MCRI 10-K & 10-Q changes, risk factors and insider trading

We also believe that the legalization of additional casino gaming in or near any major metropolitan area in the Atlantis’ or Monarch Black Hawk’s key marketing areas could have a material adverse impact on our business. In addition, there have been proposals for the development of Native American, racetrack and video lottery terminal casinos throughout the state of Colorado over the years, although none of the proposals has been adopted by the state’s electorate or legislature. The owners of the Arapahoe Racetrack, southeast of Denver, have funded state widestate-wide ballot initiatives to allow casino style gaming at the race track. Both measures were voted down by wide margins. As of December 31, 2024, none of the proposals have been adopted by the state’s electorate or by the legislature. Should any form of additional gaming be authorized in the Denver metropolitan area, Monarch Black Hawk could be adversely affected.

Our ability to make payments on and to refinance our indebtedness and to fund future capital expenditures and expansion efforts will depend upon our ability to generate cash. This, to a certain extent, is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control. On December 31, 2024, the Company entered into the Sixth Amended and Restated Credit Agreement (the “Amended Credit Facility”) with Wells Fargo Bank, N.A., as administrative agent, where it amended and restated in its entirety the Fifth Amended Credit Facility. Our failure to generate sufficient cash flows from operations or to obtain future borrowings may impact our ability to repay our indebtedness as it matures and to fund our other liquidity needs. In such cases, we may have to adopt alternatives, such as reducing or delaying planned expenses and capital expenditures, selling assets or obtaining additional equity or debt financing or joint venture partners. These financing strategies may not be affected on satisfactory terms, if at all. . As of December 31, 2025, the Company had no outstanding principal balance under the Amended Credit Facility, a $0.6 million standby letter of credit and $99.4 million remained available for borrowing.

Our Sixth Amended Credit Facility contains covenants that restrict our ability to, among other things, incur additional debt, make distributions, make investments, grant liens on our assets to secure debt, enter into transactions with affiliates and effect mergers or acquisitions. Although the covenants in our Sixth Amended Credit Facility are subject to various exceptions, we cannot assure you that these covenants will not adversely affect our ability to finance future operations or capital needs or to engage in other activities that may be in our best interest. In addition, our long-term debt requires us to maintain specified financial ratios and satisfy certain financial condition tests, which may require that we take action to reduce our debt or to act in a manner contrary to our business objectives. A breach of any of the covenants in the agreement governing our Sixth Amended Credit Facility could result in a default under such agreement. Our ability to comply with these covenants may be affected by general economic conditions, industry conditions, and other events beyond our control. As a result, we cannot assure you that we will be able to comply with these covenants. If an event of default under the agreement governing our Sixth Amended Credit Facility occurs, the lenders thereunder could elect to declare all amounts outstanding thereunder, together with accrued interest, to be immediately due and payable. As of December 31, 2025, the Company had no outstanding principal balance under the Amended Credit Facility, a $0.6 million standby letter of credit and $99.4 million remained available for borrowing.

An increase in market interest rates would increase our interest expense arising on our indebtedness. The interest rate under our Sixth Amended Credit Facility is SOFR (the Secured Overnight Financing Rate) plus a margin of 1.25% or a base rate plus a margin of 0.25%. The applicable margins will vary depending on the Company’s leverage ratio. As a result, we are exposed to interest rate risk. If interest rates increase, our debt service obligations under the Sixth Amended Credit Facility will increase even when the amount borrowed remains the same, and our net income and cash flows, including cash available for servicing our indebtedness, would correspondingly decrease. As of December 31, 2025, the Company had no outstanding principal balance under the Amended Credit Facility, a $0.6 million standby letter of credit and $99.4 million remained available for borrowing.

The ownership and operation of casino gaming facilities are subject to extensive state and local regulation. The State of Nevada, the State of Colorado and the applicable local authorities require various licenses, registrations, permits and approvals to be held by us and our subsidiaries. TheThese Nevadaregulatory Gamingrequirements Commissionare summarized in Part I, Item 1. “Business – Regulation and the Colorado Commission may, among other things, limit, condition, suspend, revoke or decline to renew a license or approval to own the stock of our subsidiaries for any cause deemed reasonable by such licensing authority.Licensing.” If we violate gaming laws or regulations, substantial fines could be levied against us, our subsidiaries and the persons involved, and we could be forced to forfeit a portion of our assets. The suspension, revocation or non-renewal of any of our licenses or the levy on us of substantial fines or forfeiture of assets would have a material adverse effect on our business, financial condition and results of operations.

