0001747079-25-000140
SEC filingBally's Q3 2025 revenue rose 5% YoY to $663.7M driven by the Queen acquisition, while net loss narrowed significantly to $106.2M from $247.9M due to the absence of prior-year sale-leaseback losses.
Bally's Corporation reported total revenue of $663.7 million for the third quarter of 2025 (Successor period), a 5% increase compared to $630.0 million in the prior-year period (Predecessor). This growth was primarily attributable to the February 2025 merger with Queen, which contributed $58.6 million in revenue during the quarter. Income from operations swung to a $1.0 million profit from a $157.7 million loss in Q3 2024, a change driven by the absence of a $150.0 million loss on a sale-leaseback transaction related to the Bally's Chicago project recorded in the prior year. Net loss for the quarter was $106.2 million, a significant improvement from the $247.9 million net loss in Q3 2024. The improvement in net loss was partially offset by a $24.7 million increase in other expenses, primarily due to higher interest expense from increased borrowings and rates.
For the combined nine-month period (Predecessor January 1 to February 7, 2025, and Successor February 8 to September 30, 2025), total revenue was $1.91 billion, a 2% increase from $1.87 billion in the prior year. The net loss for this period was $351.1 million, compared to $482.0 million in the prior year, with the improvement again largely due to the prior year's $150.0 million sale-leaseback loss and $80.1 million in accelerated depreciation from the Tropicana Las Vegas closure.
The Casinos & Resorts segment was the primary growth engine, with revenue increasing 12.1% YoY to $396.1 million. The Queen properties were the main driver, though this was partially offset by severe weather in early 2025 and competitive market conditions, notably in Shreveport, Evansville, and Dover. Segment Adjusted EBITDAR rose to $107.9 million from $100.4 million.
International Interactive revenue declined 6.9% YoY to $215.1 million, primarily due to the sale of the Asia interactive business in Q4 2024. Despite the top-line decline, the segment showed operational improvement, with Adjusted EBITDAR increasing to $91.9 million from $90.0 million, reflecting a focus on cost efficiencies and an improving foreign exchange landscape in European markets.
North America Interactive revenue grew 13.1% YoY to $49.9 million, driven by the expansion of the iGaming and BallyBet sports betting operations. However, the segment's Adjusted EBITDAR loss remained flat at $6.0 million, as strong top-line growth was offset by higher marketing investments and other expenses.
Management's strategic focus is on integrating the Queen acquisition and deploying capital on growth projects, positioning the company as a vertically integrated omni-channel gaming operator. A transformative event was the October 2025 closing of the Intralot Transaction, where Bally's International Interactive was combined with Intralot's operations. Bally's received €1.5 billion in cash and a 58% controlling stake in the combined entity. The proceeds were immediately used to pay down $500 million of secured debt and fully repay the Revolving Credit Facility, significantly improving the balance sheet. The company is evaluating the accounting impact of these debt repayments for Q4 2025. The development of the permanent Bally's Chicago casino resort remains a key capital project, with future construction expected to be primarily financed through a $940 million funding agreement with GLP, which began disbursing funds in Q4 2025.
As of September 30, 2025 (Successor), Bally's total assets stood at $7.55 billion, a significant increase from $5.86 billion at December 31, 2024 (Predecessor), primarily driven by the push-down accounting from the Queen merger. Cash and cash equivalents were $160.7 million, with restricted cash of $79.2 million. Total debt, net of discounts and fair value adjustments, was $3.74 billion, up from $3.32 billion, reflecting the issuance of $500 million in 11% Senior Secured Notes due 2028 and a $393 million draw on the Revolving Credit Facility. The company's leverage is substantial, with shareholders' equity at $521.9 million. Goodwill and intangible assets, net, ballooned to $1.70 billion and $1.88 billion, respectively, due to the remeasurement of Predecessor net assets to fair value and the addition of Queen's assets. The company also holds a $134.8 million construction receivable from GLPI for the Chicago project.
The Notes disclose significant capital expenditure commitments. The largest is the Bally's Chicago permanent casino resort, with approximately $900 million remaining of a $1.34 billion minimum investment requirement under the Host Community Agreement. This is supported by a new Chicago Master Lease with GLP, which provides up to $940 million in development advances. Additionally, $42.0 million remains on a $100 million commitment for Rhode Island properties. Other material commitments include $116.2 million in sponsorship agreements through 2036 and $33.3 million in minimum guarantees for interactive technology and market access agreements through 2029. The company also has a performance guaranty with the City of Chicago to ensure the Developer completes its obligations.
Capital allocation was dominated by the Queen merger transaction. The company repurchased 22.8 million shares at $18.25 for a total of $416.2 million immediately following the merger close. No dividends were paid, and $95.5 million remains under the existing $700 million capital return program. Investing activities included $130.2 million in capital expenditures, heavily weighted toward the Chicago development, and an $83.7 million investment in The Star Entertainment Group. Financing activities show a net debt increase, with $1.275 billion in issuances offset by $591.3 million in repayments, including the settlement of Queen's pre-existing debt which resulted in a $17.4 million loss on extinguishment.
The company operates three reportable segments. For the Successor period (Q3 2025), Casinos & Resorts generated $396.1 million in revenue, International Interactive contributed $215.1 million, and North America Interactive added $49.9 million. The International Interactive segment, which includes UK and European operations, represented approximately 29% of total revenue. Segment Adjusted EBITDAR was $107.9 million for Casinos & Resorts and $91.9 million for International Interactive, while North America Interactive posted a loss of $6.0 million. The Queen merger added four new properties to the Casinos & Resorts segment, expanding its geographic footprint.
Bally's Corporation's cash flow statement reflects a significant divergence between reported net losses and operating cash flow, exacerbated by the complexity of the Successor/Predecessor reporting periods following the February 7, 2025 merger. For the Successor period (Feb 8–Sep 30, 2025), net loss was $300.1 million, while operating cash flow was a negative $29.8 million. The Predecessor period (Jan 1–Feb 7, 2025) showed a net loss of $51.0 million and an even larger operating cash outflow of $80.2 million. This compares unfavorably to the prior year's nine-month period, which generated $76.2 million in positive operating cash flow despite a $482.0 million net loss.
Cash generation was insufficient to cover capital investments. Combined Successor and Predecessor capital expenditures totaled $163.0 million ($146.6 million for property and equipment plus $28.4 million for capitalized software), far exceeding the combined $110.0 million operating cash outflow. The company also deployed $416.2 million for share repurchases in the Successor period. No dividends were paid.
A notable working capital swing is evident: changes in operating assets and liabilities consumed $82.4 million (Successor) and $62.6 million (Predecessor) in cash. To bridge the substantial free cash flow deficit and fund the $416.2 million buyback, Bally's relied heavily on external financing, issuing $1.275 billion in long-term debt (Successor) while repaying $591.3 million. The net cash provided by financing was $300.9 million, which, combined with a $26.4 million foreign currency headwind, resulted in a modest $9.0 million net increase in cash for the Successor period.