NEW YORK, May 22, 2026, 14:01 EDT
- MCRI traded 0.6% higher at $116.91 on Friday afternoon. U.S. markets were open ahead of Monday’s Memorial Day holiday.
- Monarch shares moved as investors continued to weigh the company’s record Q1 numbers, buybacks, and the June dividend.
- The $78.5 million construction litigation liability is still the main company-specific risk.
Monarch Casino & Resort Inc shares rose Friday afternoon, staying close to their highs. Investors looked at the company’s solid first-quarter profit but kept an eye on a construction dispute that is still ongoing.
The stock traded at $116.91, up 0.6%, as of 1:46 p.m. in New York. Shares moved between $116.15 and $117.50 earlier in the session. Market cap was about $2.13 billion, market data show.
Market activity picked up ahead of Memorial Day, with Friday marking the final standard U.S. stock session before the holiday. Nasdaq shows markets shut on Monday, May 25. Small-caps saw gains too, as the iShares Russell 2000 ETF climbed 1.1%.
Monarch doesn’t make headlines often. The operator behind Atlantis Casino Resort Spa in Reno and Monarch Casino Resort Spa Black Hawk in Colorado is being valued mainly on its ability to run two properties with steady margins and consistent cash returns. There aren’t many market-moving announcements.
First-quarter net revenue at the company was $136.6 million, an 8.9% jump from last year. Net income increased 38.9% to $27.6 million. Adjusted EBITDA was up 19% to $49.0 million, which the company said investors often look at to compare operations.
Monarch CEO and co-chairman John Farahi described the quarter as “record” for the company, pointing to market share gains at both Atlantis and Black Hawk. Farahi said Monarch sees “opportunities to increase revenue in both markets” and is leveraging technology to bring down operating costs. GlobeNewswire
There’s also a capital return angle. Monarch repurchased 181,258 shares for $17.6 million in Q1 and declared a 30-cent dividend for the quarter. The dividend is payable June 15 to shareholders on record as of June 1.
Peer trading firmed up for most of the regional gaming names. Red Rock Resorts climbed 3.8% and PENN Entertainment added 1.0%. Boyd Gaming was nearly flat. That gave Monarch some backing from the group, so the move didn’t look like just a company story.
Still, the risk is clear. Monarch listed a $78.5 million liability related to its lawsuit with PCL Construction Services over the Black Hawk expansion. That includes a principal judgment of nearly $74.6 million the company is appealing. Monarch also flagged higher wages, more tribal gaming in California, and tough promotions in Northern Nevada as threats to Atlantis revenue growth and margins.
Monarch has its annual meeting slated for May 27 in Reno. Shareholders will vote on the board and weigh in on executive pay, though there’s no earnings release. It’s mainly a governance event.