We have expended a significant amount of capital on our multi-phased Monarch Black Hawk Expansion. We continuously invest in the upgrade and maintenance of our facilities to present a fresh, high qualityhigh-quality product to our guests. Our ability to realize the expected returns on these capital investments depends on a number of factors, including, general economic conditions, changes to construction plans and specifications, delays in obtaining or inability to obtain necessary permits, licenses and approvals, disputes with contractors, disruptions to our business caused by construction and other unanticipated circumstances or cost increases.

This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) regarding our expectations and beliefs concerning the cost, financing and impact of our Monarch Black Hawk Expansion; future expansion and acquisition opportunities; positioning of our properties to benefit from future macro and local economic growth; business prospects; business strategies and outlook; competitive advantages and sources of competition; marketing strategy; approvals and licensing requirements; employee relations; capital requirements; anticipated source of funds and adequacy of such funds to meet our debt obligations and capital requirements; financial condition, legal matters and other matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. We note that many factors could cause our actual results and experience to change significantly from the anticipated results or expectations expressed in our forward-looking statements. When words and expressions such as “believes,” “expects,” “anticipates,” “estimates,” “plans,” “intends,” “objectives,” “goals,” “aims,” “projects,” “forecasts,” “possible,” “seeks,” “may,” “could,” “should,” “might,” “likely,” “enable,” or similar words or expressions are used in this Form 10-K, 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,” forward-looking statements are being made. Example of forward-looking statements include, among others, statements we make regarding: (i) our belief that we have sufficient liquidity to fund our operations and any remaining renovation projects, litigation costs and ongoing capital expenditures; (ii) our belief that our business is well-positioned to benefit from the continued gaming industry expansion after the pandemic; (iii) our expectation regarding the availability of future acquisition opportunities; (iviii) our beliefs regarding the quality of our products and guest services in Reno and Black Hawk; (viv) our expectations regarding our guests' acceptance of the casino, hotel and related amenities at Monarch Casino Resort Spa Black Hawk and Atlantis; (viv) our expectations regarding our future position in, and share of, the high-end segment of the market and the quality of service we provide to our guests; (viivi) our expectations regarding the litigation and any appeal relating to the construction of the Monarch Black Hawk expansion and related liens recorded by the general contractor and certain subcontractors against the Monarch Black Hawk; (viiivii) our belief regarding the proximity that the Reno-Sparks Convention Center will have on the Atlantis; (ixviii) the continuing strength of our balance sheet and our expected free cash flow; (xix) our expectations regarding continuing our dividend payments in the future; (xix) our belief regarding the appeal of the locations of our properties to certain segments of our customers; (xiixi) our expectations regarding broad-based employment growth in the Reno market; and (xiiixii) our beliefs regarding the impact that Monarch Rewards will have on guest loyalty at each of our properties. Actual results and future events and conditions may differ materially from those described in any forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.

Monarch owns and operates the Atlantis Casino Resort Spa, a hotel and casino in Reno, Nevada (the “Atlantis”) and Monarch Casino Resort Spa Black Hawk, a hotel and casino in Black Hawk, Colorado (the “Monarch Black Hawk”). In addition, we own separate parcels of land located next to the Atlantis and a parcel of land with an industrial warehouse located between Denver, Colorado and the Monarch Black Hawk. We also own Chicago Dogs Eatery, Inc. and Monarch Promotional Association, Inc., both of which were formed in relation to licensure requirements for extended hours of liquor operation in Black Hawk, Colorado.

