FULL HOUSE RESORTS INC

Previous wording

This management’s discussion and analysis of financial condition and results of operations contains forward-looking statements that involve risks and uncertainties. Please see*“Forward-Looking Statements”* for a discussion of the uncertainties, risks and assumptions that may cause our actual results to differ materially from those discussed in the forward-looking statements. This discussion should be read in conjunction with our historical financial statements and related notes thereto and the other disclosures contained elsewhere in this Quarterly Report on Form 10-Q, and the audited consolidated financial statements and notes for the fiscal year ended December 31, 2025, which were included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 16, 2026. The results of operations for the periods reflected herein are not necessarily indicative of results that may be expected for future periods. Full House Resorts, Inc., together with its subsidiaries, may be referred to as “Full House,” the “Company,” “we,” “our” or “us,” except where stated or the context otherwise indicates.

Current wording

This management’s discussion and analysis of financial condition and results of operations contains forward-looking statements that involve risks and uncertainties. Please see*“Forward-Looking Statements”* for a discussion of the uncertainties, risks and assumptions that may cause our actual results to differ materially from those discussed in the forward-looking statements. This discussion should be read in conjunction with our historical financial statements and related notes thereto and the other disclosures contained elsewhere in this Quarterly Report on Form 10-Q, and the audited consolidated financial statements and notes for the fiscal year ended December 31, 2025, which were included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 16, 2026 (the “Annual Report”). The results of operations for the periods reflected herein are not necessarily indicative of results that may be expected for future periods. Full House Resorts, Inc., together with its subsidiaries, may be referred to as “Full House,” the “Company,” “we,” “our” or “us,” except where stated or the context otherwise indicates.

Previous wording

In February 2023, we opened our temporary American Place facility. We have begun the design work for the permanent gaming facility that we plan to build on adjoining land.

Current wording

In February 2023, we opened our temporary American Place facility. We have begun sitework for the permanent gaming facility that we plan to build on adjoining land. In June 2026, the Illinois Gaming Board (“IGB”) approved the extension for our temporary American Place casino to operate through February 17, 2029.

Previous wording

The following tables summarize our consolidated operating results for the three months ended March 31, 2026 and 2025:

Current wording

The following tables summarize our consolidated operating results for the three and six months ended June 30, 2026 and 2025:

Previous wording

The following discussion is based on our condensed consolidated financial statements for the three months ended March 31, 2026 and 2025.

Current wording

The following discussion is based on our condensed consolidated financial statements for the three and six months ended June 30, 2026 and 2025.

Previous wording

**Revenues.**Consolidated total revenues declined by 0.8% (or $0.6 million) for the three months ended March 31, 2026, compared to the prior-year period, reflecting growth at American Place Casino and Rising Star Casino Resort, offset by the sale of Stockman’s Casino in April 2025 and the termination of an agreement with one of our contracted sports wagering providers in 2025. Excluding Stockman’s, revenues would have increased by 0.9%.

Current wording

**Revenues.**Consolidated total revenues increased by 5.6% (or $4.1 million) and 2.3% (or $3.5 million) for the three and six months ended June 30, 2026, compared to the prior-year periods. These increases reflect growth at our two newest properties, American Place and Chamonix, which were offset by the sale of Stockman’s Casino in April 2025 and the termination of an agreement with one of our contracted sports wagering providers in 2025. Excluding Stockman’s, revenues would have increased by 3.3% (or $4.8 million) for the six months ended June 30, 2026.

Previous wording

Net interest expense for the three months ended March 31, 2026 remained relatively flat at $10.4 million, compared to $10.3 million in the prior-year period. During the current quarter, there was less capitalized interest to offset interest expense, as Chamonix’s parking lot resurfacing projects were completed in mid-2025.

Current wording

The increases in net interest expense for the three and six months ended June 30, 2026 were primarily due to higher average balances on the revolving credit facility than in the prior-year periods with less capitalized interest to offset interest expense, as Chamonix’s parking lot resurfacing projects were completed in mid-2025.

Previous wording

For the three months ended March 31, 2026 and 2025, we recognized income tax provisions of $0.1 million and $0.2 million, respectively. This resulted in effective income tax rates of (1.5%) and (2.2%), respectively, primarily due to our projections for pre‑tax book income in each of those years.

