Luxury casino and resort operator Monarch (NASDAQ: MCRI) announced better-than-expected revenue in Q1 CY2026, with sales up 8.9% year on year to $136.6 million. Its GAAP profit of $1.52 per share was 32.1% above analysts’ consensus estimates.
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Monarch (MCRI) Q1 CY2026 Highlights:
- Revenue: $136.6 million vs analyst estimates of $129.7 million (8.9% year-on-year growth, 5.2% beat)
- EPS (GAAP): $1.52 vs analyst estimates of $1.15 (32.1% beat)
- Adjusted EBITDA: $48.95 million vs analyst estimates of $43.52 million (35.8% margin, 12.5% beat)
- Operating Margin: 25.6%, up from 20.2% in the same quarter last year
- Market Capitalization: $1.76 billion
(1) Definitions, disclosures and reconciliations of non-GAAP financial information are included later in the release. CEO CommentJohn Farahi, Co-Chairman and Chief Executive Officer of Monarch, commented: “Monarch delivered record first quarter financial results. First quarter net revenue and adjusted EBITDA increased year-over-year by 8.9% and 19.0%, respectively. First quarter adjusted EBITDA margin increased by approximately 300 basis points from 32.8% in the first quarter of 2025 to a record first quarter margin of 35.8% in 2026. The first quarter increases in revenue and adjusted EBITDA highlight our ability to drive sustained growth from our two properties.
Company Overview
Established in 1993, Monarch (NASDAQ: MCRI) operates luxury casinos and resorts, offering high-end gaming, dining, and hospitality experiences.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Monarch grew its sales at a 21.7% annual rate. Though this growth is acceptable on an absolute basis, we need to see more than just topline growth for the consumer discretionary sector, which can display significant earnings volatility. This means our bar for the sector is particularly high, reflecting the non-essential and hit-driven nature of the products and services offered. Additionally, five-year CAGR starts around Covid, when revenue was depressed then rebounded.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Monarch’s recent performance shows its demand has slowed as its annualized revenue growth of 4.8% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. Note that COVID hurt Monarch’s business in 2020 and part of 2021, and it bounced back in a big way thereafter. 
Monarch also breaks out the revenue for its most important segment, Casino. Over the last two years, Monarch’s Casino revenue (Poker, Blackjack) averaged 5.8% year-on-year growth. This segment has outperformed its total sales during the same period, lifting the company’s performance. 
This quarter, Monarch reported year-on-year revenue growth of 8.9%, and its $136.6 million of revenue exceeded Wall Street’s estimates by 5.2%.
Looking ahead, sell-side analysts expect revenue to grow 1.5% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and implies its products and services will face some demand challenges.
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Operating Margin
Monarch’s operating margin has risen over the last 12 months and averaged 21.4% over the last two years. The company’s higher efficiency is a breath of fresh air, but its suboptimal cost structure means it still sports lousy profitability for a consumer discretionary business.
This quarter, Monarch generated an operating margin profit margin of 25.6%, up 5.4 percentage points year on year. This increase was a welcome development and shows it was more efficient.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Monarch’s EPS grew at 30.6% compounded annual growth rate over the last five years, higher than its 21.7% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
In Q1, Monarch reported EPS of $1.52, up from $1.05 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Monarch’s full-year EPS of $5.90 to stay about the same.
Key Takeaways from Monarch’s Q1 Results
It was good to see Monarch beat analysts’ EPS expectations this quarter. We were also excited its adjusted operating income outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this quarter featured some important positives. The stock traded up 4.5% to $102.87 immediately following the results.
Indeed, Monarch had a rock-solid quarterly earnings result, but is this stock a good investment here? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
