Group 1 - The investment approach has received over 500 five-star reviews from members who are experiencing benefits [1] - The company invests significant resources, over $100,000 annually, into researching profitable investment opportunities [1] - The economy is facing challenges, including a trade war, which could further weaken it as it enters 2025 [1] Group 2 - Jussi Askola leads the High Yield Landlord investing group, sharing real-time REIT portfolio and transactions [1] - The group offers features such as three portfolios (core, retirement, international), buy/sell alerts, and direct access to analysts [1] - Leonberg Capital, led by Jussi Askola, is a value-oriented investment boutique consulting hedge funds and private equity firms on REIT investing [1]

Group 1 - The market sentiment around Caesars Entertainment (CZR) stock indicates a potential bullish outlook, suggesting that there are favorable conditions for investment in the company [1] - The author has been involved in investment analysis since 2011, focusing on value investing, which may provide a context for the analysis of Caesars Entertainment [1] Group 2 - No specific financial data or performance metrics related to Caesars Entertainment are provided in the text [2][3]

Core Viewpoint - Caesars Entertainment, Inc. reported mixed first-quarter 2025 results, with earnings missing consensus estimates while revenues exceeded expectations, showing year-over-year improvement [1][3]. Financial Performance - The company recorded an adjusted loss per share of 54 cents, wider than the Zacks Consensus Estimate of a loss of 19 cents, compared to an adjusted loss of 55 cents in the prior-year quarter [3]. - Net revenues reached $2.79 billion, slightly above the consensus mark of $2.78 billion by 0.5%, and increased by 1.9% year over year [3]. Segmental Performance - **Las Vegas Segment**: Net revenues totaled $1 billion, down 2.4% from $1.03 billion in the prior year, with adjusted EBITDA of $433 million, down from $440 million [4]. - **Regional Segment**: Quarterly net revenues were $1.39 billion, up from $1.37 billion year over year, with adjusted EBITDA reaching $440 million, up from $433 million [4]. - **Caesars Digital Segment**: Net revenues were $335 million, an increase of 18.8% year over year from $282 million, with adjusted EBITDA totaling $43 million, up from $5 million in the prior year [5]. - **Managed and Branded Segment**: Net revenues totaled $67 million, down from $68 million year over year, with adjusted EBITDA of $16 million, down from $18 million [5]. - **Corporate and Other Segment**: Net revenues were $1 million compared to $(1) million reported a year ago, with adjusted EBITDA totaling $(48) million compared to $(43) million in the prior year [6]. Balance Sheet - As of March 31, 2025, cash and cash equivalents were $884 million, up from $866 million as of December 31, 2024 [7]. - Net debt was $11.42 billion, slightly down from $11.43 billion as of December 31, 2024 [7].

Financial Data and Key Metrics Changes - Consolidated net revenues for Q1 2025 were $2.8 billion, an increase of 2% year over year, while total adjusted EBITDAR rose to $884 million, up 4% year over year [5][6] - Same store adjusted EBITDAR in Las Vegas was $433 million, essentially flat compared to the prior year, marking the third-best Q1 performance on record [5][6] - Las Vegas EBITDA margins improved to 43.2%, up 50 basis points year over year [6] Business Line Data and Key Metrics Changes - The Regional segment delivered $440 million of adjusted EBITDAR for the quarter, up 2% year over year, driven by stable same store trends and contributions from New Orleans and Danville [8] - Caesars Digital reported net revenue of $335 million, a 19% increase year over year, with adjusted EBITDA of $43 million, up $38 million year over year [10] - Sports Betting net revenue increased by 9%, while iCasino net revenue grew by 53% year over year [10][11] Market Data and Key Metrics Changes - The Regional segment experienced significant improvement compared to the last three quarters of 2024, despite weather disruptions and the impact of one less operating day [8] - In April 2025, iGaming revenue was reported to be up almost 70% year over year, indicating strong growth momentum [19] Company Strategy and Development Direction - The company is focused on capital projects in Las Vegas, which are expected to drive better-than-expected returns, particularly from recent hotel remodels and food and beverage projects [7] - The company is in a capital inflection point, transitioning to a free cash flow harvesting mode, with expectations to use operating free cash flow primarily for debt paydown [22][24] - The management remains optimistic about the forward outlook for Las Vegas, with solid occupancy trends driven by leisure and group customers [7] Management's Comments on Operating Environment and Future Outlook - Management noted that despite economic uncertainties, they have not observed any consumer softness and forward bookings remain strong [20][22] - The company is prepared to leverage its database to outperform peers if