What changed in this filing

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Item 1. Financial Statements

2026-04-30 compared with 2025-10-28 · 63 added, 99 removed, 346 unchanged (32% of the section changed)

5 unchanged sentences

Three months ended

Nine months ended

September 30,

Food and beverage

17 unchanged sentences

(In thousands, except shares)

September 30, 2025

March 31, 2026

December 31, 2025

6 unchanged sentences

Property and equipment, net

Intangible assets, net

Other assets, net

Intangible and other assets, net

LIABILITIES AND STOCKHOLDERS’ EQUITY

13 unchanged sentences

Common stock, $ .01 par value, 30,000,000 shares authorized;

19,529,846 shares issued and 18,250,291 outstanding at September 30, 2025;

19,646,611 shares issued and 17,740,083 outstanding at March 31, 2026;

19,544,290 shares issued and 17,819,020 outstanding at December 31, 2025

Additional paid-in capital

Treasury stock, 1,279,555 shares at September 30, 2025 and 927,991 shares at December 31, 2024

Treasury stock, 1,906,528 shares at March 31, 2026 and 1,725,270 shares at December 31, 2025

Retained earnings

9 unchanged sentences

Stock-based compensation expense

Dividend payment

Balance, March 31, 2025

Exercise of stock options, net

Stock-based compensation expense

Purchase of company common stock

Dividend payment

Balance, June 30, 2025

Exercise of stock options, net

Stock-based compensation expense

Purchase of company common stock

Dividend payment

Balance, September 30, 2025

Balance, March 31, 2026

Balance, January 1, 2025

1 unchanged sentence

Stock-based compensation expense

Purchase of company common stock

Dividend payment

Balance, March 31, 2025

Exercise of stock options, net

Stock-based compensation expense

Purchase of company common stock

Dividend payment

Balance, June 30, 2024

Exercise of stock options, net

Stock-based compensation expense

Purchase of company common stock

Dividend payment

Balance, September 30, 2024

The Notes to the Consolidated Financial Statements are an integral part of these statements.

3 unchanged sentences

(In thousands, Unaudited)

Nine Months Ended September 30,

Three Months Ended March 31,

Cash flows from operating activities:

18 unchanged sentences

Cash flows from financing activities:

Payroll taxes from net exercise of stock options

Proceeds from exercise of stock options

Line-of-credit borrowings

Line-of-credit payments

Payment of dividends

6 unchanged sentences

Cash paid for interest

Cash paid for income taxes

The Notes to the Consolidated Financial Statements are an integral part of these statements.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

QUARTERLY PERIOD ENDED SEPTEMBER 30, 2025

QUARTERLY PERIOD ENDED MARCH 31, 2026

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

17 unchanged sentences

In the opinion of the management of the Company, all adjustments considered necessary for a fair presentation, consisting of normal recurring accruals, are reflected in the interim financial statements.

Operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.

The balance sheet at December 31, 2025, has been derived from the audited consolidated financial statements of the Company at that date, but does not include all of the information and footnotes required by U.S.

11 unchanged sentences

This breakout of expenses is used by the CODM to monitor and assess the financial performance by comparing actual results to prior years and plans (in thousands).

Nine Months Ended September 30,

Three Months Ended March 31,

Operating Expenses

5 unchanged sentences

Other operating items, net [c]

Interest income, net

Interest (income) expense, net

Income tax expense

19 unchanged sentences

Historically, the Company has not incurred any significant credit-related losses.

As of September 30, 2025, the Company has recorded a reserve of $ 0.2 million for gaming and non-gaming receivables.

As of March 31, 2026, the Company has recorded a reserve of $ 0.1 million, for gaming and non-gaming receivables.

The Company believes it is not exposed to any significant credit risk on cash and accounts receivable.

4 unchanged sentences

Property and equipment, net consists of the following (in thousands):

September 30, 2025

March 31, 2026

December 31, 2025

5 unchanged sentences

Leasehold improvements

Property and equipment

Less accumulated depreciation and amortization

12 unchanged sentences

If the undiscounted cash flows do not exceed the carrying value, the impairment is measured based on fair value compared to carrying value, with fair value typically based on a discounted cash flow model or market comparable, when available.

For the nine-month periods ended September 30, 2025 and 2024, respectively, there were no impairment charges.

For the three-month periods ended March 31, 2026 and 2025, respectively, there were no impairment charges.

The Company accounts for goodwill in accordance with ASC Topic 350, Intangibles-Goodwill and Other (“ASC Topic 350”).

2 unchanged sentences

Impairment testing for goodwill is performed at the reporting unit level, and each of the Company’s casino properties is considered to be a reporting unit.

