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DATE

Oct. 22, 2026

CALL PARTICIPANTS

• Vice President of Corporate Communications - David Strow
• President and Chief Executive Officer - Keith E. Smith
• Chief Financial Officer - Josh Hirsberg

TAKEAWAYS

• Revenue -- $990.5 million, representing a 1% decline on a reported basis compared to the third quarter of 2025.
• Net Income -- $124.9 million, or $1.71 per share, compared to $1.4 billion, or $17.81 per share, in the prior-year period which included a $1.4 billion gain from the sale of a FanDuel equity interest.
• Adjusted EBITDAR -- $319.6 million, compared to $321.8 million in the prior year, reflecting a slight contraction on a reported basis.
• Adjusted EPS -- $1.67, compared to $1.72 in the third quarter of 2025, after adjusting for project development and asset impairments.
• Midwest & South Adjusted Revenue -- $540.5 million, representing growth of nearly 3% when excluding property closures, sales, and higher tax items.
• Midwest & South Adjusted EBITDAR -- $201.6 million, increasing approximately 2.5% driven by play from core and retail guests.
• Las Vegas Locals Revenue -- $207.4 million, impacted by softness in destination business and construction disruptions at the Suncoast.
• Las Vegas Locals EBITDAR -- $87.4 million, with core properties outside of Suncoast and the Orleans growing both revenue and EBITDAR by 3%.
• Downtown Las Vegas Revenue -- $47.4 million, down from $53.2 million due to increased softness in Southern Nevada destination business and impacts from Hawaiian storms and airfares.
• Online Adjusted EBITDAR -- $10.9 million, reflecting double-digit growth driven by the company's online casino gaming business.
• Managed & Other Revenue -- $40.6 million, showing growth from increased management fees at the Sky River Casino.
• Share Repurchases -- $164 million, representing 2 million shares purchased during the quarter as part of an ongoing capital return program.
• Dividend -- $15 million, with a quarterly cash dividend of $0.20 per share paid on Oct. 15, 2026.
• Quarterly Capital Expenditures -- $159 million, bringing the year-to-date total investment to $456 million.
• Annual Capital Expenditure Guidance -- $650 million, including maintenance, growth capital, and the Virginia resort development.
• Maintenance Capital Expenditures -- $250 million, planned for the full year to support property upkeep and renovations.
• Virginia Resort Capital -- $275 million, representing the current year budget for the Norfolk development project.
• Total Debt -- $2.7 billion, with the next debt maturity scheduled for December 2027.
• Traditional Leverage -- 2.2x at the end of the quarter, providing the company with significant financial flexibility.
• Share Count -- 71.2 million shares outstanding, reflecting a 9.4% reduction compared to the third quarter of last year.
• Southern Nevada Wage Growth -- Nearly 6% over the past 12 months, supporting the fundamentals of the Las Vegas local economy.

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RISKS

• Hirsberg stated, "Q3 destination was a little bit softer than we expected," noting this trend primarily affected results at the Orleans and visitation to Downtown Las Vegas.
• Smith noted that the Downtown Las Vegas segment saw a "significant increase in Hawaiian airfares" and the impact of four storms on Hawaii during August and September.
• Management noted that construction disruption at the Suncoast affected results and warned that hotel room remodels starting late in the third quarter would continue through the first quarter of next year.

SUMMARY

Boyd Gaming Corporation (BYD -0.80%) reported third-quarter revenues of $990.5 million, as management navigated softness in Las Vegas destination visitation and ongoing construction projects at key local properties. The company reported that performance in the Midwest & South segment remained consistent, with adjusted revenue and EBITDAR growth driven by core customer engagement. Management stated that the Online and Managed & Other segments continue to grow, benefiting from increased management fees at Sky River and consistent demand in online casino gaming. The company maintained its capital allocation strategy by returning $180 million to shareholders through dividends and share repurchases while maintaining a leverage ratio of 2.2x. Management is continuing to execute on a multiyear development pipeline, including land-based conversions in Illinois and Louisiana and a major resort in Virginia.

• Smith stated, "In Virginia, our resort development in Norfolk remains on time and on budget for a November 2027 opening, and we expect to celebrate the topping off by the end of this year."
• Hirsberg noted, "This was the first quarter since last year's FanDuel transaction to provide comparable year over year results and provides a clearer picture of this segment's performance."
• Management confirmed that the Suncoast public space renovation was finished at the end of the quarter, with the final hotel room remodel phase expected to be completed by the first quarter of next year.
• Smith indicated the company remains disciplined regarding acquisitions, stating, "We have as big of an appetite as we have ever had. But we remain disciplined."
• The Sky River management fees increased following an expansion that added 400 slot machines and a 1,600-space parking structure, with a hotel and event center planned for 2028.
• Smith noted that while destination business was soft, play from local residents remained strong, with Las Vegas population growth recently surpassing 2.4 million residents.

INDUSTRY GLOSSARY

• Adjusted EBITDAR: A non-GAAP metric representing earnings before interest, taxes, depreciation, amortization, and rent, used to evaluate operating performance across properties.
• Unrated Play: Gaming activity by customers who are not part of a loyalty program and do not use a player tracking card.
• Destination Business: Revenue derived from visitors traveling to a market from outside the local area, often characterized by higher hotel room demand.
• Managed Business: Casino operations where the company provides management services for a fee to an owner, such as a tribal government, rather than owning the property.
• Traditional Leverage: A ratio of total debt to EBITDA, used to measure a company's financial health and its ability to pay back debt.

Full Conference Call Transcript

Operator: Thank you for standing by. This is the conference operator, the Boyd Gaming call will begin momentarily. Thank you for your patience. Good afternoon. And welcome to the Boyd Gaming Third Quarter 26 Earnings Conference Call. This is David Strow, Vice President of Corporate Communications for Boyd Gaming. I will be the moderator for today's call, which we are hosting on Thursday, 10/22/2026. At this time, all lines are in listen only mode. Following our remarks, we will conduct a Q&A session. If at any time during this call, you require immediate assistance, please press star then 0 for the operator. Our speakers for today's call are Keith E.

Smith, President and Chief Executive Officer and Josh Hirsberg, chief financial officer. Our comments today will include statements that are forward looking statements within the meaning of the Private Securities Litigation Reform Act. All forward looking statements in our comments are as of today's date, and we undertake no obligation to update or revise the forward looking statements. Actual results may differ materially from those projected in any forward looking statement. There are certain risks and uncertainties, including those disclosed in our filings with the SEC that may impact our results. During our call today, we will make reference to non GAAP financial measures.

