As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the consumer discretionary - casino operator industry, including Monarch (NASDAQ: MCRI) and its peers.

The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Casino operators run gaming resorts and facilities that generate revenue from gambling, hospitality, food and beverage, and entertainment offerings. Tailwinds include pent-up travel demand, expansion into new jurisdictions legalizing gaming, and growing interest in integrated resort developments in Asia and the Middle East. However, the industry faces notable headwinds: heavy regulatory and licensing requirements limit operational flexibility, capital expenditure for property development and renovation is substantial, and revenue is highly sensitive to macroeconomic conditions and consumer confidence. Rising competition from online gambling platforms, regional saturation in mature markets, and geopolitical risks in key international jurisdictions add further uncertainty.

The 9 consumer discretionary - casino operator stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 0.5%.

In light of this news, share prices of the companies have held steady as they are up 2.3% on average since the latest earnings results.

Monarch (NASDAQ: MCRI)

Established in 1993, Monarch (NASDAQ: MCRI) operates luxury casinos and resorts, offering high-end gaming, dining, and hospitality experiences.

Monarch reported revenues of $140 million, up 4.1% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.

John Farahi, Co-Chairman and Chief Executive Officer of Monarch, commented: “With all-time high fourth quarter financial results, we delivered another record year in 2025. Fourth quarter net revenue and adjusted EBITDA increased year-over-year by 4.1% and 9.6%, respectively. Fourth quarter adjusted EBITDA margin increased by approximately 185 basis points from 35.1% in the fourth quarter of 2024 to a record fourth quarter margin of 37.0%. Full year 2025 adjusted EBITDA margin increased by approximately 197 basis points from 34.5% in 2024 to a record 36.5% in 2025.

Interestingly, the stock is up 5.5% since reporting and currently trades at $98.40.

Is now the time to buy Monarch? Access our full analysis of the earnings results here, it’s free.

Best Q4: PENN Entertainment (NASDAQ: PENN)

Established in 1982, PENN Entertainment (NASDAQ: PENN) is a diversified American operator of casinos, sports betting, and entertainment venues.

PENN Entertainment reported revenues of $1.81 billion, up 8.2% year on year, outperforming analysts’ expectations by 2.6%. The business had a satisfactory quarter with a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 11.4% since reporting. It currently trades at $13.98.

Is now the time to buy PENN Entertainment? Access our full analysis of the earnings results here, it’s free.

Slowest Q4: Golden Entertainment (NASDAQ: GDEN)

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

Golden Entertainment reported revenues of $155.6 million, down 5.2% year on year, falling short of analysts’ expectations by 5.5%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Golden Entertainment delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 3.7% since the results and currently trades at $27.66.

Read our full analysis of Golden Entertainment’s results here.

MGM Resorts (NYSE: MGM)

Operating several properties on the Las Vegas Strip, MGM Resorts (NYSE: MGM) is a global hospitality and entertainment company known for its resorts and casinos.

MGM Resorts reported revenues of $4.61 billion, up 6% year on year. This result surpassed analysts’ expectations by 3.6%. Zooming out, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.

The stock is flat since reporting and currently trades at $36.04.

Read our full, actionable report on MGM Resorts here, it’s free.

Flutter Entertainment (NYSE: FLUT)

With its digital fingerprints on nearly every aspect of global gambling, from the Super Bowl bettor to the online poker aficionado, Flutter Entertainment (NASDAQ: FLUT) operates a portfolio of leading online sports betting and gaming brands including FanDuel, PokerStars, Paddy Power, and Sky Betting & Gaming.

Flutter Entertainment reported revenues of $4.74 billion, up 24.9% year on year. This number came in 4.4% below analysts' expectations. Overall, it was a slower quarter as it also recorded a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.

Flutter Entertainment pulled off the fastest revenue growth among its peers. The stock is down 11.3% since reporting and currently trades at $109.17.

Read our full, actionable report on Flutter Entertainment here, it’s free.

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