Red Rock Resorts posts record Las Vegas third-quarter revenue and raises its Durango North budget to $430 million

What happened

Red Rock Resorts, the parent company of Station Casinos, told investors on Tuesday that its Las Vegas operations had their highest third-quarter net revenue in company history, according to the Las Vegas Review-Journal. The company still posted a net loss for the quarter, largely because of a one-time stock grant to employees.

On the same earnings call, executives gave updates on two construction projects at Station properties. The Durango North expansion now carries a higher price tag. The Sunset Station redevelopment remains on budget.

Record revenue, but a quarterly loss

The Review-Journal reported net revenue of $479.1 million for the Las Vegas operations, up 2.3 percent from a year earlier. Overall net revenue was $488.7 million, an increase of 2.8 percent from the same period of 2025.

The company reported a net loss of $17.7 million. That compares with net income of $76.9 million in the third quarter last year, a swing of $94.6 million. The net loss worked out to 17 cents per share, which the Review-Journal said fell well short of Wall Street's consensus expectations, even though revenue beat forecasts.

Anniversary stock awards drove the loss

Most of the drop came from $79.1 million in share-based compensation expense tied to stock awards for the company's 50th anniversary. Another $6.9 million in one-time expenses was also related to the anniversary. Chief Financial Officer Stephen Cootey said the company granted more than $72 million in Class A common stock to its workers.

Cootey told investors the company was proud to "make every full-time and part-time team member an owner of our company," the Review-Journal reported. The outlet said the quarter was still the second-highest third quarter for profitability in company history.

Durango North expansion grows in cost

Cootey said the Durango property continues to perform well despite construction in and around the resort. He said it has added more than 168,000 new customers to the company's database and has increased spending per visit.

What the expansion will add

According to the Review-Journal, Durango North will add more than 275,000 square feet on the north side of the property. Plans include 400 more slot machines, a new bingo room and a dedicated keno lounge. New dining and drinking spots include a local Chinese favorite, an internationally acclaimed Italian restaurant and the Moonshine Flats country-western bar with live music.

The project also includes an entertainment center with a 36-lane bowling facility and diner, luxury movie theaters and a three-course miniature golf area. Golf simulator bays, karaoke and arcade games are also planned. The company expects the expansion to open in the second half of 2027.

Budget rises to $430 million

The project's estimated cost has been revised from $385 million to $430 million. Cootey said the company remains confident it can reach its targeted 20 percent return on investment over time. More on local building projects is collected in our development coverage.

Sunset Station work stays on budget

The company is also continuing its redevelopment of Sunset Station. The Review-Journal reported that Leticia's Cocina & Cantina, Sunset Bar and a new bingo room are expected to open later this quarter.

Steakhouse and high-limit areas next

The property will also begin construction on what the company calls the centerpiece of the redevelopment. That includes a new premium steakhouse plus high-limit slot and table gaming areas. The project remains on budget at about $87 million, and the remaining amenities are expected to be finished by mid-2027.

How investors reacted

Red Rock shares closed at $51.49 on the Nasdaq, down five cents from the previous close of $51.54. The stock then fell to $49.00 in after-hours trading, according to the Review-Journal.

What to watch next

• Opening of Leticia's Cocina & Cantina, Sunset Bar and a new bingo room at Sunset Station, expected later this quarter.
• The start of construction on Sunset Station's premium steakhouse and high-limit gaming areas.
• Completion of the remaining Sunset Station amenities, expected by mid-2027.
• The Durango North expansion's anticipated opening in the second half of 2027, at a revised cost of $430 million.