Core Insights - Caesars Entertainment reported Q2 2025 GAAP revenue of $2.9 billion, exceeding analyst forecasts by approximately $41 million, but posted a GAAP net loss of $82 million, translating to a loss per share of $(0.39) [1][2] - The results indicate strong performance in the digital segment, while core casino operations continue to face margin and profit pressures [1][5] Financial Performance - Q2 2025 EPS (GAAP) was $(0.39), compared to an estimate of $0.05 and a loss of $(0.56) in Q2 2024, reflecting a year-over-year improvement of 30.4% [2] - GAAP revenue increased by 3.6% year-over-year from $2.8 billion in Q2 2024 [2] - Adjusted EBITDA for the quarter was $955 million, down 4.1% from $996 million in Q2 2024 [2] - The digital segment achieved adjusted EBITDA of $80 million, doubling the previous year's result [2][5] Segment Performance - The digital segment generated net revenue of $343 million, a 24.3% increase year-over-year, with management attributing this growth to cost controls and product launches [5] - Las Vegas operations saw a 3.7% decline in net revenue year-over-year, with adjusted EBITDA down 8.0% [6] - Regional properties outside Las Vegas reported GAAP net revenue of $1.435 billion, a 3.6% increase, but adjusted EBITDA dropped 6.4% [7] Strategic Focus - Caesars is investing heavily in digital platforms, new casino developments, and technology upgrades to enhance competitiveness [4] - The company is expanding its digital gaming offerings and nurturing strategic partnerships with sports leagues [4] - Product innovation, including new branded slot titles and omni-channel loyalty integration via Caesars Rewards, is a key focus to adapt to changing consumer behavior [4][11] Capital Allocation and Debt Management - The company is prioritizing debt reduction, having redeemed $546 million in higher-cost notes, which is expected to lower annual interest expenses by $44 million [8] - Caesars' cash balance increased to $982 million, with total net debt standing at $11.3 billion [8] Digital Segment Growth - The Caesars Digital segment includes online sports betting and iGaming, with iGaming revenue growing by 53% year-over-year due to exclusive in-house games and improved customer relationship management [10] - The company continues to synchronize new slot titles across physical and online platforms to enhance customer engagement [11] Outlook - Management did not provide specific financial guidance for the upcoming quarter but emphasized a focus on using free cash flow for debt paydown and selective share repurchases [12]

Core Viewpoint - Caesars Entertainment, Inc. (CZR) reported second-quarter 2025 results with earnings missing estimates while revenues exceeded expectations, showing a year-over-year increase in top line but a decline in bottom line [1][3]. Financial Performance - The company recorded an adjusted loss per share of 39 cents, missing the Zacks Consensus Estimate of earnings of 7 cents, compared to an adjusted break-even in the prior-year quarter [3][8]. - Net revenues reached $2.9 billion, surpassing the consensus mark of $2.88 billion by 1.1% and increasing 2.7% year over year [3]. Segment Performance - **Las Vegas Segment**: Net revenues were $1.05 billion, down 4.3% from $1.10 billion in the prior-year quarter, with adjusted EBITDA decreasing to $469 million from $514 million [4]. - **Regional Segment**: Quarterly net revenues increased to $1.44 billion, up 3.6% year over year from $1.39 billion, while adjusted EBITDA fell to $439 million from $469 million [4]. - **Caesars Digital**: This segment saw net revenues rise 24.3% to $343 million from $276 million, with adjusted EBITDA increasing to $80 million from $40 million [5]. - **Managed and Branded Segment**: Net revenues were $74 million, up 5.7% year over year from $68 million, with adjusted EBITDA remaining flat at $17 million [5]. - **Corporate and Other**: Net revenues were $1 million compared to negative $2 million a year ago, with adjusted EBITDA at negative $50 million, worsening from negative $40 million in the prior-year quarter [6]. Balance Sheet - As of June 30, 2025, cash and cash equivalents stood at $982 million, an increase from $866 million as of December 31, 2024 [7]. - Net debt decreased slightly to $11.29 billion from $11.43 billion as of December 31, 2024 [7].

Core Insights - Caesars Entertainment reported revenue of $2.91 billion for the quarter ended June 2025, reflecting a 2.7% increase year-over-year and surpassing the Zacks Consensus Estimate of $2.88 billion by 1.1% [1] - The company experienced an EPS of -$0.39, a significant decline from $0 in the same quarter last year, resulting in an EPS surprise of -657.14% against the consensus estimate of $0.07 [1] Revenue Performance - Las Vegas net revenues were $1.05 billion, falling short of the estimated $1.07 billion, marking a year-over-year decrease of 4.3% [4] - Regional net revenues reached $1.44 billion, exceeding the average estimate of $1.4 billion, with a year-over-year increase of 3.6% [4] - Caesars Digital net revenues were reported at $343 million, surpassing the estimated $329.84 million, showing a substantial year-over-year growth of 24.3% [4] - Managed and Branded net revenues were $74 million, slightly above the estimated $69.88 million, reflecting a 5.7% increase year-over-year [4] - Corporate and Other net revenues were $1 million, compared to an estimated -$0.33 million, indicating a drastic year-over-year change of -150% [4] - Hotel net revenues were $509 million, slightly below the estimated $513.18 million, with a year-over-year decline of 1% [4] Adjusted EBITDA Analysis - Adjusted EBITDA for Las Vegas was $469 million, below the average estimate of $482.18 million [4] - Adjusted EBITDA for Regional operations was $439 million, also below the average estimate of $460.54 million [4] - Corporate and Other adjusted EBITDA was reported at -$50 million, closely aligning with the average estimate of -$50.48 million [4] - Caesars Digital adjusted EBITDA reached $80 million, significantly higher than the estimated $56.27 million [4] - Managed and Branded adjusted EBITDA was $17 million, slightly below the average estimate of $17.72 million [4] Stock Performance - Caesars Entertainment shares have returned +3.6% over the past month, matching the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance compared to the broader market in the near term [3]

