Boyd Gaming Q3: $990.5m Revenue as Las Vegas Visitor Demand Softens

Boyd Gaming reported third-quarter revenue of $990.5 million and adjusted earnings of $1.67 per share, missing analyst forecasts as weaker Las Vegas visitor demand and renovation disruption outweighed growth elsewhere. Revenue fell 1.4% versus expectations of $1.0 billion, and analysts had forecast earnings of $1.70 per share. Online gaming produced double-digit adjusted EBITDAR growth for the period.

Las Vegas visitors lag while locals hold

Local customers continued to spend at Boyd properties, but tourists were harder to attract. Excluding the Orleans and Suncoast, the Las Vegas Locals portfolio increased both revenue and adjusted EBITDAR by 3%. The Orleans experienced softer destination business, and Suncoast operations were affected by construction.

"In Las Vegas, play from local residents remained strong. However, this trend was offset by increased softness in destination business to Las Vegas, primarily at the Orleans, and construction disruption at the Suncoast," President and CEO Keith Smith said during the earnings call.

Boyd has kept more than 300 Orleans rooms unavailable each day over the past year, and it expects to finish renovation of 1,800 Orleans rooms in November before starting a broader modernization program in early 2027. That next phase will initially focus on areas guests cannot access to limit disruption. The company finished upgrading Suncoast public areas during the quarter and began renovating 400 Suncoast hotel rooms, with completion expected in early 2027.

Financials and segment performance

Adjusted EBITDAR across the company slipped to $319.6 million from $321.8 million a year earlier. Net income was $124.9 million, or $1.71 per share, compared with $1.4 billion, or $17.81 per share, in the prior year; the prior-year figure included a $1.4 billion after-tax gain from selling the FanDuel stake, which materially inflates that comparison.

Beyond Nevada, the Midwest & South segment delivered relief: revenue rose by nearly 3% and adjusted EBITDAR increased by 2.5% after adjusting for property closures and sales. The company said online casino activity helped the online gaming business achieve double-digit adjusted EBITDAR growth, a performance the company highlighted on the earnings call and in investor materials covering its digital channel.

Management commentary and travel headwinds

Smith also attributed weaker downtown demand partly to storms in Hawaii during August and September and to sharply higher Hawaiian airfares later in the quarter. "While airfares remain elevated today, they have started to moderate," he said. Smith reiterated that the tourism slowdown has persisted for several quarters and that summer pressures intensified the third-quarter weakness.

Smith pointed to structural support for local demand, citing Southern Nevada population growth at twice the national average, nearly 6% wage growth and strong job creation. "In all, we remain encouraged by the continued strength of the Las Vegas economy and its prospects for our local segment," he added.

For operators and investors tracking property-level activity, Boyd's sequencing of the Orleans completion in November and the quieter, behind-the-scenes modernization work starting in early 2027 will be the immediate items to watch for shifts in weekend and destination demand. Online performance also appears to be a growing offset to physical-market softness in this quarter's results. For more on digital activity see Boyd's online casino commentary in the casino and news sections.