Monarch Casino Resort Spa Black Hawk: Monarch Black Hawk is the first property encountered by visitors arriving from Denver and other major population centers via Highway 119. The Denver metro economy remains strong with higher than the national average per capita personal income. AtMonarch theBlack beginningHawk ofhas 2022,been we completed the master planned renovation and expansion, transforming the propertydeveloped into a world-class resort. Monarch Black Hawkresort, is positioned to leverage from theits expanded operation,operations, and take advantage of the elimination of betting limits several years ago and allowance of new game types in Black Hawk, Colorado, as well as to benefit from the growing state-wide online and retail sports betting. Monarch Black Hawk also is experiencing labor challenges, resulting from the distance to the staffing filter markets of Golden, Colorado and the Denver Metrometro area and low unemployment at those markets. We continue to attract high value players from across Colorado’s Front Range, who had previously tended to travel to other markets, such as Las Vegas, for a high-end casino entertainment experience. We believe that the quality of our expanded product and exceptional guest service will meet the demand of the high-end segment of the market and will grow revenue and accelerate market share.

Gaming revenue KPI: Our management reviews on a consistent basisregularly the volume metrics and hold percentage metrics for each gaming area. The main volume measurements are slot coin-in, table games drop, sportsbook write and keno write. Slot coin-in represents the dollar amount wagered in slot machines, including free promotional wagers. Table games drop represents the total amount of cash and net markers deposited in the table drop box. Keno write and sportsbook write represents the dollar amount wagered at our counters, along with sportsbook write made through our mobile wagering system. Volume metrics are important in managing the business, as our gaming win is affected by actual hold percentage, which in general varies from the expected hold percentage and historical hold percentage. Gaming win represents the amount of wagers retained by us. Hold percentage represents win as a percentage of slot coin-in, table game drop, sportsbook write, or keno write. Our win and hold percentages are calculated before discounts, commissions, deferring revenue associated with our loyalty programs and allocating casino revenues related to goods and services provided to patrons on a complimentary basis.

Operating margins: Our management is consistently focused on controlling expenses and finding cost savings, without affecting the quality of the product we offer and the quality of our guests’ services and experience. We measure our performance using expense margin, which is a percentage of direct expenses, including labor, cost of product and any other operating expenses related to the gaming, food and beverage, or hotel operation to the net gaming, food and beverage, or hotel revenues. Selling, general and administrative (“SG&A”) margin represents SG&A expenses for a period as a percentage of total net revenue for a period. In managing the food and beverage operation we use Costcost Ofof Goodsgoods Soldsold (“COGS”) percentage, which represents a percentage of product cost to the food and beverage revenue and is a measurement of commodity prices and menu sales prices.

Comparison of Operating Results for the Years Ended December 31, 20242025 and 20232024 For the year ended December 31, 2024,2025, our net income totaled $72.8$101.4 million, or $3.84$5.43 per diluted share, compared to net income of $82.4$72.8 million, or $4.20$3.84 per diluted share for the same period of 2023,2024, reflecting a 11.7%39.3% decreaseincrease in net income and 8.6%41.4% decreaseincrease in diluted EPS (“Earnings Per Share”). Net income and diluted EPS for the years ended December 31, 20242025 and 2023,2024, were impacted by: (i) $27.6 millionmillion, or $1.14 per diluted EPS, of accrued loss relating to the principal judgment on the litigation between Monarchthe Company and the Monarch Black Hawk’s general contractor, PCL recognizedConstruction Services, Inc. recorded in the year ended December 31, 2024; (ii) higher$2.75 depreciationmillion, or $0.12 per diluted EPS, from accrued interest expense ($51.4relating million and $47.3 million in 2024 and 2023, respectively); offset by i)to the effectiveprincipal tax rate (21.6% in 2024 and 24.0% in 2023), based primarilyjudgment on the amountlitigation ofbetween the excessCompany taxand benefitMonarch onBlack stockHawk’s compensationgeneral contractor, PCL Construction Services, Inc., recorded in 2025; ii(iii) lower$1.6 million, or $0.07 per diluted EPS, from higher legal and consulting costs relatedrelating to the same litigation between Monarch and PCLthe ($0.8Company’s millionongoing appeal of the related judgment; and $6.9(iv) million$3.9 inmillion, 2024or and$0.17 2023,per respectively).diluted EPS, from accrual for other litigation expenses. Net revenue for the years ended December 31, 20242025 and 20232024 were $522.2$545.1 million and $501.5$522.2 million, respectively, reflecting an increase of $20.7$22.9 million, or 4.1%.4.4%.