economic conditions soften [29] - Management expressed confidence in the growth of the digital segment, which is expected to continue to perform well despite potential macroeconomic challenges [20][22] Other Important Information - The company repurchased $100 million of its stock at an average price of $23.84, indicating a commitment to opportunistic share repurchases alongside debt reduction [14] - The company expects full-year CapEx for 2025 to be approximately $600 million, excluding the Virginia joint venture [14] Q&A Session Summary Question: What is the outlook for Las Vegas bookings and group-related revenue? - Management indicated that group bookings were about 20% of the first quarter room base and expect 2025 to be a record year for group bookings, particularly strong in Q4 [28] Question: Can you clarify the headwind from last year's other revenue piece? - Management confirmed a $6 million headwind on the EBITDA side due to declines in skin revenues and World Series of Poker revenues [31] Question: What was the net impact of weather and leap year on regional performance? - Management estimated the net impact to be in excess of $10 million, with an additional $6 million from the leap year effect in Las Vegas [36] Question: Have there been changes in customer behavior, particularly among lower-end customers? - Management noted that unrated play has been softer than rated play, but rated play is up mid-single digits [43] Question: How does the company view the impact of international travel on Las Vegas? - Management stated that they primarily operate as a domestic business, with some international high-end play continuing without change [92] Question: What are the expectations for regional margins moving forward? - Management expects regional margins to improve as competitive pressures are anniversaried and as Danville and New Orleans ramp up [98]

Core Insights - Caesars Entertainment reported revenue of $2.79 billion for the quarter ended March 2025, reflecting a year-over-year increase of 1.9% and a surprise of +0.50% over the Zacks Consensus Estimate of $2.78 billion [1] - The company's EPS was -$0.54, slightly improved from -$0.55 in the same quarter last year, but significantly below the consensus estimate of -$0.19, resulting in an EPS surprise of -184.21% [1] Financial Performance Metrics - Net Revenues from Las Vegas were $1 billion, which was below the four-analyst average estimate of $1.03 billion, showing a year-over-year decline of -2.4% [4] - Managed and Branded Net Revenues were reported at $67 million, slightly below the average estimate of $69.34 million, with a year-over-year change of -1.5% [4] - Caesars Digital Net Revenues reached $335 million, close to the average estimate of $336.18 million, marking an 18.8% increase year over year [4] - Regional Net Revenues were $1.39 billion, exceeding the average estimate of $1.37 billion, with a year-over-year growth of +1.7% [4] - Adjusted EBITDA for Las Vegas was $433 million, nearly matching the average estimate of $433.44 million [4] - Adjusted EBITDA for Regional operations was $440 million, surpassing the average estimate of $430.71 million [4] - Caesars Digital Adjusted EBITDA was $43 million, exceeding the average estimate of $34.07 million [4] - Adjusted EBITDA for Managed and Branded was $16 million, below the average estimate of $18.35 million [4] Stock Performance - Shares of Caesars Entertainment have returned +12.2% over the past month, contrasting with the Zacks S&P 500 composite's -0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Caesars Entertainment reported a quarterly loss of $0.54 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.19, marking an earnings surprise of -184.21% [1] - The company generated revenues of $2.79 billion for the quarter, slightly exceeding the Zacks Consensus Estimate by 0.50%, and showing a year-over-year increase from $2.74 billion [2] Financial Performance - Over the last four quarters, Caesars has only surpassed consensus EPS estimates once [2] - The company has experienced a stock price decline of approximately 16% since the beginning of the year, compared to a 6% decline in the S&P 500 [3] Future Outlook - The future performance of Caesars' stock will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $2.88 billion, and for the current fiscal year, it is $0.69 on revenues of $11.5 billion [7] Industry Context - The Leisure and Recreation Services industry, to which Caesars belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - Consolidated net revenues for Q1 2025 were $2.8 billion, an increase of 2% year over year, while total adjusted EBITDAR rose by 4% to $884 million [6][10] - Same store adjusted EBITDAR in Las Vegas was $433 million, essentially flat compared to the prior year, marking the third-best Q1 performance on record [6][8] - Las Vegas EBITDA margins improved to 43.2%, up 50 basis points year over year [8] Business Line Data and Key Metrics Changes - The Regional segment delivered adjusted EBITDAR of $440 million, up 2% year over year, driven by stable same store trends and contributions from New Orleans and Danville [10] - Caesars Digital reported net revenue of $335 million, a 19% increase year over year, with adjusted EBITDA of $43 million, up $38 million [12] - Sports Betting net revenue increased by 9%, while iCasino net revenue grew by 53% year over year [12][13] Market Data and Key Metrics Changes - The Regional segment experienced significant improvement compared to the last three quarters of 2024, despite weather disruptions [10] - In April 2025, iGaming revenue was up nearly 70% compared to the same period last year, indicating strong growth momentum [21] Company Strategy and Development Direction - The company is focused on capitalizing on new projects in Las Vegas, which are expected to yield better-than-expected returns [9] - There is a commitment to enhancing guest experiences through significant capital investments over the past four years [10] - The company is in a "free cash flow harvesting mode," with expectations to use operating free cash flow primarily for debt paydown [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Las Vegas market outlook, despite economic uncertainties, citing solid occupancy trends driven by leisure and group customers [9][22] - The company does not foresee consumer softness impacting its business, with strong forward bookings and continued growth in digital segments [22][24] - Management acknowledged potential macroeconomic challenges but emphasized that the digital segment is growing robustly, which could mitigate risks [24][46] Other Important Information - The company repurchased $100 million of its stock at an average price of $23.84, indicating a commitment to opportunistic share repurchases alongside debt reduction [16] - The company expects full-year CapEx for 2025 to be approximately $600 million, excluding the Virginia joint venture [16] Q&A Session Summary Question: What is the outlook for Las Vegas bookings and group-related revenue? - Management indicated that group bookings accounted for about 20% of the first quarter room base and expect 2025 to be a record year for group bookings, particularly strong in Q4 [29] Question: Can you clarify the headwind from last year's other revenue piece? - Management confirmed a $6 million headwind on EBITDA from skin revenues and World Series of Poker revenues, which are expected to decline in Q2 and Q3 [32] Question: What was the net impact of weather and leap year on regional performance? - Management estimated the net impact from weather and leap year to be in excess of $10 million [37] Question: Have you seen any changes in customer behavior, particularly among lower-tier customers? - Management noted that unrated play has been softer than rated play, but rated play is up mid-single digits [44] Question: How does the company view the impact of international travel on Las Vegas? - Management stated that while there has been a reduction in Canadian visitation, the overall business remains strong with 97-98% occupancy [91] Question: What are the expectations for digital growth, particularly between iGaming and sports betting? - Management indicated that while sports betting is expected to generate significant EBITDA, iGaming is seen as a stronger growth area due to its stability and customer engagement [58][62]

Core Viewpoint - Caesars Entertainment has not observed any signs of weakening consumer spending in the United States for the year 2025 [1] Group 1 - The company remains optimistic about consumer spending trends, indicating stability in the market [1] - Caesars Entertainment's analysis suggests that current economic conditions do not point to a decline in consumer expenditure [1]

Financial Data and Key Metrics Changes - Consolidated net revenues for Q1 2025 were $2.8 billion, an increase of 2% year-over-year [6] - Total adjusted EBITDAR for the quarter was $884 million, up 4% year-over-year [6] - Same store adjusted EBITDAR in Las Vegas was $433 million, essentially flat compared to the prior year [6][8] - Las Vegas EBITDA margins improved to 43.2%, up 50 basis points year-over-year [8] Business Line Data and Key Metrics Changes - The Regional segment delivered adjusted EBITDAR of $440 million, up 2% year-over-year [10] - Caesars Digital reported net revenue of $335 million, a 19% increase year-over-year, with adjusted EBITDA of $43 million, up $38 million year-over-year [12] - Sports Betting net revenue increased by 9%, while iCasino net revenue grew by 53% year-over-year [12][13] Market Data and Key Metrics Changes - Convention room nights accounted for 20% of the Las Vegas mix, with the Forum Convention Center achieving a Q1 EBITDA record [8] - The New Orleans and Danville projects contributed positively to the Regional segment despite weather disruptions [10][19] Company Strategy and Development Direction - The company is focused on capital projects in Las Vegas, which are yielding better-than-expected returns [9] - There is a commitment to enhancing guest experiences through significant capital investments over the past four years [10] - The company is in a free cash flow harvesting mode, with plans to use operating free cash flow primarily for debt