For a complete reconciliation of historical non GAAP to GAAP financial measures, please refer to our earnings press release and our Form 8-Ks furnished to the SEC today and both of which are available at .boygaming.com. We do not provide a reconciliation of forward looking non GAAP financial measures due to our inability to project special charges and certain expenses. Today's call is being webcast live at boygaming.com, and will be available for replay in the Investor Relations section of our website shortly after the completion of this call. So with that, I would now like to turn the call over to Keith E. Smith. Keith.

Keith E. Smith: David. And good afternoon, everyone. Our third quarter performance reflects the benefits of our diversified business model, the ongoing strength of our core customer and the appeal of our. The property investments we have been making across our portfolio. For the quarter, our Midwest and South properties delivered another solid performance with revenue and EBITDAR growth reflecting the consistent strength of this segment. Las Vegas, play from local residents remained strong. However, this trend was offset by increased softness in destination business to Las Vegas primarily at the Orleans and construction disruption at the Suncoast.

In our online segment, Boyd Interactive once again contributed double digit revenue and EBITDAR growth, and we continue to benefit from the strong performance of Sky River Casino driving increased management fees in our managed business. Companywide revenues and EBITDAR were down approximately 1% in the third quarter on a reported basis. However, our third quarter results were impacted by several unusual items this year. These items include the permanent closure of Sam's Town Tunica in November 2025, sale of Sam's Town Shreveport on August 1st of this year, higher property taxes at Kansas Star, a reduction in the tax pass through amounts.

After adjusting for these items, companywide revenue actually grew 2% while EBITDAR was up 1%. it is a more accurate reflection of our performance in the third quarter. Now turning to segment results. Our Midwest and South segment, taking into account the adjustments I mentioned, revenues increased almost 3% for the quarter. Gaming revenues were up more than 2% and EBITDAR grew nearly $5 million or approximately 2.5%. These results were driven by continued strength in play from both core and retail guests, including growth in unrated play. Adjusted operating margins for the quarter were 38%, consistent with our third quarter margins over the last several years. This performance demonstrates our continued ability to maintain operating efficiencies throughout the segment.

During the quarter, we also benefited from the investments we have made throughout our Midwest and South portfolio. Across the segment, we have enhanced our gaming floors, introduced new food and beverage offerings, renovated hotel rooms, and successfully completed several growth projects. These investments are delivering solid returns for our company, helping drive continued play-- growth in play from our core and retail customers across the segment. Next, in our Las Vegas local segment, results in the third quarter were impacted by increased softness in destination business to Las Vegas. This impact was primarily felt at the Orleans. Third quarter results also reflected the final phases of our renovation project at the Suncoast.

Excluding the Orleans and Suncoast, the remainder of our Las Vegas locals portfolio grew both revenues and EBITDAR 3%. Consistent with recent quarters. This growth was driven by increased gaming revenue of 3.5% with play from both core and retail customers continuing to grow well as strong growth in unrated play. At the end of the quarter, we completed our project to renovate and upgrade all of the public spaces at the Suncoast. Our guests are responding enthusiastically to the improvements further strengthening our confidence in the long term potential of the Sun Coast. The final phase of the Suncoast project is the remodel of our hotel rooms which started late in the third quarter.

This project should be completed by the first quarter of next year. We are now preparing for a similar project at the Orleans, will enhance this property's competitive positioning and appeal. We will begin this project early next year. We expect only minimal disruption at the Orleans as the initial phases will be in areas that are not currently accessible to the public. Throughout this year, our Las Vegas locals results have been supported by continued growth in play from Southern Nevada residents and the strong underlying fundamentals of the Southern Nevada economy gives us confidence these trends will continue. These fundamentals include Southern Nevada's population, recently surpassing 2.4 million residents.

Driven by an annual growth rate that is twice the national average. This population growth is driven by a local economy that continues to add jobs at a healthy pace. leading almost every major metro area in the country. Over the last 12 months, Las Vegas has reported the second highest job growth rate among the nation's 30 largest metro areas. Local wage growth also continues to outpace the national average, increasing nearly 6% over the past 12 months. And Southern Nevada remains an appealing destination for new residents, offering 1 of the most competitive cost of living environments in The Western US.

In all, we remain encouraged by the continued strength of Las Vegas economy, and its prospects for our local segment. Moving next to Downtown Las Vegas. Our results for the third quarter reflect increased softness in destination business in Southern Nevada, as well as the impact of multiple storms on Hawaii during August and September. Additionally, in the second half of the quarter, we saw a significant increase in Hawaiian airfares. While airfares remain elevated today, they have started to moderate. Next, our online segment continued to benefit from double digit growth of Boyd during the third quarter.

This was the first quarter since last year's FanDuel transaction to provide comparable year over year results and provides a clearer picture of this segment's performance. Finally, our managing other business delivered another quarter of strong growth. Driven by increased management fees from Sky River. Sky River continues to perform at a high level benefiting from the recent expansion project that added 400 slot machines and a 1.6 thousand-space multilevel parking structure. With this expansion off to a strong start, work is continuing on the next phase of the project, which will add a 300-room hotel, 3 new food and beverage outlets, a full service spa, a new entertainment and event center.

Once complete in 2028, we are confident this expansion will further strengthen Sky River's position as 1 of Northern California's most successful and popular gaming destinations. So in all, our third quarter performance was supported by the benefits of our diversified business model, the ongoing strength of our customer base and solid returns from our property investments and capital projects. Building on the success of our recent investments and capital projects, we continue to invest in our properties across the country. In Las Vegas, we expect to complete the remodel of 1.8 thousand hotel rooms at the Orleans in November, followed by more than 400 rooms at the Suncoast in the first quarter of next year.

And we will be introducing 5 new food and beverage concepts across the country in the fourth quarter alone. As we continue to enhance our existing portfolio, we are also actively building our long term growth pipeline. In Virginia, our resort development in Norfolk remains on time and on budget for a November 2027 opening, and we expect to celebrate the topping off by the end of this year. Once complete, this upscale resort will be a true market leader with a 65 thousand-square-foot casino, 200 room hotel, 8 food and beverage outlets, live entertainment, and an outdoor amenity deck.