分组1 - Caesars Entertainment reported a quarterly loss of $0.39 per share, significantly worse than the Zacks Consensus Estimate of $0.07, marking an earnings surprise of -657.14% [1] - The company posted revenues of $2.91 billion for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 1.10% and showing an increase from $2.83 billion year-over-year [2] - Over the last four quarters, Caesars has surpassed consensus EPS estimates only once, indicating challenges in meeting earnings expectations [2] 分组2 - The stock has underperformed, losing about 12% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $2.9 billion, and for the current fiscal year, it is -$0.03 on revenues of $11.49 billion [7] - The Leisure and Recreation Services industry, to which Caesars belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, suggesting a challenging environment for the stock [8]

Financial Data and Key Metrics Changes - The company reported consolidated net revenues of $2.9 billion and adjusted EBITDAR of $955 million for Q2 2025 [6][4] - The digital segment achieved its best quarter ever with adjusted EBITDA of $80 million, a 100% increase year over year [12][6] - Las Vegas segment reported same store adjusted EBITDAR of $469 million, with occupancy at 97% compared to 99% last year [7][6] - Regional segment reported adjusted EBITDAR of $439 million, impacted by one-time items [8][6] Business Line Data and Key Metrics Changes - Digital segment net revenues increased by 24% year over year to $343 million, with adjusted EBITDA margins growing to 23.3% [12][6] - The Las Vegas segment faced challenges with lower table games volume and hold, but is on track for a record EBITDA year in 2025 [8][6] - Regional revenues were up year over year, driven by new properties and strategic reinvestment in the Caesars Rewards database [7][6] Market Data and Key Metrics Changes - The Las Vegas market experienced softer demand, particularly in May and June, but bookings have stabilized recently [20][19] - The regional segment was negatively impacted by approximately $30 million in one-time items, including construction disruptions [22][21] - Digital growth was driven by a significant increase in sports and casino revenues, with net revenues up 2851% year over year [12][6] Company Strategy and Development Direction - The company is focused on refining its marketing approach and leveraging its customer database to drive profitable revenues [43][45] - Investments in new slot capital and property renovations are expected to generate strong returns [8][10] - The company aims to achieve over $500 million in EBITDA from digital by 2026, with ongoing improvements in customer acquisition tools [60][59] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fourth quarter and 2026, citing a strong group calendar and expected recovery in Las Vegas [20][36] - The company anticipates that regional EBITDA will be flat to up for the full year, despite recent challenges [22][21] - Management noted that the digital segment's momentum is strong, with expectations for continued growth [60][59] Other Important Information - The company has made significant investments in its properties, including room remodels and partnerships to enhance guest experiences [66][65] - The tax bill is expected to reduce cash taxes significantly, which will help offset any shortfalls in EBITDA from Las Vegas [30][29] Q&A Session Summary Question: Can you unpack the stabilization seen in Las Vegas? - Management noted that forward cash room expectations stabilized in July after a decline in May and June, projecting a record group year in 2025 [34][35] Question: What are the specifics of the promotional efforts? - The company is leveraging its database for targeted marketing and filling rooms in Las Vegas, adapting offers based on performance [43][45] Question: How is the company addressing the softness in leisure demand in Las Vegas? - Management indicated that the softness is part of normal seasonality and expects improvement as group bookings increase [53][52] Question: What is the outlook for digital growth? - The company is on track to exceed the $500 million EBITDA target for digital, with strong momentum and customer acquisition strategies in place [60][59] Question: Are there plans for further investments in Vegas properties? - Management confirmed ongoing room remodels and partnerships to enhance property offerings, but noted that most major capital investments have already been made [66][65]

Financial Data and Key Metrics Changes - The company reported consolidated net revenues of $2.9 billion and adjusted EBITDAR of $955 million for Q2 2025 [4] - Adjusted EBITDA for the digital segment reached $80 million, marking a 100% increase year over year [9] - Same store adjusted EBITDAR for the Las Vegas segment was $469 million, with occupancy at 97% compared to 99% last year [4][5] Business Line Data and Key Metrics Changes - The digital segment achieved net revenues of $343 million, up 24% year over year, and set an all-time quarterly adjusted EBITDA record [9] - The Las Vegas segment faced softer market demand, with a noted decline in table games volume and hold [5][15] - The regional segment reported adjusted EBITDAR of $439 million, impacted by one-time items, but showed promise for flat year-over-year adjusted EBITDA excluding these items [6][19] Market Data and Key Metrics Changes - The Las Vegas market experienced a decline in leisure demand, particularly in May and June, but bookings stabilized in July [15][32] - The regional segment's gaming revenues increased due to strategic reinvestments in the Caesars Rewards database [6][20] - Digital growth was driven by a significant increase in sports and casino revenues, with net revenues up 2851% year over year in these areas [9] Company Strategy and Development Direction - The company is focused on refining its marketing approach and leveraging its customer database to drive profitable revenues [40][42] - Investments in new slot capital and property enhancements are expected to yield strong returns [5][6] - The company aims to achieve over $500 million in adjusted EBITDA from its digital segment by 2026, with ongoing growth anticipated beyond that target [23][57] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fourth quarter and 2026, citing a strong group calendar and expected recovery in Las Vegas [28][34] - The company acknowledged the impact of one-time events on regional performance but remains confident in overall growth for the year [19][22] - Management noted that the digital segment's momentum is strong, with expectations for continued growth in handle and