Caesars (CZR) Q2 Revenue Rises 3.6%

Key Points

• GAAP revenue edged past estimates, driven by strong digital segment gains and softness in Las Vegas, while regional properties grew year over year.

• Net loss attributable to Caesars (GAAP) narrowed year over year, though profitability remained negative overall.

• Caesars Digital posted a sharp rise in adjusted EBITDA and revenue, doubling adjusted EBITDA and highlighting ongoing digital growth momentum.

• These 10 stocks could mint the next wave of millionaires ›

Caesars Entertainment (NASDAQ:CZR), a major U.S. casino and hospitality operator, reported its second quarter 2025 earnings on July 29, 2025. The release’s headline: GAAP revenue reached $2.9 billion, about $41 million above analyst forecasts. However, the company posted a GAAP net loss attributable to Caesars of $82 million, meaning a loss per share of $(0.39) (GAAP) versus analyst expectations for a small GAAP profit. Results reflect digital outperformance but also ongoing margin and profit pressure in core casino operations. The quarter showed a blend of step-forward digital progress and continued challenges in Las Vegas and regional gaming segments.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

About Caesars Entertainment: Business and Focus Areas

Caesars Entertainment runs casino resorts, hotels, and entertainment venues across the U.S, including the flagship Caesars Palace in Las Vegas. The company also runs a rapidly growing digital division, which features the Caesars Sportsbook app for sports betting and iGaming, or online casino games. This gives Caesars both brick-and-mortar and online revenue streams that complement each other and add diversification.

In recent years, Caesars has sharply increased its investment in digital platforms, new casino developments, and technology upgrades. Key areas for Caesars’ success include expanding digital gaming, managing the competitive landscape in casino and hospitality, responding to economic trends, nurturing strategic partnerships with sports leagues, and careful attention to regulatory compliance. Product innovation, like new branded slot titles in both physical and digital spaces, and omni-channel loyalty integration via Caesars Rewards, have helped the company keep pace with changing consumer behavior.

Quarter in Review: Segment Detail and Performance Drivers

The period saw total company revenue (GAAP) slightly surpass expectations, thanks in part to robust performance from the digital segment. The digital segment recorded net revenue of $343 million, up 24.3% over the prior year period, and adjusted EBITDA of $80 million, doubling last year’s result. Management credited cost controls, product launches, and improved customer retention, noting the continued rollout of branded iCasino games and app enhancements.

Las Vegas operations felt the impact of weaker demand for hospitality, including both hotel stays and food and beverage spending. Net revenue in the Las Vegas segment dropped 3.7% (GAAP) compared to the prior year, with adjusted EBITDA in Vegas declining 8.0% (non-GAAP). Las Vegas experienced year-over-year revenue and margin declines in both quarters.

Regional properties -- those outside Las Vegas -- brought in GAAP net revenue of $1.435 billion, a 3.6% increase from the prior year. Regional adjusted EBITDA dropped 6.4%. New property ramp-ups and competitive intensity weighed on margin, and net income for this group improved to a small loss from a larger year-ago loss.

Other segments, such as managed and branded properties as well as corporate and miscellaneous operations, contributed only a minor share of financial results and showed little year-over-year movement. Across the company, ongoing capital allocation focused on debt reduction, highlighted by the redemption of $546 million in higher-cost notes in July 2025. Management estimates this will lower annual interest expense by $44 million. The company’s cash balance increased to $982 million. Total net debt (non-GAAP) stood at $11.3 billion.

Products and Initiatives: Innovation and Market Response

The Caesars Digital segment includes two main lines: online sports betting (Caesars Sportsbook) and iGaming (online casino products). The period highlighted strong iGaming growth -- with management reporting a 53% year-over-year trend for revenue in this area -- attributed to exclusive in-house games, new branded content, and continuous customer-relationship management upgrades through its Optimove system.

On the brick-and-mortar side, Caesars continues reinvesting in properties, such as Caesars Virginia and New Orleans, aiming to offset increased competition from both new casinos and tribal gaming venues. New slot titles, developed with partners like AGS, launch simultaneously in physical resorts and online casinos. This synchrony is an example of “omnichannel” integration, letting loyalty members earn and redeem Caesars Rewards both on-site and in apps.

Outlook and Guidance

Management did not provide any specific updated financial guidance for the coming quarter or the remainder of fiscal 2025, along with a continued focus on using free cash flow for both debt paydown and selective share repurchases.

The company remains vigilant in reviewing economic signals, competition, and updates in gaming law affecting both sports betting and online casino product expansion.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,039%* — a market-crushing outperformance compared to 182% for the S&P 500.

They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.

See the stocks »

*Stock Advisor returns as of July 29, 2025

JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.