Current wording

We recognized income tax provisions of $0.1 million and $0.2 million for the respective three and six months ended June 30, 2026, which resulted in effective income tax rates of (1.4%) and (1.5%), respectively. For the respective three and six months ended June 30, 2025, we recognized an income tax benefit of $0.1 million and an income tax provision of $0.1 million, which resulted in effective income tax rates of 0.9% and (0.6%), respectively. The changes in the effective income tax rates were primarily due to our projections for pre‑tax book income in each of those years and changes in our valuation allowances.

Previous wording

Our Midwest & South segment includes Silver Slipper, Rising Star and American Place. Total revenues for the three months ended March 31, 2026 increased by 3.8% (or $2.2 million). Revenues at American Place and Rising Star more than offset slight revenue declines at Silver Slipper.

Current wording

Our Midwest & South segment includes Silver Slipper, Rising Star and American Place. Total revenues for the three and six months ended June 30, 2026 increased by 5.6% (or $3.2 million) and 4.7% (or $5.4 million), respectively. Continued growth at American Place more than offset revenue declines at Silver Slipper and Rising Star.

Previous wording

Non-casino revenue declined by 0.6% (or $0.1 million) for the three months ended March 31, 2026, primarily due to the discontinuation of unprofitable promotional programs at Silver Slipper. Food and beverage revenue declined by 1.3% (or $0.1 million) for the current-year period, while hotel revenue declined by 5.3% (or $0.1 million).

Current wording

Non-casino revenue remained relatively flat at $11.7 million and $24.8 million for the respective three and six months ended June 30, 2026, primarily due to the discontinuation of unprofitable promotional programs at Silver Slipper. Food and beverage revenue improved by 3.3% (or $0.3 million) and 1.0% (or $0.2 million) for the respective three and six months ended June 30, 2026, with American Place offsetting declines within the segment. Hotel revenue declined by 3.2% (or $0.1 million) and 4.2% (or $0.1 million) for the corresponding periods during the year.

Previous wording

Adjusted Segment EBITDA rose by 13.1% (or $1.7 million) for the three months ended March 31, 2026, benefiting from revenue growth at American Place and Rising Star as mentioned above, as well as Silver Slipper’s focus on operational efficiencies.

Current wording

Adjusted Segment EBITDA improved by 4.7% (or $0.6 million) and 9.0% (or $2.3 million) for the respective three and six months ended June 30, 2026, benefiting from revenue growth at American Place as mentioned above, as well as Silver Slipper’s focus on operational efficiencies.

Previous wording

Total revenues declined by 13.0% (or $2.0 million) for the three months ended March 31, 2026. These results reflect the sale of Stockman’s in April 2025 and renovation-related disruptions at the Hyatt Lake Tahoe, which houses our Grand Lodge Casino.

Current wording

Total revenues rose by 7.3% (or $1.1 million) for the three months ended June 30, 2026, but declined by 3.2% (or $1.0 million) for the six months ended June 30, 2026. These results reflect growth at our Colorado casinos, as Chamonix continues to ramp up its operations. Such growth was offset by the sale of Stockman’s in April 2025 and renovation-related disruptions at the Hyatt Lake Tahoe, which houses our Grand Lodge Casino.

Previous wording

Casino revenue declined by 16.5% (or $1.9 million) for the three months ended March 31, 2026, primarily reflecting the sale of Stockman’s in April 2025. Slot revenue declined by 18.3% (or $1.8 million), while table games revenue declined by 5.0% (or $0.1 million) for the three months ended March 31, 2026 due to renovation disruptions at Grand Lodge.

Current wording

Casino revenue improved by 1.8% (or $0.2 million) for the three months ended June 30, 2026, reflecting growth from Chamonix, but declined by 7.5% (or $1.7 million) for the six months ended June 30, 2026, primarily reflecting the sale of Stockman’s in April 2025. For the three and six months ended June 30, 2026, slot revenue remained flat at $9.5 million and declined by 9.3% (or $1.8 million), respectively. For the corresponding periods, table games revenue increased by 14.1% (or $0.2 million) and 3.9% (or $0.1 million), respectively.