As of September 30, 2025, we had goodwill totaling $ 25.1 million related to the purchase of Monarch Black Hawk, Inc.

As of March 31, 2026, we had goodwill totaling $ 25.1 million related to the purchase of Monarch Black Hawk, Inc.

ASC Topic 350 requires that goodwill be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount.

34 unchanged sentences

These liabilities are generally expected to be recognized as revenue within one year of being purchased, earned, or deposited and are recorded within “Accrued expenses” on the consolidated balance sheets.

The following table summarizes the activity related to contract and contract-related liabilities as of September 30, 2025 and 2024 compared to December 31, 2024 and 2023, respectively:

September 30,

The following table summarizes the activity related to contract and contract-related liabilities as of March 31, 2026 and 2025 compared to December 31, 2025 and 2024, respectively:

Increase (Decrease)

September 30,

Increase (Decrease)

Contractual Liability

5 unchanged sentences

Other operating items, net, in general consist of miscellaneous operating charges or proceeds.

For the three months ended September 30, 2025, Other operating items, net, was $ 0.5 million and consisted primarily of professional service fees relating to our construction litigation.

For the three months ended September 30, 2024, Other operating items, net, was $ 0.2 million and consisted primarily of loss on disposal of assets.

For the nine months ended September 30, 2025, Other operating items, net, was $ 1.9 million and consisted primarily of professional service fees relating to our construction litigation.

For the nine months ended September 30, 2024, Other operating items, net, was $ 0.9 million and consisted of $ 0.6 million professional service fees relating to our construction litigation and $ 0.3 million loss on disposal of assets.

For the three months ended March 31, 2026, Other operating items, net, was $ 1.6 million and primarily represents professional service fees relating to our construction litigation and other legal expenses and accruals.

For the three months ended March 31, 2025, Other operating items, net, was $ 0.5 million and primarily represents professional service fees relating to our construction litigation.

Impact of Recently Adopted Accounting Standards:

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures , which requires business entities to expand their annual disclosures of the effective rate reconciliation and income taxes paid.

The ASU is effective for fiscal years beginning after December 15, 2024, may be adopted on a prospective or retrospective basis, and early adoption is permitted.

The adoption of this standard is not expected to have a material impact on our Consolidated Financial Statements.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270):

Narrow-Scope Improvements , which clarifies the guidance in Topic 270 to improve the consistency of interim financial reporting.

The ASU provides a comprehensive list of required interim disclosures and introduces a disclosure principle requiring entities to disclose events since the end of the last annual reporting period that have a material impact on the entity.

ASU 2025-11 is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, with early adoption permitted.

The Company is currently evaluating the impact of adopting ASU 2025-11.

In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) the new guidance amends the existing standard to remove references to various stages of a software development project to better align with current software development methods such as agile programming.

The types of costs required to be capitalized has not significantly changed.

In addition, the new standard requires the capitalization of costs when (1) management has authorized and committed to funding the project and (2) it is probable that the project will be completed and the software will be used to perform its intended function.

ASU 2025-06 is effective for annual reporting periods beginning after December 15, 2027, with early adoption permitted.

The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements.

In November 2024, the FASB issued ASU No.

4 unchanged sentences

The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements.

In September 2025, the Financial Accounting Standards Board issued updated guidance on accounting for internal-use software, effective for annual reporting periods beginning after December 15, 2027, with early adoption permitted.

The amendments modernize guidance to consider different methods of software development, updating the requirements for capitalization of software costs.

The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements.

A variety of proposed or otherwise potential accounting standards are currently under review and study by standard-setting organizations and certain regulatory agencies.

4 unchanged sentences

As permitted by ASC 842, the Company elected not to separate non-lease components from their related lease components.

As of September 30, 2025, the Company’s right of use assets consisted of the Parking Lot Lease, the Driveway Lease (each as defined and discussed in NOTE 5.

As of March 31, 2026, the Company’s right of use assets consisted of the Parking Lot Lease, the Driveway Lease (each as defined and discussed in NOTE 5.

RELATED PARTY TRANSACTIONS), as well as certain billboard leases.

The weighted-average incremental borrowing rate of the leases presented in the lease liability as of September 30, 2025, was 4.35 %.

There were no new leases entered into in the third quarter of 2025.

The weighted-average remaining lease term of the leases presented in the lease liability as of September 30, 2025, was 15.86 years.

Cash paid related to the operating leases presented in the lease liability for each of the nine months ended September 30, 2025 and 2024, was $ 0.8 million and $ 1.1 million, respectively.

