Breaking Down Full House Resorts, Inc. (FLL) Financial Health: Key Insights for Investors

You're looking at Full House Resorts, Inc. (FLL) and seeing a classic high-risk, high-reward regional gaming story, and honestly, you'd be defintely right to pause. The company's recent Q3 2025 results show a clear split: on one hand, consolidated revenues hit a solid $78.0 million, with Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) jumping 26.1% year-over-year to $14.8 million, largely fueled by the American Place Casino in Illinois, which is a massive opportunity. But here's the quick math on the risk: that growth still resulted in a net loss of $(7.7) million for the quarter, and the company is navigating a heavy debt load with $450.0 million in senior secured notes due in 2028, giving it a high leverage ratio that demands attention. So, the near-term action is clear: you need to understand how the success of the American Place buildout-now with site approval for its permanent facility-will actually de-lever the balance sheet, especially while the ramp-up at the Chamonix Casino Hotel in Colorado continues to face headwinds.

Revenue Analysis

You want to know where Full House Resorts, Inc. (FLL) is making its money right now, and the clear answer is the Midwest. The company's overall consolidated revenue for the third quarter of 2025 hit $78.0 million, a solid increase of about 3.0% over the same period last year, but that growth is highly concentrated in a few key properties.

Honestly, the real story here is the organic growth (revenue excluding asset sales), which was closer to 5% for the quarter. This shows that the new properties are finally starting to pay off, but you also see a clear drag from older, non-core assets. It's a tale of two portfolios.

Here's the quick math on where the revenue is coming from, based on the Q3 2025 financial results:

• Midwest & South: The powerhouse, driven by American Place.
• West: Under pressure from renovations and an asset sale.
• Contracted Sports Wagering: A small, declining segment.

Segment Contribution to Q3 2025 Revenue

The primary revenue streams for Full House Resorts, Inc. (FLL) break down into three main segments. The Midwest & South segment is defintely the most critical, contributing nearly three-quarters of the total revenue.

The Midwest & South segment, which includes Silver Slipper Casino and Hotel, Rising Star Casino Resort, and the high-growth American Place Casino, saw revenues climb by 7.0% to $58.3 million. American Place Casino alone hit a record $32.0 million in revenue, marking a 14.0% increase year-over-year. That's where the momentum is.

Analyzing Significant Revenue Stream Changes

You need to look closely at the 'West' and 'Contracted Sports Wagering' segments for the near-term risk. The West segment's revenue dropped to $18.0 million, a 7.2% decline from the prior year. This decrease is largely due to two things: the sale of Stockman's Casino in April 2025, and ongoing renovation disruptions at Grand Lodge Casino.

What this estimate hides is the potential of the Chamonix Casino Hotel, which is part of the West segment. It's a new property that's still in its ramp-up phase and is expected to contribute more significantly going forward, but for now, the asset sale and renovations are masking its growth. Also, the small Contracted Sports Wagering segment is shrinking, with revenue falling to $1.6 million, partly because the contracted operator in Colorado and Indiana is discontinuing its operations in those states.

The action item is clear: keep focusing on the performance of American Place and Chamonix, as they are the future growth engines. For a deeper dive into the valuation and strategy, check out this full post: Breaking Down Full House Resorts, Inc. (FLL) Financial Health: Key Insights for Investors

Profitability Metrics

When you look at Full House Resorts, Inc. (FLL), the profitability picture in the 2025 fiscal year is clearly a story of transition. The company is in a heavy investment phase with new properties like American Place and Chamonix, and that's defintely weighing on the bottom line. You need to focus less on the absolute net loss right now and more on the operational efficiency gains at the gross and operating levels.

For the trailing twelve months (TTM) ending in November 2025, Full House Resorts reported total revenue of roughly $290 million. Here's the quick math on where their profitability stands, compared to the broader casino industry, which is seeing a push toward positive earnings in 2025.

