What changed in this filing

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Item 1. Financial Statements

2026-07-28 compared with 2026-04-30 · 84 added, 53 removed, 356 unchanged (28% of the section changed)

5 unchanged sentences

Three months ended

Six months ended

Food and beverage

7 unchanged sentences

Other income (expense)

Interest income (expense), net

Interest income, net

Income before income taxes

7 unchanged sentences

(In thousands, except shares)

March 31, 2026

June 30, 2026

December 31, 2025

12 unchanged sentences

Accrued expenses

Income taxes payable

Short-term lease liability

7 unchanged sentences

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

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

19,829,049 shares issued and 17,922,521 outstanding at June 30, 2026;

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

Additional paid-in capital

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

Treasury stock, 1,906,528 shares at June 30, 2026 and 1,725,270 shares at December 31, 2025

Retained earnings

12 unchanged sentences

Balance, March 31, 2026

Exercise of stock options, net

Stock-based compensation expense

Dividend payment

Balance, June 30, 2026

Balance, January 1, 2025

3 unchanged sentences

Balance, March 31, 2025

Exercise of stock options, net

Stock-based compensation expense

Purchase of company common stock

Dividend payment

Balance, June 30, 2025

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

3 unchanged sentences

(In thousands, Unaudited)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from operating activities:

4 unchanged sentences

Provision for bad debts

Loss on disposition of assets

(Gain) loss on disposition of assets

Non-cash operating lease expense

12 unchanged sentences

Proceeds from exercise of stock options

Payroll taxes from net exercise of stock options

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 MARCH 31, 2026

QUARTERLY PERIOD ENDED JUNE 30, 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 months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.

Operating results for the three and six months ended June 30, 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.

3 unchanged sentences

The accounting guidance for disclosures about segments of an enterprise and related information requires separate financial information to be disclosed for all reporting segments of a business.

The Company determined that the Company’s two operating segments, Atlantis and Monarch Black Hawk, meet all of the aggregation criteria stipulated by ASC 280-10-50-11.

The Company determined that the Company’s two operating segments, Atlantis and Monarch Black Hawk, meet all of the aggregation criteria stipulated by ASC (“Accounting Standards Codification”) 280-10-50-11.

The Company views each property as an operating segment and the two operating segments have been aggregated into one reporting segment.

5 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).

Three Months Ended March 31,

Six Months Ended June 30,

Operating Expenses

27 unchanged sentences

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

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

As of June 30, 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):

March 31, 2026

June 30, 2026

December 31, 2025

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

For the six-month periods ended June 30, 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 March 31, 2026, we had goodwill totaling $ 25.1 million related to the purchase of Monarch Black Hawk, Inc.

As of June 30, 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 March 31, 2026 and 2025 compared to December 31, 2025 and 2024, respectively:

The following table summarizes the activity related to contract and contract-related liabilities as of June 30, 2026 and 2025 compared to December 31, 2025 and 2024, respectively:

Increase (Decrease)

6 unchanged sentences

Other operating items, net:

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

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:

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

For the three months ended June 30, 2026, Other operating items, net, was $ 1.6 million and consisted primarily of $ 1.1 million in accrued interest on the PCL judgment and $ 0.5 million professional service fees relating to our construction litigation and other legal expenses.

For the three months ended June 30, 2025, Other operating items, net, was $ 0.9 million and represented professional service fees relating to our construction litigation.

For the six months ended June 30, 2026, Other operating items, net, was $ 3.2 million and consisted primarily of $ 2.2 million in accrued interest on the PCL judgment, $ 0.9 million professional service fees relating to our construction litigation and other legal expenses and $ 0.2 million in lobbing expenses to oppose the expansion of iGaming, offset by $ 0.1 million in gain on disposal of assets.

For the six months ended June 30, 2025, Other operating items, net, was $ 1.4 million and represented primarily professional service fees relating to our construction litigation.

Impact of Recently Issued Accounting Standards:

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

1 unchanged sentence

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.

ASU 2025-11 is effective for interim reporting periods within 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 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.

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

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

2 unchanged sentences

Disaggregation of Income Statement Expenses , which requires business entities to disclose, for interim and annual reporting periods, additional information about certain income statement expense categories.

The requirements are effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027 .

ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2027, with early adoption permitted for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027 .

Entities are permitted to apply either the prospective or retrospective transition methods.

6 unchanged sentences

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

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.

As of June 30, 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 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.

The weighted-average incremental borrowing rate of the leases presented in the lease liability as of June 30, 2026, was 4.34 %.

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

The weighted-average remaining lease term of the leases presented in the lease liability as of June 30, 2026, was 15.51 years.

Cash paid related to the operating leases presented in the lease liability for each of the six months ended June 30, 2026 and 2025, was $ 0.8 million.

STOCK-BASED COMPENSATION

3 unchanged sentences

Three months ended

Six months ended

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 March 31,

Three months ended June 30,

Effect of dilutive stock options

Six months ended June 30,

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

For the three months ended June 30, 2026 and 2025, options for approximately 245 thousand and 879 thousand shares, respectively, were excluded from the computation.

For the six months ended June 30, 2026 and 2025, options for approximately 274 thousand and 868 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 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.