It will also offer the most convenient gaming destination for many of the 1.8 million residents of the Hampton Roads region. As well as the millions of visitors who visit nearby Virginia Beach each year. Next, in Illinois, the Par-A-Dice Casino project continues in the design phase and we expect to begin construction late next year. Once complete, this project will transform Paradise into an all new entertainment facility. With a single level casino floor, enhanced amenities, the new Paradise will be positioned for growth well into the future. And in Louisiana, we are planning to convert our Amelia Belle property into a land based facility featuring a single level gaming floor and expanded food and beverage offerings.

This project is also in the design phase and we expect to begin construction in late 2027 subject to the necessary regulatory approvals. As we continue to invest in the future growth of our business, we are balancing our capital investments with maintaining a strong balance sheet returning significant capital to our shareholders. During the third quarter, we returned approximately $180 million to our shareholders, through a combination of share repurchases and dividends. We intend to continue targeting share repurchases of $150 million per quarter supplemented by quarterly dividends. And in all, our third quarter results demonstrate the value of our diversified business model. In our Midwest and South, we continue to deliver growth across the segment.

In Las Vegas, we benefited from ongoing strength in play from local residents and also completed our renovations of all public spaces at the Suncoast. Positioning this property for future growth. Both our online and managed businesses continue to produce strong results. And we continue to build a strong pipeline for growth. Building on the success of our previous growth investments at Treasure Chest, the Ameristar St. Charles, and Cadence Crossing, we are now focused on completing our market leading resort in Virginia, which remains on track to open next year. In addition, we are moving forward with growth projects at both Paradise and Amelia Belle. And finally, our financial position remains strong.

With leverage of 2.2x at the end of the quarter supporting our balanced approach to capital allocation. And positioning us to continue creating long term value for our shareholders. Our success is a reflection of the dedicated Boyd team members across the country. Their commitment to delivering memorable experiences for our guests. And I would like to thank them for everything they do for our company. Thank you for your time today. And now I will turn the call over to Josh.

Josh Hirsberg: Thank you, Keith. During the third quarter, play from both core and retail customers continued to grow. As Keith mentioned, in our Midwest and South segment, adjusted revenues for the quarter grew nearly 3% while EBITDAR grew approximately 2.5%. Supported by growth in gaming revenues. And in our Las Vegas local segment, excluding the Orleans and Suncoast, revenues and EBITDAR each grew 3% with gaming revenue growth of 3.5%. Increased softness in destination business to Las Vegas negatively impacted our Las Vegas local segment, primarily at the Orleans, and also impacted visitation to Downtown Las Vegas. Despite these pressures in Las Vegas, we remain disciplined in executing our operating strategy.

Excluding the Orleans and Suncoast margins in our Las Vegas locals segment were 47%. Even with the third quarter, in each of the last 2 years. Company wide, outside of the impact of destination business to Las Vegas, the remainder of our land based portfolio across the country is performing well. And our managed and online businesses both continued to grow during the fourth quarter, contributing to the diversification of our revenues and EBITDAR. During the quarter, we invested $159 million in capital expenditures. Bringing our year to date capital expenditures to $456 million. We now expect to spend approximately $650 million for this year.

Including $250 million of maintenance capital, $75 million of incremental hotel capital associated with our Orleans hotel remodel, which is on schedule to be completed by the end of this year. $50 million in growth capital primarily related to completing Cadence and the design and preconstruction efforts related to our Paradise project. And finally, $275 million for our casino resort development in Virginia. which, as Keith mentioned, remains on schedule and on budget. In terms of our capital return program, during the third quarter, we paid $15 million in dividends and made $164 million in stock purchases representing 2 million shares.

Our actual share count at the end of the third quarter was 71.2 million shares, a 9.4% reduction in our share count since the third quarter of last year. We plan to continue targeting approximately $150 million in shares per quarter placing us on track inclusive of dividends to return more than $680 million to shareholders this year. Representing approximately $9.80 per share in value for our shareholders. Given our strong free cash flow, we are able to make capital investments and return capital to shareholders while maintaining a strong balance sheet. We ended the quarter with traditional leverage of 2.2x and lease adjusted leverage of 2.7x.

We have ample capacity available to us under our credit agreement with our next debt maturity in December 2027. Expect to refinance that maturity later this year or in the first half of 2027. In conclusion, our consistent operating performance strong balance sheet and robust free cash flow position us well to continue creating long term value for our shareholders. David, this concludes our remarks, and we are now ready to take any questions.

Operator: Thank you, Josh. We will now begin our Q&A session. On your touch tone phone, you will hear a prompt that your hand has been raised. Should you wish to withdraw your request, please press star then 2. If you are using a speakerphone, please use your handset when asking your question. We will now pause a moment while we compile our list of questioners. First question comes from Steven Pizzella of Deutsche Bank. Steve, please go ahead.

Steven Pizzella: Hey, good afternoon, everybody, and thank you for taking my questions. For Las Vegas locals, you outlined some good underlying growth trends ex destination in Suncoast. Given these trends, do you think the local segment can grow next year? Are you able to quantify the estimated destination and Suncoast impact?

Josh Hirsberg: Sure. So, Steve, I will take the first part. Basically, I think we believe that we could see modest growth next year in Las Vegas locals EBITDAR. I think it is really dependent on what happens with the destination business. Q3 destination was a little bit softer than we expected. But we do not expect that to really continue into Q4. At that level. We-- I think we would generally expect kind of destination trends to be similar to what we have seen for the quarters preceding the third quarter. Suncoast-- Disruption in Q3 was a little bit less than we expected.

And as we kind of go into Q4 and 2027, Keith mentioned that Suncoast will have some rooms out of service in Q4 and then again in Q1. So our expectation is to kind of have a very modest contribution from Suncoast in Q4 just given that those rooms being out of service, and then for it to ramp up really kind of coming into Q1 and into Q2 of next year. I will point out, we have got rooms coming online in Q4 and Q1. Suncoast, Orleans in Q4, and Cadence contributed in Q3 and is continuing to ramp in Q4. To hit full stride around Q1 of next year.

Steven Pizzella: Okay. Thank you. that is helpful. And then just pivoting towards the buyback, can you talk about how you use share repurchases with the stock at current levels? Does it make you want to be more aggressive?