EBITDA [24][57] Other Important Information - The company has made significant capital investments in properties, with no immediate plans for a large capital cycle but will continue to enhance existing assets [98] - The company is actively pursuing asset-light opportunities that could generate incremental EBITDA [87][89] Q&A Session Summary Question: Can you unpack the stabilization seen in Las Vegas? - Management noted that forward cash room expectations stabilized in July after a decline in May and June, projecting a record group year in 2025 [32][34] Question: What are the promotional strategies being implemented? - The company is leveraging its marketing and analytics teams to target profitable revenue opportunities and fill rooms in Las Vegas [40][42] Question: How is the company addressing operational expenses and labor costs? - Management indicated that expenses remained flat despite increased labor costs due to union contract increases [69] Question: What is the outlook for the digital segment? - The digital segment is expected to exceed the previously set target of $500 million in EBITDA, with strong growth anticipated in the coming years [57][58] Question: Are there plans for further investments in Las Vegas properties? - The company has ongoing room remodels and partnerships that will enhance its properties, but no significant new capital cycle is expected [62][98]

Company Performance & Financials - Caesars Entertainment's Q2 2025 net revenues increased by 29% year-over-year[63] - The company's Q2 2025 Adjusted EBITDA was $955 million, a 41% decrease year-over-year[63] - The Adjusted EBITDA margin for Q2 2025 was 329%[63] - The company's master lease rent is $1350 million[51] - Full year interest expense is $775 million[51] Caesars Digital - Caesars Digital's trailing twelve months net revenue is $13 billion[18] - Caesars Digital's trailing twelve months Adjusted EBITDA is $195 million[18] - Caesars Digital's Q2 2025 net revenues increased by 24% year-over-year[69] - iGaming net gaming revenue increased by 51% year-over-year in Q2 2025, reaching $124 million[71] Capital Investments - Approximately $860 million of capital investment brought online post-closing of the Eldorado & Caesars merger in July 2020 in Las Vegas[31] - Approximately $29 billion of capital spend since closing of the Eldorado & Caesars merger in July 2020 in Regional Properties[38]

PART I. FINANCIAL INFORMATION [Item 1. Unaudited Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Q2 2025, detailing balance sheets, operations, comprehensive income, equity, and cash flows [Consolidated Condensed Balance Sheets](index=4&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) Balance sheets show slight decreases in total assets and equity, with increased liabilities and current assets driven by cash Consolidated Condensed Balance Sheets (In millions) | (In millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $982 | $866 | | Total current assets | $1,928 | $1,747 | | Property and equipment, net | $14,646 | $14,812 | | Total assets | $32,478 | $32,590 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total current liabilities | $2,339 | $2,272 | | Total liabilities | $28,359 | $28,214 | | Total stockholders' equity | $4,119 | $4,376 | [Consolidated Condensed Statements of Operations](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) The company reported a net loss for both the three and six months ended June 30, 2025, which decreased compared to the prior year periods Consolidated Condensed Statements of Operations (In millions, except per share data) | (In millions, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net revenues | $2,907 | $2,830 | $5,701 | $5,572 | | Operating income | $526 | $506 | $1,014 | $991 | | Net loss | $(65) | $(102) | $(163) | $(244) | | Net loss attributable to Caesars | $(82) | $(122) | $(197) | $(280) | | Basic loss per share | $(0.39) | $(0.56) | $(0.93) | $(1.29) | - Net loss attributable to Caesars decreased by **$40 million** for the three months ended June 30, 2025, and by **$83 million** for the six months ended June 30, 2025, compared to the same periods in 2024[12](index=12&type=chunk) [Consolidated Condensed Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Comprehensive%20Income%20(Loss)) The company reported a comprehensive loss for both the three and six months ended June 30, 2025, which improved compared to the prior year Consolidated Condensed Statements of Comprehensive Income (Loss) (In millions) | (In millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(65) | $(102) | $(163) | $(244) | | Other comprehensive income (loss), net of tax | $2 | $— | $2 | $(1) | | Comprehensive loss | $(63) | $(102) | $(161) | $(245) | | Comprehensive loss attributable to Caesars | $(80) | $(122) | $(195) | $(281) | [Consolidated Condensed Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity decreased from December 31, 2024, to June 30, 2025, influenced by net losses, share repurchases, and noncontrolling interest transactions Consolidated Condensed Statements of Stockholders' Equity (In millions) | (In millions) | Balance, December 31, 2024 | Balance, June 30, 2025 | | :--- | :--- | :--- | | Total Stockholders' Equity | $4,376 | $4,119 | | Stock-based compensation (6 months ended June 30, 2025) | N/A | $50 | | Net income (loss) (6 months ended June 30, 2025) | N/A | $(197) | | Repurchase of common stock (6 months ended June 30, 2025) | N/A | $(100) | [Consolidated Condensed Statements of Cash Flows](index=9&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities increased for the six months ended June 30, 2025, while cash used in investing activities decreased and financing activities increased Consolidated Condensed Statements of Cash Flows (In millions) | (In millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $680 | $534 | | Net cash used in investing activities | $(434) | $(592) | | Net cash used in financing activities | $(176) | $(126) | | Increase (decrease) in cash, cash equivalents and restricted cash | $70 | $(184) | | Cash, cash equivalents and restricted cash, end of period | $1,086 | $959 | [Notes to Consolidated Condensed Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) These notes detail accounting policies, financial line items, and significant events, including business description, divestitures, debt, revenue, and related party transactions [Note 1. Organization and Description of Business](index=11&type=section&id=Note%201.