On Tuesday, Caesars Entertainment published its first quarterly earnings report following its acquisition by Fertitta Entertainment in late May. The results for the second quarter and the first half of the year revealed a mixed performance, with the company’s Las Vegas operations showing a decline in several metrics.
Caesars opted not to hold an analyst call this quarter due to the acquisition and its plan to take the company private, which is slated for completion in spring 2027. Neither Caesars nor Fertitta has provided any substantial comments regarding the $17.6 billion deal. However, two Fertitta executives, CFO Richard Liem and general counsel Steven Scheinthal, recently received their licenses in Nevada, but they did not discuss future strategies. Caesars declined to comment on the acquisition last week.
Looking at the financials, Caesars saw a 3% increase in net revenue for the quarter, totaling $2.99 billion, while the half-year revenue reached $5.9 billion, reflecting a similar growth trend. The company surpassed analysts’ expectations of $2.96 billion for the quarter.
In contrast, adjusted EBITDA dropped by 4% year-over-year (YoY) to $920 million for the quarter, and decreased by 2% for the half-year, totaling $1.8 billion. When analyzing group net income, Caesars recorded a loss of $62 million, slightly better than the $82 million loss from the same period last year. For the half-year, net income totaled a loss of $160 million compared to a loss of $197 million in the previous year.
Focusing specifically on the Las Vegas market, the results were less promising:
– In Q2, net revenue declined by 3.5% to $1 billion, while the first half saw a 2% drop to $2 billion.
– Net income for Q2 fell by 26% to $156 million, with H1 net income decreasing by 15% to $332 million.
– Adjusted EBITDA decreased by 13% in Q2 to $410 million, and by 7% for the first half to $836 million.
At the end of the quarter, Caesars held $965 million in cash and equivalents, an increase from $887 million at the end of 2025. The company also reduced its total outstanding debt from $11.9 billion to $11.8 billion.
On a more positive note, regional operations showed strong growth. Caesars reported a nearly 10% increase in net revenue for the quarter, reaching $1.5 billion, and a 6% rise for the half-year, totaling $3 billion. Adjusted EBITDA for Q2 rose by 11% to $488 million, and increased by 5% for the half-year, amounting to $923 million. Net income for Q2 was $23 million but dipped to just $3 million for the half-year, a 66% YoY decline.
Under Fertitta’s ownership, the regional assets of Caesars may undergo significant changes, especially in six markets where Fertitta’s Golden Nugget brand competes:
– 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 might necessitate the divestiture of assets. This process mirrors what occurred in 2020 when Caesars was acquired by Eldorado Resorts; both companies were required to sell assets to facilitate that transaction.
Caesars Digital faced a downturn in Q2, marking an unusual quarter of decline. Despite this, the half-year results continued to align with the strong growth observed in the previous two years. Net revenue for the digital segment in Q2 stood at $351 million, a 2% year-over-year increase; however, adjusted EBITDA dropped by 15% to $68 million, and net income fell by 31% to $27 million. For the half-year, revenue rose by 7%, with adjusted EBITDA climbing 11% to $137 million and net income hitting $49 million, a 25% improvement from the first half of 2025.
Truist analyst Barry Jonas noted the strong performance of regional operations against the backdrop of Las Vegas's struggles. He pointed out that lower holds in online sports betting impacted results while praising the strength of iGaming for the quarter. He also highlighted that the Fertitta acquisition, while finalized after a go-shop period that expired on July 11, is not expected to close for some time.
Jonas maintained a hold rating for Caesars and kept the target price steady at $31. The company reported an earnings per share loss of $0.30, which fell short of analysts' expectations for a loss of $0.05 per share. On Tuesday, Caesars' shares remained unchanged, trading slightly below $30.