Previous wording

Non-casino revenue declined by 4.0% (or $0.2 million) for the three months ended March 31, 2026. Food and beverage revenue declined by 18.7% (or $0.4 million) due to the sale of Stockman’s. Hotel revenue rose by 1.6% (or less than $0.1 million), due to Chamonix’s continuing ramp-up of operations.

Current wording

Non-casino revenue rose by 23.6% (or $0.9 million) and 8.6% (or $0.7 million) for the respective three and six months ended June 30, 2026, as Chamonix continues to ramp its overall operations. For the corresponding periods, food and beverage revenue rose by 14.2% (or $0.2 million) and declined by 4.5% (or $0.1 million) due to the sale of Stockman’s. Hotel revenue rose by 26.3% (or $0.5 million) and 13.1% (or $0.5 million), due to increases at Chamonix.

Previous wording

Adjusted Segment EBITDA improved by 28.3% (or $0.7 million), despite the renovation at the Hyatt. This improvement in Adjusted Segment EBITDA was led by Chamonix/Bronco Billy’s, which reduced its operating expenses, excluding depreciation and amortization, by 9.6% (or $1.3 million). As the Company’s newest property, Chamonix is early in its expected ramp, with operations expected to continue improving in the coming quarters and years.

Current wording

For the three and six months ended June 30, 2026, Adjusted Segment EBITDA rose by 91.8% (or $1.0 million) and 48.4% (or $1.7 million). These improvements in Adjusted Segment EBITDA resulted from Chamonix/Bronco Billy’s increased revenue and operating expense efficiencies, which improved the Adjusted Segment EBITDA margin during both the three and six month periods in 2026. As the Company’s newest property, Chamonix is early in its expected ramp, with operations expected to continue improving in the coming quarters and years.

Previous wording

The following table presents a reconciliation of net loss and operating income to Adjusted EBITDA:

Current wording

The following table presents a reconciliation of net loss and operating income (loss) to Adjusted EBITDA:

Previous wording

At March 31, 2026, we had $31.4 million of cash and equivalents. Over the past several years, we invested in two new casinos (one of which has a hotel) that are now open to the public: the temporary facility at American Place, which opened in February 2023, and Chamonix, which opened in phases between December 2023 and October 2024. Such construction activity is now complete and both operations are in their ramp-up periods.

Current wording

At June 30, 2026, we had $33.4 million of cash and equivalents. Over the past several years, we invested in two new casinos (one of which has a hotel) that are now open to the public: the temporary facility at American Place, which opened in February 2023, and Chamonix, which opened in phases between December 2023 and October 2024. Such construction activity is now complete and both operations are in their ramp-up periods.

Previous wording

**Cash flows – operating activities.**On a consolidated basis, cash used in operations during the three months ended March 31, 2026 was $3.8 million, compared to cash used in operations of $7.1 million in the prior-year period. Trends in our operating cash flows tend to follow trends in operating income, excluding non-cash charges, but are also affected by changes in working capital. The change in operating cash flows for the three months ended March 31, 2026, as compared to the prior-year period, was primarily related to the timing of our spending and its impact on working capital, as well as an increase in operating income.

Current wording

**Cash flows – operating activities.**On a consolidated basis, cash used in operations during the six months ended June 30, 2026 was $1.4 million, compared to cash used in operations of $5.9 million in the prior-year period. Trends in our operating cash flows tend to follow trends in operating income, excluding non-cash charges, but are also affected by changes in working capital. The change in operating cash flows for the six months ended June 30, 2026, as compared to the prior-year period, was primarily related to an increase in operating income, as well as the timing of our spending and its impact on working capital.

Previous wording

**Cash flows – investing activities.**On a consolidated basis, cash used in investing activities during the respective three months ended March 31, 2026 and 2025 was $2.7 million and $2.9 million. During 2026, such costs were primarily related to refurbishments at Bronco Billy’s and designing the permanent American Place casino. During the prior-year period, such costs were primarily related to the construction of Chamonix.

Current wording

**Cash flows – investing activities.**On a consolidated basis, cash used in investing activities during the respective six months ended June 30, 2026 and 2025 was $4.1 million and $3.8 million. During 2026, such costs were primarily related to refurbishments at Bronco Billy’s and designing the permanent American Place casino. During the prior-year period, such costs were primarily related to the construction of Chamonix, which were partially offset by the sale of Stockman’s in April 2025.