paydown [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Las Vegas market outlook despite economic uncertainties [9][22] - Forward bookings remain strong, with expectations for continued growth in digital segments [22] - Management noted that they have not observed any significant consumer softness, with rated play showing mid-single-digit growth [44][46] Other Important Information - The company repurchased $100 million of its stock at an average price of $23.84 [16] - Full-year CapEx for 2025 is expected to be approximately $600 million, with interest expenses projected to decrease significantly [16] Q&A Session Summary Question: Las Vegas outlook and group-related bookings - Management indicated that group bookings were about 20% of the first quarter room base and expect 2025 to be a record year for group bookings [29][30] Question: Clarification on last year's revenue piece - Management confirmed a $6 million headwind on EBITDA due to skin revenues and World Series of Poker revenues declining [32] Question: Impact of weather and leap year on regional performance - Management estimated the net impact of weather and leap year to be in excess of $10 million [37] Question: Changes in customer behavior among different segments - Management noted that unrated play has been softer than rated play, but rated play is up mid-single digits [44] Question: Digital segment performance and future expectations - Management confirmed that iCasino is performing well, with a 70% increase in revenue in April compared to the previous year [21][84] Question: International customer exposure and trends - Management stated that they primarily operate as a domestic business, with some international high-end play continuing without significant changes [91] Question: Regional margins and future expectations - Management expects regional margins to improve as competitive pressures ease and new properties ramp up [97] Question: Buyback strategy and market conditions - Management indicated they would remain active in stock buybacks if the stock dislocates as it did in early April [100]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Unaudited Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) This section presents the Company's unaudited consolidated condensed financial statements and detailed notes for Q1 2025 and 2024 [Consolidated Condensed Balance Sheets](index=4&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) | (In millions) | March 31, 2025 | December 31, 2024 | | :------------ | :------------- | :---------------- | | Total assets | $32,398 | $32,590 | | Total liabilities | $28,119 | $28,214 | | Total stockholders' equity | $4,279 | $4,376 | [Consolidated Condensed Statements of Operations](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) | (In millions, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :---------------------------------- | :-------------------------------- | :-------------------------------- | | Net revenues | $2,794 | $2,742 | | Operating income | $488 | $485 | | Net loss | $(98) | $(142) | | Net loss attributable to Caesars | $(115) | $(158) | | Basic loss per share | $(0.54) | $(0.73) | [Consolidated Condensed Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Comprehensive%20Income%20(Loss)) | (In millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------ | :-------------------------------- | :-------------------------------- | | Net loss | $(98) | $(142) | | Comprehensive loss | $(98) | $(143) | | Comprehensive loss attributable to Caesars | $(115) | $(159) | [Consolidated Condensed Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Stockholders'%20Equity) | (In millions) | Balance, December 31, 2024 | Balance, March 31, 2025 | | :------------ | :------------------------- | :---------------------- | | Total Stockholders' Equity | $4,376 | $4,279 | | Net income (loss) attributable to Caesars | $(115) | $(158) (for 2024) | [Consolidated Condensed Statements of Cash Flows](index=8&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) | (In millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $218 | $80 | | Net cash used in investing activities | $(206) | $(264) | | Net cash used in financing activities | $(19) | $(94) | | Decrease in cash, cash equivalents and restricted cash | $(7) | $(278) | | Cash, cash equivalents and restricted cash, end of period | $1,009 | $865 | [Notes to Consolidated Condensed Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) This section provides detailed explanations of the Company's accounting policies, asset valuations, debt, revenue, and segment information - Caesars Entertainment, Inc. (CZR) is a diversified gaming and hospitality company, founded in 1973, that has grown through a series of acquisitions including Caesars Entertainment Corporation (2020) and William Hill PLC (2021)[26](index=26&type=chunk) - The Company owns, leases, brands, or manages **53 domestic properties** in 18 states, with primary revenue from gaming operations, including retail and online sports betting and online gaming[27](index=27&type=chunk) - Caesars Digital segment operates retail and online sports wagering