Full House Resorts outlines $50M run rate target for American Place while advancing cost efficiencies and growth initiatives

Earnings Call Insights: Full House Resorts, Inc. (FLL) Q3 2025

MANAGEMENT VIEW

* Lewis Fanger, President, CFO, Treasurer & Director, reported "a very strong quarter," noting revenues rose to $78 million from $75.7 million in last year's third quarter, with a 5% increase on an apples-to-apples basis excluding sold properties. Adjusted EBITDA climbed 26% to $14.8 million, with growth led by American Place in Illinois and Chamonix in Colorado. Fanger highlighted record revenue and profitability at American Place, noting, "revenues there increased by 14% to $32 million in the third quarter. Adjusted property EBITDA rose 16% to $9 million."
* Fanger emphasized continued customer growth at American Place, stating the database surpassed 115,000 people, with new sign-ups maintaining pace. He reiterated confidence in targets: "We have long said that the temporary American Place should be able to achieve $50 million of run rate EBITDA and that its much larger permanent facility to earn double that amount or $100 million. Our conviction in those figures remains as high as ever."
* On the permanent American Place facility, Fanger announced a project budget reduction: "resulting in a reduction of the project's total budget, down from $325 million to $302 million, excluding capitalized interest."
* Chamonix saw over 7% revenue growth, with table games revenue up 53% year over year and adjusted property EBITDA improving to $2.1 million from a negative $0.7 million. The new management team is credited with operational improvements and cost-cutting, reducing FTEs from 373 to 325 in the third quarter.
* Fanger also pointed to a strong pipeline for group business at Chamonix, including a significant upcoming conference. The property is targeting 25 group events next year, with a goal of building to 55 annually over three years.
* Fanger noted liquidity of about $40 million at quarter-end and minimal CapEx expected until construction begins on the permanent American Place casino.
* CEO Daniel Lee confirmed the strategic direction, stating, "I think you covered it pretty well. Let's take questions."

OUTLOOK

* Fanger maintained guidance for American Place, stating the temporary facility is expected to achieve $50 million of run rate EBITDA, with the permanent facility targeted at $100 million. He expressed continued confidence in these projections.
* The company plans for significant profitability improvements at Chamonix, targeting a shift from recent negative EBITDA to positive results as new marketing and cost controls take hold.
* No explicit changes to prior guidance were cited, but management reiterated expectations for continued ramp-up and profitability gains into 2026.

FINANCIAL RESULTS

* Revenue for the quarter was reported at $78 million, with adjusted EBITDA at $14.8 million. American Place generated $32 million in revenue and $9 million in adjusted property EBITDA for the quarter.
* Chamonix's adjusted property EBITDA moved to $2.1 million from a negative $0.7 million in the prior year’s quarter. Table games at Chamonix grew 53% year over year, and slot revenues were up 6%.
* Liquidity stood at about $40 million at quarter-end. The company highlighted reduced capital expenditures ahead of the next construction phase.
* Efficiency measures at Chamonix led to a 13% reduction in FTEs, and management continues to identify further cost savings entering the winter season.

Q&A

* David Bain asked about the potential revenue uplift if Colorado Springs market penetration increased. Daniel Lee responded, "You get about 12% or 13% of the adults in Colorado Springs are visiting Cripple Creek over the course of the year. Now some people are going to Black Hawk, some people are flying to Las Vegas. When you say what percentage of adults are actually gambling, it's probably in the high teens."
* Bain followed up on the flow-through on additional revenue. Lee answered, "We're focusing on ways to be more efficient and with the payroll and try to rightsize the payroll for the revenues we have, not the revenues we think we will have. At the same time, we're growing revenues."
* Jordan Bender queried about financing options for the permanent facility. Lee indicated, "We have and are looking at land leases. We have and are looking at REITs... It's still our preference to go to the bond market."
* Bender also asked about one-time unusual items. Fanger clarified, "The biggest part of it is... the change in leadership at Chamonix. Like our new Marketing Director there, I think, is 2 months into the job, so still relatively new."
* Ryan Sigdahl questioned shifts from cost controls to revenue growth at Chamonix. Lee responded, "Actually, the focus is on both controlling costs and building revenues, but the building of revenues takes time, right? To build the revenues, it's like hire smart marketing people."
* Colin Mansfield inquired about table games strategy at Chamonix. Lee detailed, "We have the prettiest table games pit in the state... Century is across the street from us has thrown in the towel and closed their table games, which also helped us."
* John DeCree asked for updates on Silver Slipper. Lee noted, "Silver Slipper is making progress... It's not showing the revenue growth, but it’s had decent trends in profitability."

SENTIMENT ANALYSIS

* Analyst tone was generally inquisitive, with multiple questions about growth ramp, market penetration, cost controls, and financing, suggesting a slightly skeptical but engaged sentiment. Bain and Bender probed for details on revenue flow-through and financing alternatives.
* Management tone was confident in prepared comments, emphasizing growth and efficiency. During Q&A, Lee and Fanger often shifted to a more explanatory or defensive posture, especially regarding financing and market competition: "To be clear, there is not a deadline of having this open by August of 2027."
* Compared to the previous quarter, management appeared more assertive about operational improvements, while analysts continued to seek clarity on execution and capital plans.

QUARTER-OVER-QUARTER COMPARISON

* Guidance language remained consistent, with reaffirmed targets for American Place and Chamonix. However, management provided more detail on operational improvements and expectations for positive EBITDA at Chamonix.
* Strategic focus continued to be on ramping properties and cost efficiency, but Fanger and Lee shared more granular updates on database growth, customer acquisition, and cost reduction than in Q2.
* Analysts in both quarters focused on growth trajectory, group bookings, and capital structure but pressed further on financing options and market risks in Q3.
* Key metrics such as revenue and adjusted EBITDA improved, with stronger growth at American Place and a notable EBITDA turnaround at Chamonix.
* Management's confidence was steady but more specific, while analysts’ tone showed persistent scrutiny of execution risk and financing.

RISKS AND CONCERNS

* Management addressed potential competition from a proposed Kenosha, Wisconsin casino, but downplayed its impact, citing regulatory hurdles and demographic advantages: "That project is far from certain with several hurdles."
* Questions about financing for the permanent American Place facility highlighted possible reliance on bond markets, REITs, or land leases if needed.
* Seasonality at Chamonix remains a concern, with Lee stating, "Last year, we lost money in both the fourth quarter and first quarter. I hope is to not lose money in those quarters this year."
* Rising Star was described as challenged due to competitive pressures but is making incremental improvements.

FINAL TAKEAWAY

Full House Resorts management stressed strong operational momentum in Q3, citing record results at American Place and a significant EBITDA swing at Chamonix as evidence of successful ramp-up and cost control. The company underscored its conviction in achieving $50 million run rate EBITDA at the temporary American Place, with the permanent facility targeted for $100 million. Strategic priorities remain focused on growing customer bases, optimizing costs, and securing favorable financing for expansion, while management continues to monitor and address external risks from market competition and potential new entrants.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/fll/earnings/transcripts]

MORE ON FULL HOUSE RESORTS

* Full House Resorts, Inc. (FLL) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4839960-full-house-resorts-inc-fll-q3-2025-earnings-call-transcript]
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