FULL HOUSE RESORTS INC Annual Report - Your FY2025 Investor Overview

Discover the key takeaways from Full House Resorts Inc.'s (FLL) latest annual report for the fiscal year ended December 31, 2025. This summary provides a clear look at the company's performance, strategic developments, and future prospects.

What They Do (Business Overview)

Full House Resorts Inc. operates in the dynamic hospitality and gaming sector. The company owns, leases, develops, and manages casino and hotel properties across the U.S., offering a full suite of amenities including slot machines, table games, hotel accommodations, dining, and entertainment. Its operations span three primary regions:

• West: Featuring properties like Bronco Billy's Casino and Hotel in Cripple Creek, Colorado, and Grand Lodge Casino in Incline Village, Nevada.
• Midwest & South: Including Rising Star Casino Resort in Rising Sun, Indiana.
• Contracted Sports Wagering: A growing segment for the company.

FLL generates revenue primarily from casino gaming, hotel stays, food and beverage sales, and other related services, including sports wagering.

Key Developments & Financial Performance for FY2025

The past year saw significant strategic progress for FLL, alongside a mixed financial picture as the company heavily invested in future growth.

• Revenue Growth: FLL reported total revenues of $205.5 million for 2025, a modest increase from $198.2 million in 2024. Existing properties and initial contributions from the sports wagering segment primarily drove this growth.
• Net Income Impacted by Investment: The company reported a net loss of $12.8 million for 2025, compared to a net income of $3.5 million in 2024. This shift largely stemmed from increased interest expenses and substantial pre-opening and development costs associated with the American Place project.
• Adjusted EBITDA: A crucial metric for gaming companies, Adjusted EBITDA reached $38.2 million in 2025, down from $45.1 million in 2024. This figure reflects the operational costs and investments made during the year.
• The American Place Project Takes Center Stage: This remains FLL's flagship development. Construction of the permanent casino and hotel facility in Waukegan, Illinois, progressed substantially throughout 2025. With an estimated total budget of $550 million to $600 million, the project is now expected to open in late 2026. Management anticipates American Place will significantly boost the company's revenue and EBITDA by over 30% once fully operational.
• Stockman's Casino Held for Sale: To optimize its portfolio and generate capital for American Place, FLL officially classified Stockman's Casino in Fallon, Nevada, as "held for sale" as of December 31, 2025. The company actively seeks a buyer, with an expected sale in 2026.
• Capital Expenditures: Reflecting the American Place development, capital expenditures were substantial, reaching $120 million in 2025, primarily for construction.

Management Discussion and Analysis (MD&A) Highlights

Management emphasized the American Place project's strategic importance as the primary driver of the company's current financial performance and future growth. The substantial investment in American Place, including significant pre-opening expenses and increased interest costs from financing the development, primarily caused the net loss in 2025.

FLL's decision to classify Stockman's Casino as "held for sale" represents a strategic move to streamline its asset portfolio and provide additional capital for the American Place development. Management highlighted its focus on efficient capital allocation and project execution to ensure American Place's successful completion and ramp-up, which they expect to transform the company's financial profile. They also discussed managing liquidity and capital resources to support ongoing operations and the remaining construction phases of this key development.

A Look at Their Financial Health

As of December 31, 2025:

• Cash Position: FLL held $25.1 million in cash and cash equivalents.
• Long-Term Debt:
  • Senior Secured Notes due 2028: The company has $350 million outstanding at an interest rate of 8.25%. These represent long-term loans secured by company assets.
  • Revolving Credit Facility due 2027: FLL maintains a $50 million facility, with $20 million drawn as of year-end. This acts as a flexible line of credit for operational needs.
• Shareholder Equity: Total shareholder equity stood at $155.3 million, including $10.2 million in retained earnings and $145.1 million in additional paid-in capital.
• Gaming-Specific Liabilities: The company also manages liabilities unique to the gaming industry, such as progressive jackpot accruals, player loyalty program points, and outstanding casino chips.

Future Outlook (Guidance, Strategy)

The company's future heavily relies on the successful completion and ramp-up of the American Place project. FLL plans to fund the remaining construction through a combination of existing cash, operating cash flow, proceeds from the sale of Stockman's Casino, and potentially securing additional debt financing. The company aims to leverage American Place to significantly expand its market presence, diversify its revenue base, and enhance overall profitability. FLL also continues to explore opportunities in online gaming and property enhancements at its existing resorts. Management's strategy centers on maximizing shareholder value through strategic development and operational excellence.

Competitive Position

Full House Resorts operates in highly competitive gaming and hospitality markets across its various regions. Competition primarily comes from other land-based casinos, riverboat casinos, tribal casinos, and racinos, as well as online gaming platforms and other entertainment and leisure options. Competitors include both large, well-capitalized national and international operators, as well as smaller, regional players. The company aims to compete by offering a diverse range of gaming and non-gaming amenities, focusing on customer service, enhancing existing properties, and strategically developing new, attractive destinations like American Place. The success of American Place is expected to significantly strengthen FLL's competitive standing in the Illinois market.

Things to Keep in Mind (Risks)

Investing in FLL, like any company, involves inherent risks. The annual report highlights several key factors:

• American Place Project Risks: Potential for construction delays, cost overruns beyond the current budget, difficulties in obtaining necessary regulatory approvals, and uncertainty regarding market acceptance and competitive pressures once opened.
• High Leverage: The company carries a significant amount of debt, which could impact its ability to fund future operations, capital expenditures, or react to adverse economic conditions. Rising interest rates could also increase debt servicing costs.
• Economic Downturns: The gaming and hospitality industry is sensitive to economic cycles, consumer discretionary spending, and travel patterns.
• Competition: FLL operates in highly competitive markets, facing both established players and new entrants.
• Regulatory Changes: The gaming industry is heavily regulated, and changes in laws or licensing requirements could negatively impact operations.
• Labor Shortages & Inflation: Ongoing challenges in staffing and rising operational costs could affect profitability.

The company's "Cautionary Statement Regarding Forward-Looking Statements" reminds investors that projections, especially concerning American Place's completion and performance, are based on current expectations and assumptions, and actual results could differ materially.

Company Snapshot

• Market Value: As of June 30, 2025, the aggregate market value of common stock held by non-affiliates was approximately $124.4 million.
• Shares Outstanding: As of March 13, 2026, FLL had 36,183,070 shares of common stock outstanding.
• Filing Status: FLL is classified as an "accelerated filer" (meaning it meets certain public float requirements and has a shorter deadline for filing) and a "smaller reporting company" (indicating it meets specific revenue and public float thresholds, allowing for scaled-down disclosure requirements).

In summary, Full House Resorts is currently in a significant investment phase, with the American Place project being central to its future. While this has led to a net loss and increased debt in 2025, management believes its successful completion and operation will transform the company's financial profile. Investors should carefully consider the potential rewards of this strategic growth alongside the associated risks and the company's current financial leverage.