in **32 North American jurisdictions** (26 online), and iGaming in five jurisdictions, including the Caesars Sportsbook, Racebook, and Palace/Horseshoe Online Casino apps[28](index=28&type=chunk) - On December 12, 2024, the Company sold the LINQ Promenade for **$275 million**, which was previously part of the Las Vegas segment[30](index=30&type=chunk) - Unaudited financial statements are prepared in accordance with GAAP for interim financial information, not including all information required for complete financial statements[31](index=31&type=chunk) - The Company consolidates subsidiaries where it has a controlling financial interest and Variable Interest Entities (VIEs) where it is the primary beneficiary[33](index=33&type=chunk) - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than quoted prices), and Level 3 (unobservable inputs)[39](index=39&type=chunk) - Advertising costs are expensed as incurred, totaling **$60 million in Q1 2025** and **$64 million in Q1 2024**, primarily within Casino expense for Caesars Digital[41](index=41&type=chunk) | (In millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------ | :-------------------------------- | :-------------------------------- | | Interest expense, net | $574 | $590 | - New accounting pronouncements (ASU 2024-03 and ASU 2023-09) are not expected to have a material impact on the financial statements[43](index=43&type=chunk)[44](index=44&type=chunk) | (In millions) | March 31, 2025 | December 31, 2024 | | :------------ | :------------- | :---------------- | | Total property and equipment, net | $14,666 | $14,812 | | Depreciation expense (3 months ended March 31) | $324 (2025) | $291 (2024) | | (In millions) | March 31, 2025 | December 31, 2024 | | :------------ | :------------- | :---------------- | | Goodwill | $10,601 | $10,601 | | Total amortizing and non-amortizing intangible assets other than Goodwill, net | $4,100 | $4,133 | | Amortization expense (3 months ended March 31) | $33 (2025) | $36 (2024) | - The Company is party to various legal proceedings, with estimated losses accrued when probable and estimable, not material to consolidated financial condition[52](index=52&type=chunk) - Sports sponsorship/partnership obligations totaled **$398 million** as of March 31, 2025, with contracts extending through 2040[54](index=54&type=chunk) - Self-insurance liability for workers compensation, health, and general liability was **$208 million** as of March 31, 2025[55](index=55&type=chunk) | (In millions) | March 31, 2025 | December 31, 2024 | | :------------ | :------------- | :---------------- | | Total debt | $12,167 | $12,154 | | Current portion of long-term debt | $110 | $109 | | Long-term debt | $12,046 | $12,033 | - Annual maturities of long-term debt are estimated at **$84 million for 2025**, **$110 million for 2026**, and **$656 million for 2027**; estimated interest payments are **$580 million for 2025**[59](index=59&type=chunk) - The Company was in compliance with all applicable financial covenants as of March 31, 2025[82](index=82&type=chunk) - The CEI Revolving Credit Facility had **$2.1 billion of available borrowing capacity** as of March 31, 2025[71](index=71&type=chunk) | (In millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------ | :-------------------------------- | :-------------------------------- | | **Net Revenues:** | | | | Las Vegas | $1,003 | $1,028 | | Regional | $1,388 | $1,365 | | Caesars Digital | $335 | $282 | | Managed and Branded | $67 | $68 | | Corporate and Other | $1 | $(1) | | **Adjusted EBITDA:** | | | | Las Vegas | $433 | $440 | | Regional | $440 | $433 | | Caesars Digital | $43 | $5 | | Managed and Branded | $16 | $18 | | Corporate and Other | $(48) | $(43) | - Contract and contract related liabilities (outstanding chip liability, Caesars Rewards, customer deposits) decreased from **$728 million at Jan 1, 2025** to **$606 million at March 31, 2025**[89](index=89&type=chunk) - Hotel lease revenue was **$482 million in Q1 2025**, down from **$493 million in Q1 2024**; real estate lease revenue was **$29 million in Q1 2025**, down from **$35 million in Q1 2024**[90](index=90&type=chunk)[92](index=92&type=chunk) | (In millions, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :---------------------------------- | :-------------------------------- | :-------------------------------- | | Net loss attributable to Caesars | $(115) | $(158) | | Basic loss per share | $(0.54) | $(0.73) | | Diluted loss per share | $(0.54) | $(0.73) | | Weighted average basic shares outstanding | 212 | 216 | - Total stock-based compensation expense was **$26 million in Q1 2025**, up from **$25 million in Q1 2024**[97](index=97&type=chunk) - In Q1 2025, the Company granted **2.2 million RSUs** ($75M fair value), **232 thousand PSUs** ($6M fair value), and **348 thousand MSUs** ($16M fair value)[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) - The Board authorized a **$500 million common stock repurchase program** on October 2, 2024; no repurchases were made in Q1 2025, but approximately **4.2 million shares were repurchased for $100 million in April 