On Tuesday, Caesars Entertainment unveiled its quarterly earnings for the first time since being taken over by Fertitta Entertainment in late May. The results for the second quarter and the first half of the year showed a mixed performance, particularly with the company’s Las Vegas operations which experienced a decline throughout.
Due to the acquisition and the decision to take the company private, Caesars did not hold a conference call with analysts this quarter. The acquisition, valued at $17.6 billion, is anticipated to finalize in spring 2027. While Fertitta has yet to provide any substantial insights into the deal, two of its executives, CFO Richard Liem and general counsel Steven Scheinthal, received Nevada licenses this month. However, no long-term strategies were shared, and Caesars declined to comment on the deal last week.
In terms of quarterly results, Caesars recorded a 3% annual increase in group net revenue, reaching $2.99 billion, while the first half of the year saw a similar rise, totaling $5.9 billion. This surpassed analysts’ expectations who had predicted revenues of $2.96 billion for the quarter.
However, adjusted EBITDA noted a decrease of 4% year-over-year, standing at $920 million for the quarter and down 2% for the half-year at $1.8 billion. Caesars experienced a net loss of $62 million in the last quarter, although this was better than the $82 million loss reported in the same period last year. For the first half of the year, net income reflected a loss of $160 million compared to a loss of $197 million the previous year.
The news from Las Vegas wasn’t as optimistic:
– Q2 net revenue in Las Vegas decreased by 3.5% to $1 billion, with H1 net revenue dropping 2%, totaling $2 billion.
– Q2 net income plummeted 26% to $156 million, while H1 net income fell 15% to $332 million.
– Adjusted EBITDA for Q2 fell 13% to $410 million, and for H1, it decreased 7% to $836 million.
Caesars concluded the quarter with $965 million in cash and equivalents, an increase from $887 million at the end of 2025. Additionally, total outstanding debt decreased slightly from $11.9 billion to $11.8 billion during the same timeframe.
In contrast, Caesars' regional offerings saw significant growth, with net revenue up nearly 10% for the quarter at $1.5 billion, and a 6% rise for the half-year totaling $3 billion. Adjusted EBITDA improved by 11% to $488 million in Q2, along with a 5% increase to $923 million in H1. However, net income for Q2 was only $23 million, with a notable decline to $3 million for the half-year, representing a 66% drop year-over-year.
The regional portfolio may undergo substantial changes under Fertitta’s management if the acquisition proceeds. Fertitta's Golden Nugget brand competes with Caesars in six markets; five of these are located outside Las Vegas:
– Lake Tahoe, NV
– Laughlin, NV
– Atlantic City, NJ
– Lake Charles, LA
– Biloxi, MS
Fertitta has submitted a Hart-Scott-Rodino antitrust application to the Federal Trade Commission, and state regulators may mandate divestitures as they did during Caesars' acquisition by Eldorado Resorts in 2020.
A downturn was also observed in Caesars Digital during Q2, though the first half of the year reflected consistent growth. Quarterly net revenue reached $351 million, marking a 2% annual gain, but adjusted EBITDA dropped 15% to $68 million, and net income decreased by 31% to $27 million. For the first half, revenue rose 7%, and adjusted EBITDA saw an 11% increase to $137 million, with net income up 25% to $49 million compared to the same period in 2025.
In an update to investors, Truist analyst Barry Jonas highlighted regional results as a “bright spot” amid the softer performance in Las Vegas. He pointed out that a decline in online sports betting hold had negatively impacted results, while iGaming exhibited positive performance during the quarter. He noted that although the Fertitta acquisition is confirmed after the expiration of the go-shop period on July 11, its closing is likely not imminent.
Jonas retained a hold rating on Caesars stock, keeping the target price at $31, following an EPS loss of $0.30, which fell short of analysts’ expectations of a loss of $0.05 per share. On Tuesday, the shares remained steady, lingering just below $30.
