.7 million of cash and equivalents. Over the past several years, we invested in two new casinos (one of which has a hotel) that are now open to the public: the temporary facility at American Place, which opened in February 2023, and Chamonix, which opened in phases between December 2023 and October 2024. Such construction activity is now complete and both operations are in their ramp-up periods.
We estimate that between $10 million and $15 million of cash is used in our day-to-day operations. We believe that current cash balances, together with the available borrowing capacity under our revolving credit facility and cash flows from operating activities, will be sufficient to meet our liquidity and capital resource needs for the next 12 months of operations.
Cash flows - operating activities. On a consolidated basis, cash provided by operations during 2025 was $10.0 million, compared to $13.8 million in 2024. Trends in our operating cash flows tend to follow trends in operating income, excluding non-cash charges, but are also affected by changes in working capital accounts such as receivables, prepaid expenses, and payables. The decrease in our operating cash flows during 2025 compared to 2024 was primarily due to working capital timing differences.
Cash flows - investing activities. On a consolidated basis, cash used in investing activities during 2025 was $10.3 million. At Chamonix, these investments primarily related to the completion of its valet and surface parking lots, as well as modest refurbishments at Bronco Billy's Casino. At American Place, these investments include the addition of a poker room, as well as the design work for the permanent gaming facility that we plan to build on adjoining land. In 2024, such amount was $45.7 million, primarily related to the construction of Chamonix.
Cash flows - financing activities. On a consolidated basis, cash provided by financing activities during 2025 was $0.8 million, while cash used in financing activities during 2024 was $1.5 million. During 2025, we increased net borrowings from the Credit Facility by $3.0 million.
Other Factors Affecting Liquidity
We have significant outstanding debt and contractual obligations. Our principal debt matures in February 2028. Certain planned capital expenditures designed to grow the Company, such as the permanent American Place facility, are likely to require additional financing and/or temporarily reduce the Company's ability to repay debt.
Our operations are subject to financial, economic, competitive, regulatory and other factors, many of which are beyond our control. Such future developments are highly uncertain and cannot be accurately predicted at this time.
Long-Term Debt. At December 31, 2025, we had $450.0 million of principal indebtedness outstanding under the Notes, and $30.0 million outstanding under the Credit Facility. We also owe $1.1 million related to our finance lease of a hotel at Rising Star. With the exception of the Credit Facility, all of our debt is at fixed interest rates. See Note 7to the consolidated financial statements set forth in Part II, Item 8."Financial Statements and Supplementary Data" for details on our debt obligations.
Long-term Obligation.As required for our gaming licensure at American Place, we continue to accrue for an interest-free "Reconciliation Payment" that will be due to the Illinois Gaming Board ("IGB") over a long-term basis. At December 31, 2025, we estimate that a total of $56.3 million will be due to the IGB over the course of six years. Of the total amount, a discounted value of $47.8 million has been added to the valuation of our Illinois gaming license, while the remaining $8.5 million is expected to be expensed as imputed interest through the maturity of this obligation. See Note 10to the consolidated financial statements set forth in Part II, Item 8."Financial Statements and Supplementary Data" fordetails.
Hyatt Option to Purchase our Leasehold Interest and Related Assets. Our lease with the owner of the Hyatt Lake Tahoe to operate the Grand Lodge Casino currently expires on December 31, 2034. In the event of a significant renovation, the lessor may terminate the lease early with six months' notice, with us retaining Grand Lodge's personal property at the end of such period. Similar to previous lease arrangements, the lessor also has the ability to purchase our leasehold interest and related casino operating assets at any time prior to lease expiration. See Note 8to the consolidated financial statements set forth in Part II, Item 8."Financial Statements and Supplementary Data" for further information about this option and related rental commitments that could affect our liquidity and capital resources.
Capital Investments. In addition to normal maintenance capital expenditures, we expect to make significant capital investments once we commence construction of the permanent American Place facility. While we intend to begin construction on the foundations of the project within the next few months, further construction is not expected to begin until funding for such construction is secured.
