Caesars Q2 net loss narrows by 34.9% as digital EBITDA doubles to $80m

Key points:

– Net loss reduced from $122m to $82m, down 34.9% year-on-year 

– Digital adjusted EBITDA rose 100% to $80m as revenue climbed 24.3%

– Las Vegas adjusted EBITDA down 8% to $469m and regional EBITDA fell 6.4%

Caesars Entertainment has reported Q2 2025 financial results showing modest revenue growth and a sharp reduction in net losses, supported by improved operational efficiency and strong performance in its Digital segment.

Group-wide revenue for the quarter reached $2.91bn, a 2.9% year-on-year increase. The company’s net loss narrowed to $82m – a 34.9% improvement. 

Adjusted EBITDA fell 4.1% to $955m, primarily due to declines in its core Las Vegas and Regional casino operations. 

Digital drives earnings growth

Caesars Digital delivered standout results, with adjusted EBITDA doubling to $80m, up from $40m in the prior-year quarter.  

Net revenue for the division rose 24.3% to $343m, driven by enhanced customer engagement and improved product offerings across its online sports and iGaming platforms.

CEO Tom Reeg said the digital gains were a continuation of strategic groundwork laid in recent years and confirmed the segment was on track to meet long-term profitability goals.

In Q1 2025, Caesars Digital reported an 18.8% rise in revenue to $335m and adjusted EBITDA of $43m, up from just $5m a year earlier. First-half results now show Caesars Digital adjusted EBITDA of $123m, a 173% increase.

Las Vegas and Regional performance remains mixed

Las Vegas revenue declined 3.7% to $1.05bn, while adjusted EBITDA fell 8% to $469m. Net income from the segment dropped to $212m, a 20.9% decrease, amid reduced hotel demand. 

Regional operations fared slightly better on revenue, up 3.6% to $1.44bn, but Adjusted EBITDA slipped 6.4% to $439m. New property contributions in Virginia and New Orleans offset some softness in core regional markets.

Good to know: Caesars redeemed $546m in 8.125% senior notes in July, following a $225m WSOP note sale and revolver draw

The move is expected to reduce annual interest expenses by $44m and extend the company’s debt maturity profile to 2028.

Cost controls and debt reduction strategy

Operating expenses grew 2.4% to $2.38bn, slightly ahead of revenue growth. Interest expenses remained high at $579m, though below Q2 2024’s $594m. Net loss per share improved from $0.56 to $0.39.

As of 30 June 2025, Caesars reported $12.3bn in total debt and $982m in cash, with management reiterating its focus on deleveraging. 

CFO Bret Yunker said: “Accelerating free cash flow in 2025 will allow us to continue to reduce debt alongside opportunistic share repurchases.”

Market comparison and outlook

Caesars’ 2.9% revenue growth remains below key rivals. BetMGM posted a 36% rise in Q2 revenue, while Entain reported 9% growth in Q1. However, Caesars outperformed Las Vegas Sands and FDJ, which posted year-on-year revenue declines.

Looking ahead, Caesars will aim to recover EBITDA margins in its land-based portfolio while expanding digital offerings.

In Q1 2025, Caesars reported revenue of $2.8bn, up 2.1% and a net loss of $115m, down 27.2%. Caesars Digital revenue climbed 18.8% to $335m that quarter, helping to offset softness in Las Vegas and Regional earnings.