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Read Full BioBoyd Gaming posted a profit increase for the third quarter of 2025, mostly driven by the sale of a major stake in FanDuel.
The company announced a net income for the period of $1.44 billion ($17.81 per share), up from $131 million ($1.43 a share) compared to the same quarter from last year. The profit increase was mostly driven by a $1.4 billion after-tax windfall from selling a 5% stake in FanDuel to Flutter Entertainment.
Boyd’s Revenue Continues to Grow
Yet while the sale was responsible for the vast majority of the profits, Boyd’s core business also showed solid results. After removing non-recurring revenue, net income was just under $140 million, in line with last year’s results and ahead of forecasts.
Commenting on the beat, President and CEO Keith Smith said: “During the third quarter, our Company continued to achieve revenue and Adjusted EBITDAR growth after adjusting for our recent FanDuel transaction.”
“These results were driven by year-over-year growth in play from our core customers, improving trends in play from our retail customers, our efficient operations, and our ongoing capital investment program. As a result, we saw healthy growth in gaming revenues across all three property operating segments during the quarter.”
The results were helped by $211 million in revenue from the Las Vegas locals segment, with gaming revenues growing year-on-year from regular players. While other segments remained steady, the growth from core customers helped to offset a downturn in destination visitors.
Elsewhere, Boyd’s capital investment was $146 million for the quarter, bringing it up to $440 million in total, on pace to meet the expected $600 million by the end of the year. This included construction of a new casino in Norfolk, Virginia, and renovation projects at The Orleans and IP Casino Resort in Biloxi, Suncoast, and Ameristar St. Charles.
Boyd Gaming Share Price Falls Despite Beat
The return from the sale of the FanDuel stake was mostly used to reduce leverage and return money to shareholders. The leverage ratio was slashed from 2.8x to just 1.5x, while the company also completed $160 million in share buybacks and issued $15 million in dividends.
While the results beat official forecasts, they appear to have failed to surpass traders’ expectations. The share price fell after the results were released, from a Thursday high of $84.96 to $80.58. Year to date, however, shares are up from $71.83 at the start of the year, an increase of over 12%.
“We continued our balanced approach to capital allocation, returning $175 million to shareholders during the quarter while maintaining the strongest balance sheet in our Company’s history,” said Smith.
“In all, we are encouraged by the strength of our business and remain well-positioned to continue creating long-term value for our shareholders.”