2025**[106](index=106&type=chunk) | (In millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------ | :-------------------------------- | :-------------------------------- | | Loss before income taxes | $(87) | $(127) | | Provision for income taxes | $(11) | $(15) | | Effective tax rate | (12.6)% | (11.8)% | - The income tax provision differed from the federal tax rate of 21% primarily due to an increase in federal and state valuation allowances against deferred tax assets for excess business interest expense[113](index=113&type=chunk) - The Company leases land for Eldorado Resort Casino Reno from C. S. & Y. Associates (CSY), a general partnership where the Executive Chairman's family has an interest; annual rent is **$0.6 million**[115](index=115&type=chunk) - The Company holds a **50.0% variable interest** in CVA Holdco, LLC (Caesars Virginia joint venture) and is the primary beneficiary, consolidating its operations; distributions to the partner totaled **$10 million in Q1 2025**[116](index=116&type=chunk) - The Company holds a **50% variable interest** in the Pompano Joint Venture but is not the primary beneficiary, accounting for it using the equity method; distributions from this JV totaled **$23 million in Q1 2025**[117](index=117&type=chunk)[118](index=118&type=chunk) - The Company operates in four reportable segments: Las Vegas, Regional, Caesars Digital, and Managed and Branded, plus Corporate and Other; Adjusted EBITDA is the primary metric used by the CEO (CODM) to assess segment performance and allocate resources[119](index=119&type=chunk)[122](index=122&type=chunk) - Total capital expenditures were **$223 million in Q1 2025**, down from **$264 million in Q1 2024**[132](index=132&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the Company's financial condition and operational results for Q1 2025 vs Q1 2024, covering performance, liquidity, and capital resources [Overview](index=28&type=section&id=Overview) This section provides a general overview of the Company's business, properties, and recent divestitures - Caesars is a diversified gaming and hospitality company with **53 domestic properties** in 18 states, generating primary revenue from gaming operations, including retail and online sports betting and iGaming[140](index=140&type=chunk) - As of March 31, 2025, the Company owned **22 casinos** and leased **24**, including 18 from VICI Properties L.P. and 6 from GLP Capital, L.P.[141](index=141&type=chunk) - Caesars Digital operates retail and online sports wagering in **32 North American jurisdictions** (26 online) and iGaming in five jurisdictions[143](index=143&type=chunk) - Recent divestitures include the World Series of Poker (WSOP) Trademark for **$500 million** (October 2024) and The LINQ Promenade for **$275 million** (December 2024)[147](index=147&type=chunk) [Investments and Partnerships](index=30&type=section&id=Investments%20and%20Partnerships) This section details the Company's joint venture interests and related distributions - The Company has a **50% variable interest** in the Pompano Joint Venture with Cordish Companies, accounted for using the equity method, and received **$23 million in distributions in Q1 2025**[150](index=150&type=chunk)[151](index=151&type=chunk) [Reportable Segments](index=30&type=section&id=Reportable%20Segments) This section outlines the Company's four primary reportable operating segments - Operating segments are aggregated into four reportable segments: Las Vegas, Regional, Caesars Digital, and Managed and Branded, plus Corporate and Other[152](index=152&type=chunk) [Key Performance Metrics](index=30&type=section&id=Key%20Performance%20Metrics) This section identifies the key metrics used to evaluate the Company's operational and financial performance - Key performance metrics include volume indicators (drop/handle), win/hold percentages (slot win **9-11%**, table games hold **16-23%**, sports betting hold **7-11%**, iGaming hold **3-5%**), and hotel occupancy[156](index=156&type=chunk) - Adjusted EBITDA and Adjusted EBITDA margin are key metrics for profitability and performance[156](index=156&type=chunk) [Significant Factors Impacting Financial Results](index=31&type=section&id=Significant%20Factors%20Impactin%20Financial%20Results) This section discusses economic and financial factors influencing the Company's financial outcomes - Economic factors impacting discretionary spending (inflation, interest rates, global hostilities) influence customer behavior[158](index=158&type=chunk) - Debt transactions, including a **$4.4 billion refinancing in Q1 2024**, resulted in a **$48 million loss on extinguishment of debt**[158](index=158&type=chunk) [Consolidated Financial Performance](index=32&type=section&id=Consolidated%20Financial%20Performance) This section analyzes the Company's overall financial results, including revenues, net loss, and Adjusted EBITDA | (Dollars in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Variance | Percent Change | | :-------------------- | :-------------------------------- | :-------------------------------- | :------- | :------------- | | Net revenues | $2,794 | $2,742 | $52 | 1.9% | | Net loss | $(98) | $(142) | $44 | 31.0% | | Adjusted EBITDA | $884 | $853 | $31 | 3.6% | | Net loss margin | (3.5)% | (5.2)% | 1.7 pts | | | Adjusted EBITDA margin | 31.6% | 31.1% | 0.5 pts | | - Consolidated net revenues increased due to significant iGaming handle and improved iGaming/sports betting hold in Caesars Digital, and increased revenues in Regional segment from new development projects[159](index=159&type=chunk) - Operating expenses increased by **2.2% to $2,306 million**, primarily due to increased food & beverage and hotel expenses from new facility openings and higher wages, partially offset by decreased promotional costs in Las Vegas[160](index=160&type=chunk)[161](index=161&type=chunk) - Depreciation and amortization increased by **9.2% to $357 million** due to recently completed construction projects[164](index=164&type=chunk) - Interest expense, net, decreased by **2.7% to $574 million** due to debt reduction and refinancing efforts[167](index=167&type=chunk) [Segment Performance Analysis](index=34&type=section&id=Segment%20Performance%20Analysis) This section provides a detailed analysis of the financial performance for each of the Company's reportable segments - Las Vegas Segment: Net revenues decreased by **2.4% to $1,003 million**, and Adjusted EBITDA decreased by **1.6% to $433 million**, primarily due to lower hotel occupancy and room rates compared to Q1 2024 (Super Bowl impact); Adjusted EBITDA margin improved by **0.4 pts to 43.2%** due to efficiency focus[170](index=170&type=chunk) - Regional Segment: Net revenues increased by **1.7% to $1,388 million**, and Adjusted EBITDA improved by **1.6% to $440 million**, driven by positive results from Caesars Virginia and Caesars New Orleans development projects; Net income declined due to increased depreciation expense from completed construction projects[173](index=173&type=chunk) - Caesars Digital Segment: Net revenues increased by **18.8% to $335 million**, and Adjusted EBITDA significantly improved to **$43 million** (from $5 million), primarily due to higher iGaming handle (up **28.3% to $4,488M**) and improved iGaming (up **0.3 pts to 3.6%**) and sports betting hold (up **0.6 pts to 7.3%**); Adjusted EBITDA margin increased by **11 pts to 12.8%**[175](index=175&type=chunk)[176](index=176&type=chunk) - Managed and Branded Segment: Net revenues decreased by **1.5% to $67 million**, and Adjusted EBITDA decreased by **11.1% to $16 million**[179](index=179&type=chunk) [Adjusted EBITDA Reconciliation](index=36&type=section&id=Adjusted%20EBITDA%20Reconciliation) This section defines Adjusted EBITDA and reconciles it to the Company's net loss - Adjusted EBITDA is a non-GAAP measure defined as net income (loss) before interest, taxes, depreciation, amortization, stock-based compensation, debt extinguishment loss, impairment, other income/loss, noncontrolling interests, transaction costs, and non-cash equity method changes[182](index=182&type=chunk) | (In millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------ | :-------------------------------- | :-------------------------------- | | Net loss attributable to Caesars | $(115) | $(158) | | Adjusted EBITDA | $884 | $853 | [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the Company's cash position, available liquidity, and future funding requirements - As of March 31, 2025, cash and cash equivalents were **$884 million**, with total available liquidity (including revolver capacity) of **$2,994 million**[187](index=187&type=chunk) - Operating activities generated **$218 million in cash inflows in Q1 2025**, up from **$80 million in Q1 2024**[187](index=187&type=chunk) - Estimated debt service (principal and interest) for the remainder of 2025 is **$664 million**, and lease payments to VICI and GLPI are approximately **$1.0 billion**[190](index=190&type=chunk) - Capital expenditures totaled **$223 million in Q1 2025**, with an estimated range of **$445 million to $570 million** for the remainder of 2025[192](index=192&type=chunk)[193](index=193&type=chunk) - The Company expects current liquidity to be sufficient to fund operations, capital requirements, and debt service for the next twelve months and beyond[197](index=197&type=chunk) [Debt and Master Lease Covenant Compliance](index=39&type=section&id=Debt%20and%20Master%20Lease%20Covenant%20Compliance) This section confirms the Company's adherence to financial covenants under its debt agreements and master leases - The Company was in compliance with all applicable financial covenants under its debt agreements and master leases as of March 31, 2025[202](index=202&type=chunk) - Key covenants include a maximum net total leverage ratio of **6.50:1** and a minimum fixed charge coverage ratio of **2.0:1** for CEI Revolving Credit Facility and Term Loan A[199](index=199&type=chunk) - GLPI Leases require a minimum adjusted revenue to rent ratio of **1.20:1**[200](index=200&type=chunk) [Share Repurchase Program](index=39&type=section&id=Share%20Repurchase%20Program) This section provides an update on the Company's common stock repurchase program - The **$500 million common