0001747079-26-000046
SEC filingBally's Q1 2026 net loss widened to $160.9M driven by $169.3M in non-operating losses, despite a 28% revenue increase to $755.7M from the Queen and Intralot acquisitions.
For the Successor three months ended March 31, 2026, Bally's Corporation reported total revenue of $755.7 million, a 28% increase compared to the combined $589.2 million for the Predecessor and Successor periods in 2025. This top-line growth was primarily inorganic, driven by the revenue contributions from the Queen acquisition ($68.5 million) and the Intralot entities ($95.2 million), which were not present for the full prior-year period.
Despite the revenue increase, the company's bottom line deteriorated significantly. Income from operations was a gain of $91.6 million, a sharp reversal from a $22.6 million loss in the prior year. This swing was almost entirely attributable to a $105.8 million gain on the sale-leaseback of the Bally's Twin River property. Excluding this item, operating performance was under pressure from rising costs. Gaming and non-gaming expenses grew proportionally with revenue, while general and administrative expenses increased 15% to $316.0 million, driven by $60.9 million in added costs from the Queen and Intralot entities, partially offset by a $25.0 million decrease in merger-related costs.
Net loss attributable to Bally's Corporation was $161.9 million, compared to a combined net loss of $16.5 million in the prior year. The primary drivers of this $145.4 million deterioration were non-operating items, specifically a $63.4 million loss on extinguishment of debt and a $104.3 million loss on the fair value of fair value option assets, compared to a $17.4 million loss and a $5.5 million gain, respectively, in the prior year. These losses were partially offset by a $3.2 million income tax benefit.
The company now operates under four reportable segments following the Intralot transaction. The legacy Casinos & Resorts segment generated $379.7 million in revenue and a Segment Adjusted EBITDAR of $96.2 million. The newly formed Bally's Intralot B2B segment, which includes global lottery operations, contributed $74.0 million in non-gaming revenue and $15.1 million in Adjusted EBITDAR. Bally's Intralot B2C, comprising European interactive gaming and UK casino operations, was the second-largest segment with $239.9 million in revenue and $87.1 million in Adjusted EBITDAR. The North America Interactive segment remained unprofitable, posting a $7.1 million Adjusted EBITDAR loss on $60.5 million in revenue, as the company continues to invest in its digital sports betting and iGaming platform.
Management's outlook is focused on executing its strategic growth projects and managing its capital structure. Key developments include the ongoing construction of the permanent Bally's Chicago casino, with approximately $600.0 million of its $1.34 billion minimum investment commitment remaining, and the advancement of the Bally's New York project in The Bronx following the $500 million license fee payment. The company's liquidity was bolstered by the $700 million Bally's Twin River sale-leaseback, proceeds from which were used to reduce debt. However, the company faces near-term financial covenant pressure, having obtained a conditional waiver for its Revolving Credit Facility's net leverage ratio covenant through March 31, 2027. The company expects to remain in compliance with all applicable covenants for the next twelve months. No formal financial guidance for future periods was provided.
As of March 31, 2026, Bally's reported cash and cash equivalents of $559.3 million and restricted cash of $94.1 million, a significant decrease from $798.4 million and $108.3 million at year-end 2025. Total assets stood at $10.9 billion against total liabilities of $8.6 billion. The Company's debt profile shifted materially: the prior $1.47 billion Term Loan Facility was fully repaid and replaced with a $1.1 billion 2026 Term Loan Credit Facility maturing in 2031, bearing interest at SOFR + 7.5% with a 3.0% SOFR floor. The Company also drew $303.8 million on its Revolving Credit Facility. Total long-term debt, net of discounts and fair value adjustments, was $4.39 billion. A conditional waiver was obtained for the Revolving Credit Facility's consolidated net leverage ratio covenant through March 2027, subject to liquidity maintenance requirements. Non-controlling interest of $1.55 billion primarily reflects the 40.6% third-party stake in Intralot.
Bally's faces substantial capital commitments. The Chicago Host Community Agreement requires a minimum $1.34 billion investment in the permanent casino resort, with approximately $600 million remaining. The Company paid a $500 million license fee for a New York downstate gaming license and committed to $161 million in capital improvements to Ferry Point Park under a Conveyance Agreement with New York City. Other commitments include $40 million remaining for Rhode Island property investments, $105.4 million in sports league sponsorship agreements through 2036, and $25.3 million in minimum guarantees under interactive technology agreements through 2029. The Company also has a $940 million development advance commitment from GLPI for the Chicago project, which will increase future rent obligations.
During the quarter, Bally's executed a sale-leaseback of Bally's Twin River to GLPI for $700 million, recognizing a $105.8 million gain and using proceeds to reduce debt. The Company issued $1.92 billion in new debt, primarily the $1.1 billion 2026 Term Loans and Revolving Credit Facility draws, while repaying $2.04 billion. Capital expenditures totaled $38.9 million. The Board-authorized $700 million capital return program had $95.5 million remaining, with no share repurchases or dividends during the period. The Company also paid $115 million in contingent consideration related to the Bally's Golf Links acquisition and $20.9 million to purchase incremental Intralot shares.
The Company operates four reportable segments. Casinos & Resorts generated $379.7 million in revenue, driven by gaming ($300.7M) and non-gaming ($79.0M). Bally's Intralot B2B contributed $74.0 million, primarily from technology services ($58.9M). Bally's Intralot B2C, the international consumer gaming segment, generated $239.9 million, almost entirely from gaming. North America Interactive contributed $60.5 million. The Intralot acquisition, which closed in Q4 2025, significantly expanded the Company's international B2B and B2C footprint, with Intralot contributing $95.2 million in revenue and a $31.7 million net loss attributable to Bally's during the quarter.
Bally's Corporation reported a significant deterioration in cash generation for the Successor period (three months ended March 31, 2026). Net cash used in operating activities was $145.0 million, a stark contrast to the $42.0 million provided in the prior-year Successor stub period (February 8, 2025 to March 31, 2025). This decline was primarily driven by a reported net loss of $160.9 million and a substantial $151.5 million cash outflow from changes in operating assets and liabilities, indicating significant working capital headwinds. Non-cash adjustments, including a $105.8 million gain on a sale-leaseback and a $104.3 million change in fair value of assets, masked the underlying cash consumption.
Investing activities were uniquely bolstered by $685.0 million in proceeds from a sale-leaseback transaction, resulting in net cash provided of $120.2 million despite $38.9 million in capital expenditures and a $500.0 million payment for gaming license acquisitions. The company did not repurchase shares during the Successor period, compared to $416.2 million in the prior-year stub period. Financing activities consumed $242.4 million, largely due to net repayments of long-term debt ($123.8 million) and a $115.0 million payment of contingent consideration. Free cash flow (operating cash flow less capex) was deeply negative, underscoring a period of heavy investment and operational cash outflows offset by asset sales.