Caesars Entertainment (CZR) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated net revenues reached $2.8 billion, up 2.1% year-over-year, with adjusted EBITDA of $884 million, up 4% year-over-year, driven by strong digital growth and regional gains, despite Las Vegas softness post-Super Bowl.

• Net loss narrowed to $98 million from $142 million year-over-year, reflecting improved digital segment results and lower interest expense.

• Operates over 50 brick-and-mortar locations and a digital platform in 32 North American jurisdictions, with a renowned loyalty program and major capital investments post-merger.

• Digital segment net revenue grew 19% to $335 million, with adjusted EBITDA up to $43 million, driven by iCasino and sports betting growth.

• Completed the sale of the LINQ Promenade for $275 million and repurchased $100 million in stock in April 2025.

Financial highlights

• Net revenues: $2.8 billion, up 2.1% year-over-year; Adjusted EBITDA: $884 million, up 4% year-over-year; margin at 31.6%.

• Net loss: $98 million, improved from $142 million loss in prior year.

• Digital segment net revenue: $335 million (+19% YoY); iCasino net revenue up 53% YoY; sports betting net revenue up 9% YoY.

• Las Vegas EBITDA margin improved to 43.2%, up 50 basis points year-over-year.

• Cash from operations: $218 million, up from $80 million year-over-year.

Outlook and guidance

• 2025 full-year CapEx expected at ~$600 million (excluding Virginia JV); interest expense to decline to ~$775 million.

• Management expects current liquidity, including cash and credit facilities, to be sufficient for operations, capital requirements, and debt service for the next twelve months and beyond.

• Digital segment expected to continue strong growth, with iCasino NGR up nearly 70% in April and a 50%+ growth trend anticipated for the year.

• Substantially all operating free cash flow to be used for debt reduction, with opportunistic share repurchases if stock dislocates.

• Expecting record group business in Las Vegas for 2025 and 2026, with strong forward bookings and no signs of consumer softness.