Red Rock Resorts

None of the warning signs we check for were found.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 20 Feb 2026, plus the 10-Q filed 7 Aug 2026 and 4 later 8-Ks.

• It carries a lot of debt: 16.5× its equity.

Whether the price already reflects the risks is what the deep dive is for.

• We are subject to substantial risk of loss. Certain of our insurance does not fully cover all of our operational risks, and changes in the cost of insurance or the availability of insurance has materially increased and could further materially increase our insurance costs or result in a decrease in our insurance coverage.

  Could happen

  The level of risk we retain may change in the future as insurance market conditions or other factors affecting the economics of our insurance purchasing change. The operation of our properties is subject to a broad variety of risks. In certain instances, our reserved amounts and/or backstop insurance may not fully cover an insured loss depending on the magnitude and nature of the claim. Accordingly, we cannot assure you that we will not be exposed to uninsured or underinsured losses that could have a material adverse effect on our business, financial condition, results of operations or cash flows. Additionally, changes in the cost of insurance or the availability of insurance in the future could increase our costs to maintain our current level of coverage or could cause us to reduce our insurance coverage and increase the portion of our risks that we self-insure.

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• We are subject to substantial risk of loss. Certain of our insurance does not fully cover all of our operational risks, and changes in the cost of insurance or the availability of insurance has materially increased and could further materially increase our insurance costs or result in a decrease in our insurance coverage.

  Could happen

  Potential liabilities arising out of our operations may involve claims by employees, customers or third parties for personal injury or property damage and potential fines and penalties in connection with alleged violations of regulatory requirements. With respect to our general liability insurance and our health insurance programs, we have increased the risk we retain through higher levels of aggregate loss limits, per claim deductibles and claims-handling expenses. Costs in excess of these retained risks are generally insured under various contracts with third-party insurance carriers.

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