Casino revenue increased 4.1%6.8% in the year ended December 31, 2024,2025, compared to the same period of 2023.2024. Casino operating expense as a percentage of casino revenue increaseddecreased to 37.2%36.2% for the year ended December 31, 2024,2025, compared to 36.4%37.2% for the same period in 2023,2024, primarily due to increasesincrease in gaming revenue resulted from increase in market share at both locations and decreases in labor expense and technology related expense.

Food and beverage revenue increased 0.7%2.1% in the year ended December 31, 20242025 over the same period in 2023,2024, due to a 1.6%3.8% increase in average revenue per cover partially offset by a 0.9%1.6% decrease in covers. Food and beverage operating expense as a percentage of food and beverage revenue in the year ended December 31, 20242025 was 73.7%71.0% compared to 72.4%73.7% for the same period in 2023.2024. Food and beverage operating expense as a percentage of food and beverage revenue increaseddecreased as a result of increasedecrease in labor expense and cost of goods sold.

Hotel revenue increaseddecreased 7.6%0.2% in the year ended December 31, 20242025 over the same period in 20232024 due to ana increasedecrease in ADRhotel occupancy to 81.6% in the year ended December 31, 2025 from $172.6282.8% for the same period in 2024. The decrease in occupancy is primarily result of low mid-week occupancy, as the competitors are offering very low daily rates. ADR increased to $188.13 for the year ended December 31, 20232025 tofrom $182.48$183.80 for the year ended December 31, 2024,2024. combinedRevPAR withwas slightly higher hotel occupancy of 84.8%$164.72 in the year ended December 31, 20242025 comparedand to 84.7%$164.80 for the same period in 2023. RevPAR was $220.28 in the year ended December 31, 2024 and $209.71 for the same period in 2023.2024. Hotel operating expense as a percent of the hotel revenue for the year ended December 31, 20242025 was 34.3%34.6% compared to 37.2%34.3% for the same period in 2023.2024. The decreaseincrease in the hotel expense margin was primarily due to the increase in ADRhotel andoperating effectivesupplies cost management.expense.

SG&A expense increased to $108.3$109.4 million in the year ended December 31, 20242025 from $105.8$108.3 million in the same period of 20232024 due to: i) a $2.6 million increase in salaries, wages and related employee benefits expense; ii) a $0.8$1.2 million increase in repairs and maintenance expense; ii) a $0.7 million increase in property taxes, offset by iii) a $0.7$0.5 million decrease in salaries, wages, employee benefits and other employee related expenses; and iv) a $0.3 million decrease in utility expense. As a percentage of net revenue, SG&A expense decreased to 20.7%20.1% in the year ended December 31, 20242025 from 21.1%20.7% in the corresponding prior year period 2023.of 2024.

During the year ended December 31, 2025, we had no borrowings under the credit facility. During the year ended December 31, 2024, we decreased the outstanding principal balance under our Amended Credit Facility by $5.5 million to no balance outstanding as of December 31, 2024. During 20242025, andwe 2023,recognized $1.9 million in interest income. During 2024, we recognized $0.1 million and $1.6 million, respectively, in interest expense, net of interest income. See further discussion of our Amended Credit Facility in the LIQUIDITYLiquidity ANDAnd CAPITALCapital RESOURCESRecourses section below.

We seek to continuously upgrade and maintain our facilities in order to present a fresh, high qualityhigh-quality product to our guests. Capital expenditures during the years ended December 31, 20242025 and 20232024 were as follows (in thousands):

During the years ended December 31, 20242025 and 2023,2024, capital expenditures related primarily to the major redesign and upgrade of all hotel rooms at Atlantis, theproperties redesignmaintenance andcapital upgrade of the Oyster and Sushi Bar Restaurant located in the Sky Terrace at Atlantisexpenditures and the acquisition of gaming equipment at both of our properties.

For the year ended December 31, 2024,2025, net cash provided by operating activities totaled $140.7$164.7 million, aan decreaseincrease of $32.3$24.0 million, or 18.7%,17.1%, compared to the same period of the prior year. This decreaseincrease was primarily due to aan $24.5 million federal income tax resulting from a refund received from IRSincrease in 2023,revenue $9.8and millionan decreaseincrease in deferredinterest tax liability and $9.7 million decrease inincome, net income,of interest expense, partially offset by a $7.8 million change in working capital and $4.0an increase in depreciationoperating expense.expenses.