%20Organization%20and%20Description%20of%20Business) Caesars Entertainment, Inc. is a diversified gaming and hospitality company operating 53 domestic properties, with primary revenue from gaming operations and recent divestitures - Caesars Entertainment, Inc. operates **53 domestic properties** in 18 states, with approximately **51,900 slot machines**, **2,800 table games**, and **45,900 hotel rooms** as of June 30, 2025[26](index=26&type=chunk) - The company's primary revenue source is gaming operations, including casino properties, retail and online sports betting, and online gaming[26](index=26&type=chunk) - Caesars Digital operates retail and online sports wagering in **33 jurisdictions** and iGaming in **five jurisdictions** in North America as of June 30, 2025[27](index=27&type=chunk) Recent Divestitures: | Asset | Date Sold | Sales Price | | :--- | :--- | :--- | | LINQ Promenade | December 12, 2024 | $275 million | | World Series of Poker (WSOP) trademark | October 29, 2024 | $500 million | [Note 2. Basis of Presentation and Significant Accounting Policies](index=12&type=section&id=Note%202.%20Basis%20of%20Presentation%20and%20Significant%20Accounting%20Policies) Unaudited financial statements are prepared under GAAP, with key policies including consolidation, fair value measurements, and expensing advertising costs, with no material impact expected from new ASUs - Advertising costs for the three months ended June 30, 2025 and 2024 were **$49 million** and **$48 million**, respectively, and for the six months ended June 30, 2025 and 2024 totaled **$109 million** and **$112 million**, respectively[42](index=42&type=chunk) Interest Expense, Net (In millions): | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended June 30, | $579 | $594 | | Six Months Ended June 30, | $1,153 | $1,184 | - The company does not expect ASU 2024-03 (Expense Disaggregation Disclosures) and ASU 2023-09 (Income Tax Disclosures) to have a material impact on its Financial Statements[44](index=44&type=chunk)[45](index=45&type=chunk) [Note 3. Property and Equipment](index=14&type=section&id=Note%203.%20Property%20and%20Equipment) Net property and equipment slightly decreased from December 31, 2024, to June 30, 2025, primarily due to accumulated depreciation, while depreciation expense increased Property and Equipment, Net (In millions): | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total property and equipment, net | $14,646 | $14,812 | Depreciation Expense (In millions): | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended June 30, | $331 | $293 | | Six Months Ended June 30, | $655 | $584 | [Note 4. Goodwill and Intangible Assets, net](index=14&type=section&id=Note%204.%20Goodwill%20and%20Intangible%20Assets,%20net) Goodwill remained stable, amortizing intangible assets decreased, and no impairment charges were recognized in the current period, a significant improvement from the prior year Goodwill and Intangible Assets (In millions): | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Goodwill | $10,601 | $10,601 | | Amortizing Intangible Assets | $791 | $856 | | Non-Amortizing Intangible Assets (other than Goodwill) | $3,277 | $3,277 | | Total amortizing and non-amortizing intangible assets other than Goodwill, net | $4,068 | $4,133 | - No impairment charges were recognized during the three and six months ended June 30, 2025, contrasting with **$118 million** in impairment charges recognized in the Regional segment during the same periods in 2024[50](index=50&type=chunk) Amortization Expense (In millions): | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended June 30, | $33 | $33 | | Six Months Ended June 30, | $66 | $69 | [Note 5. Litigation, Commitments and Contingencies](index=15&type=section&id=Note%205.%20Litigation,%20Commitments%20and%20Contingencies) The company is involved in legal proceedings, has **$372 million** in sports sponsorship obligations, and an estimated self-insurance liability of **$214 million** as of June 30, 2025 - The current liability for estimated losses associated with legal proceedings is not material to the consolidated financial condition[56](index=56&type=chunk) - Sports sponsorship/partnership obligations totaled **$372 million** as of June 30, 2025, with contracts extending through 2040[57](index=57&type=chunk) Self-Insurance Liability (In millions): | Date | Amount | | :--- | :--- | | June 30, 2025 | $214 | | December 31, 2024 | $204 | [Note 6. Long-Term Debt](index=16&type=section&id=Note%206.%20Long-Term%20Debt) Total long-term debt remained stable, with a significant redemption of **$546 million** CEI Senior Notes in July 2025, and the company was in compliance with all financial covenants Long-Term Debt (In millions): | Category | June 30, 2025 Book Value | December 31, 2024 Book Value | | :--- | :--- | :--- | | Secured Debt | $8,207 | $8,208 | | Unsecured Debt | $3,859 | $3,860 | | Total debt | $12,143 | $12,154 | | Long-term debt (net of current portion and deferred finance charges) | $12,023 | $12,033 | Annual Estimated Debt Service Requirements as of June 30, 2025 (In millions): | Year | Annual maturities of long-term debt | Estimated interest payments | | :--- | :--- | :--- | | Remaining 2025 | $54 | $400 | | 2026 | $110 | $740 | | 2027 | $656 | $720 | | Total | $12,272 | $3,860 | - On July 8, 2025, the company fully redeemed **$546 million** of CEI Senior Notes due 2027, using borrowings from the CEI Revolving Credit Facility and **$225 million** from the WSOP trademark sale notes receivable[79](index=79&type=chunk) - As of June 30, 2025, the company was in compliance with all applicable financial covenants, including the maximum net total leverage ratio and minimum fixed charge coverage ratio[84](index=84&type=chunk) [Note 7. Revenue Recognition](index=19&type=section&id=Note%207.%20Revenue%20Recognition) Net revenues are disaggregated by type and segment, with casino revenue as the largest component, and contract liabilities primarily expected to be recognized within one year Net Revenues by Segment (Three Months Ended June 30, In millions): | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Las Vegas | $1,054 | $1,101 | | Regional | $1,435 | $1,385 | | Caesars Digital | $343 | $276 | | Managed and Branded | $74 | $70 | | Corporate and Other | $1 | $(2) | | Total Net Revenues | $2,907 | $2,830 | Net Revenues by Type (Three Months Ended June 30, In millions): | Type | 2025 | 2024 | | :--- | :--- | :--- | | Casino | $1,668 | $1,557 | | Food and beverage | $428 | $435 | | Hotel | $509 | $514 | | Other | $302 | $324 | Contract and Contract Related Liabilities (In millions): | Category | Balance at June 30, 2025 | Balance at January 1, 2025 | | :--- | :--- | :--- | | Outstanding Chip Liability | $39 | $47 | | Caesars Rewards | $86 | $79 | | Customer Deposits and Other Deferred Revenue | $586 | $549 | [Note 8. Earnings per Share](index=22&type=section&id=Note%208.