Gross and Operating Margins: Operational Efficiency

The 35.40% Gross Profit Margin is the first number that should catch your eye. Historically, Full House Resorts has run gross margins in the mid-to-high 50s, so this drop signals a major shift in the cost of revenue (Cost of Goods Sold). This compression is a direct result of the ramp-up and initial operating costs of new properties, like the Chamonix Casino Hotel in Colorado, which is still finding its full run-rate efficiency. The good news is that management identified and is executing on cost-cutting measures, including a sequential $1.2 million OpEx reduction at Chamonix in Q2 2025. That's a clear action point. The Operating Profit Margin of a mere 0.92% shows that while they are covering their direct costs, the selling, general, and administrative (SG&A) expenses are eating up nearly all the remaining gross profit.

• Monitor the Gross Margin: Needs to climb back over 45% to stabilize the core business.
• Watch Operating Expenses: Cost management at new sites is the single most important near-term driver.

Net Profit Margin and Industry Comparison

The -13.75% Net Profit Margin is a clear signal that the company is not currently profitable. The TTM net loss of nearly $40 million is driven by high interest expenses related to the debt financing for their development projects. This is where the comparison to the industry gets stark. While the U.S. commercial gaming industry generated $18.96 billion in Q3 2025 revenue and is generally healthy, the major digital operators like DraftKings and BetMGM are forecasting or achieving their first full year of positive EBITDA or profitability in 2025. Full House Resorts is playing a different game-they are a smaller, regional operator undertaking massive capital projects, so their profitability ratios will lag. You are betting on the future value of the completed projects, not current earnings.

The Q3 2025 earnings report offered a small ray of hope: the net loss improved to $(7.7) million compared to a loss of $(8.5) million in Q3 2024. That's a step in the right direction, but it's still a loss. The key to unlocking value here is seeing the new properties move from being a drag on consolidated profitability to becoming significant contributors, similar to how the American Place temporary casino is already delivering record revenue.

For a deeper dive into the balance sheet and valuation, check out the full post: Breaking Down Full House Resorts, Inc. (FLL) Financial Health: Key Insights for Investors

Debt vs. Equity Structure

When you look at Full House Resorts, Inc. (FLL)'s balance sheet, the first thing that hits you is the sheer scale of its debt relative to its equity. The company is in a high-leverage growth phase, and that means a very different risk profile than a mature casino operator.

As of the third quarter of 2025 (Q3 2025), Full House Resorts, Inc. (FLL) carries a total debt load of approximately $532.21 million. This is a significant figure, particularly because the majority of this is long-term debt, primarily driven by the $450.0 million in senior secured notes that mature in February 2028. The remaining debt includes borrowings on their revolving credit facility and other obligations. The company is definitely financing its major projects, like the new Chamonix Casino Hotel and the permanent American Place facility, with a heavy reliance on debt.

• Total Debt (Q3 2025): $532.21 million
• Senior Secured Notes (Due 2028): $450.0 million
• Annual Interest Payments: Approximately $43 million

The Debt-to-Equity Reality Check

The clearest signal of the company's financial structure is the Debt-to-Equity (D/E) ratio. For Q3 2025, Full House Resorts, Inc. (FLL)'s Total Debt-to-Equity ratio stood at a staggering 3,746.09%. To put that in perspective, the average debt-to-common equity for the broader Consumer Discretionary sector is around 82.5%. This massive disparity is not a sign of poor management, but rather a structural reality for a company undertaking two major, capital-intensive casino developments that have yet to hit their full profitability stride.

Here's the quick math: A D/E ratio this high means that for every dollar of shareholder equity, the company has about $37.46 in debt. This is a classic high-risk, high-reward structure. The high leverage amplifies potential returns if the new properties, especially American Place and Chamonix, ramp up successfully, but it also means a small operational misstep could create a defintely challenging situation for debt servicing.

The company's primary long-term debt consists of the senior secured notes due in February 2028. The management is currently focused on getting the new properties to sustained profitability to be 'well-positioned to refinance' that debt. They are also exploring options like sale/leaseback financing for the permanent American Place buildout to raise capital without causing significant shareholder dilution (equity funding).

