Operating margins have compressed from a peak of 37.2% in 2023Q4 to 28.3% in 2026Q1, reflecting reduced operating leverage as revenue growth slowed to 1.9%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Sales/Revenue | 2.02B | 2.01B | 1.94B | 1.72B | 1.66B | 1.62B | 1.18B | 1.86B | 1.68B | 1.62B | 1.45B | 1.35B | 1.29B | 1.26B |
| Revenue Growth % | 3.75% | 3.74% | 12.47% | 3.62% | 2.84% | 36.83% | -36.31% | 10.44% | 4.05% | 11.24% | 7.42% | 4.69% | 2.82% | - |
| Cost of Goods Sold | 866.59M | 953.71M | 744.23M | 626.39M | 588.72M | 552.49M | 501.3M | 950.27M | 794.06M | 735.3M | 635.29M | 582.24M | 573.14M | 571.08M |
| COGS % of Revenue | - | 47.41% | 38.38% | 36.33% | 35.38% | 34.15% | 42.4% | 51.19% | 47.24% | 45.51% | 43.74% | 43.06% | 44.37% | 45.46% |
| Gross Profit | 1.15B | 1.06B | 1.19B | 1.1B | 1.08B | 1.07B | 681.15M | 906.26M | 886.97M | 880.32M | 817.14M | 769.89M | 718.48M | 685.05M |
| Gross Margin % | 57.12% | 52.59% | 61.62% | 63.67% | 64.62% | 65.85% | 57.6% | 48.81% | 52.76% | 54.49% | 56.26% | 56.94% | 55.63% | 54.54% |
| Gross Profit Growth % | - | -11.47% | 8.84% | 2.1% | 0.91% | 56.41% | -24.84% | 2.18% | 0.76% | 7.73% | 6.14% | 7.16% | 4.88% | - |
| Operating Expenses | 567.6M | 460.34M | 626.09M | 539.01M | 513.77M | 663.87M | 591.46M | 718.33M | 480.11M | 418.16M | 483.09M | 466.89M | 448.72M | 457M |
| OpEx % of Revenue | - | 22.89% | 32.29% | 31.26% | 30.88% | 41.03% | 50.02% | 38.69% | 28.56% | 25.88% | 33.26% | 34.53% | 34.74% | 36.38% |
| Selling, General & Admin | 450.97M | 441.32M | 432.28M | 374.49M | 353.04M | 347.09M | 324.64M | 416.36M | 390.49M | 379.25M | 325.69M | 327.86M | 320.12M | 327.82M |
| SG&A % of Revenue | - | 21.94% | 22.29% | 21.72% | 21.22% | 21.45% | 27.46% | 22.43% | 23.23% | 23.47% | 22.42% | 24.25% | 24.78% | 26.1% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 19.02M | 193.82M | 164.51M | 160.73M | 316.78M | 266.82M | 301.98M | -354K | -29.58M | -24.6M | -895K | 49.79M | 16.07M |
| Operating Income | 586.75M | 597.43M | 568.69M | 558.69M | 561.3M | 401.54M | 89.69M | 187.93M | 372.21M | 330.4M | 309.45M | 287.19M | 237.06M | 214.98M |
| Operating Margin % | 29.03% | 29.7% | 29.33% | 32.4% | 33.74% | 24.82% | 7.58% | 10.12% | 22.14% | 20.45% | 21.31% | 21.24% | 18.35% | 17.11% |
| Operating Income Growth % | - | 5.05% | 1.79% | -0.47% | 39.79% | 347.72% | -52.28% | -49.51% | 12.65% | 6.77% | 7.75% | 21.15% | 10.27% | - |
| EBITDA | 791.68M | 794.83M | 755.8M | 691.22M | 689.67M | 559.33M | 321.08M | 410.14M | 552.46M | 508.62M | 466.11M | 425.05M | 369.1M | 349.03M |
| EBITDA Margin % | 39.17% | 39.51% | 38.98% | 40.09% | 41.45% | 34.57% | 27.15% | 22.09% | 32.86% | 31.48% | 32.09% | 31.44% | 28.58% | 27.79% |
| EBITDA Growth % | 4.43% | 5.16% | 9.34% | 0.23% | 23.3% | 74.21% | -21.72% | -25.76% | 8.62% | 9.12% | 9.66% | 15.16% | 5.75% | - |
| D&A (Non-Cash Add-back) | 204.93M | 197.41M | 187.11M | 132.54M | 128.37M | 157.79M | 231.39M | 222.21M | 180.25M | 178.22M | 156.67M | 137.87M | 132.04M | 134.05M |
| EBIT | 599.67M | 604.2M | 557.01M | 561.78M | 564.77M | 388.75M | 125.11M | 267.7M | 386.45M | 329.76M | 304.4M | 287.91M | 282.84M | 86.13M |