The weighted-average incremental borrowing rate of the leases presented in the lease liability as of March 31, 2026, was 4.35 %.

There were no new leases entered into in the first quarter of 2026.

The weighted-average remaining lease term of the leases presented in the lease liability as of March 31, 2026, was 15.62 years.

Cash paid related to the operating leases presented in the lease liability for each of the three months ended March 31, 2026 and 2025, was $ 0.4 million.

STOCK-BASED COMPENSATION

3 unchanged sentences

Three months ended

Nine months ended

September 30,

Food and beverage

6 unchanged sentences

The following is a reconciliation of the number of shares (denominator) used in the basic and diluted earnings per share computations (shares in thousands):

Three months ended September 30,

Effect of dilutive stock options

Nine months ended September 30,

Three months ended March 31,

Effect of dilutive stock options

Excluded from the computation of diluted earnings per share are options where the exercise prices are greater than the weighted assumed proceeds per share as their effects would be anti-dilutive in the computation of diluted earnings per share.

For the three months ended September 30, 2025 and 2024, options for approximately 359 thousand and 905 thousand shares, respectively, were excluded from the computation.

For the nine months ended September 30, 2025 and 2024, options for approximately 637 thousand and 910 thousand shares, respectively, were excluded from the computation.

For the three months ended March 31, 2026 and 2025, options for approximately 501 thousand and 837 thousand shares, respectively, were excluded from the computation.

RELATED PARTY TRANSACTIONS

12 unchanged sentences

If the Company elects not to exercise its renewal option, the Company will be obligated to pay BLI $ 1.6 million.

For each of the three-month periods ended September 30, 2025 and 2024, the Company paid $ 187 thousand in rent, plus $ 9 thousand and $ 17 thousand, respectively, in operating expenses relating to this lease.

For each of the nine-month periods ended September 30, 2025 and 2024, the Company paid $ 561 thousand in rent, plus $ 26 thousand in operating expenses relating to this lease.

The right of use asset and lease liability balances as of September 30, 2025, recognized in the Consolidated Balance Sheet, was $ 9.3 million.

For the three-month periods ended March 31, 2026 and 2025, the Company paid $ 298 thousand and $ 187 thousand in rent, respectively, plus $ 9 thousand and $ 17 thousand, respectively, in operating expenses relating to this lease.

The right of use asset and lease liability balances as of March 31, 2026, recognized in the Consolidated Balance Sheet, was $ 9.2 million.

In addition, the Atlantis shares a driveway with the Shopping Center and leases approximately 37,400 square feet from BLI (the “Driveway Lease”) for an initial lease term of 15 years , which commenced on September 30, 2004, at an original annual rent of $ 300 thousand plus common area expenses.

5 unchanged sentences

At the end of the renewal terms, the Company has the option to purchase the leased driveway section of the Shopping Center.

For the three-month periods ended September 30, 2025 and 2024, the Company paid $ 124 thousand and $ 101 thousand in rent, respectively, plus $ 12 thousand and $ 16 thousand, respectively, in operating expenses relating to this lease.

For the nine-month periods ended September 30, 2025 and 2024, the Company paid $ 372 thousand and $ 303 thousand, respectively, in rent plus $ 38 thousand and $ 40 thousand, respectively, in operating expenses relating to this lease.

The right of use asset and lease liability balances as of September 30, 2025, recognized in the Consolidated Balance Sheet , was $ 2.8 million.

The Company occasionally leases billboard advertising, storage space and parking lot space from affiliates controlled by the Farahi Family Stockholders, and paid $ 123 thousand and $ 118 thousand, respectively, for the three-month periods ended September 30, 2025 and 2024, $ 393 thousand and $ 375 thousand, respectively, for the nine-month periods ended September 30, 2025 and 2024, for such leases.

For each of the three-month periods ended March 31, 2026 and 2025, the Company paid $ 124 thousand in rent, plus $ 12 thousand and $ 16 thousand, respectively, in operating expenses relating to this lease.

The right of use asset and lease liability balances as of March 31, 2026, recognized in the Consolidated Balance Sheet , was $ 2.7 million.

The Company occasionally leases billboard advertising, storage space and parking lot space from affiliates controlled by the Farahi Family Stockholders, and paid $ 163 thousand and $ 146 thousand, respectively, for the three-month periods ended March 31, 2026 and 2025, for such leases.

LONG-TERM DEBT

4 unchanged sentences

The Commitment Fee Percentage (as defined in the Amended Credit Facility) was revised to be 0.25 % per annum .