Credit Rating and Refinancing Risk

The market's view on this leverage is clear in the credit ratings. As of November 2025, S&P Global Ratings downgraded Full House Resorts, Inc. (FLL)'s rating to 'CCC+' from 'B-', with a developing outlook. This is deep into non-investment grade territory, reflecting the company's dependence on improved operating performance and favorable financing conditions to service its capital structure.

The downgrade was largely due to the slower-than-expected ramp-up of the Chamonix Casino Hotel, which pressured credit metrics. The risk is concentrated in the upcoming need to refinance the $450.0 million in senior secured notes due in 2028. If the American Place permanent facility construction requires additional debt, which is expected, the interest expense will rise, further pressuring the company's ability to cover those costs with earnings before interest, taxes, depreciation, and amortization (EBITDA).

A successful ramp-up of American Place, which is showing strong early growth with Q3 2025 revenue of $32.0 million, is the critical factor that will determine if the company can shift from a debt-fueled construction model to a cash-generating one. This is a high-stakes bet on execution. You can read more about the long-term strategy that drives this capital structure here: Mission Statement, Vision, & Core Values of Full House Resorts, Inc. (FLL).

Liquidity and Solvency

If you're looking at Full House Resorts, Inc. (FLL), the first thing to understand is that their short-term liquidity position is defintely tight right now, a common characteristic for a company deep in a major growth and development cycle. The numbers tell a clear story of a business prioritizing long-term asset expansion over immediate cash on hand, which creates near-term pressure.

The standard measures of immediate financial health-the Current and Quick Ratios-are signaling caution. The Current Ratio for Full House Resorts, Inc. is sitting at approximately 0.55, based on the most recent trailing twelve months (TTM) data. Here's the quick math: this means for every dollar of short-term debt (current liabilities), the company only has about $0.55 in assets that can be converted to cash within a year to cover it. The Quick Ratio, which excludes inventory to give a truer picture of immediate cash strength, is even lower at about 0.52. Anything below 1.0 is a red flag for short-term creditors, but in the casino industry, with its predictable daily cash flow, it's not an immediate death sentence-still, it demands attention.

This low ratio translates directly into a negative working capital (current assets minus current liabilities) trend. The company's Net Current Asset Value is a deficit of roughly $-31.22 million TTM. This negative working capital is the practical result of their aggressive capital expenditure (CapEx) strategy for new properties like American Place Casino and Chamonix Casino Hotel, which require significant upfront cash. The company is essentially running a working capital deficit to fund its future growth, which is a high-risk, high-reward strategy.

Looking at the cash flow statements for the TTM period ending in 2025 gives us the full picture of where the money is moving:

• Operating Cash Flow (OCF): This was a positive $12.77 million TTM, which is good. It means the core casino operations are generating cash, even with the ramp-up inefficiencies at the new properties.
• Investing Cash Flow (ICF): This is heavily negative at approximately -$16.84 million TTM. This outflow is primarily capital expenditures for the new developments, a necessary cost for their long-term vision.
• Financing Cash Flow (FCF): This is where the funding gap is being filled. In the most recent quarter (Q3 2025), the company had a net cash inflow of $1.64 million from financing activities, driven by borrowing $16.5 million and repaying $13.5 million under their revolving credit facility. They are actively using their credit lines to bridge the gap created by their CapEx.

The biggest potential liquidity concern is the reliance on the revolving credit facility and the need to refinance their outstanding senior secured notes due in 2028. The strength, however, lies in the fact that the new properties are ramping up revenue, and management is focused on converting this growth into sustainable profitability to support future financing needs for the permanent American Place facility. To be fair, you need to understand the strategic context of their operations, which you can review in the Mission Statement, Vision, & Core Values of Full House Resorts, Inc. (FLL).

Next Step: Track Full House Resorts, Inc.'s quarterly OCF growth and the total drawn amount on their revolving credit facility in the Q4 2025 earnings release to assess if operating cash flow is improving fast enough to reduce reliance on debt financing.

Valuation Analysis

You're looking at Full House Resorts, Inc. (FLL) and trying to figure out if the market is pricing it right, and honestly, the picture is complex. The short answer is the stock is currently trading at a significant discount to its average analyst target, which suggests it is undervalued, but its negative earnings mean you need to dig deeper into its Enterprise Value (EV) multiples.