Keith E. Smith: Look, we have signaled that, you know, we are targeting $150 million per quarter. And, yeah, that is probably all we are going to say at this point. We have tended. If you look at our history, to be a little more aggressive as there is dislocation you know, in the stock price. But it is a function of, you know, other things we have going on and once again trying to maintain this balanced approach looking at what we are reinvesting in our properties, looking at our growth projects, looking at how many shares we wanna buy back or how much in terms of dollar value that we want to buy back.

But you know, our history does indicate that we do take advantage of dislocations in the stock price.

Steven Pizzella: Okay. Great. Thank you. Yep.

Operator: Our next question comes from Steven Wieczynski of Stifel. Steve, please go ahead.

Steven Wieczynski: Hey, guys. Good afternoon. So Keith or Josh, I wanna go back to the destination weakness that you guys were kinda referring to. you know, I think at this point, we have kind of heard that same narrative from you guys for the last, I think it is been probably the last 2 quarters or so. And if I hear you right, just wanna make sure we have this right, it sounds like it actually did intensify relative to where you know, that was back in the second quarter. I think that is kind of what you guys were referring to.

And if that is true, maybe what gives you the conviction that you think that turns around, you know, in the fourth quarter?

Keith E. Smith: So I think you heard it correct, which is, you know, our view is that the softness in destination was a little stronger or intensified in Q3 vis-a-vis Q1 and Q2. I think you have probably heard this conversation from us for the last 3 or 4 quarters, actually. Part of that is driven by the fact that it is in Las Vegas, as everyone knows, the third quarter, the summer quarter is our weakest quarter. So these types of pressures get intensified during the quarter. And so know, July looked okay. August was probably weaker than we anticipated, and, you know, with the shift to the holiday, it is a little hard to tell.

And September was a little bit better than August. Look, as we look at the fourth quarter, we look at having hotel rooms back at the Orleans. You know, we have had more than 300 rooms out of service every day for the last year. Now, do we need those rooms on weekends or weekdays? The reality is no. But if we need those rooms on weekends, the answer is yes. So, you know, that will support us. And we think that just the general trends will soften the impact of the weakness in destination as we look at Q4 next year. So just a combination of factors.

Steven Wieczynski: Okay. That makes sense. And then you know, Josh, for M&A, given, you know, obviously, we have kinda seen gaming valuations here contract over the last call it, 6 months or so. And with where your balance sheet is, you are strong balance sheet, is that something know, you are kinda more thinking about these days? And then Josh, totally unrelated to that, you were giving us guidance for the online and managed segments. Is what you told us last quarter still you know, a fair range for those 2 segments? Thanks.

Keith E. Smith: On the M&A side, look, I would say our comments have not changed. Given change in multiples and valuations of you know, stock prices and other factors does not change your appetite, does not make us more aggressive or less aggressive. Have the same discipline we have had over the years. Which is, you know, we have a set of filters that it has to work its way through being you know, the right asset at the right price in the right market, which means it has to be a stable market from a tax or regulatory standpoint, and it has to be a high-quality asset. you know, we have as big of an appetite as we have ever had.

But we remain disciplined. And absent all the rumors of us looking at lots of things, you know, they are they are just that. They are rumors. But we have grown a lot through M&A over the years. We tend to do it in chunks. you know, we grew a lot in 2011-2012, then took a few years off, grew a lot in 2017-2018. And if the right opportunity presents itself, you will see us execute. In the meantime, we remain disciplined.

Josh Hirsberg: Yeah. I think that we do not feel like we have to do anything We have a good core business that has been operating consistently. Generates a lot of free cash flow, and we just have to be really good at allocating that capital just to add comments on the M&A side. In terms of online and managed, we previously gave guidance. What I would say is given the performance in Q3, that our-- the guidance still holds, but I would kind of direct people toward the high end of the ranges that we had previously given for both of those segments. Both online and managed.

Steven Wieczynski: Okay. Great. Thanks, guys. Appreciate it. Yes, sure.

Operator: Our next question comes from Barry Jonas Truist Securities. Barry, please go ahead.

Barry Jonas: you talked about a 3% growth in the Vegas locals portfolio outside of Orleans and Suncoast. Just curious how much of that is the addition of Cadence Crossing? And maybe just talk about the ramp that you are seeing there.

Josh Hirsberg: Yeah. So Cadence is definitely helping, but it is not the majority of it. it is a component of it. it is probably I do not have the numbers in front of me, but it is probably like a third of it or so. And then, you know, it started-- it is continuing to ramp in Q4 as well. So it is coming around. Revenues are ahead of quite honestly, where we expected they would be. It continues to improve. And so we think it will continue to kind of ramp from an EBITDAR perspective. Likely hitting full steam in Q1. of next year.

Barry Jonas: Got it. And then I just had a question about Pennsylvania and Midwest and South. With skill based games, being removed in that market, are you seeing, or would you expect to see any upside to operations on the state Thanks.

Keith E. Smith: So in Pennsylvania, yeah, where they have been shut down and, to the best of my knowledge being removed, we would certainly hope that we see some uplift in the business at Valley Forge. Obviously, it is early, and have nothing to report right now, but we certainly expect there to be some uplift. Exactly how much? You know, hard to say, but we are paying attention.

Barry Jonas: Thank you.

Operator: Our next question comes from Daniel Politzer of JPMorgan. Daniel, please go ahead.

Daniel Politzer: Hey, good afternoon, everyone. Thanks for taking the question.

Keith E. Smith: Sure. Maybe just a broader question going back to destination commentary in the Las Vegas locals market. It feels like when you start to see this softening, I think it was third quarter of last year, which kind of coincided with some of the softness on the strip. I mean, it seems like these are obviously pretty, pretty related. But I guess what gives you that confidence that fourth quarter gets better? And along those lines? I think in the past, you have said that the fourth quarter could be kind of where you get back to flat or growth in the locals market. Do you still feel like that is kind of within a realistic expectation?

I think when we when we look at the locals market, couple of things. 1 is both Josh and I pointed out in the prepared remarks, you know, the core market x Suncoast and x Orleans performed very well, performed at a similar pace as it had earlier in the year. That gives us confidence that the core business is actually performing well. Once again, Suncoast the walls related to the construction project, came down late in the quarter, so we would expect that to begin to recover in Q4. And then as it relates to the Orleans, I guess what gives us confidence is a couple of things.