| Net Interest Income | -200.27M | -201.88M | -228.8M | -181.02M | -129.89M | -103.21M | -128.47M | -156.68M | -143.1M | -131.44M | -140.19M | -144.49M | -151.7M | -165.22M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 200.27M | 201.88M | 228.8M | 181.02M | 129.89M | 103.21M | 128.47M | 156.68M | 143.1M | 131.44M | 140.19M | 144.49M | 151.7M | 165.22M |
| Other Income/Expense | -187.35M | -195.11M | -240.49M | -177.93M | -126.42M | -116M | -150.15M | -196.4M | -128.85M | -134.59M | -147.64M | -144.58M | -106.85M | -295.67M |
| Pretax Income | 399.4M | 402.32M | 328.21M | 380.76M | 434.88M | 285.54M | -60.46M | -8.47M | 243.35M | 197.79M | 163.99M | 143.42M | 131.13M | -79.09M |
| Pretax Margin % | 19.76% | 20% | 16.93% | 22.08% | 26.14% | 17.65% | -5.11% | -0.46% | 14.48% | 12.24% | 11.29% | 10.61% | 10.15% | -6.3% |
| Income Tax | 46.96M | 46.65M | 36.91M | 42.98M | 44.53M | -69.29M | 114.08M | -1.73M | 23.88M | 134.75M | 8.21M | 0 | 0 | 323.05M |
| Effective Tax Rate % | 11.76% | 11.6% | 11.25% | 11.29% | 10.24% | -24.26% | -188.68% | 20.47% | 9.81% | 68.13% | 5.01% | 0% | 0% | -408.47% |
| Net Income | 186.21M | 188.07M | 154.05M | 176M | 205.46M | 241.85M | -150.4M | -3.35M | 157.54M | 35.15M | 91.97M | 137.66M | 100.54M | -95M |
| Net Margin % | 9.21% | 9.35% | 7.94% | 10.21% | 12.35% | 14.95% | -12.72% | -0.18% | 9.37% | 2.18% | 6.33% | 10.18% | 7.78% | -7.56% |
| Net Income Growth % | 19.39% | 22.08% | -12.47% | -14.34% | -15.05% | 260.81% | -4388.12% | -102.13% | 348.17% | -61.78% | -33.19% | 36.92% | 205.84% | - |
| Net Income (Continuing) | 352.44M | 355.67M | 291.29M | 337.78M | 390.35M | 354.83M | -174.54M | -6.74M | 219.48M | 63.53M | 155.96M | 143.42M | 131.13M | -79.09M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -166K | 0 | 0 |
| Minority Interest | 104.84M | 123.95M | 91.77M | 75.05M | -11.54M | -9.46M | 252.04M | 281.88M | 297.38M | 255.47M | 283.6M | 20.79M | 26.17M | 37.53M |
| EPS (Diluted) | 1.83 | 3.12 | 2.53 | 2.94 | 3.36 | 2.84 | -1.28 | -0.06 | 1.35 | 0.42 | 1.03 | 0.39 | 2.58 | -2.44 |
| EPS Growth % | 18.81% | 23.32% | -13.95% | -12.5% | 18.31% | 321.88% | -2122.22% | -104.27% | 221.43% | -59.22% | 164.1% | -84.88% | 205.74% | - |
| EPS (Basic) | - | 3.19 | 2.61 | 3.04 | 3.48 | 3.50 | -2.13 | -0.10 | 2.27 | 0.52 | 1.03 | 0.39 | 2.58 | -2.44 |
| Diluted Shares Outstanding | 101.63M | 102.59M | 103.67M | 103.22M | 104.66M | 116.45M | 117.47M | 116.87M | 116.86M | 115.93M | 34.28M | 38.97M | 38.97M | 38.97M |
| Basic Shares Outstanding | 58.2M | 58.96M | 60.84M | 59.8M | 61.17M | 85.06M | 70.54M | 67.02M | 89.19M | 83.41M | 89.27M | 89.05M | 18.54M | 0 |
| Dividend Payout Ratio | - | 64.23% | 38.43% | 33.29% | 56.79% | 84.28% | - | - | 17.58% | 76.75% | 11.57% | 153.46% | 152.49% | - |
Regional Economic Concentration
As indicated by the most recent quarterly filings, RRR's revenue growth has decelerated to 1.9% in 2026Q1, a notable decline from the double-digit expansion observed in early 2024, suggesting that the initial tailwinds from new property openings may be normalizing amidst a more challenging regional consumer environment.
