Golden Entertainment (NASDAQ:GDEN) Misses Q3 Sales Expectations

Casino, tavern, and slot instrumentality relation Golden Entertainment (NASDAQ:GDEN) fell abbreviated of the markets gross expectations successful Q3 CY2025, with income falling 4% twelvemonth connected twelvemonth to $154.8 million. Its GAAP nonaccomplishment of $0.18 per stock was importantly beneath analysts’ statement estimates.

Is present the clip to bargain Golden Entertainment? Find retired successful our afloat probe report.

• Revenue: $154.8 cardinal vs expert estimates of $156.8 cardinal (4% year-on-year decline, 1.3% miss)

• EPS (GAAP): -$0.18 vs expert estimates of -$0.04 (significant miss)

• Adjusted EBITDA: $30.48 cardinal vs expert estimates of $31.5 cardinal (19.7% margin, 3.2% miss)

• Operating Margin: 0.6%, down from 4.2% successful the aforesaid 4th past year

• Free Cash Flow Margin: 12.5%, up from 9.1% successful the aforesaid 4th past year

• Market Capitalization: $555.3 million

Founded successful 2001, Golden Entertainment (NASDAQ:GDEN) is simply a gaming institution operating casinos, taverns, and distributed gaming platforms.

A company’s semipermanent income show is 1 awesome of its wide quality. Even a atrocious concern tin radiance for 1 oregon 2 quarters, but a top-tier 1 grows for years. Golden Entertainment struggled to consistently make request implicit the past 5 years arsenic its income dropped astatine a 2.5% yearly rate. This was beneath our standards and is simply a motion of lacking concern quality.

We astatine StockStory spot the astir accent connected semipermanent growth, but wrong user discretionary, a stretched humanities presumption whitethorn miss a institution riding a palmy caller merchandise oregon trend. Golden Entertainment’s caller show shows its request remained suppressed arsenic its gross has declined by 23.6% annually implicit the past 2 years. Note that COVID wounded Golden Entertainment’s concern successful 2020 and portion of 2021, and it bounced backmost successful a large mode thereafter.

We tin excavation further into the company’s gross dynamics by analyzing its 3 astir important segments: Gaming, Dining, and Hotel, which are 49.8%, 25.6%, and 16.4% of revenue. Over the past 2 years, Golden Entertainment’s revenues successful each 3 segments declined. Its Gaming gross (Poker, Blackjack) averaged year-on-year decreases of 29.8% portion its Dining (food and beverage) and Hotel (overnight stays) revenues averaged drops of 4.6% and 5.6%.

This quarter, Golden Entertainment missed Wall Street’s estimates and reported a alternatively uninspiring 4% year-on-year gross decline, generating $154.8 cardinal of revenue.

Looking ahead, sell-side analysts expect gross to turn 1.2% implicit the adjacent 12 months. While this projection indicates its newer products and services volition catalyze amended top-line performance, it is inactive beneath the assemblage average.