For the three-month periods ended June 30, 2026 and 2025, the Company paid $ 234 thousand and $ 187 thousand, respectively, in rent, plus $ 1 thousand, in operating expenses relating to this lease.

For the six-month periods ended June 30, 2026 and 2025, the Company paid $ 532 thousand and $ 374 thousand, respectively, in rent, plus $ 10 thousand and $ 17 thousand, respectively, in operating expenses relating to this lease.

The right of use asset and lease liability balances as of June 30, 2026, recognized in the Consolidated Balance Sheet, was $ 9.0 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 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.

For each of the three-month periods ended June 30, 2026 and 2025, the Company paid $ 124 thousand in rent, plus $ 9 thousand and $ 10 thousand, respectively, in operating expenses relating to this lease.

For each of the six-month periods ended June 30, 2026 and 2025, the Company paid $ 248 thousand in rent plus $ 21 thousand and $ 26 thousand, respectively, in operating expenses relating to this lease.

The right of use asset and lease liability balances as of June 30, 2026, recognized in the Consolidated Balance Sheet , was $ 2.6 million.

The Company occasionally leases billboard advertising, storage space and parking lot space from affiliates controlled by the Farahi Family Stockholders, and paid $ 161 thousand and $ 123 thousand, respectively, for the three-month periods ended June 30, 2026 and 2025, and $ 324 thousand and $ 270 thousand, respectively, for the six-month periods ended June 30, 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 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.

In addition to other customary covenants for a facility of this nature, as of June 30, 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 June 30, 2026, the Company’s Total Leverage Ratio and Fixed Charge Coverage Ratio were 0.0 :1.0 and 257.5 :1.0, respectively.

On February 24, 2025, Wells Fargo Bank agreed to waive its right to declare 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 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.

As of June 30, 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 remaining available for borrowing.

The excess tax benefits and deficiencies are recognized as income tax expense (income tax benefit) in the Company’s Consolidated Statement of Income.

This may result in increased volatility in the Company’s effective tax rate.

For the six months ended June 30, 2026 and 2025, the Company’s effective tax rate was 19.7 % and 23.1 %, respectively.

The effective tax rate for the six months ended June 30, 2026 and 2025 was impacted by excess tax benefit on stock option exercises, which were $ 2.9 million and $ 0.2 million, respectively.

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

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.

As of June 30, 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.

No uncertain tax positions were recorded as of June 30, 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 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.

In the second quarter of 2026, the Company did no t purchase shares of its common stock on the open market.

As of June 30, 2026, the Company has authorization to purchase up to 971,503 shares under the Repurchase Plan.

LEGAL MATTERS

23 unchanged sentences

The complaint alleges, among other things, that PCL breached the construction contract, duties of good faith and fair dealing, and implied and express warranties based on defective and/or nonconforming construction work at the project and includes claims for monetary damages as well as equitable and declaratory relief.

Monarch alleges that the claims asserted in the Second Denver Lawsuit were neither known nor reasonably discoverable in time to be included in the First Denver Lawsuit.

On June 20, 2025, Monarch filed its Third Amended Complaint, adding Douglass Colony Group, Inc., and Amrize Building Envelope LLC f/k/a Holcim Solutions and Product US, LLC f/k/a Firestone Building Products Company LLC (“Amrize”) as defendants and asserting claims against them.

On April 14, 2026, the Court held a Case Management Conference and entered an Amended Case Management Order resetting the Second Denver Lawsuit for a ten-day trial to commence on May 17, 2027.

On May 26, 2026, Monarch moved for leave to further amend its complaint to assert additional claims against Amrize.

On February 14, 2025, the Court issued its Findings of Fact, Conclusions of Law and Order of Judgment in the First Denver Lawsuit.

1 unchanged sentence

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 a Motion to Amend the Judgment to Add Prejudgment Interest, which the Court denied on May 23, 2025.

On March 14, 2025, PCL filed a Bill of Costs and Motion for Attorneys’ Fees, which the Court denied in their entirety on February 4, 2026.

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.

5 unchanged sentences

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.

PCL filed its Opening-Answer on February 24, 2026, and Monarch filed is Answer-Reply Brief on March 30, 2026, and PCL filed its Reply in Support of PCL’s Cross-Appeal on May 4, 2026.

The Court of Appeals will hold oral argument on September 15, 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:

On July 22, 2026, PCL filed is Opening Brief on its Appeal of the District Court’s denial of PCL’s Bill of Costs.

As of June 30, 2026, the Company has $ 79.6 million in liability related to the PCL litigation, which are presented in balance sheet as following:

$ 47.0 million in Construction accounts payable and $ 32.6 million in Accounts payable.

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.

The Company recognized $ 0.8 million and $ 1.4 million in construction litigation expense relating to these lawsuits for the six months ended June 30, 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.

Management believes that the amount of any reasonably possible or probable loss for such other known matters would not have a material adverse impact on our financial conditions, cash flows or results of operations;

however, the outcome of these actions is inherently difficult to predict.

1 unchanged sentence

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 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 .

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

For the six months ended June 30, 2026, the Company paid total of $ 0.60 per share cash dividend.

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

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 .

On July 20, 2026 , the Company announced a cash dividend of $ 0.30 per share of its outstanding common stock, payable on September 15, 2026 , to stockholders of record on September 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