Previous wording

**Cash flows – financing activities.**On a consolidated basis, cash used in financing activities during the three months ended March 31, 2026 was $2.8 million, compared to cash provided by financing activities of $0.5 million in the prior-year period. During 2025, we increased net borrowings from the Credit Facility by $3.0 million.

Current wording

**Cash flows – financing activities.**On a consolidated basis, cash used in financing activities during the six months ended June 30, 2026 was $1.8 million, compared to cash provided by financing activities of $1.6 million in the prior-year period. During 2026, we paid down net borrowings from the Credit Facility by $5.0 million, compared to $2.0 million in the prior-year period.

Previous wording

**Long-term Debt.**At March 31, 2026, we had $450.0 million of principal indebtedness outstanding under the Notes and $30.0 million outstanding under the Credit Facility. We also owe $0.9 million related to our finance lease of a hotel at Rising Star. With the exception of the Credit Facility, all of our debt is at fixed interest rates. See Note 5 for details on our debt obligations.

Current wording

**Long-term Debt.**At June 30, 2026, we had $450.0 million of principal indebtedness outstanding under the Notes and $25.0 million outstanding under the Credit Facility. We also owe $0.8 million related to our finance lease of a hotel at Rising Star. With the exception of the Credit Facility, all of our debt is at fixed interest rates. See Note 5 for details on our debt obligations.

Previous wording

Long-term Obligation. As required for our gaming licensure at American Place, we have accrued for an interest-free “Reconciliation Payment” that will be due to the IGB over a long-term basis (see Note 8). We currently estimate that a total of $56.8 million will be due to the IGB over the course of six years. Of the total amount, a discounted value of $48.4 million has been added to the valuation of our Illinois gaming license, while the remaining $8.4 million is expected to be expensed as imputed interest through the maturity of this obligation.

Current wording

Long-term Obligation. As required for our gaming licensure at American Place, we have accrued for an interest-free “Reconciliation Payment” that will be due to the IGB over a long-term basis (see Note 8). We currently estimate that a total of $56.8 million will be due to the IGB over the course of six years. Of the total amount, a discounted value of $48.5 million has been added to the valuation of our Illinois gaming license, while the remaining $8.3 million is expected to be expensed as imputed interest through the maturity of this obligation.

Previous wording

We describe our critical accounting estimates and policies in Note 2, Basis of Presentation and Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements included in our Form 10-K for the year ended December 31, 2025. We also discuss our critical accounting estimates and policies in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, in our Form 10-K for the year ended December 31, 2025. There has been no significant change in our estimation methods since the end of 2025.

Current wording

We describe our critical accounting estimates and policies in Note 2, Basis of Presentation and Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements included in our Annual Report. We also discuss our critical accounting estimates and policies in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, in our Annual Report. There has been no significant change in our estimation methods since the end of 2025.

Previous wording

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) for which the Private Securities Litigation Reform Act of 1995 provides a safe harbor. These forward-looking statements can be identified by use of terms such as “believes,” “expects,” “anticipates,” “estimates,” “plans,” “intends,” “objectives,” “goals,” “aims,” “projects,” “forecasts,” “future,” “possible,” “seeks,” “may,” “could,” “should,” “will,” “might,” “likely,” “enable,” or similar words or expressions, as well as statements containing phrases such as “in our view,” “we cannot assure you,” “although no assurance can be given,” or “there is no way to anticipate with certainty.” Examples of forward-looking statements include, among others, statements we make regarding our plans, beliefs or expectations regarding our growth strategies; our expectations regarding the Illinois legislature passing a bill to extend the timeframe of our operation of the temporary American Place facility; our expected construction budgets, estimated commencement and completion dates, expected amenities, and our expected operational performance for the American Place permanent facility; our expectations regarding our ability to generate operating cash flow and to obtain debt financing on reasonable terms and conditions for the construction of the permanent American Place facility; our expectations regarding our ability to refinance our outstanding debt; our investments in capital improvements and other projects, including the amounts of such investments, the timing of commencement or completion of such capital improvements and projects, and the resulting impact on our financial results; our expectations regarding the effect of management changes and operational improvements at our properties, including Chamonix; beliefs in connection with our marketing efforts, including our revamped marketing strategy at Chamonix and our ability to access the Colorado Springs and southern Denver markets; our expectations regarding the renovation-related disruptions at the Hyatt Lake Tahoe complex that houses our Grand Lodge Casino; our sports wagering contracts with third-party providers, including the expected revenues and expenses and our expectations regarding the operation and usage of our available idle sports wagering contracts, our ability to replace any terminated sports wagering contracts or our ability to operate sports wagering contracts ourselves; adequacy of our financial resources to fund operating requirements and planned capital expenditures and to meet our debt and contractual obligations; expected sources of revenue; anticipated sources of funds; anticipated or potential legislative actions; factors that affect the financial performance of our properties; adequacy of our insurance; competitive outlook; outcome of legal and litigation matters; impact of recently issued accounting standards…

