Boyd Gaming reported second-quarter revenue of $1 billion, up 3.4% from a year earlier, buoyed by growth in its Las Vegas Locals segment and continued strength in online gaming.
The casino operator posted net income of $150.4 million, or $1.84 per share, for the quarter ended June 30, compared with $139.8 million, or $1.47 per share, in the same period last year. Adjusted EBITDAR rose to $357.9 million from $344.2 million.
“Our company delivered a strong performance in the second quarter, with broad-based growth across our operating segments, including our online and managed segments,” President and CEO Keith Smith said. “We achieved our strongest property-level revenue and adjusted EBITDAR growth in more than three years, with property-level margins once again exceeding 40%.”
Gaming revenue rose 3% year-over-year to $671.5 million, while online revenue surged 33.2% to $173 million, supported by gains in the company’s online casino operations and market-access agreements.
The Las Vegas Locals segment recorded its best quarterly growth in more than two years, with margins nearing 50%. Midwest and South operations were led by strong performance at Treasure Chest Casino. Downtown Las Vegas saw a tougher comparison due to elevated visitation from Hawaiian guests in the prior-year period.
Boyd paid a quarterly dividend of $0.18 per share and repurchased $105 million of common stock in Q2. On July 17, its board authorized an additional $500 million in share repurchases, bringing total capacity to $707 million as of June 30. The company held $320.1 million in cash and had total debt of $3.6 billion at quarter-end.
Boyd also closed the sale of its 5% stake in FanDuel to Flutter Entertainment earlier this month, generating $1.4 billion in after-tax proceeds.
“The transaction further enhances our financial flexibility, strengthens our already strong balance sheet, and is accretive to free cash flow,” CFO Josh Hirsberg said.
Boyd intends to use the proceeds to repay all debt outstanding under its credit facility, lowering lease-adjusted leverage from roughly 3.2x to below 2x. The company expects to save about $85 million annually in interest payments. It also extended market access agreements with Flutter through 2038 at a reduced fee structure.
Despite speculation, executives dismissed the idea that the deal signals imminent M&A activity. Boyd had reportedly pursued a $9 billion acquisition of Penn Entertainment last year.
“This FanDuel transaction is not a precursor to another transaction,” Smith said. “It merely allows us to continue our strong track record of making sound capital allocation decisions from a stronger position.”
Hirsberg added: “Just because we have a ton of flexibility doesn’t mean we’re going to go out and try to do something that doesn’t make sense.”
Boyd reaffirmed its regional approach to online gaming, emphasizing its focus on markets where it already operates. “We were not looking to have a national product or be a national leader in the online casino business. That remains the same today,” Smith said.
The company plans to begin managing its own sportsbooks outside of Nevada in 2026 and sees online casino as a key long-term growth area.
“We think they’re clearly complementary… long term, you need to have both products as part of your portfolio,” Smith said.
