Caesars Entertainment, Inc. Reports First Quarter 2026 Results
First Quarter 2026 and Recent Highlights:
-
GAAP net revenues of
$2.9 billion versus$2.8 billion for the comparable prior-year period. -
GAAP net loss of
$98 million compared to a net loss of$115 million for the comparable prior-year period. -
Consolidated Adjusted EBITDA of
$887 million versus$884 million for the comparable prior-year period. -
Caesars Digital Adjusted EBITDA of
$69 million versus$43 million for the comparable prior-year period.
First Quarter 2026 Financial Results Summary and Segment Information
|
Net Revenues |
|||||||||
|
|
Three Months Ended |
||||||||
|
(In millions) |
2026 |
|
2025 |
|
% Change |
||||
|
|
$ |
1,003 |
|
|
$ |
1,003 |
|
— |
% |
|
Regional |
|
1,430 |
|
|
|
1,388 |
|
3.0 |
% |
|
Caesars Digital |
|
374 |
|
|
|
335 |
|
11.6 |
% |
|
Managed and Branded |
|
66 |
|
|
|
67 |
|
(1.5 |
)% |
|
Corporate and Other |
|
(3 |
) |
|
|
1 |
|
* |
|
|
Caesars |
$ |
2,870 |
|
|
$ |
2,794 |
|
2.7 |
% |
|
Net Income (Loss) Attributable to Caesars |
||||||||||
|
|
Three Months Ended |
|||||||||
|
(In millions) |
|
2026 |
|
|
|
2025 |
|
|
% Change |
|
|
|
$ |
176 |
|
|
$ |
177 |
|
|
(0.6 |
)% |
|
Regional |
|
(20 |
) |
|
|
20 |
|
|
* |
|
|
Caesars Digital |
|
22 |
|
|
|
— |
|
|
* |
|
|
Managed and Branded |
|
24 |
|
|
|
16 |
|
|
50.0 |
% |
|
Corporate and Other |
|
(300 |
) |
|
|
(328 |
) |
|
8.5 |
% |
|
Caesars |
$ |
(98 |
) |
|
$ |
(115 |
) |
|
14.8 |
% |
|
Adjusted EBITDA (a) |
||||||||||
|
|
Three Months Ended |
|||||||||
|
(In millions) |
|
2026 |
|
|
|
2025 |
|
|
% Change |
|
|
|
$ |
426 |
|
|
$ |
433 |
|
|
(1.6 |
)% |
|
Regional |
|
435 |
|
|
|
440 |
|
|
(1.1 |
)% |
|
Caesars Digital |
|
69 |
|
|
|
43 |
|
|
60.5 |
% |
|
Managed and Branded |
|
13 |
|
|
|
16 |
|
|
(18.8 |
)% |
|
Corporate and Other |
|
(56 |
) |
|
|
(48 |
) |
|
(16.7 |
)% |
|
Caesars |
$ |
887 |
|
|
$ |
884 |
|
|
0.3 |
% |
| ____________________ | |
|
* |
Not meaningful |
| (a) |
Adjusted EBITDA is not a GAAP measurement and is presented solely as a supplemental disclosure because the Company believes it is a widely used measure of operating performance in the gaming industry. See “Reconciliation of GAAP Measures to Non-GAAP Measures” below for a definition of Adjusted EBITDA and a quantitative reconciliation of Adjusted EBITDA to net income (loss) attributable to Caesars, which the Company believes is the most comparable financial measure calculated in accordance with GAAP. |
Balance Sheet and Liquidity
As of
|
(In millions) |
|
|
|
||
|
Cash and cash equivalents |
$ |
867 |
|
$ |
887 |
|
|
|
|
|
||
|
Bank debt and loans |
$ |
6,076 |
|
$ |
6,063 |
|
Notes |
|
5,800 |
|
|
5,800 |
|
Other long-term debt |
|
41 |
|
|
42 |
|
Total outstanding indebtedness |
$ |
11,917 |
|
$ |
11,905 |
|
|
|
|
|
||
|
Net debt (a) |
$ |
11,050 |
|
$ |
11,018 |
| ____________________ | |
|
(a) |
Net debt is a non-GAAP measurement and is presented solely as a supplemental disclosure because the Company believes it is helpful in understanding our financial position. Net debt is equal to total outstanding indebtedness less cash and cash equivalents. |
As of
|
(In millions) |
|
||
|
Cash and cash equivalents |
$ |
867 |
|
|
CEI Revolving Credit Facility capacity, net of outstanding balance |
|
2,050 |
|
|
CVA Revolving Credit Facility capacity |
|
25 |
|
|
Revolver capacity committed to letters of credit |
|
(96 |
) |
|
Revolver capacity committed to specific reserves |
|
(40 |
) |
|
Available revolver capacity committed as regulatory requirement |
|
(46 |
) |
|
Total |
$ |
2,760 |
|
“On
Non-GAAP Measures