%20Earnings%20per%20Share) The company reported basic and diluted net loss per share of $(0.39) and $(0.93) for the three and six months ended June 30, 2025, respectively, showing improvement from prior year periods Net Loss Per Share (Basic and Diluted): | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended June 30, | $(0.39) | $(0.56) | | Six Months Ended June 30, | $(0.93) | $(1.29) | Weighted Average Shares Outstanding (In millions): | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended June 30, | 209 | 216 | | Six Months Ended June 30, | 210 | 216 | [Note 9. Stock-Based Compensation and Stockholders' Equity](index=23&type=section&id=Note%209.%20Stock-Based%20Compensation%20and%20Stockholders'%20Equity) Total stock-based compensation expense was **$50 million** for the six months ended June 30, 2025, with **2.2 million RSUs** granted and **$100 million** in common stock repurchases under a **$500 million** program Stock-Based Compensation Expense (In millions): | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended June 30, | $24 | $24 | | Six Months Ended June 30, | $50 | $49 | - During the six months ended June 30, 2025, the company granted **2.2 million RSUs**, **232 thousand PSUs**, and **348 thousand MSUs**[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) - The 2024 Share Repurchase Program authorized **$500 million** for common stock repurchases, with **4,188,466 shares** acquired for **$100 million** in April 2025, leaving **$350 million** authorized as of June 30, 2025[109](index=109&type=chunk) [Note 10. Income Taxes](index=24&type=section&id=Note%2010.%20Income%20Taxes) Income taxes were calculated using a discrete effective tax rate, primarily impacted by valuation allowances against deferred tax assets, with a new tax policy expected to have a favorable impact Income Tax Allocation (In millions): | Period | Loss before income taxes (2025) | Provision for income taxes (2025) | Effective tax rate (2025) | | :--- | :--- | :--- | :--- | | Three Months Ended June 30, | $(52) | $(13) | (25.0)% | | Six Months Ended June 30, | $(139) | $(24) | (17.3)% | - 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[115](index=115&type=chunk) - A new tax policy enacted on July 4, 2025, is expected to have a favorable impact on tax expense during the remainder of 2025, primarily related to changes in the business interest expense limitation[110](index=110&type=chunk) [Note 11. Related Party and Affiliate Transactions](index=25&type=section&id=Note%2011.%20Related%20Party%20and%20Affiliate%20Transactions) The company engages in related party transactions, including a lease with CSY, consolidation of the Caesars Virginia joint venture, and equity method accounting for the Pompano Joint Venture - The company leases approximately **30,000 square feet** from C. S. & Y. Associates (CSY) for Eldorado Resort Casino Reno, with annual rent of **$0.6 million**, expiring June 30, 2057[117](index=117&type=chunk) - CVA Holdco, LLC, a joint venture for Caesars Virginia, is consolidated as the company is the primary beneficiary, holding a **50.0%** variable interest[118](index=118&type=chunk) - The Pompano Joint Venture with Cordish Companies is accounted for using the equity method, with the company's investment at **$97 million** as of June 30, 2025[119](index=119&type=chunk)[120](index=120&type=chunk) [Note 12. Segment Information](index=27&type=section&id=Note%2012.%20Segment%20Information) The company operates in four reportable segments, with performance assessed by Adjusted EBITDA, showing significant growth in Caesars Digital and slight declines in Las Vegas and Regional segments - The company's principal operating activities occur in four reportable segments: Las Vegas, Regional, Caesars Digital, and Managed and Branded, in addition to Corporate and Other[121](index=121&type=chunk) - Adjusted EBITDA is the key metric used by the Chief Operating Decision Maker (CEO) to assess segment performance and allocate resources[123](index=123&type=chunk)[124](index=124&type=chunk) Adjusted EBITDA by Segment (Three Months Ended June 30, In millions): | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Las Vegas | $469 | $514 | | Regional | $439 | $469 | | Caesars Digital | $80 | $40 | | Managed and Branded | $17 | $17 | | Corporate and Other | $(50) | $(40) | | Total Adjusted EBITDA | $955 | $1,000 | Net Revenues by Segment (Six Months Ended June 30, In millions): | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Las Vegas | $2,057 | $2,129 | | Regional | $2,823 | $2,750 | | Caesars Digital | $678 | $558 | | Managed and Branded | $141 | $138 | | Corporate and Other | $2 | $(3) | | Total Net Revenues | $5,701 | $5,572 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and operating results for Q2 2025, covering business overview, performance metrics, and liquidity [Overview](index=32&type=section&id=Overview) Caesars Entertainment, Inc. is a diversified gaming and hospitality company with **53 domestic properties**, expanding its Caesars Digital footprint and recently divesting the WSOP trademark and The LINQ Promenade - The company owns, leases, or manages **53 domestic properties** in 18 states, with approximately **51,900 slot machines**, **2,800 table games**, and **45,900 hotel rooms** as of June 30, 2025[142](index=142&type=chunk) - Caesars Digital operates retail and online sports wagering in **33 jurisdictions** and iGaming in **five jurisdictions** in North America[145](index=145&type=chunk) Recent Divestitures: | Segment | Property/Assets | Date Sold | Sales Price | | :--- | :--- | :--- | :--- | | Caesars Digital | World Series of Poker ("WSOP") Trademark | October 29, 2024 | $500 million | | Las Vegas | The LINQ Promenade | December 12, 2024 | $275 million | [Investments and Partnerships](index=34&type=section&id=Investments%20and%20Partnerships) The company holds a **50%** variable interest in the Pompano Joint Venture, accounted for using the equity method, with an investment of **$97 million** as of June 30, 2025 - The company has a **50%** variable interest in the Pompano Joint Venture, accounted for using the equity method[151](index=151&type=chunk) Investment in Pompano Joint Venture (In