Bally's has reported impressive first-quarter earnings for 2026, with net revenues reaching $755.72 million, marking a 28.3% increase from the previous year’s $611.07 million. This growth is largely attributed to the expansion of its interactive digital offerings, driven by Intralot, and the consolidation of its properties.
However, the company also revealed a significant net loss of $161.91 million in its 10-Q filing, a staggering 217.3% increase from the $51.02 million loss recorded in the same quarter of 2025. With 60 million shares outstanding, this resulted in a diluted earnings per share (EPS) loss of -$2.69, which was worse than analysts' expectations of -$1.15.
Bally's earnings report was submitted late, and the company is scheduled to hold a shareholder meeting today at 2 PM ET, where management is anticipated to discuss its deleveraging strategies, the Chicago casino project, and the integration of Intralot.
On a year-over-year basis, adjusted EBITDA rose by 16.7% to $153.33 million, indicating strong cash generation capabilities despite the pressures on net margins from non-operating challenges. However, total adjusted EBITDA slightly missed analysts' expectations, coming in at $178.93 million compared to the forecast of $182.50 million.
Despite the operational strengths reflected in Bally's Q1 results, they are overshadowed by considerable non-operating costs and complications arising from capital restructuring.
To tackle its heavily leveraged balance sheet, which includes $4.39 billion in long-term debt, Bally's has taken decisive actions. The company has secured a new $1.1 billion credit facility due in 2031 and completed a $700 million sale-leaseback of its Twin River Lincoln Casino Resort properties to GLP Capital L.P. This move effectively eliminates the $1.47 billion term loan due in 2028, preserving $653.4 million in liquidity.
In a statement accompanying the earnings release, Bally's CEO Robeson Reeves remarked, “We delivered solid first quarter results across the enterprise and continue to make progress on growing and diversifying our global footprint, delivering on operational synergies and strengthening our balance sheet.”
The restructuring process has resulted in a $63.4 million loss due to 'debt extinguishment', a one-time charge impacting the balance sheet, and has increased quarterly net interest expenses to $109.9 million. This charge, along with other non-operating asset adjustments, contributed to the alarming $161.9 million GAAP net loss for the quarter, strategically pushing major debt deadlines from 2028 to 2031, allowing time for the completion of significant casino projects in Chicago and the Bronx.
Additionally, a non-operating loss of $145.8 million, primarily from a $104.3 million negative fair value adjustment on investment assets, further impacted GAAP profitability.
Bally's has ambitious capital expenditure plans, including a $1.7 billion flagship casino in Chicago, which is progressing rapidly. The company celebrated the completion of the structural steel work in April. Once finished, the casino will feature 3,400 slot machines and a luxury hotel with 500 rooms.
Furthermore, Bally's has secured its downstate Gaming Facility License for Bally’s Bronx in New York, which is expected to lead to significant adjustments in its capital allocation.