Net cash used in investing activities totaled $43.8$37.2 million and $51.2$43.8 million in the years ended December 31, 20242025 and 2023,2024, respectively. Net cash used in investing activities during the years ended December 31, 20242025 and 20232024 consisted primarily of cash used for hotel rooms redesign and upgrade project at Atlantis, properties maintenance capital expenditures and for the acquisition of gaming and other equipment at both properties.

Net cash used in financing activities of $89.9 million in the year ended December 31, 2025 represented $72.7 million used for the repurchase of Company common stock under the Repurchase Plan and $21.9 million used for payment of dividends, offset by $4.7 million of proceeds from stock options exercise, net of payroll taxes from net exercises. Net cash used in financing activities of $81.5 million in the year ended December 31, 2024 represented $60.0 million used for the repurchase of Company common stock under the Repurchase Plan, $22.3$22.2 million used for payment of dividends, and $5.5 million principal payments under the Amended Credit Facility, offset by $6.2 million of proceeds from stock options exercise, net of payroll taxes from net exercises. Net cash used in financing activities of $117.2 million in the year ended December 31, 2023 represented $112.8 million used for payment of dividends, $5.0 million used for the repurchase of Company common stock under the Repurchase Plan and $1.5 million principal payments under the Amended Credit Facility, offset by $2.1 million of processed from stock options exercise, net of payroll taxes from net exercises.

We expect that the Company’s cash position in the next quarters may be negatively impacted by the outstanding payments related to the Monarch Black Hawk Expansion project litigation and the judgment of $74.6 million issued February 14, 2025, which are included in the Current LiabilityLiabilities on the balance sheet as of December 31, 2024.2025 and December 31,2024.

On December 31, 2024, the Company entered into the Sixth Amended and Restated Credit Agreement (the “Sixth Amended Credit Facility”) with Wells Fargo Bank, N.A., as administrative agent. The Sixth Amended Credit Facility amends and restates the Company’s $100.0 million credit facility, dated as of February 1, 2023 (the “Prior Facility”).

The Sixth Amended Credit Facility extends the maturity date to January 1, 2028 and removes the lien on real property under the Prior Facility. Additionally, the interest rate under the Sixth Amended Credit Facility is either SOFR (the Secured Overnight Financing Rate) plus a margin of 1.25% or the Base Rate (as defined in the Sixth Amended Credit Facility) plus a margin of 0.25%. The Commitment Fee Percentage (as defined in the Sixth Amended Credit Facility) was revised to be 0.25% per annum. As of December 31, 2024, the Company had no outstanding principal balance under the Amended Credit Facility, a $0.6 million standby letter of credit and $99.4 million remained available for borrowing.

In addition to other customary covenants for a facility of this nature, as of December 31, 2024,2025, the Company is required to maintain a Total Leverage Ratio (as defined in the Sixth Amended Credit Facility) of no more than 1.5:1.0 and Fixed Charge Coverage Ratio (as defined in the Sixth Amended Credit Facility) of at least 1.1:1.0. As of December 31, 2024,2025, the Company’s Total Leverage Ratio and Fixed Charge Coverage Ratio associated with the Prior Facility was 0.0:1.0 and 84.4149.7:1.0.

On February 24, 2025, Wells Fargo Bank agreed to waive its right to declaring an event of default under the Sixth Amended Credit Facility arising out of the February 14, 2025 judgment on the litigation between Monarch and PCL, so long as we strictly comply with each and every other provision of the Credit Facility. We believe that we are in full compliance.

As of December 31, 2024,2025, the Company had no outstanding principal balance under the Sixth Amended Credit Facility, a $0.6 million standby letter of credit and $99.4 million remained available for borrowing.

We believe that the available cash in bank, expected cash flows from operating activities and the $99.4 million available under our Amended Credit Facility as of December 31, 20242025 will be sufficient to support our current operations, meet our debt obligations and fulfill our capital expenditure plans for the twelve months from the filing of Form 10-K for the year ended December 31, 20242025; however, we are surrounded by uncertainty about financial, economic, competitive, regulatory, and other factors, many of which are beyond our control. If we are unable to generate sufficient cash flow in the upcoming months or if our cash needs exceed the Company’s available cash and borrowing capacity under the Amended Credit Facility, we could be required to adopt one or more alternatives, such as reducing, delaying or eliminating planned capital expenditures, selling assets, restructuring debt or issuing additional equity.