millions): | Date | Investment Amount | | :--- | :--- | | June 30, 2025 | $97 | | December 31, 2024 | $119 | [Reportable Segments](index=34&type=section&id=Reportable%20Segments) The company's operations are categorized into four reportable segments: Las Vegas, Regional, Caesars Digital, and Managed and Branded, with performance evaluated by Adjusted EBITDA - The company's principal operating activities occur in four reportable segments: Las Vegas, Regional, Caesars Digital, and Managed and Branded, in addition to Corporate and Other[153](index=153&type=chunk) - Adjusted EBITDA is the key metric used by the Chief Operating Decision Maker (CEO) to assess segment performance and allocate resources[123](index=123&type=chunk)[124](index=124&type=chunk) [Presentation of Financial Information](index=34&type=section&id=Presentation%20of%20Financial%20Information) Financial information presented after recent divestitures is not fully comparable to prior periods, requiring context to understand the company's financial condition and operating results - The presentation of financial information for periods after completed divestitures is not fully comparable to periods prior to such divestitures[154](index=154&type=chunk) [Key Performance Metrics](index=34&type=section&id=Key%20Performance%20Metrics) Operating results depend on customer volume and quality, with key metrics including gaming volume, win/hold percentages (e.g., slot: **9-11%**), hotel occupancy, and Adjusted EBITDA - Primary revenue is generated by gaming operations, including casino properties, retail and online sports betting, and online gaming[156](index=156&type=chunk) - Key performance metrics include drop/handle (amounts wagered), win/hold percentages (slot: **9-11%**, table games: **16-23%**, sports betting: **7-11%**, iGaming: **3-5%**), hotel occupancy, and Adjusted EBITDA/Adjusted EBITDA margin[157](index=157&type=chunk) [Significant Factors Impacting Financial Results](index=35&type=section&id=Significant%20Factors%20Impacting%20Financial%20Results) Financial results are impacted by economic conditions, debt refinancing activities including **$4.4 billion** of debt in February 2024, and the absence of **$118 million** in impairment charges seen in 2024 - Economic factors, including inflation, interest rates, and global hostilities, impact discretionary spending and customer behavior[159](index=159&type=chunk) - Debt transactions included refinancing and extending **$4.4 billion** of debt in February 2024 and reducing interest rate margins for CEI Term Loan B and B-1 in May 2024[159](index=159&type=chunk) - No impairment charges were recognized in the three and six months ended June 30, 2025, compared to **$118 million** in the Regional segment in 2024[159](index=159&type=chunk) - Subsequent to the period, on July 8, 2025, the company fully redeemed **$546 million** of CEI Senior Notes due 2027[159](index=159&type=chunk) [Consolidated Comparison of the Three and Six Months Ended June 30, 2025 and 2024](index=36&type=section&id=Consolidated%20comparison%20of%20the%20three%20and%20six%20months%20ended%20June%2030,%202025%20and%202024) Consolidated net revenues increased, driven by Caesars Digital and Regional segments, while operating expenses also rose due to increased revenues, new facilities, and higher labor costs [Net Revenues](index=36&type=section&id=Net%20Revenues) Consolidated net revenues increased by **2.7%** and **2.3%** for the three and six months ended June 30, 2025, respectively, driven by Caesars Digital and Regional segment growth Consolidated Net Revenues (In millions): | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Variance | % Change | | :--- | :--- | :--- | :--- | :--- | | Casino | $1,668 | $1,557 | $111 | 7.1% | | Food and beverage | $428 | $435 | $(7) | (1.6)% | | Hotel | $509 | $514 | $(5) | (1.0)% | | Other | $302 | $324 | $(22) | (6.8)% | | Total Net revenues | $2,907 | $2,830 | $77 | 2.7% | | Category | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Variance | % Change | | :--- | :--- | :--- | :--- | :--- | | Casino | $3,262 | $3,092 | $170 | 5.5% | | Food and beverage | $863 | $857 | $6 | 0.7% | | Hotel | $991 | $1,007 | $(16) | (1.6)% | | Other | $585 | $616 | $(31) | (5.0)% | | Total Net revenues | $5,701 | $5,572 | $129 | 2.3% | - Consolidated net revenues increased due to a significant increase in iGaming handle and improved iGaming and sports betting hold in the Caesars Digital segment[160](index=160&type=chunk) - Regional segment net revenues increased due to increased visitation driven by the opening of expanded amenities at Caesars Virginia and Caesars New Orleans[160](index=160&type=chunk) [Operating Expenses](index=36&type=section&id=Operating%20Expenses) Total operating expenses increased by **2.5%** and **2.3%** for the three and six months ended June 30, 2025, respectively, driven by higher casino, food and beverage, and hotel costs, while impairment charges decreased Consolidated Operating Expenses (In millions): | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Variance | % Change | | :--- | :--- | :--- | :--- | :--- | | Casino | $887 | $817 | $70 | 8.6% | | Food and beverage | $275 | $266 | $9 | 3.4% | | Hotel | $155 | $139 | $16 | 11.5% | | Impairment charges | $— | $118 | $(118) | (100.0)% | | Depreciation and amortization | $364 | $326 | $38 | 11.7% | | Transaction and other costs, net | $34 | $13 | $21 | 161.5% | | Total operating expenses | $2,381 | $2,324 | $57 | 2.5% | | Category | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Variance | % Change | | :--- | :--- | :--- | :--- | :--- | | Casino | $1,748 | $1,669 | $79 | 4.7% | | Food and beverage | $550 | $529 | $21 | 4.0% | | Hotel | $306 | $276 | $30 | 10.9% | | Impairment charges | $— | $118 | $(118) | (100.0)% | | Depreciation and amortization | $721 | $653 | $68 | 10.4% | | Transaction and other costs, net | $36 | $19 | $17 | 89.5% | | Total operating expenses | $4,687 | $4,581 | $106 | 2.3% | - Casino expenses increased due to higher revenues in Caesars Digital and targeted customer reinvestment in the Regional segment, partially offset by decreased marketing expenses in Las Vegas[162](index=162&type=chunk) - Food and beverage and hotel expenses increased due to incremental wages from the opening of Caesars Virginia's permanent facility and Caesars New Orleans' expansion, as well as higher union and non-union wages[162](index=162&type=chunk) - Transaction and other costs, net, increased primarily due to litigation reserves[166](index=166&type=chunk) [Other