As of November 2025, the stock price sits around $2.39. This is a tough spot, especially when you consider the price action over the last year. The stock has decreased 47.36% over the last 12 months, which is a massive drop, but the 52-week low is only slightly below the current price at $2.30. This volatility is typical for a company with significant new development projects, but it's defintely a risk to manage.

Decoding the Valuation Multiples

When a company is still in a growth or development phase, like Full House Resorts with its American Place and Chamonix projects, traditional metrics can be misleading. Here's the quick math on the key valuation ratios:

• Price-to-Earnings (P/E): This ratio is not meaningful (NM). Why? Because the company's estimated earnings per share (EPS) for the 2025 fiscal year is negative, projected at -$0.93. You can't have a P/E ratio when there are no earnings.
• Price-to-Book (P/B): The trailing twelve months (TTM) P/B ratio is high at 6.15. This tells you investors are willing to pay over six times the company's book value (assets minus liabilities), suggesting a belief in future growth that isn't yet reflected in current assets.
• Enterprise Value-to-EBITDA (EV/EBITDA): This is the most reliable metric here. The TTM EV/EBITDA is around 12.95x. This multiple considers debt and cash (the 'Enterprise Value') against the operating cash flow proxy (EBITDA), which was approximately $50.5 million for the last twelve months.

The 12.95x EV/EBITDA is a solid number for a casino operator, but it's still on the higher end, indicating the market is pricing in the future success of their new properties, like the Chamonix Casino Hotel in Cripple Creek, Colorado.

Analyst Consensus and Dividends

The analyst community is generally bullish, which is a clear opportunity. The consensus rating from analysts is a 'Buy' with an average 12-month price target of $5.00. That target implies a massive potential upside of over 100% from the current $2.39 price. Still, some analysts maintain a 'Hold' rating, with the average target across a broader group sitting closer to $4.50. This gap between the current price and the target is where the opportunity lies, but the execution risk is real.

Also, don't look for income here. Full House Resorts does not pay a dividend, so the dividend yield and payout ratios are 0.00%. The company is reinvesting all available capital back into its growth projects, which is the right move for a company focused on expansion, but it means no cash flow for investors right now.

To get a full picture of the operational risks and opportunities underpinning this valuation, you should read the full analysis: Breaking Down Full House Resorts, Inc. (FLL) Financial Health: Key Insights for Investors.

Risk Factors

You're looking at Full House Resorts, Inc. (FLL) because of the massive upside potential from the American Place and Chamonix projects, but you need to be clear-eyed about the risks. Honestly, the biggest near-term issue isn't a drop in slot machine revenue; it's the capital structure and the execution of their development pipeline. This is a high-leverage, high-reward situation, and the risks are concentrated.

The company's financial health, rated as weak performance by some analysts, hinges on successfully navigating two core challenges: debt and development. As of September 30, 2025, Full House Resorts had $450.0 million in senior secured notes due in 2028, and only $30.9 million in cash. That's a significant debt load for a company that reported a net loss of $(7.7) million in the third quarter of 2025. Here's the quick math: the interest expense on that debt eats up a huge chunk of operating cash flow, which is why the GAAP earnings (Generally Accepted Accounting Principles) are still negative, even with Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) hitting $14.8 million in Q3 2025. You can explore more about the investor base in Exploring Full House Resorts, Inc. (FLL) Investor Profile: Who's Buying and Why?.

Financing the American Place Permanent Facility

The most critical risk is securing the funding for the permanent American Place casino in Waukegan, Illinois. The estimated construction budget, excluding capitalized interest, was recently refined down to $302 million. Management is targeting financing by the first quarter of 2026 (Q1 2026) to keep the project on its August 2027 completion schedule. Still, the bond market has been trading weak on low volume, and delays or higher financing costs could push that timeline back. It's defintely a tight window.

Mitigation Strategy: The company is not putting all its eggs in one basket. They are actively evaluating multiple financing options to raise the capital, including:

• Tapping the bond market.
• Exploring a sale/leaseback structure with a Real Estate Investment Trust (REIT).
• Using a land-lease option.