1, once again, we are going to get 350 ish hotel rooms back that while we may not need them midweek, I said this earlier, we certainly can use them on weekends, especially during high demand holiday periods, the rodeo period coming up, and others. I also think that and we believe the kind of intensity increasing in the what we call, the destination softness has a lot to do with the fact it was summer, and it was. it is the weakest quarter of the year in Las Vegas. So these trends tend to get exaggerated. And then at the end of the day, it is probably just a little old fashioned optimism in there also.

Josh Hirsberg: Yeah. I think I would like to just make sure we are talking about the same thing. So big picture and this is kinda broadly. It applies broadly, not just destination, applies across Las Vegas and the Midwest and South. you know, July was a good month for us. August was a very soft month, not only in the Midwest and South, but also in Las Vegas. September, I would say, was kind of more normal. It just was not strong enough to kind of offset the softness that we had seen in August. So when we think about the destination business, it followed that same kind of pattern, if you will.

And so it was much softer in August than we had seen in any other month. So we are just saying. And, you know, I even said it on the last earnings call that we anniversaried the destination business. We thought it was gonna be down, but just down less. What we are saying is that in Q3, the softness in destination got worse than the trend that we had seen in the first in the preceding 4 quarters. Going into the fourth quarter, we attribute a lot of the-- or some of the incremental softness associated with the destination, as Keith said, to the slower seasonality in the business.

I think what we are saying for Q4 and going forward is the destination business is gonna have trends that are similar to what we saw before Q3. We are not suggesting it is going to be flat, not suggesting it is going to grow not even saying it is going to be less bad. it is going to be similar to the trends that we have previously seen. And then as we progress through the year. Next year, we will get a sense of how it is going to perform.

But we are not suggesting that we have any kind of crystal ball to suggest when what is really a broader impact on Las Vegas I e, it is not just our business, it is a market driven kind of demand issue. With destination business. you know, that is when visibility changes on that, that is when it will change in our business.

Daniel Politzer: Got it. Thanks so much.

Operator: Our next question comes from David Bain of Texas Capital Bank. David, please go ahead.

David Bain: Great. Good afternoon. Thank you. I guess, first, once Suncoast renovations are fully complete and operational disruption kind of clears, do you feel Like, can Local's margins recapture that 2025 level next year? I mean, it seems like a yes given Josh's 3Q locals margin comments, but are there any promotional labor or other considerations that we should think about when looking at next year?

Keith E. Smith: On margins? When you look at the Suncoast, you look at the locals portfolio, you know, Josh, I think, indicated that ex- Suncoast and Orleans margins were 47%. You know, it is a soft summer quarter. I think the most other quarters were hovering around the 50% level. And so I think as you think about the business next year, you can think about those margins. Suncoast is for all intent and purpose done with the exception of the rooms. Which will have, you know, some small impact on the business. And the rest of the portfolio is just performing as we would expect as we talked about with 3% EBITDAR growth. And good gaming revenue growth.

And once again, we are gonna get some rooms back at the Orleans, and we will just see how the destination business ebbs and flows. But I think we are comfortable thinking about that 50% margin number.

David Bain: Awesome. Okay. Great. And then I hate to beat this to death, but just maybe a follow-up on the potential cadence of quarterly destination trends It sounds like what you are saying is it could be more seasonally acute right now, but there is nothing specific from a marketing or competitive variable disruption that you are seeing something new like the all inclusive options or anything that would be you know, more aggravating to results. it is. Is that what we are what I am kinda getting?

Keith E. Smith: We do assess it. Right. There was there was no promotional activity in the quarter that significantly changed the cadence of destination business. In our local segment. It was pretty typical. I mean, you know, aggressive room rates on the strip. But they have been aggressive for more than the last couple of months. you know, the local promotions to the Las Vegas residents generally do not have an impact regardless of what happens every so often. So nothing unusual in the quarter that would you know, have exaggerated that.

David Bain: Okay. Great. Thanks, guys.

Operator: Thank you. Our next question comes from Benjamin Chaiken of Mizuho. Benjamin, please go ahead.

Benjamin Chaiken: Hey, thanks for taking my questions. Maybe going back to locals, and we. We have touched on we have touched on some of this a few times, but can we maybe talk more about the investment at the Orleans and maybe flush out what you are solving for? Is it just the hotel rooms for peak periods that you are referring to, Keith? I think a few questions ago, I guess I asked because it seems to serve 1 of the. you know, obviously, it serves 1 of the softer segments.

Is the idea just to invest in the long term despite near term headwinds, or is there something the property does not have today that you think is contributing to the softness you are seeing over the last 12 months. Does that question make sense?

Keith E. Smith: I think I understand what you are trying to ask. First of all, the hotel rooms you know, needed to be remodeled. They are on a cadence, it is maintenance CapEx and they just need to happen. And so that was just something that was going to happen kinda regardless of where we are at in the cycle. In those-- just, you know, we have 1.8 thousand hotel rooms there, so it took a long time to get through. So that is 1 issue. In terms of the broader renovation of the Orleans, it is just-- it is time. I mean, the property is in its current format, probably 30 years old.

And while we have maintained it, it needs to simply be renovated and upgraded for the long-term competitiveness of it. It is an important asset in our portfolio. It is not as competitive today as it has been in the past and simply needs to be upgraded as part of the process. you can just think of it as a major maintenance upgrade. This is what it is. And, you know, every 30 years or so, these buildings need to be reinvested in and refreshed and that is where we are at with the Orleans.

Josh Hirsberg: And then what I would add to that is, like, our. you know, we are effective doing the same thing at the Suncoast. And, you know, we are kind of bringing the property up to the current what would be viewed as a current competitive product. And that is what we will do at the Orleans And there, what we have seen is reengagement of our customers, not only our recurring, kind of loyal customers, picking up new customers. And the excitement around the investments is really positive. So while we treat it as maintenance capital, I think we expect there to be growing contributions after making those type of investments.

Maybe to your point, there is nothing in particular we are trying to solve for except simply, you know, creating higher-quality experience for our customers. And I think you know, I know investors are generally worried at times about disruption, And as Keith mentioned in his remarks, just to remind you, you know, in 2027, there will not be any disruption because all of the activity will be taking place in areas that are not available to customers today. And it will be a different type of rollout.