Income (Expenses)](index=38&type=section&id=Other%20income%20(expenses)) Interest expense, net, decreased due to reduced outstanding debt, while the income tax provision was primarily affected by valuation allowances against deferred tax assets Other Income (Expenses) (In millions): | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Variance | % Change | | :--- | :--- | :--- | :--- | :--- | | Interest expense, net | $(579) | $(594) | $15 | 2.5% | | Loss on extinguishment of debt | $— | $(3) | $3 | 100.0% | | Other income (loss) | $1 | $(1) | $2 | * | | Provision for income taxes | $(13) | $(10) | $(3) | (30.0)% | | Category | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Variance | % Change | | :--- | :--- | :--- | :--- | :--- | | Interest expense, net | $(1,153) | $(1,184) | $31 | 2.6% | | Loss on extinguishment of debt | $— | $(51) | $51 | 100.0% | | Other income (loss) | $— | $25 | $(25) | (100.0)% | | Provision for income taxes | $(24) | $(25) | $1 | 4.0% | - Interest expense, net, decreased primarily due to a reduction in outstanding debt[168](index=168&type=chunk) - The income tax provision was primarily affected by an increase in federal and state valuation allowances against deferred tax assets for excess business interest expense[170](index=170&type=chunk) [Segment Comparison of the Three and Six Months Ended June 30, 2025 and 2024](index=39&type=section&id=Segment%20comparison%20of%20the%20three%20and%20six%20months%20ended%20June%2030,%202025%20and%202024) Caesars Digital showed significant growth in net revenues and Adjusted EBITDA, while Las Vegas experienced declines, and Regional net revenues improved but Adjusted EBITDA declined due to increased costs [Las Vegas Segment](index=39&type=section&id=Las%20Vegas%20Segment) The Las Vegas segment experienced declines in net revenues, Adjusted EBITDA, and net income for both periods, primarily due to lower non-gaming revenues and the LINQ Promenade sale Las Vegas Segment Performance (In millions): | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net revenues | $1,054 | $1,101 | (4.3)% | | Adjusted EBITDA | $469 | $514 | (8.8)% | | Net income attributable to Caesars | $212 | $272 | (22.1)% | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net revenues | $2,057 | $2,129 | (3.4)% | | Adjusted EBITDA | $902 | $954 | (5.5)% | | Net income attributable to Caesars | $389 | $470 | (17.2)% | - Decline in Las Vegas segment performance primarily due to lower non-gaming revenues, consistent with city-wide visitation trends, and the impact of the LINQ Promenade sale[172](index=172&type=chunk) [Regional Segment](index=39&type=section&id=Regional%20Segment) Regional segment net revenues improved due to new development projects, but Adjusted EBITDA and margin declined due to increased labor costs and customer reinvestment, partially offset by no impairment charges Regional Segment Performance (In millions): | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net revenues | $1,435 | $1,385 | 3.6% | | Adjusted EBITDA | $439 | $469 | (6.4)% | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net revenues | $2,823 | $2,750 | 2.7% | | Adjusted EBITDA | $879 | $902 | (2.5)% | - Net revenues improved due to positive results from Caesars Virginia and Caesars New Orleans development projects[176](index=176&type=chunk) - Adjusted EBITDA and margin declined due to increased labor costs and targeted customer reinvestment, partially offset by no impairment charges in 2025 (vs. **$118M** in 2024)[176](index=176&type=chunk) [Caesars Digital Segment](index=40&type=section&id=Caesars%20Digital%20Segment) Caesars Digital showed significant improvement in net revenues, Adjusted EBITDA, and net income (loss) for both periods, driven by higher iGaming handle and hold, and improved sports betting hold Caesars Digital Segment Performance (In millions): | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net revenues | $343 | $276 | 24.3% | | Adjusted EBITDA | $80 | $40 | 100.0% | | Net income (loss) attributable to Caesars | $39 | $4 | * | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net revenues | $678 | $558 | 21.5% | | Adjusted EBITDA | $123 | $45 | 173.3% | | Net income (loss) attributable to Caesars | $39 | $(30) | * | Caesars Digital Key Metrics: | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Sports betting handle | $2,493M | $2,500M | (0.3)% | | Sports betting hold % | 8.9% | 7.2% | 1.7 pts | | iGaming handle | $4,705M | $3,537M | 33.0% | | iGaming hold % | 3.6% | 3.3% | 0.3 pts | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Sports betting handle | $5,621M | $5,879M | (4.4)% | | Sports betting hold % | 8.0% | 6.9% | 1.1 pts | | iGaming handle | $9,193M | $7,035M | 30.7% | | iGaming hold % | 3.6% | 3.3% | 0.3 pts | - Improved performance attributed to higher iGaming handle and hold, and improved sports betting hold, benefiting from the launch of Caesars Palace Online Casino and Horseshoe Online Casino app[179](index=179&type=chunk) [Managed and Branded Segment](index=41&type=section&id=Managed%20and%20Branded%20Segment) The Managed and Branded segment saw a slight increase in net revenues, flat Adjusted EBITDA for three months, and a slight decrease for six months, with stable net income Managed and Branded Segment Performance (In millions): | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net revenues | $74 | $70 | 5.7% | | Adjusted EBITDA | $17 | $17 | 0% | | Net income attributable to Caesars | $18 | $17 | 5.9% | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net revenues | $141 | $138 | 2.2% | | Adjusted EBITDA | $33 | $35 | (5.7)% | | Net income attributable to Caesars | $34 | $35 | (2.9)% | Reimbursable Management Revenue and Costs (In millions): | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Reimbursable management revenue | $55 | $53 | 3.8% | | Reimbursable management costs | $55 | $53 | 3.8% | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Reimbursable management revenue | $106 | $103 | 2.9% | | Reimbursable management costs | $106 | $103 | 2.9% | [Corporate & Other](index=41&type=section&id=Corporate%20%26%20Other) The Corporate & Other segment reported positive net revenue for both periods, an improvement from prior year, but Adjusted EBITDA showed larger losses due to higher corporate overhead costs Corporate & Other Segment Performance (In millions): | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net revenues | $1 | $(2) | * | | Adjusted EBITDA | $(50) | $(40) | (25.0)% | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net