Adjusted EBITDA (described below), a non-GAAP financial measure, has been presented as a supplemental disclosure because it is a widely used measure of performance and basis for valuation of companies in our industry and we believe that this non-GAAP supplemental information will be helpful in understanding our ongoing operating results. Management has historically used Adjusted EBITDA when evaluating operating performance because we believe that the inclusion or exclusion of certain recurring and non-recurring items is necessary to provide a full understanding of our core operating results and as a means to evaluate period-to-period results. Adjusted EBITDA represents net income (loss) before interest income and interest expense, net of interest capitalized, (benefit) provision for income taxes, depreciation and amortization, stock-based compensation expense, (gain) loss on extinguishment of debt, impairment charges, other (income) loss, net income (loss) attributable to noncontrolling interests, transaction costs associated with our acquisitions, developments and divestitures, and non-cash changes in equity method investments. Adjusted EBITDA also excludes the expense associated with certain of our leases as these transactions were accounted for as financing obligations and the associated expense is included in interest expense. Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with accounting principles generally accepted in
Net debt (defined above), a non-GAAP measure, has been presented as a supplemental disclosure because we believe it is helpful in understanding our financial condition. The reconciliation of net debt to total outstanding indebtedness is set forth above.
Other companies that provide similar non-GAAP measures may calculate them differently than we do, and the definitions may not be the same as the definitions used in any of our debt or lease agreements.
Conference Call Information
The Company will host a conference call to discuss its results on
In addition, supplemental slides will be posted prior to the call start time on the Investor Relations website at https://investor.caesars.com.
About
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding our strategies, objectives and plans for future development or acquisitions of properties or operations, as well as expectations, future operating results and other information that is not historical information. When used in this press release, the terms or phrases such as “anticipates,” “believes,” “projects,” “plans,” “intends,” “expects,” “might,” “may,” “estimates,” “could,” “should,” “would,” “will likely continue,” and variations of such words or similar expressions are intended to identify forward-looking statements. Although our expectations, beliefs and projections are expressed in good faith and with what we believe is a reasonable basis, there can be no assurance that these expectations, beliefs and projections will be realized. There are a number of risks and uncertainties that could cause our actual results to differ materially from those expressed in the forward-looking statements which are included elsewhere in this press release. These risks and uncertainties include, but are not limited to: (a) the impact on our business, financial results and liquidity of economic trends, inflation, public health emergencies, terrorist attacks and other acts of war or hostility, work stoppages and other labor problems, or other economic and market conditions, including reductions in discretionary consumer spending as a result of downturns in the economy and other factors outside our control; (b) the impact of future cybersecurity breaches on our business, financial conditions and results of operations; (c) our ability to successfully operate our digital betting and iGaming platform and expand its user base; (d) risks associated with our leverage and our ability to reduce our leverage; (e) the effects of competition, including new competition in certain of our markets, on our business and results of operations; and (f) additional factors discussed in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q as filed with the Securities and Exchange Commission. Other unknown or unpredictable factors may also cause actual results to differ materially from those projected by the forward-looking statements.
In light of these and other risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur. These forward-looking statements speak only as of the date of this press release, even if subsequently made available on our website or otherwise, and we do not intend to update publicly any forward- looking statement to reflect events or circumstances that occur after the date on which the statement is made, except as may be required by law.