American Place ⸺ We were selected by the IGB to develop and operate American Place in Waukegan, Illinois. While the larger permanent facility is under development, we are operating the temporary American Place facility, which opened in February 2023. We expect to internally generate a portion of the needed funds to complete American Place, but we will likely need additional financing. While there is no certainty that we will be able to do so, we intend to arrange such additional funding concurrent with the refinancing of our existing debt. Our existing bonds are currently callable and mature in February 2028. The construction budget for the permanent American Place facility, excluding capitalized interest, is approximately $302 million.
Other Capital Expenditures ⸺ Additionally, we may fund various other capital expenditure projects, depending on our financial resources. Our capital expenditures may fluctuate due to decisions regarding strategic capital investments in new or existing facilities, and the timing of capital investments to maintain the quality of our properties. No assurance can be given that any of our planned capital expenditure projects will be completed or that any completed projects will be successful. Our annual capital expenditures typically include some number of new slot machines and related equipment; to some extent, we can coordinate such purchases to match our resources.
We evaluate projects based on a number of factors, including profitability forecasts, length of the development period, the regulatory and political environment, and the ability to secure the funding necessary to complete the development or acquisition, among other considerations. No assurance can be given that any additional projects will be pursued or completed or that any completed projects will be successful.
Principal Debt Arrangements
See Note 7to the consolidated financial statements set forth in Part II, Item 8."Financial Statements and Supplementary Data" for more information.
Critical Accounting Estimates and Policies
Our consolidated financial statements were prepared in conformity with accounting principles generally accepted in the United States of America. Certain of our accounting policies require that we apply significant judgment in defining the appropriate assumptions for calculating estimates that affect reported amounts and disclosures. By their nature, judgments are subject to an inherent degree of uncertainty, and therefore, actual results may differ from our estimates. We believe the following critical accounting policies affect the most significant judgments and estimates used in the preparation of our consolidated financial statements.
Impairment of Goodwill
At December 31, 2025, the Company's goodwill totaled $19.5 million. Goodwill is not amortized, but is periodically tested for impairment. We test our goodwill for impairment annually during the fourth quarter or when a triggering event occurs. The impairment loss recognized is the amount by which the carrying amount exceeds the fair value. Tests of goodwill start with a qualitative assessment to determine whether it is necessary to perform a quantitative test. Items that are considered in the qualitative assessment include, but are not limited to, the following: macroeconomic conditions, industry and market conditions and overall financial performance. If the results of the qualitative assessment indicate it is "more likely than not" that a reporting unit's carrying value exceeds its fair value, or if the Company elects to bypass the qualitative assessment, then a quantitative test is performed.
For goodwill, if quantitative tests are performed, the Company estimates the fair value of the reporting unit utilizing the income approach (discounted cash flow method).
The determination of fair value under the income approach requires the use of significant estimates, including expected revenue growth rates, EBITDA margins, and discount rates, to determine the estimated fair value. Changes in the assumptions can materially affect these estimates. Thus, to the extent that gaming volumes deteriorate in the future, discount rates increase significantly, or reporting units do not meet projected performance, the Company could have impairment losses in the future and such amounts could be material. These tests for impairment are performed annually during the fourth quarter or when a triggering event occurs.
Any impairment charges incurred are not reversed if a subsequent evaluation concludes a higher valuation than the carrying value. For further discussion of goodwill, see Note 2and Note 5to the consolidated financial statements set forth in Part II, Item 8. "Financial Statements and Supplementary Data."
Recently Issued Accounting Pronouncements Not Yet Adopted
See Note 2to the consolidated financial statements set forth in Part II, Item 8."Financial Statements and Supplementary Data" for a discussion of recently issued accounting pronouncements not yet adopted.
Full House Resorts Inc. published this content on March 16, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on March 16, 2026 at 18:55 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]