Caesars Entertainment unveiled its quarterly earnings results on Tuesday, marking its first report since being acquired by Fertitta Entertainment in late May. The findings presented a mixed picture overall, with Las Vegas operations experiencing declines in various key metrics.
Due to the acquisition and upcoming transition to private ownership expected to finalize in spring 2027, Caesars did not hold a call with analysts this quarter. To date, neither party has provided significant commentary on the substantial $17.6 billion deal. Notably, two Fertitta executives, CFO Richard Liem and general counsel Steven Scheinthal, received their Nevada licenses this month in connection with the buyout, although they refrained from sharing any long-term strategies. Caesars declined to comment on the deal last week.
In looking at the quarterly results, Caesars reported a 3% increase in group net revenue year-over-year, reaching $2.99 billion, while the half-year total was $5.9 billion, reflecting a similar upward trend. This figure surpassed analysts’ expectations, who had predicted quarterly revenue of $2.96 billion.
However, adjusted EBITDA saw a decrease of 4% year-over-year to $920 million for the quarter and a 2% drop for the half-year, totaling $1.8 billion. The company reported a group net income loss of $62 million for the quarter, which was better than the $82 million loss noted during the same period last year. For the half-year, the net income loss stood at $160 million, an improvement from $197 million from the prior year.
In Las Vegas, performance indicators were disappointing:
– Q2 net revenue dropped 3.5% to $1 billion, while half-year revenue fell 2% to $2 billion.
– Q2 net income plummeted 26% to $156 million, and half-year net income decreased 15% to $332 million.
– Adjusted EBITDA for Q2 fell 13% to $410 million and for half-year it decreased 7% to $836 million.
At the end of the quarter, Caesars held cash and equivalents totaling $965 million, up from $887 million at the end of 2025. The company managed to reduce its total outstanding debt from $11.9 billion to $11.8 billion during this timeframe.
In regional markets, Caesars enjoyed growth with net revenue rising nearly 10% for the quarter, reaching $1.5 billion, and a 6% increase for the half-year amounting to $3 billion. Adjusted EBITDA also saw a boost of 11% in Q2 ($488 million) and 5% in H1 ($923 million). However, net income only recorded $23 million for the quarter, showing a sharp 66% drop year-over-year.
Under Fertitta's ownership, regional assets could undergo significant changes, especially considering that Fertitta's Golden Nugget brand competes with Caesars in several 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, and state regulators may also mandate divestitures, similar to the requirements that arose during the 2020 acquisition of Caesars by Eldorado Resorts.
The performance of Caesars Digital also faltered in Q2, but the H1 results maintained the segment’s continued growth trajectory over the past two years. Quarterly net revenue for the digital sector reached $351 million, reflecting a 2% gain compared to last year. However, adjusted EBITDA tumbled by 15% to $68 million, and net income dropped 31% to $27 million. For the first half of the year, revenue increased by 7%, and adjusted EBITDA rose by 11% to $137 million, while net income grew by 25% to $49 million compared to the first half of 2025.
In a note to investors, Truist analyst Barry Jonas highlighted the growth of regional markets as a positive with the softness experienced in Las Vegas. He also attributed some of the digital decline to a lower online sports betting hold but recognized that iGaming demonstrated strength during the quarter. Jonas remarked that despite the Fertitta acquisition having achieved clarity after a go-shop period concluded on July 11, closing is still “likely some time away.”
Jonas maintained a hold rating and did not change the target price, holding it at $31. In trading on Tuesday, Caesars' shares remained stable, hovering just below $30, with an EPS loss of $0.30, disclosing a miss against the analysts’ anticipated per-share earnings loss of $0.05.
