Golden Entertainment Inc (NASDAQ:GDEN) stock plummeted 5.12% in the pre-market session on Friday, as the casino and hospitality company's Q4 2024 earnings failed to impress investors.

The company reported revenue of $164 million and EBITDA of $39 million for the fourth quarter, down year-over-year despite improvements from Q3. Full-year 2024 revenue stood at $667 million, with EBITDA of $155 million.

One major factor weighing on performance was the declining occupancy at the company's flagship Strat hotel in Las Vegas. Weekend occupancy remained strong at 95%, but midweek occupancy dropped 6%, dragging down overall occupancy to 75% for Q4. This weakness was attributed to softer demand in the Las Vegas market, particularly in October and November.

Additionally, Golden Entertainment's Nevada tavern segment faced challenges from recent additions to the portfolio, as the company worked to revamp operations at these locations. Broader labor cost inflation also continued to squeeze margins across the company's portfolio.

While the company highlighted positive steps like selling non-core assets to generate over $600 million in proceeds, reducing leverage, instituting a dividend, and implementing share buybacks, investors appeared concerned about the slower-than-expected recovery in key areas like group and convention business at The Strat.

Management expressed optimism about improving consumer trends moving into 2025, but uncertainty around the sustainability of demand and the potential impact of factors like promotional activity in the Las Vegas locals market may have weighed on investor sentiment.