Boyd Gaming Q1 2026 Earnings a Mixed Bag, But Midwest and South Shine
Although Boyd Gaming's 2026 first-quarter earnings results were underwhelming, the Midwest and South point the way to future growth
Boyd Gaming (BYD) reported a decidedly mixed bag in its Q1 2026 results. Net revenue of $997.4 million for the quarter, an increase from the $991.6 million the previous year but fractionally behind the analyst consensus of $998.8 million.
Adjusted EPS of $1.60 was a more substantial underachievement, falling short of the $1.71 analyst estimate. It was reported that quarterly net income had been impacted by higher corporate expenses and interest payments on development projects.
Margin compression was evident in EBITDAR. Adjusted EBITDAR was $317.4 million, well below the $337.5 million achieved in Q1 2025. Property-level margins “normalized” to just above 39%, compared to the 40%-plus levels seen in early 2025.
In the conference call after the bell on Thursday, CEO Keith Smith said he was encouraged by the player growth the company was seeing:
We are encouraged that the customer trends from the first quarter have continued into April… Our property-level margins once again exceeded 39%, supported by continued growth in play from both core and retail customers.”
Midwest and South Grow Revenue 4% to $525.1M
Boyd has been navigating significant construction disruptions in its Las Vegas portfolio, but has been able to sustain its strong market positioning in the Midwest and South.
The Midwest & South segment was the star performer in Q1. Revenue grew 4% year-over-year to $525.1 million, while EBITDA jumped 5%.
Driving the segment’s revenue win was what management described as “broad-based strength” in its core and retail customer base.
Renovations are a key part of Boyd’s growth strategy in the two regions. The Midwest capital investment program includes modernizing and expanding the Par-A-Dice property in Illinois. Regulatory approval was secured this quarter, and construction will begin next year.
Although the Midwest is an encouraging operational story, the Las Vegas Locals segment faces challenges, with revenue dipping to $217.1 million (a fall from $222.8 million in Q1 2025).
Construction disruptions at the Orleans and Suncoast properties hampered performance. If these two sites are excluded, the remaining Locals segment saw operating margins exceed 50%.
Meanwhile, the opening of the new property, Cadence Crossing Casino, on March 25, 2026, is targeted to capture growth in the rapidly expanding in Henderson, NV, around 16 miles southeast of Las Vegas.
On the Las Vegas Outlook, CFO Josh Hirsberg spoke in the call to the “underlying strengths” of its Vegas operations:
Excluding the impacts from the Orleans and Suncoast [renovations], play from our core customers was in line with the prior year. We remain confident in the underlying strength of the Las Vegas economy.”
Online Revenue Falls After FanDuel Divestment
There wasn’t much to write home about in the online segment, where the company is in a holding pattern since offloading of its FanDuel stake last year.
Online revenue was down from $169.6 million to $161.7 million year over year this quarter.
The company is now focusing on its internal online gaming arm, Boyd Interactive, while still seeking to maintain and grow market-access agreements with third parties.
With a total debt of approximately $2.3 billion, capital allocation and deleveraging remain to the fore. However, its significant cash reserves ($372.7 million) provide a low net-leverage profile of 1.8x (debt-to-EBITDA)
That is significantly lower than the industry average and well below its peak historical level of 4.0x in 2021.
The company’s low leverage provides the flexibility to fund its 2026 capex plan – including the $750 million Virginia resort – without stressing the balance sheet.
Smith highlighted the Virginia growth opportunity on the earnings call:
During the quarter, we continued development of our $750 million resort in Virginia. This project, along with our expansion in Illinois, represents the next chapter of our growth story as we seek to diversify our geographic footprint even further.”
$500M Share Buyback Announcement Will Please Investors, No Clues on Predictions Markets
As for shareholder returns, Boyd returned $170 million through dividends and buybacks during Q1.
Regarding future buyback plans, the Board has authorized a fresh $500 million for share repurchases in April 2026. That amounts to a strong signal of confidence in the stock’s value, despite the Q1 earnings underperformance.
Asked about the threat from prediction markets like Kalshi and Polymarket, and whether the company had plans to introduce its own prediction markets product, Smith didn’t give much away:
“We are always looking at new ways to engage the consumer, but our focus remains on our core gaming and online casino products. Prediction markets are an interesting adjacency, but for now, our capital is prioritized toward our physical resort pipeline and existing digital platforms.”
While high-profile renovations in Las Vegas caused a temporary drag on earnings and a relatively rare EPS miss, growth in the Midwest and South shows that the core business remains in rude health.
Investors will stay focused on the ability of the Virginia resort development and the Par-A-Dice expansion investments to catalyze growth over the next couple of years.
Boyd Gaming Stock: Quarterly Financial Results (2025–2026)
| Quarter | Metric | Actual | Consensus Forecast | Beat / Miss (%) |
| Q1 2026 | Net Revenue | $997.4M | $998.8M | 🔴 Miss (0.14%) |
| Adj. EPS | $1.60 | $1.71 | 🔴 Miss (6.43%) | |
| Adj. EBITDAR | $317.4M | $320.5M* | 🔴 Miss (0.97%) | |
| Q4 2025 | Net Revenue | $1.10B | $1.08B | 🟢 Beat (1.85%) |
| Adj. EPS | $2.21 | $2.14 | 🟢 Beat (3.27%) | |
| Adj. EBITDA | $336.6M | $331.0M | 🟢 Beat (1.69%) | |
| Q3 2025 | Net Revenue | $1.00B | $872.1M | 🟢 Beat (14.67%) |
| Adj. EPS | $1.72 | $1.60 | 🟢 Beat (7.50%) | |
| Adj. EBITDA | $322.0M | $315.0M | 🟢 Beat (2.22%) | |
| Q2 2025 | Net Revenue | $970.0M | $965.0M | 🟢 Beat (0.52%) |
| Adj. EPS | $1.58 | $1.55 | 🟢 Beat (1.94%) | |
| Adj. EBITDA | $314.0M | $310.0M | 🟢 Beat (1.29%) | |
| Q1 2025 | Net Revenue | $991.6M | $988.0M | 🟢 Beat (0.36%) |
| Adj. EPS | $1.62 | $1.59 | 🟢 Beat (1.89%) | |
| Adj. EBITDA | $309.4M | $305.0M | 🟢 Beat (1.44%) |
Table note: *Consensus estimate for EBITDAR was approximated based on historical analyst coverage.
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