In addition to other customary covenants for a facility of this nature, as of September 30, 2025, the Company is required to maintain a Total Leverage Ratio (as defined in the Amended Credit Facility) of no more than 1.5 :1.0 and Fixed Charge Coverage Ratio (as defined in the Amended Credit Facility) of at least 1.1 :1.0.

As of September 30, 2025, the Company’s Total Leverage Ratio and Fixed Charge Coverage Ratio were 0.0 :1.0 and 112.3 :1.0, respectively.

In addition to other customary covenants for a facility of this nature, as of March 31, 2026, the Company is required to maintain a Total Leverage Ratio (as defined in the Amended Credit Facility) of no more than 1.5 :1.0 and Fixed Charge Coverage Ratio (as defined in the Amended Credit Facility) of at least 1.1 :1.0.

As of March 31, 2026, the Company’s Total Leverage Ratio and Fixed Charge Coverage Ratio were 0.0 :1.0 and 144.9 :1.0, respectively.

On February 24, 2025, Wells Fargo Bank agreed to waive its right to declaring an event of default under the Amended Credit Facility arising out of the February 14, 2025 judgment on the litigation between Monarch and PCL, so long as we strictly comply with each and every other provision of the Amended Credit Facility.

We believe that we are in full compliance.

As of September 30, 2025, the Company had no outstanding principal balance under the Amended Credit Facility, a $ 0.6 million standby letter of credit and $ 99.4 million remained available for borrowing.

For the nine months ended September 30, 2025 and 2024, the Company’s effective tax rate was 21.3 % and 22.3 %, respectively.

As of March 31, 2026, the Company had no outstanding principal balance under the Amended Credit Facility, a $ 0.6 million standby letter of credit and $ 99.4 million remained available for borrowing.

For the three months ended March 31, 2026 and 2025, the Company’s effective tax rate was 22.4 % and 22.5 %, respectively.

Deferred tax assets were evaluated by considering historical levels of income, estimates of future taxable income and the impact of tax planning strategies.

No uncertain tax positions were recorded as of September 30, 2025 and 2024.

As of March 31, 2026, we have recognized an uncertain tax position, inclusive of accrued interest, of $ 739 thousand, which is included in other long-term liabilities.

The total amount of the unrecognized tax benefits that, if recognized, would affect the effective tax rate is $ 10 thousand.

The uncertain tax position results from depreciation taken on property and equipment relating to the ongoing litigation with PCL Construction Services, Inc .

No uncertain tax positions were recorded as of March 31, 2025.

On July 4, 2025, the “One Big Beautiful Bill Act” (the “Act”) was enacted into law, making permanent certain key elements of the Tax Cuts and Jobs Act that are applicable to the Company, including 100% bonus depreciation.

5 unchanged sentences

The actual timing, number and value of shares repurchased under the repurchase program will be determined by management at its discretion and will depend on a number of factors, including the market price of the Company’s stock, general market economic conditions and applicable legal requirements.

In the third quarter of 2025, under its existing Repurchase Plan, the Company purchased 111,169 shares of its common stock on the open market for an aggregate purchase cost of $ 11.3 million.

As of September 30, 2025, the Company has an authorization to purchase up to 1,598,476 shares under the Repurchase Plan.

In the first quarter of 2026, under its existing Repurchase Plan, the Company purchased 181,258 shares of its common stock on the open market for an aggregate purchase cost of $ 17.6 million.

As of March 31, 2026, the Company has an authorization to purchase up to 971,503 shares under the Repurchase Plan.

LEGAL MATTERS

11 unchanged sentences

The Gilpin Lawsuit includes an additional claim, however, for foreclosure of PCL’s purported mechanics’ lien against the property on which the Monarch Casino Resort Spa Black Hawk is situated (the “Property”).

PCL also joined additional parties who may claim a

purported lien against the Property, as defendants.

PCL also joined additional parties who may claim a purported lien against the Property, as defendants.

Many of the Company’s co-defendants have filed cross claims against Monarch for foreclosure of mechanics’ liens and related claims, including unjust enrichment.

12 unchanged sentences

The Court entered a single judgment in the amount of the net difference between the cross-judgment and awarded PCL a principal judgment amount of $ 74,627,657 (the “Judgment”).

On February 28, 2025, PCL filed with the court a Motion to Amend the Judgment to Add Prejudgment Interest, which the Court denied on May 23, 2025.

On March 13, 2025, PCL also filed a bill of costs and a motion for attorneys’ fees.

Monarch has filed an opposition, challenging PCL’s entitlement to such fees and costs, as well as the computation and amount of the fees and costs PCL seeks.

The Court has yet to rule on PCL’s Bill of Costs and Motion for Attorneys’ Fees.