Benjamin Chaiken: So Okay. that is all very helpful. Then just 1 quick 1. In downtown, you mentioned both airfares and storms or-- Barry, yeah, Airfares and storms, both of which make sense. Is there any way to, kind of, like, quantify and delineate between the 2?

Keith E. Smith: you know, there really is not. They kind of happened simultaneously. The last 6 weeks of the quarter, you have 4 storms impact you know, the Hawaiian Islands. that is unprecedented. For the years that it just does not happen in 6 weeks. And at that same time, you saw airfare spike. you know, airfares around the country are generally up in the 20% category. you saw airfares spike significantly higher than that. They have begun to you know, recede and moderate but they are still high.

Benjamin Chaiken: Okay. Thank you. Yep.

Operator: Our next question comes from Joe Stauff of Susquehanna. Joe, please go ahead.

Joe Stauff: Thank you. Hi, Keith, Josh. Could you give us maybe an update building on the last couple of questions around the Orleans about the competitive situation. Right? We have been talking about this you know, for I guess, now approximately 2 years. And just wondering, you know, if the level of competition that you are seeing from them in terms of excess promotion has stabilized? And then second question on OpEx. Looks like very tight management in the third quarter. Just wondering if there are any headwinds or special accruals that you have to solve for in terms of continuing management of that cash OpEx in the fourth quarter in particular?

Keith E. Smith: On the OpEx part, I would say there is nothing special. Look, it is just the focus of the team. We have a, obviously, a high quality team that is been together for a long time, and they have a good handle on the business. it is you know, in today's world, it is day to day combat simply fighting through expenses and trying to make adjustments and ensure we maintain margins you know, where they need to be and kind of stick to our very disciplined approach that we have been executing post COVID. I am not sure I fully understood the first half of your question.

Joe Stauff: First, it is just, you know, the promotional levels, you know, especially impacting likely Orleans from Palms and some of the other casinos that is occurred over the past, say, year to 2 and where that is.

Josh Hirsberg: So yeah, I will take a shot at it. Look. I think first of all, you know, think back to the question just before yours from Benjamin. Terms of the philosophy behind investing in the Orleans. it is really about making sure that we have and can remain competitive from the product that we are offering. I think that in relation to the significant marketing from properties around the Orleans and Gold Coast. you know, we had really gotten to the point where we had adjusted our business to manage that-- that level of competition. If you recall, I am gonna get all my dates wrong. But starting about a year ago, we had really the impact of destination.

But if you look back at Q1 and Q2, of 25, our business in terms of the impact from that competitive pressure or that promotional activity rather, had really started to stabilize. Gold Coast has stabilized and started to improve, and New Orleans had just started to stabilize. So. And then destination started to impact. From my perspective, it is it is not that those properties are not having an impact. it is that we have learned how to manage through that competitive pressure.

And so, really, the focus is on kind of understanding this destination business and figuring out how we are going to counter that over time, either through some kind of economic recovery that occurs or in terms of how we are running the business. I will point out that we are just at the Orleans in particular we are-- and we have been for several quarters now adjusting how we operate to meet and match kind of that level of demand that we are seeing from destination customers. And we are choosing not to be aggressive in terms of promoting just to drive revenue.

In fact, on the other hand, we are sticking to what has made us successful since COVID, and, that is making sure that we are investing in the right customers that drive profitable that is-- that is driving profitable revenue. there is no reason to promote or discount rooms aggressively. And so as we think. If you take all that, put it in the blender and set up sit around and think about where we need to invest and where we wanna kinda ensure that our portfolio remains competitive, The Orleans is an obvious example of where we need to deploy capital.

Joe Stauff: Got it. Appreciate that. Thank you.

Operator: Our next question comes from Lizzie Dove of Goldman Sachs. Lizzie, please go ahead.

Lizzie Dove: Hey, thanks for taking the question. I just wanted to kind of broaden it out. I guess, to the consumer environment more broadly. I guess it is hard to separate out just from the destination market and airfare and all of that. But to the extent, you know, some of the volatility we have seen there and with gas prices, how you think, that is kind of impacting, whether it be the locals market and more on the Midwest and South side of things. And if you could comment any kind of, you know, recent trends quarter to date.

Keith E. Smith: So looking at the third quarter, what I would say is we talked about this in our prepared remarks, we saw strong growth from our core customers, We saw strong growth in unrated play both here in Las Vegas it is got ex Suncoast in Orleans as well as throughout the Midwest. We saw good growth in ADT or spend from our core customers. Know, up mid single digits or better. The ones getting good growth in unrated play. Softness in the low end of the database, no surprise, more economically sensitive to inflationary items, whether it be gas prices or just inflation in general.

And so I think that comment or that explanation is applicable both to Las Vegas as well as across the Midwest. We are not seeing any real significant distinction between the South or our East Coast properties or Midwest properties or Las Vegas properties in terms of how the consumer is spending or at least our consumer is spending their money.

Lizzie Dove: Got it. Makes sense. And then, you know, you have had those pretty consistent trends in the Midwest and South adjusting for the tax and whatnot this quarter. This year. I guess as you look to next year on a kind of you know, normalized basis, ex-sale, how do you think, you know, there were some tailwinds this year, especially earlier in the year from tax refunds and whatnot potentially. But as you look to next year, just kind of the sustainability of this kind of underlying growth that you would seen.

Josh Hirsberg: Yeah. So look. I think that we think there are several kind of different initiatives or items that are enabling the Midwest and South to deliver the levels of performance that it has. And in reality, it is to the same thing that is happening in Las Vegas outside of New Orleans and Gold Coast. Sun Coast rather. And that is people naturally are staying a little bit closer to home. They are spending more. Closer to home. Secondly, they probably. There was some degree probably of benefit from the tax bill. And that affected Las Vegas as well as the Midwest and South. I think we are also.

Whenever we have had good success in investing in our products both in Las Vegas and the Midwest and South. So we do not look at it really as oh, you know, there was a 1 item that is contributing to the success of the Midwest and South or, for that matter, the properties outside of the Orleans and Suncoast. And so as we look at our business trends and the underlying health of our consumer, just generally across all the segments within our databases and even looking at unrated outside of the database, We do not really see that shifting at this point. We do not see any reason to that suggest that it is going to change.