stock repurchase program** authorized in Oct 2024 had **$450 million remaining** as of March 31, 2025[203](index=203&type=chunk) - No repurchases were made in Q1 2025, but **$100 million worth of shares** were repurchased in April 2025[203](index=203&type=chunk) [Critical Accounting Policies and Estimates](index=39&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section confirms no material changes to critical accounting policies and estimates since the prior fiscal year-end - No material changes to critical accounting policies and estimates since December 31, 2024[206](index=206&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the Company's exposure to market risks, primarily interest rate fluctuations on variable-rate debt, with no material changes reported - The Company is exposed to interest rate risk from variable rate long-term debt[208](index=208&type=chunk) - As of March 31, 2025, variable-rate borrowings totaled **$5.9 billion** (**48% of consolidated long-term debt**), with weighted average interest rates of **6.56% for variable** and **6.34% for fixed rate debt**[209](index=209&type=chunk) - No material quantitative changes in market risk exposure or management from prior reports[211](index=211&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and reports no significant changes in internal controls over financial reporting [Evaluation of Disclosure Controls and Procedures](index=40&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section states the CEO and CFO's conclusion on the effectiveness of disclosure controls and procedures - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025[213](index=213&type=chunk) [Changes in Internal Controls](index=40&type=section&id=Changes%20in%20Internal%20Controls) This section reports on any material changes in the Company's internal controls over financial reporting - No significant changes in internal control over financial reporting during Q1 2025[214](index=214&type=chunk) [PART II. OTHER INFORMATION](index=41&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 5 of the financial statements for details on the Company's legal proceedings - Refer to Note 5 of the Consolidated Condensed Financial Statements for discussion of legal proceedings[217](index=217&type=chunk) [Cautionary Statements Regarding Forward-Looking Information](index=41&type=section&id=Cautionary%20Statements%20Regarding%20Forward-Looking%20Information) This section warns that the report contains forward-looking statements subject to significant risks and uncertainties, advising against undue reliance - The report contains forward-looking statements subject to known and unknown risks and uncertainties, many beyond the Company's control[219](index=219&type=chunk) - Key risks include sensitivity to consumer spending, economic trends, debt covenant compliance, capital availability, regulatory impact, cybersecurity, competition, and reliance on key personnel[221](index=221&type=chunk) - The Company does not intend to publicly update forward-looking statements except as required by law[222](index=222&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) This section confirms no material changes to the Company's risk factors during Q1 2025 from those in the 2024 Annual Report - No material changes to risk factors during Q1 2025 from those disclosed in the 2024 Annual Report[226](index=226&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section updates on the common stock repurchase program, noting no Q1 2025 repurchases but $100 million in April 2025 - The **$500 million common stock repurchase program** authorized in Oct 2024 had **$450 million remaining** as of March 31, 2025[227](index=227&type=chunk) - No repurchases were made in Q1 2025, but **$100 million worth of shares** were repurchased in April 2025[227](index=227&type=chunk) [Item 3. Defaults Upon Senior Securities](index=43&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section confirms that there were no defaults upon senior securities during the reporting period - None[228](index=228&type=chunk) [Item 4. Mine Safety Disclosures](index=43&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to the Company's operations - Not applicable[229](index=229&type=chunk) [Item 5. Other Information](index=43&type=section&id=Item%205.%20Other%20Information) This section confirms no other material information or Rule 10b5-1 trading arrangement changes in Q1 2025 - No other information to report under this item[230](index=230&type=chunk) - No directors or officers adopted, modified, or terminated Rule 10b5-1 trading arrangements in Q1 2025[231](index=231&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including corporate documents and certifications - Lists various exhibits filed with the report, including corporate documents, certifications, and XBRL documents[233](index=233&type=chunk) [Signatures](index=45&type=section&id=Signatures) This section contains the official signatures of the CEO and CFO, certifying the report filing on April 29, 2025 - The report was signed by Thomas R. Reeg (CEO) and Bret Yunker (CFO) on April 29, 2025[237](index=237&type=chunk)