On March 21, 2025, Monarch filed a Motion for a New Trial pursuant to C.R.C.P.

59(a)(1), which Judge Luxen denied on May 21, 2025.

On March 21, 20025, Monarch also filed a Motion to Amend the Judgment under C.R.C.P.

59(a)(4) to (a) to include additional $ 161,660 setoff for Monarch’s sanctions award, and (b) set a 6 % per annum post-judgment interest rate on the revised $ 54,660,298 awarded to PCL and a 0 % post-judgment interest rate on the $ 19,835,540 awarded to subcontractors as pass-through claims, which Judge Luxen partially granted and partially denied on May 21, 2025.

Specifically, in his May 21, 2025 Order, Judge Luxen (a) revised the total amount of damages due to PCL to $ 74,465,839 to correct certain mathematical errors in the Order and to offset PCL’s damages award by an additional $ 161,660 to account for the award granted in the Court’s November 28, 2023 order entering sanctions against PCL for its discovery violations, (b) set a 6 % per annum post-judgment interest rate on the on the damages awarded to PCL, and (c) declined to amend its judgment to set a 0 % post-judgment interest on the subcontractor pass-through claims.

On May 30, 2025, Monarch filed a Notice of Appeal with the Colorado Court of Appeals of the District Court’s February 14, 2025 Judgment and the District Court’s post-trial orders.

1 unchanged sentence

Monarch has posted a bond to stay enforcement of the Judgment pending such appeal.

As of September 30, 2025, the Company has $ 76.5 million in liability related to the PCL litigation, which are presented in balance sheet as following:

On November 24, 2025, Monarch filed its Opening Appeal Brief.

On January 29, 2026, PCL filed a combined Answer in Opposition to Monarch’s Opening Brief and Opening Cross-Appeal Brief (PCL’s “Opening-Answer”).

Because PCL’s Opening-Answer exceeded the word limits permitted under the Court’s rules, PCL filed a motion for leave to file its Opening-Answer in excess of the word limit.

On February 10, 2026, the Court of Appeals denied PCL’s Motion, ordered that PCL’s oversized Opening-Answer Brief be stricken, and ordered PCL to file an amended Opening-Answer that is within the word limit by February 24, 2026.

PCL filed its Opening-Answer on February 24, 2026, and Monarch filed is Answer-Reply Brief on March 30, 2026.

PCL’s Reply in Support of PCL’s Cross-Appeal will be due on May 4, 2026.

On March 25, 2026, PCL filed a Notice of Cross Appeal of the District Court’s denial of PCL’s Motions for Attorneys’ Fees and Bill of Costs.

As of March 31, 2026, the Company has $ 78.5 million in liability related to the PCL litigation, which are presented in balance sheet as following:

$ 47.0 million in Construction accounts payable and $ 31.5 million in Accounts payable.

The Company recognized $ 1.9 million and 0.6 million in construction litigation expense relating to these lawsuits for the nine months ended September 30, 2025 and 2024, respectively, which is included in Other operating items, net on the Consolidated Statements of Income.

The Company recognized $ 0.3 million and 0.4 million in construction litigation expense relating to these lawsuits for the three months ended March 31, 2026 and 2025, respectively, which is included in Other operating items, net on the Consolidated Statements of Income.

From time to time, we may be subject to other legal proceedings and claims in the ordinary course of business.

3 unchanged sentences

These dividends are paid quarterly on the 15th day of the third month of the applicable calendar quarter (or, if such date is not a trading day, then the first trading day immediately thereafter such date) to those stockholders of record on the 1st day of the third month of the applicable calendar quarter (or, if such date is not a trading day, then the first trading day immediately thereafter such date).

On September 15, 2025 , the Company paid a cash dividend of $ 0.30 per share of its outstanding common stock, to stockholders of record on September 1, 2025 .

For the nine months ended September 30, 2025, the Company paid total of $ 0.90 per share cash dividend.

On March 16, 2026 , the Company paid a cash dividend of $ 0.30 per share of its outstanding common stock, to stockholders of record on March 2, 2026 .

The cash dividend was part of the previously announced annual cash dividend of $ 1.20 per share payable in quarterly payments.

On October 21, 2025 , the Company announced a cash dividend of $ 0.30 per share of its outstanding common stock, payable on December 15, 2025 , to stockholders of record on December 1, 2025 .

On April 21, 2026 , the Company announced a cash dividend of $ 0.30 per share of its outstanding common stock, payable on June 15, 2026 , to stockholders of record on June 1, 2026 .

This cash dividend is part of the previously announced annual cash dividend of $ 1.20 per share payable in quarterly payments.

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements