On Tuesday, Caesars Entertainment reported its first quarterly earnings since Fertitta Entertainment acquired the company in late May. The results for the second quarter and the first half of the year were mixed, with troubling figures stemming from its Las Vegas operations.
Due to the acquisition and transition to a private company expected to complete in spring 2027, Caesars did not host an analyst call this quarter. The details surrounding the $17.6 billion acquisition remain minimal, with both Caesars and Fertitta refraining from sharing substantial information. Recently, Fertitta executives Richard Liem, the CFO, and Steven Scheinthal, general counsel, received their licenses in Nevada, but they did not offer any insights into future plans for the company. Caesars declined to comment on the acquisition last week.
Reviewing the mixed results from the last quarter, group net revenue reached $2.99 billion, marking a 3% year-over-year increase, while the total revenue for the first half of the year amounted to $5.9 billion, reflecting a similar rise. Caesars surpassed analysts' expectations, who predicted $2.96 billion for the three-month period.
However, adjusted EBITDA saw a decline, falling 4% year-over-year to $920 million for the quarter and 2% for the half-year at $1.8 billion. The group net income indicated a loss of $62 million, though this was an improvement from the $82 million loss recorded during the same period last year. For the half-year, net losses totaled $160 million, down from a $197 million loss the previous year.
The situation in Las Vegas was notably disappointing:
– Q2 net revenue dropped 3.5% to $1 billion; for H1 net revenue decreased by 2% to $2 billion.
– Q2 net income declined 26% to $156 million; H1 net income fell 15% to $332 million.
– Q2 adjusted EBITDA dropped 13% to $410 million; H1 adjusted EBITDA decreased by 7% to $836 million.
Despite these challenges, Caesars finished the quarter with $965 million in cash and equivalents, an increase from $887 million at the end of 2025. The total outstanding debt was reduced slightly from $11.9 billion to $11.8 billion during the same timeframe.
In contrast, the regional operations introduced a more favorable narrative. Caesars experienced nearly a 10% increase in net revenue this quarter, reaching $1.5 billion, and a 6% rise for the half-year totaling $3 billion. Adjusted EBITDA improved by 11% to $488 million in Q2 and was up 5% to $923 million for H1. However, net income saw a significant decline of 66% year-over-year, totaling $23 million for the quarter and only $3 million for the half-year.
Going forward, Caesars’ regional assets may undergo substantial changes under Fertitta, especially considering the competition between Fertitta's Golden Nugget brand and Caesars across six different markets: Lake Tahoe, NV; Laughlin, NV; Atlantic City, NJ; Lake Charles, LA; and Biloxi, MS. Fertitta has submitted a Hart-Scott-Rodino antitrust application to the Federal Trade Commission, indicating that state-level regulators could also demand divestitures, similar to the requirements during the 2020 acquisition of Caesars by Eldorado Resorts.
On the digital front, Caesars Digital experienced a rare downturn in Q2; however, results for the first half of the year maintained the segment's growth trajectory seen over the last two years. The segment reported quarterly net revenue of $351 million, marking a 2% year-over-year increase, while adjusted EBITDA dipped 15% to $68 million, and net income fell by 31% to $27 million. For the half-year, revenue grew by 7%, and adjusted EBITDA was up 11%, totaling $137 million, with net income reaching $49 million—an increase of 25% from the first half of 2025.
Truist analyst Barry Jonas identified the regional results as a "bright spot" despite the challenges in Las Vegas. He noted that reduced online sports betting holds adversely affected results, although iGaming displayed substantial strength during the quarter. While the Fertitta acquisition is confirmed following the expiration of a go-shop period on July 11, Jonas indicated that its finalization would still take some time.
Maintaining a hold rating, he left the target price for Caesars unchanged at $31. The company posted an earnings per share (EPS) loss of $0.30, missing analysts’ expectations of a loss of $0.05 per share. Shares of Caesars remained steady in trading on Tuesday, fluctuating just below $30.
