Boyd Gaming Q3: Las Vegas EBITDAR Falls 7.4% as Destination Demand Softens

Boyd Gaming Corporation reported on 22 October that third-quarter 2026 revenue was $990.5 million and Adjusted EBITDAR was $319.6 million, declines of 1.4% and 0.7% year‑on‑year respectively; the company says two Las Vegas segments — Las Vegas Locals and Downtown Las Vegas — together lost $8.0 million of EBITDAR in the quarter. Net income was $124.9 million, or $1.71 a share, and management identified August as the weakest month for destination demand.

Earnings and headline figures

Boyd filed its Q3 2026 results via an earnings release and an SEC Form 8‑K. Reported third‑quarter revenue fell to $990.5 million from $1.0 billion a year earlier, and Adjusted EBITDAR declined to $319.6 million from $321.8 million. Net income was $124.9 million, or $1.71 per share, versus $1.44 billion, or $17.81, in the prior year period, which included a $1.4 billion after‑tax gain on Boyd's former FanDuel stake.

Adjusted earnings fell 12.6% to $121.7 million, while adjusted EPS declined 2.9% to $1.67. The smaller EPS drop reflected a reduced diluted share count, which fell from 80.9 million to 73.0 million during the past year.

Chief executive Keith Smith said results were "impacted by increased softness in destination business to Las Vegas, primarily affecting our Orleans property." The company reported that Las Vegas Locals revenue declined 1.6% to $207.4 million and EBITDAR fell 5.1% to $87.4 million. Downtown Las Vegas revenue dropped 10.9% to $47.4 million and EBITDAR fell 20.3% to $12.9 million. Together the two segments produced $100.2 million of EBITDAR, down 7.4% from the prior year quarter.

What drove the Las Vegas weakness

Boyd attributes the Downtown and Orleans shortfall to softer destination visitation, and notes additional disruption from storms in Hawaii and higher airfares. Management told analysts that August was the weakest month: on the earnings call Keith Smith said July "looked okay", August "was probably weaker than we anticipated" and September was a little better.

On the same call Smith said the Orleans has had more than 300 rooms out of service every day for a year while its 1,800 rooms are remodelled; that project is due to finish in November. Chief financial officer Josh Hirsberg said the company does not expect the third quarter's level of destination weakness to continue into the fourth quarter and that Las Vegas Locals EBITDAR could see modest growth next year.

August data from the Las Vegas Convention and Visitors Authority executive summary support Boyd's visitor‑demand view: visitor volume was down 4.3% to 3.03 million, and Downtown hotel occupancy fell from 62.2% to 53.0%; Downtown hotel air passengers were down 9.2 percentage points year‑on‑year, the LVCVA reported.

Segment performance beyond Las Vegas

Excluding the Orleans and the Suncoast, which was under renovation, Boyd said its locals casinos grew both revenue and EBITDAR by 3%, driven by increased play from southern Nevada residents. Midwest & South revenue edged up to $540.5 million and EBITDAR was flat at $201.6 million, representing nearly 59% of that segment's EBITDAR.

Adjusting for the November 2025 closure of Sam's Town Tunica, the sale of Sam's Town Shreveport to Bally's Corporation in August, and higher property taxes at Kansas Star, Boyd reported nearly 3% revenue growth and around 2.5% EBITDAR growth in the segment.

Managed & Other EBITDAR rose 13.3% to $29.8 million on higher fees from Sky River Casino in California. Online EBITDAR increased 15.9% to $10.9 million, while online revenue fell 6.7% to $154.5 million because online reimbursements — recorded as both revenue and cost — declined from $138.7 million to $121.2 million. Boyd's nine‑month Online EBITDAR was $29.9 million versus $55.0 million a year earlier.

Capital allocation, buybacks and balance sheet

Boyd returned nearly $180 million to shareholders in Q3: $164 million of share buybacks and $15 million of dividends, leaving $387 million remaining under the current authorisation. Hirsberg said the company still targets about $150 million of repurchases per quarter.

The company now expects around $650 million of capital spending in 2026, including $275 million for its Norfolk, Virginia resort, which management says remains on budget for a November 2027 opening. Boyd ended the quarter with $297.2 million of cash, $2.7 billion of debt and, according to Hirsberg, leverage of 2.2x. Hirsberg said Boyd expects to refinance its December 2027 maturity by the first half of 2027.

Hirsberg also told analysts to look to the high end of guidance ranges for Online and Managed businesses; Online is now about 3% of total segment EBITDAR.

Strategic context: the FanDuel sale and restructuring of digital access

Boyd agreed in July 2025 to sell its 5% FanDuel stake to Flutter Entertainment for $1.755 billion and replaced its market‑access agreements with new contracts running to 2038, with a fixed fee per state. The sale converted an equity stake into cash and left Boyd with a digital business split between FanDuel fee income and Boyd Interactive.

The corporate mix helped cushion the group: residents and regional properties offset visitor declines in Las Vegas this quarter. Whether August marks the low point will depend on September visitation figures and Boyd's fourth‑quarter performance.

"We do not expect the third quarter's level of destination weakness to continue into the fourth," Josh Hirsberg said on the call.

Read the company's earnings release for full tables and segment disclosures. For additional context on destination visitation figures see the Las Vegas Convention and Visitors Authority executive summary cited in Boyd's filings.