So as we look at 2027, we would expect the Midwest and South to largely perform consistently in terms of similar levels of growth that we have seen in 2026. And we would expect with a little bit of portfolio changes I will tell you what I mean by that in a minute, in Las Vegas outside of the Orleans, really, to continue to grow at similar paces. So know, we will get the benefit of the rooms at the Orleans and Suncoast coming online, and we will get Suncoast to start contributing most likely in late Q1 and Q2, and Cadence will hit full stream as well.

So ultimately, as we sit here, you know, there is components of our business that feel good today, have felt good throughout the year, and do not show any signs of why they would not continue in that direction in 2027.

Lizzie Dove: Right. Thank you.

Operator: Our next question comes from Trey Bowers of Wells Fargo. Trey, please go ahead.

Trey Bowers: Hey, guys. Thanks for the question. Just 2 quick ones. The first 1, I am going to kind of repeat a previous question, but curious, when you guys have the stock kind of dislocated, it is right now, does that change the calculus around any kind of M&A or strategic moves given you obviously show with your repo how much you feel the stock's undervalued. But, you know, if something came along, would. When the stock's down like this kinda you know, possibly impact the thought process of doing a deal?

Keith E. Smith: Ward to, I think, address that or answer that in the abstract. Right? It all is really all fact and, you know, fact and circumstances, if you will. We have to see what we are doing, what the is. We are certainly flexible in terms of our balance sheet and what know, we are in leverage would go to depending on the type of acquisition, know, the significance of the acquisition, know, is it a smaller tuck in? Is there a larger or more strategic? you know, where is the stock and how much do we feel like we should buy back? Have a strong balance sheet.

We have had 1 for a while, and we want to continue to have a strong balance sheet. We have used the word balanced approach to capital allocation and we are serious when we say it. So we take all this into account, but we are flexible in terms of where leverage goes as long as we can see it returning to a level we are comfortable with. So it is kinda hard to answer your question in the abstract without very specific facts or circumstances to address, but that is how we think about it.

Josh Hirsberg: But, Trey, I think you highlight exactly what you have been saying for quite some time. The reason that we want to have a strong balance sheet with low leverage is so that we can do the. Do all the things that we have we have communicated and do on a regular basis and then not have to forego opportunities as they come along, obviously, all within reason. So we do not like, just because we have a strong balance sheet, does not mean we are gonna run out and just spend it frivolously or without discipline. We have we have shown that we are not. We do not do that. History shows that as well.

And so we will continue to have that discipline. But when an opportunity comes along, we feel like it makes sense for the company We do not have to sacrifice share repurchases or capital investments or whatever else we are thinking about doing because of the of the low leverage. And I think that is 1 thing that we have learned to appreciate, and we hope the market learns to appreciate over time, as when coming out of COVID, people highly question whether we should have the leverage where we are.

I think we said that the benefit of doing that is so that we can tell you what we are gonna do, and you can be pretty sure that we are going to be able to keep doing that. Obviously, there is some ranges of extremities that would prevent that at some point. But then as long as everything's kind of in the range, you can know we are going to make these investments. We are gonna make these share repurchases. We are going to pay down debt. We are going to maintain a strong balance sheet.

And then if an acquisition opportunity comes along, and it meets the criteria, we do not have to second guess that we can do it because we can, and then we will deleverage back down to these leverage levels again. And just reset for the next time. It is the strength of the position that we occupy and the strength of the position of the company is itself in is to be able to have that flexibility. So we will you know, we will use it carefully, but we do not have to make choices.

Trey Bowers: And then a quick follow-up. Just given the amount of time we spent talking about Destination and Orleans on this call, you guys already break out Locals Vegas. Would it make sense to also break out kind of those that destination and therefore, be able to highlight more concretely just what is going on in the actual specific locals market? Thanks, guys.

Keith E. Smith: Yeah. Interesting thought. Look. It is interesting the focus on destination. Know, the benefit of having a diversified portfolio is that this is 1 small segment of our portfolio. Is a small segment within Las Vegas locals and even smaller segment within the total Boyd portfolio if we think about the Midwest and South. Our managed business and our online business, and how well everything else is performing. Yeah. I do not think we do not think in the near term, we think about breaking it out by itself. it is just the Orleans. it is a part of the Orleans business. it is not all of the Orleans business.

And yeah, it is, you know, it is being impacted today, but you look at the rest of the business, as Josh indicated, outside of this piece of the business of the Orleans, our portfolio is performing extremely well.

Josh Hirsberg: Yeah. I think to that point and to the diversification point, know there is a lot of focus, and there should be a conversation around destination. But, overall, not even adjusting for anything, we are essentially. We are down 1%. In revenues and EBITDA. Right? The business has been consistent all year long. And the stocks vastly underperformed that level of consistent performance.

Trey Bowers: Thanks all.

Operator: Our next question comes from David Katz of Jefferies. David, please go ahead.

David Katz: Hi, afternoon. Thanks for taking my question. I wanted to focus on Virginia for a minute. Observing a divide between public operators who either support or oppose iGaming, legalization when and if it should occur in their markets. Should we presume that, you know, you are inclined to be supportive and embrace, you know, iGaming. And you know, hypothetical markets and/or Virginia, should it become a reality?

Keith E. Smith: you know, properly regulated, properly taxed, legalized. Yes. We are supportive of iGaming. Whether it be in Virginia or in other places in The United States. it is our position today. it is been our position for a while. Have enough experience with this over the last decade plus. This is complementary to our overall business. It is it is not predatory. It does not hurt the business. It is complimentary. So we are supportive of it.

David Katz: Understood. And, you know, presumably, you would use you know, the assets, brands, or whatever it is that you already own in you know, in pursuing that. Correct?

Keith E. Smith: TBD. Just depends once again on facts and circumstances. We have largely used the Stardust brand up in Canada and then in Pennsylvania and in New Jersey where we launch it. We also have a couple other brands we are using in those states. So it just kinda depends on many skins there are or what the opportunities are, And like I said, it is a little bit fact based, so it is hard to answer right now.

David Katz: Okay. Thanks. Good luck. Thank you.

Operator: Our next question comes from Chad Beynon of Macquarie. Chad, please go ahead.

Chad Beynon: Hi, good afternoon. Thanks for taking my question. Wanted to ask about the Chicago BLT distributed gaming opportunity. I think that is you know, something was originally talked about when Illinois legalized this form of gaming, you know, over a decade ago. And now it looks like the catalyst might be near term. So how are you thinking about Latimer and the opportunities to expand into that market? Thanks.

