Monarch Casino & Resort (NASDAQ: MCRI) experienced a 20% surge on July 17, 2025, reaching a 52-week high and gaining an additional 24% in after-hours trading. The spike followed robust Q2 2025 results, with a record adjusted EBITDA of $51.3 million, reflecting a 16.8% year-over-year increase and surpassing estimates by $12.8 million. The company’s casino revenue rose 12.1%, although hotel revenue dipped 3.1%. Despite trading at higher valuation multiples, it remains reasonably priced compared to the S&P 500.
In Q2, Monarch reported a net income of $27 million, a 19.1% growth, with earnings per share rising 21% to $1.44. The company returned $19.8 million through share buybacks and paid a $0.30 dividend. Monarch holds a debt-to-equity ratio of 0.9%, significantly below the S&P 500’s average of 19.4%, and cash comprises over 10% of its total assets.
However, investors should note Monarch’s historical sensitivity to economic downturns, with significant drawdowns observed during past market crises, including a 41.8% drop in the 2022 inflation shock and an 87.8% decline during the 2008 financial crisis. Although it has rebounded post-crisis, its volatility warrants caution for investors.