We periodically provide other information for investors on our Investor Relations website, https://investor.caesars.com. We intend to use our website as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor our website, in addition to following the Company's press releases,
Source:
|
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||
|
|
Three Months Ended |
||||||
|
(In millions, except per share data) |
|
2026 |
|
|
|
2025 |
|
|
NET REVENUES: |
|
|
|
||||
|
Casino |
$ |
1,666 |
|
|
$ |
1,594 |
|
|
Food and beverage |
|
424 |
|
|
|
435 |
|
|
Hotel |
|
487 |
|
|
|
482 |
|
|
Other |
|
293 |
|
|
|
283 |
|
|
Net revenues |
|
2,870 |
|
|
|
2,794 |
|
|
OPERATING EXPENSES: |
|
|
|
||||
|
Casino |
|
902 |
|
|
|
861 |
|
|
Food and beverage |
|
274 |
|
|
|
275 |
|
|
Hotel |
|
156 |
|
|
|
151 |
|
|
Other |
|
95 |
|
|
|
95 |
|
|
General and administrative |
|
504 |
|
|
|
483 |
|
|
Corporate |
|
88 |
|
|
|
82 |
|
|
Depreciation and amortization |
|
347 |
|
|
|
357 |
|
|
Transaction and other costs, net |
|
4 |
|
|
|
2 |
|
|
Total operating expenses |
|
2,370 |
|
|
|
2,306 |
|
|
Operating income |
|
500 |
|
|
|
488 |
|
|
OTHER EXPENSE: |
|
|
|
||||
|
Interest expense, net |
|
(569 |
) |
|
|
(574 |
) |
|
Other loss |
|
(2 |
) |
|
|
(1 |
) |
|
Total other expense |
|
(571 |
) |
|
|
(575 |
) |
|
Loss before income taxes |
|
(71 |
) |
|
|
(87 |
) |
|
Provision for income taxes |
|
(12 |
) |
|
|
(11 |
) |
|
Net loss |
|
(83 |
) |
|
|
(98 |
) |
|
Net income attributable to noncontrolling interests |
|
(15 |
) |
|
|
(17 |
) |
|
Net loss attributable to Caesars |
$ |
(98 |
) |
|
$ |
(115 |
) |
|
|
|
|
|
||||
|
Net loss attributable to Caesars per share - basic and diluted: |
|
|
|
||||
|
Basic loss per share |
$ |
(0.48 |
) |
|
$ |
(0.54 |
) |
|
Diluted loss per share |
$ |
(0.48 |
) |
|
$ |
(0.54 |
) |
|
Weighted average basic shares outstanding |
|
204 |
|
|
|
212 |
|
|
Weighted average diluted shares outstanding |
|
204 |
|
|
|
212 |
|
|
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO CAESARS TO ADJUSTED EBITDA (UNAUDITED) |
|||||||
|
|
Three Months Ended |
||||||
|
(In millions) |
|
2026 |
|
|
|
2025 |
|
|
Net loss attributable to Caesars |
$ |
(98 |
) |
|
$ |
(115 |
) |
|
Net income attributable to noncontrolling interests |
|
15 |
|
|
|
17 |
|
|
Provision for income taxes |
|
12 |
|
|
|
11 |
|
|
Other loss |
|
2 |
|
|
|
1 |
|
|
Interest expense, net |
|
569 |
|
|
|
574 |
|
|
Depreciation and amortization |
|
347 |
|
|
|
357 |
|
|
Transaction costs and other, net (a) |
|
16 |
|
|
|
13 |
|
|
Stock-based compensation expense |
|
24 |
|
|
|
26 |
|
|
Total Adjusted EBITDA |
$ |
887 |
|
|
$ |
884 |
|
| ____________________ | |
| (a) |
Transaction costs and other, net primarily includes costs related to non-cash losses on the write down and disposal of assets, professional services for transaction and integration costs, various contract exit or termination costs, pre-opening costs in connection with our new property openings, and non-cash changes in equity method investments. |
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