The transition from double-digit growth in 2024 to low single-digit figures suggests that the company is struggling to maintain momentum in its core Las Vegas locals market. Investors should monitor whether this deceleration reflects a saturation of the local gaming market or a broader pullback in discretionary spending among the Clark County demographic.
Based on the provided income statement data, gross margins have contracted significantly from 63.1% in 2023Q4 to 51.8% in 2026Q1, which appears to signal rising operational costs or a shift in the promotional reinvestment strategy required to maintain market share against local competitors.
The sharp decline in gross margin suggests that the cost of goods sold is rising faster than the company's ability to extract pricing power from its gaming floor. This trend warrants further investigation into whether the company is increasing promotional allowances to defend its territory, which would imply a more competitive landscape than previously assumed.
According to the reported financial statements, the operating margin has compressed from a peak of 37.2% in 2023Q4 to 28.3% in 2026Q1, indicating that the company is currently experiencing reduced operating leverage as fixed costs scale disproportionately relative to the recent revenue growth trajectory.
The inability to maintain operating margins above 30% in recent quarters suggests that the company's cost structure is becoming increasingly rigid. This may indicate that the overhead required to support new developments is not yet being offset by sufficient incremental revenue, potentially pressuring profitability in the near term.
As reported in the quarterly data, the volatility in EPS, which swung from $0.95 in 2023Q4 to $0.42 in 2026Q1, suggests that the company's bottom-line performance is highly sensitive to non-operating items and fluctuating tax impacts, complicating the assessment of normalized earnings power for long-term investors.
The significant variance in EPS growth rates, including a 44% decline in the most recent quarter, raises questions regarding the quality of earnings and the predictability of cash flows. Investors should be cautious about relying on headline net income figures, as they appear to be influenced by factors that may not be indicative of the underlying operational health of the gaming assets.
Quick answers to the most common questions about buying RRR stock.
For fiscal year 2025, Red Rock Resorts, Inc. (RRR) reported total revenue of $2.01B. This represents a 60.1% increase compared to $1.26B in 2013.
Red Rock Resorts, Inc. (RRR) is profitable, generating $188.1M in net income for the fiscal year ending 2025 with a net profit margin of 9.3%.
Red Rock Resorts, Inc. (RRR) reported an operating income of $597.4M, resulting in an operating profit margin of 29.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Red Rock Resorts, Inc. (RRR) generated $1.06B in gross profit for the year, representing a gross profit margin of 52.6%. This demonstrates the company's core pricing power and production efficiency.