Plus, the temporary American Place is performing well, generating $9 million in Adjusted Property EBITDA in Q3 2025, which gives them a proof of concept and a strong revenue stream while they sort out the permanent financing.

Operational and Competition Risks

The regional gaming market is highly competitive, and Full House Resorts operates in several jurisdictions where new or expanded competition is a constant threat. The ramp-up of their new properties also presents an operational risk, as initial performance can be unpredictable.

The Chamonix Casino Hotel in Cripple Creek, Colorado, for example, had a challenging start. What this estimate hides is the complexity of launching a major resort. However, management changes and cost-efficiency initiatives are paying off. In Q3 2025, Chamonix's Adjusted Property EBITDA improved by $2.8 million year-over-year, contributing a positive $2.1 million to the company's total. They expect continued improvement into 2026, which is a good sign that the operational risk is being managed.

Another strategic risk involves their legacy properties, specifically the effort to relocate the Indiana casino license from the declining Rising Star property to a higher-population area like Indianapolis or Fort Wayne. This move is subject to legislative and regulatory approvals, which are never a sure thing.

Growth Opportunities

You're looking at Full House Resorts, Inc. (FLL) right now and seeing a regional operator with a clear, near-term growth story, mainly driven by two major new properties. The core takeaway is that while the company is still reporting net losses, the ramp-up of its new casinos is expected to drive significant revenue growth, making 2025 a pivotal year for investors.

Here's the quick math on the near-term outlook: Wall Street analysts project Full House Resorts, Inc.'s revenue for the 2025 fiscal year to hit a consensus estimate of around $303.45 million. That's a solid increase, but it's still forecast to result in a loss, with the consensus Earnings Per Share (EPS) estimate at -$0.99. This is an investment in a turnaround, not a stable cash cow yet. The company's forecast annual revenue growth rate of 4.86% is actually forecast to beat the US Resorts & Casinos industry average of 3.28%. That's defintely a good sign.

The growth isn't coming from incremental improvements at old sites; it's a direct result of two major strategic initiatives:

• Chamonix Casino Hotel (Colorado): This property, which began its phased opening in late 2024, is a critical growth lever. In the first quarter of 2025, operations in Colorado saw revenue surge by a massive 33.9% year-over-year. The management team is focused on high-margin amenities, and the property was already EBITDA-positive in July 2025.
• American Place Casino (Illinois): The temporary facility in the Chicago suburbs continues to outperform. In Q2 2025, it posted a record revenue of $30.7 million and a record adjusted property EBITDA of $8.9 million. The permanent facility, a much larger project, is expected to begin construction in the second half of 2025, with a target opening in 2027.

The permanent American Place is the real long-term prize. Management believes the temporary facility can achieve a $50 million run-rate EBITDA, and the permanent, much larger facility could earn double that, or $100 million. That's a huge potential jump in earnings power.

Competitive Edge and Key Risks

Full House Resorts, Inc. is using a regional, quality-focused strategy to carve out its competitive advantage. The Chamonix property, for instance, is positioned as the 'first and only high quality product in Cripple Creek,' a market that is still considered undersaturated. American Place benefits immensely from its location in a very wealthy county, giving it a strong geographic advantage over competitors. Plus, they are showing operational discipline, having reduced the average number of Full-Time Equivalent (FTE) employees from 373 in Q1 2025 to 325 in Q3 2025-a 13% reduction-to improve efficiency.

What this estimate hides is the debt load. As of Q1 2025, the company's total debt was $332.5 million. Sustaining EBITDA growth from the new properties is absolutely essential to reduce their leverage and avoid restrictive covenants. The successful financing and timely completion of the permanent American Place facility is a crucial next step that will dictate the stock's trajectory.

Here is a snapshot of the 2025 consensus financial outlook:

Your next step is to closely monitor the Q4 2025 earnings call for updates on the permanent American Place financing and the continued ramp-up of Chamonix. For a deeper look at who is betting on this growth story, you can check out Exploring Full House Resorts, Inc. (FLL) Investor Profile: Who's Buying and Why?