Josh Hirsberg: Yeah. So look, I think we evaluate that just like we would evaluate any other opportunities. And Lattner is a smaller piece of our business, but we evaluate you know, so we have to consider that in context of the other opportunities that are available to us. But there is not really much more I can say about it at this point.

Keith E. Smith: Yeah. Look. The Latimer team will be focused on trying to take some of those licenses, but it is it is not anything that will be a tailwind for us, that will move the needle for us, that will, in any way, shape, or form, kind of propel us to the next level. But it is something that you can be assured that the Latimer team is looking at. it is been on the radar screen for a while. Just not a significant driver of our overall business.

Josh Hirsberg: Yeah. it is a well run piece of our business, but unfortunately, a small piece.

Chad Beynon: Thank you. And then 1 more on potential expansion or M and A. Does the return of seasonality on the Strip or in destination markets, particularly with, let's call it, you know, mid- and/or below properties. And, you know, what we have seen with financials in the first half of the year, what we saw in 2025, does that change, you know, how you are thinking about M&A opportunities? And what I am getting at is, I think, you know, the operational leverage for these low to mid end focused properties have been hit really hard where obviously, the higher end ones have held up, and maybe the returns are just harder to get there.

Penciling them now after seeing some of these results in the past 6 months. From other strip operators? Thanks.

Keith E. Smith: Yeah, look, I would say that today's conditions really do not change our calculus on how we look at M&A. You know, I go back to the litany of things that are important to us, higher quality assets, you know, at the right price and stable markets. We do not have to, as Josh mentioned, we have to do anything. So we are not gonna buy assets just because they are cheap or they maybe are priced right. They have to be a high quality asset. They have to produce significant amount of EBITDA for us to move the needle for us to be interested. And have to be in stable tax and regulatory jurisdictions.

And so seasonality dislocation of value, and those types of things does not does not really change how we view it. It still has to be the right asset for us.

Chad Beynon: Thank you. Appreciate it.

Operator: Our next question comes from Brandt Montour of Barclays. Brandt, please go ahead.

Brandt Montour: Back to Las Vegas locals, if you were to take out destinations in Suncoast and just look at the core business, is there any reason why that business would look differently third quarter into fourth quarter seasonality wise versus the last call it, 3 years, which I think you kind of typically something like mid to high teens. Anything. Any reason why it would not look like that this year? And then just sort of an embedded question there, you know, you concerned at all about the midterm elections in, the state of Nevada and if that could affect either foot traffic or just sort of, you know, distract your customers in the in the fourth quarter?

Keith E. Smith: Yeah. So as it relates to the know, upcoming elections, we really do not see that having a material impact on the business 1 way or the other. If it did, it would probably be happening now with all the commercials on TV, to the extent people actually go watch terrestrial TV these days and watch all those commercials. But we have seen it in the past, you know, that Democratic governors, Republican governors has been changed in administration. it is not gonna have any sort of material impact on our business. Interesting. but not impactful to the direction of the business. I will let Josh tackle the first half of your question.

Josh Hirsberg: Yeah. So, Brandt, I think, ultimately sequentially, it is difficult to talk about. I feel more comfortable to. Without the numbers in front of me just saying, like, year over year, you know, you can. When you look at the business, again, excluding Orleans and Suncoast, we expect the same level of growth. I think there are gonna be changes that sequentially make it a little bit differently. Different. Right? you are not gonna have the drag of construction disruption from Suncoast, going to probably have a.

At least from our perspective, we think about a little different impact from destination business going from Q3 to Q4, So talking sequentially when you have so many moving pieces I will be hesitant to do that on the fly. I have tried to do it in past, and hopefully, I have learned to stop doing that. So I think I think I prefer to just talk about it year over year.

Brandt Montour: Okay. Thank you.

Operator: Thanks, Our last question comes from John DeCree of CBRE. John, please go ahead.

John DeCree: Great. Thanks, guys. Just 1 to revisit your commentary on the online business. Keith, I think you spoke to it a little bit about maybe new markets, Virginia, but as you think about investment capital, you have got a number of casino development projects in front of you. What would you need to see, you know, from the return profile or opportunity to, you know, invest more dollars in the online segment? Not just M&A, but, you know, a greater maybe investment in brand or customer acquisition. Do you think that could be a bigger piece of the business over time?

Keith E. Smith: Couple of comments. I think as we think about today's online business, it is performing at a very high level, strong margins that we are comfortable with what our CPAs are in terms of what we are paying to acquire customers. Do not feel like we need to juice it or become more aggressive. it is a very efficient business, very well run, very comfortable with their trajectory. And as we have talked over the last couple of quarters, it is growing nicely.

As we think about potential M&A in that world, not unlike, you know, brick and mortar land-based M&A. it is gotta provide a high return it is gotta be additive to the overall business, I e, add something that we cannot otherwise do on our own. And so we look at it in a similar fashion. Are we afraid to you know, do M&A in that world? No. But the returns have to be significant. The price has to be right And we have to see that it is you know, it is additive to the know, to the whole business at the end of the day. So we really do not view it any differently.

It does not distract and we do not separate it out when we look at land based M&A from any online opportunities. it is it is kind of all part of the same calculus.

Josh Hirsberg: Yeah, John. Your question's a good 1 because I think ultimately, most people think about our M&A just on the land based side, and we have done a couple of smaller acquisitions around to add to the capabilities of Boyd Interactive, and I think we will continue to look for kind of bite size opportunities that not only add to what the offering is, but enhance from our perspective, at least the ability for that business to grow a longer period of time. Is a good part of our business, and we could see that becoming a larger part of our business and continuing to contribute to the overall diversification and growth of the company.

I do not want people to misconstrue the comments to mean we are gonna pursue the strategies that some of our peers have because that is not how we think about it. And those strategies are good for those companies. But, you know, we do look for opportunities to grow that business further.

John DeCree: Got it. that is helpful. Josh, Keith, I appreciate the color on that 1. Thank you.

Operator: Sure. This concludes our Q&A session. I would now like to turn the call over to Josh for concluding remarks.

Josh Hirsberg: Thanks, everyone for joining the call. All the questions were really good. Even though there were a lot of them. And, so we appreciate the interest and happy to follow-up with you after the call if you have any further questions. Feel free to reach out to the company.