Boyd Gaming third-quarter 2026 results show weakness in Las Vegas

Boyd Gaming Corporation reported third-quarter 2026 revenue of $990.5 million and Adjusted EBITDAR of $319.6 million, according to its October 22 statement. The two Las Vegas divisions contributed $8 million less EBITDAR between them, with Downtown Las Vegas and The Orleans recording the largest declines; the company and the Las Vegas Convention and Visitors Authority identified August as the weakest month.

Key third-quarter results

Boyd Gaming (NYSE: BYD) published on October 22 year-over-year comparable figures: quarterly revenue of $990.5 million, down from $1.0 billion; Adjusted EBITDAR of $319.6 million, down from $321.8 million; and net income of $124.9 million, or $1.71 per share. Prior-year net income included a post-tax one-time gain of $1.4 billion from the FanDuel stake.

The group's adjusted EBITDAR fell 0.7% year-over-year; revenues declined 1.4%.

"Results were impacted by increased weakness in destination business to Las Vegas, affecting primarily our Orleans property," said Keith Smith, chief executive, in the statement.

Segment breakdown

• Las Vegas Locals: revenue $207.4 million (-1.6%) and EBITDAR $87.4 million (-5.1%).

• Downtown Las Vegas: revenue $47.4 million (-10.9%) and EBITDAR $12.9 million (-20.3%).

The two divisions totaled $100.2 million of EBITDAR, a combined decline of 7.4% versus the prior year. Boyd attributes the destination decline mainly to softness at The Orleans, plus storms in Hawaii and higher airfares.

Excluding The Orleans and Suncoast (the latter under renovation), Boyd says its local casinos grew 3% in revenue and EBITDAR, driven by increased play from southern Nevada residents.

Midwest & South showed revenue of $540.5 million and flat EBITDAR at $201.6 million, which represented nearly 59% of the segment's EBITDAR. Boyd adjusted comparables for the November 2025 closure of Sam's Town Tunica and the August sale of Sam's Town Shreveport to Bally's Corporation (price not disclosed).

Online, buybacks and cash

Online revenue fell 6.7% to $154.5 million due to reduced online rebates, which are recorded as both revenue and cost, dropping from $138.7 million to $121.2 million. Despite that, Online EBITDAR rose 15.9% to $10.9 million, which Boyd attributes to Boyd Interactive.

For the first nine months, Online EBITDAR totaled $29.9 million versus $55.0 million a year earlier, a figure largely driven by prior terms with FanDuel under the agreement sold to Flutter Entertainment in July 2025 for $1.755 billion.

Boyd repurchased $164 million of stock and paid $15 million in dividends, returning roughly $180 million to shareholders; $387 million remain authorized for buybacks. The company ended the quarter with $297.2 million in cash, $2.7 billion of debt and leverage of 2.2x.

"We do not expect the level of destination weakness in the third quarter to continue into the fourth," said Josh Hirsberg, chief financial officer, on the earnings call.

Hirsberg added that Boyd remains targeting repurchases of about $150 million per quarter and now expects roughly $650 million in capital expenditures for 2026, including $275 million for its Norfolk, Virginia resort, which remains on budget with an expected opening in November 2027.

Visitor context and peer comparison

August data from the Las Vegas Convention and Visitors Authority showed visitor volume of 3.03 million, a decline of 4.3%, and air passengers down 9.2%; Downtown hotel occupancy fell from 62.2% to 53.0%. Boulder Strip, a local customer area, saw gaming revenue increase by 17.4%.

Boyd interprets these figures as a visitor problem rather than a resident one: residents maintained spend while visitor-dependent properties suffered.

Competitors and comparables mentioned in the market include Las Vegas Sands, which this week reported a quarterly EBITDA decline, and Station Casinos, which has not yet released results and closed a $500 million term loan on October 21, according to a Red Rock Resorts filing.

Management comments and next steps

On the earnings call, Smith said July "looked good," August "was probably weaker than we anticipated" and September showed a slight improvement. Smith added that The Orleans has had more than 300 rooms out of service per day for a year, and that the renovation of its 1,800 rooms is scheduled to complete in November.

Boyd agreed in July 2025 to sell its 5% stake in FanDuel to Flutter Entertainment for $1.755 billion and replaced its market-access agreements with contracts through 2038 at a fixed per-state fee, per the announcement at the time.

The company said it expects to refinance a debt maturity in December 2027 in the first half of 2027.

Preliminary conclusion

Boyd's diversification (Midwest & South and southern Nevada resident business) offset the lack of visitors to Las Vegas during the quarter. If destination weakness persists into 2027, it will pressure earnings per share and mobility at visitor-dependent properties; clarification will come when September figures and fourth-quarter results are released.