Our management evaluates the KPI as compared to prior periods, ourthe peer group, or market, as well as for any trends.

Comparison of Operating Results for the Three-Month Periods Ended MarchJune 31,30, 2026 and 2025 For the three months ended MarchJune 31,30, 2026, our net income totaled $27.6$32.5 million, or $1.52$1.78 per diluted share, compared to net income of $19.9$27.0 million, or $1.05$1.44 per diluted share, for the same period in 2025, reflecting a 38.9%20.4% and 44.8%23.6% increase in net income and diluted earnings per share, respectively. Net revenues in the three months ended MarchJune 31,30, 2026, totaled $136.6$142.6 million, an increase of $11.2$5.7 million, or 8.9%,4.2%, compared to the three months ended MarchJune 31,30, 2025. Income from operations for the three months ended MarchJune 31,30, 2026, totaled $34.9$38.6 million compared to income from operations of $25.3$34.9 million for the same period in 2025.

Casino revenue increased 9.4%2.5% in the firstsecond quarter of 2026 compared to the firstsecond quarter of 2025. The increase in casino revenue was driven primarily by the continued increase in marketvisitation shareand atgaming our properties.volume. Casino operating expense as a percentage of casino revenue slightly decreased to 36.0%35.5% for the three months ended MarchJune 31,30, 2026, compared to 37.7%35.7% for the three months ended MarchJune 31,30, 2025, primarily due to betterimproved labor management and operational efficiency.

Food and beverage revenue for the firstsecond quarter of 2026 increased 5.6%3.1% compared to the firstsecond quarter of 2025 due to 4.5%2.0% increase in food and beverage revenue per cover, combined with ana 1.1% increase in food and beverage covers of 1.1%.covers. Food and beverage operating expense as a percentage of food and beverage revenue in the firstsecond quarter of 2026 decreasedincreased to 72.7%72.9% compared to 74.3%70.3% in the firstsecond quarter of 2025 due primarily to an increase in revenuelabor and product cost per cover.

Hotel revenue increased 13.5%13.0% in the firstsecond quarter of 2026 compared to the same quarter of 2025 primarily as a result of anincrease in occupancy percentage to 83.7% during the second quarter of 2026 compared to 79.6% during the second quarter of 2025 resulting from improved convention group business in the current year and increase in available rooms. ADR decreased by $7.49$7.01 ($184.83$196.43 in the firstsecond quarter of 2026 and $192.32$189.42 in the firstsecond quarter of 2025). Hotel occupancy percentage decreased to 79.6% during the first quarter of 2026 compared to 80.9% during the first quarter of 2025. Hotel RevPAR was $158.01$177.94 and $167.67$162.57 for the three months ended MarchJune 31,30, 2026 and 2025, respectively. Hotel operating expense as a percentage of hotel revenue decreased to 36.0%32.1% in the firstsecond quarter of 2026 compared to 37.7%34.3% for the comparable prior year period primarily due to lowerincrease in the ADR and decrease in expenses per occupied room.

Other revenue increased 6.6%4.5% in the firstsecond quarter of 2026 compared to the same prior year period primarily due to an increases in spacommission revenues at both properties and commissionspa revenues.revenue at Monarch Black Hawk.

SG&A expense increased to $27.8$28.6 million in the firstsecond quarter of 2026 from $27.2$26.8 million in the firstsecond quarter of 2025. As a percentage of net revenue, SG&A expense decreasedincreased to 20.3%20.0% in the firstsecond quarter of 2026 compared to 21.7%19.6% in the same period in 2025. The increase in SG&A expenses is primarily result of increase in payroll tax as a result of stock option exercises, legal expenses, property taxes and repair and maintenance expenses.

Depreciation and amortization expense decreased to $10.5$10.7 million for the three months ended MarchJune 31,30, 2026, compared to $13.2$13.6 million for the same prior year period, due to assets placed into service in the fourth quarter of 2020, with the opening of the hotel tower at Monarch Black Hawk, becoming fully depreciated by the fourth quarter of 2025.