Excerpt shortened here; the source contains the full paragraph.

Current wording

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) for which the Private Securities Litigation Reform Act of 1995 provides a safe harbor. These forward-looking statements can be identified by use of terms such as “believes,” “expects,” “anticipates,” “estimates,” “plans,” “intends,” “objectives,” “goals,” “aims,” “projects,” “forecasts,” “future,” “possible,” “seeks,” “may,” “could,” “should,” “will,” “might,” “likely,” “enable,” or similar words or expressions, as well as statements containing phrases such as “in our view,” “we cannot assure you,” “although no assurance can be given,” or “there is no way to anticipate with certainty.” Examples of forward-looking statements include, among others, statements we make regarding our plans, beliefs or expectations regarding our growth strategies; our expected construction budgets, estimated commencement and completion dates, expected amenities, and our expected operational performance for the American Place permanent facility; our expectations regarding our ability to generate operating cash flow and to obtain debt financing on reasonable terms and conditions for the construction of the permanent American Place facility; our expectations regarding our ability to refinance our outstanding debt; our investments in capital improvements and other projects, including the amounts of such investments, the timing of commencement or completion of such capital improvements and projects, and the resulting impact on our financial results; our expectations regarding the effect of management changes and operational improvements at our properties, including Chamonix; beliefs in connection with our marketing efforts, including our revamped marketing strategy at Chamonix and our ability to access the Colorado Springs and southern Denver markets; our expectations regarding the renovation-related disruptions at the Hyatt Lake Tahoe complex that houses our Grand Lodge Casino; our sports wagering contracts with third-party providers, including the expected revenues and expenses and our expectations regarding the operation and usage of our available idle sports wagering contracts, our ability to replace any terminated sports wagering contracts or our ability to operate sports wagering contracts ourselves; adequacy of our financial resources to fund operating requirements and planned capital expenditures and to meet our debt and contractual obligations; expected sources of revenue; anticipated sources of funds; anticipated or potential legislative actions; factors that affect the financial performance of our properties; adequacy of our insurance; competitive outlook; outcome of legal and litigation matters; impact of recently issued accounting standards; and estimates regarding certain accounting and tax matters, among others.

Previous wording

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, those risks discussed in Part I, Item 1A—Risk Factors and throughout Part II, Item 7—Management’s Discussion and Analysis of Financial Condition and Results of our Annual Report on Form 10-K for the year ended December 31, 2025, and in Part II, Item 1A—Risk Factors and elsewhere of this Form 10-Q. In addition, you should consult other disclosures made by us (such as in our other filings with the SEC or in company press releases) for other factors that may cause actual results to differ materially from those projected by us. You should read this Form 10-Q, and the documents that we reference in this Form 10-Q and have filed with the SEC, and our Annual Report on Form 10-K for the year ended December 31, 2025, with the understanding that our actual future results, levels of activity, performance, and events and circumstances may be materially different from what we expect.

Current wording

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, those risks discussed in Part I, Item 1A—Risk Factors and throughout Part II, Item 7—Management’s Discussion and Analysis of Financial Condition and Results of our Annual Report, and in Part II, Item 1A—Risk Factors and elsewhere of this Form 10-Q. In addition, you should consult other disclosures made by us (such as in our other filings with the SEC or in company press releases) for other factors that may cause actual results to differ materially from those projected by us. You should read this Form 10-Q, and the documents that we reference in this Form 10-Q and have filed with the SEC, and our Annual Report, with the understanding that our actual future results, levels of activity, performance, and events and circumstances may be materially different from what we expect.