We recognized $0.3$0.4 million and $0.4$0.9 million for the three months ended MarchJune 31,30, 20262026, and 2025, respectively, in professional service fees relating to our construction litigation. In the firstsecond quarter of 2026, we accrued $1.1 million in interest on the PCL judgment that we are disputing.

In the firstsecond quarter of 2026 and 2025, we recognized $0.6$07 million and $0.3$0.4 million, respectively, of interest income, net of interest expense.

Cash paid for capital expenditures for the three-monthsix-month periods ended MarchJune 31,30, 2026 and 2025 totaled $7.5$12.6 million and $16.0$28.4 million, respectively. During each of the three-monthsix-month periods ended MarchJune 31,30, 2026 and 2025, our2025 capital expenditures related primarily to the redesign and upgrade of hotel rooms in the third tower at Atlantis. During each of the six-month periods ended June 30, 2026 and 2025, capital expenditures also included acquisition of gaming, and other equipment to upgrade and replace existing equipment at Atlantis and Monarch Black Hawk and propertyfor upgradesproperties capital projects.enhancements.

For the threesix months ended MarchJune 31,30, 2026, net cash provided by operating activities totaled $48.5$79.2 million, compared to net cash provided by operating activities of $36.5$70.6 million in the same prior year period. This increase was primarily a result of an increase in net income, as well as change in working capital due to normal business fluctuations in Account receivable, Income tax receivable and Accrued expenses.income.

Net cash used in investing activities totaled $7.5$12.4 million and $16.0$28.4 million during each of the threesix months ended MarchJune 31,30, 2026 and 2025, respectivelyrespectively. andNet cash used in investing activities during the first six months of 2025 consisted primarily of cash used for the redesign and upgrade of hotel rooms in the third tower at Atlantis. Net cash used in investing activities during each of the first six months of 2026 and 2025 also included cash used for acquisition of gaminggaming, and other equipment to upgrade and ongoingreplace maintenanceexisting capital expendituresequipment at bothAtlantis properties.and Monarch Black Hawk and for properties enhancements.

Net cash used in financing activities in the first threesix months of 2026 totaled $17.4$25.1 million and consisted of $17.7$17.5 million cash used for the repurchasepurchase of Company stock under the Repurchase Plan and $5.4$10.7 million used for payment of dividends, partially offset by $5.7$3.1 million of net proceeds from stock options exercise. Net cash used in financing activities in the first threesix months of 2025 totaled $4.1$29.4 million and consisted of $5.5$20.0 million cash used for purchase of Company stock under the Repurchase Plan and $11.0 million used for payment of dividends, partially offset by $1.4$1.6 million of net proceeds from stock options exercise.

The Amended Credit Facility extends the maturity date to January 1, 2028 and removes the lien on real property under the Prior Facility. As of MarchJune 31,30, 2026,2025, the Company had no outstanding principal balance under the Amended Credit Facility, a $0.6 million standby letter of credit and $99.4 million remained available for borrowing.

In addition to other customary covenants for a facility of this nature, as of MarchJune 31,30, 2026, we were required to maintain a Total Leverage Ratio (as defined in the Amended Credit Facility) of no more than 1.5:1 and Fixed Charge Coverage Ratio (as defined in the Amended Credit Facility) of at least 1.1:1.0. As of MarchJune 31,30, 2026, our Total Leverage Ratio and Fixed Charge Coverage Ratio were 0.0:1.0 and 144.9257.5:1.0, respectively.

We believe that our anticipated operating cash flows will be sufficient to sustain operations for the twelve months from the filing of this Form 10-Q for the quarter ended MarchJune 31,30, 2026 and fulfill our capital expenditure plans and authorized dividend distributions. However financial, economic, competitive, regulatory, and other factors, many of which are beyond our control, could negatively impact our operations. If we are unable to generate sufficient cash flow in the upcoming months or if our cash needs exceed our borrowing capacity under the Amended Credit Facility, we could be required to adopt one or more alternatives, such as reducing, delaying or eliminating planned capital expenditures, selling assets, restructuring debt or issuing additional equity.

A description of our critical accounting policies and estimates can be found in Part II Item 7 — “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2025 Form 10-K. For a more extensive discussion of our accounting policies, see Note 1,1. “Summary of Significant Accounting Policies” in the Notes to the Consolidated Financial Statements in our 2025 Form 10-K filed with the SEC on February 24, 2026.