revenues | $2 | $(3) | * | | Adjusted EBITDA | $(98) | $(83) | (18.1)% | [Supplemental Unaudited Presentation of Consolidated Adjusted EBITDA](index=41&type=section&id=Supplemental%20Unaudited%20Presentation%20of%20Consolidated%20Adjusted%20Earnings%20Before%20Interest,%20Taxes,%20Depreciation%20and%20Amortization%20(%22Adjusted%20EBITDA%22)%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) Adjusted EBITDA, a non-GAAP measure, is presented to provide additional insight into operating performance, showing a slight decrease for both the three and six months ended June 30, 2025 - Adjusted EBITDA is a non-GAAP financial measure used by management to measure performance and allocate resources, providing additional information consistent with that used by management[132](index=132&type=chunk) Consolidated Adjusted EBITDA Reconciliation (In millions): | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net loss attributable to Caesars | $(82) | $(122) | $(197) | $(280) | | Interest expense, net | $579 | $594 | $1,153 | $1,184 | | Depreciation and amortization | $364 | $326 | $721 | $653 | | Impairment charges | $— | $118 | $— | $118 | | Total Adjusted EBITDA | $955 | $996 | $1,839 | $1,845 | [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by cash, operating cash flows, and available borrowings, with operating cash inflows increasing to **$680 million** for the six months ended June 30, 2025, and sufficient liquidity expected for the next twelve months Cash on Hand and Borrowing Capacity as of June 30, 2025 (In millions): | Category | Amount | | :--- | :--- | | Cash and cash equivalents | $982 | | Revolver capacity | $2,235 | | Revolver capacity committed to letters of credit | $(90) | | Revolver capacity committed as regulatory requirement | $(46) | | Total | $3,081 | - Operating activities generated **$680 million** in cash inflows for the six months ended June 30, 2025, an increase from **$534 million** in the prior year[191](index=191&type=chunk) - Estimated debt service (principal and interest) is approximately **$454 million** for the remainder of 2025, and lease payments to VICI and GLPI are estimated at **$673 million**[195](index=195&type=chunk) Capital Expenditures (In millions): | Category | Six Months Ended June 30, 2025 (Actual) | Estimate of Remaining Capital Expenditures for 2025 (Low) | Estimate of Remaining Capital Expenditures for 2025 (High) | | :--- | :--- | :--- | :--- | | Growth and renovation projects | $131 | $50 | $90 | | Caesars Digital | $43 | $35 | $45 | | Maintenance projects | $174 | $175 | $205 | | Caesars Virginia | $105 | $10 | $30 | | Total | $453 | $270 | $370 | [Debt and Master Lease Covenant Compliance](index=45&type=section&id=Debt%20and%20Master%20Lease%20Covenant%20Compliance) The company's debt agreements and master leases contain standard covenants, including a maximum net total leverage ratio of **6.50:1** and a minimum fixed charge coverage ratio of **2.0:1**, with the company in compliance as of June 30, 2025 - Debt agreements and master leases include negative covenants limiting additional indebtedness, investments, restricted payments, liens, asset sales, and acquisitions[202](index=202&type=chunk) - Financial 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 CEI Term Loan A[203](index=203&type=chunk) - As of June 30, 2025, the company was in compliance with all applicable financial covenants[207](index=207&type=chunk) [Share Repurchase Program](index=46&type=section&id=Share%20Repurchase%20Program) The Board authorized a **$500 million** common stock repurchase program in October 2024, under which **4,188,466 shares** were acquired for **$100 million** in April 2025, leaving **$350 million** authorized - The 2024 Share Repurchase Program authorized **$500 million** for common stock repurchases[208](index=208&type=chunk) - In April 2025, **4,188,466 shares** were acquired for **$100 million**, at an average of **$23.84** per share[208](index=208&type=chunk) - As of June 30, 2025, **$350 million** remained authorized under the program[208](index=208&type=chunk) [Contractual Obligations](index=46&type=section&id=Contractual%20Obligations) There have been no material changes to the company's contractual obligations as disclosed in the 2024 Annual Report during the six months ended June 30, 2025 - No material changes to contractual obligations during the six months ended June 30, 2025, as compared to the 2024 Annual Report[209](index=209&type=chunk) [Other Liquidity Matters](index=46&type=section&id=Other%20Liquidity%20Matters) The company is subject to contingencies involving litigation, claims, assessments, and environmental remediation or compliance, as detailed in Legal Proceedings and Note 5 - The company is subject to contingencies involving litigation, claims, assessments, and environmental remediation or compliance[210](index=210&type=chunk) [Critical Accounting Policies and Estimates](index=46&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) There have been no material changes to the company's critical accounting policies and estimates since December 31, 2024, with the application of policies remaining substantively unchanged - No material changes to critical accounting policies and estimates since December 31, 2024[211](index=211&type=chunk) [Off-Balance Sheet Arrangements](index=46&type=section&id=Off-Balance%20Sheet%20Arrangements) The company currently does not have any off-balance sheet arrangements - The company does not currently have any off-balance sheet arrangements[212](index=212&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure is from changes in interest rates, with **$5.9 billion** or **48%** of consolidated long-term debt being variable-rate as of June 30, 2025 - The company's primary market risk exposure is from changes in interest rates, particularly from variable-rate long-term debt[213](index=213&type=chunk) - As of June 30, 2025, variable-rate long-term borrowings totaled **$5.9 billion**, representing approximately **48%** of consolidated long-term debt[214](index=214&type=chunk) - The weighted average interest rates on variable and fixed rate debt were **6.57%** and **6.34%**, respectively, as of June 30, 2025[214](index=214&type=chunk) - The company does not utilize derivative financial instruments for trading purposes[215](index=215&type=chunk) [Item 4. Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no significant changes in internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[218](index=218&type=chunk) - No significant changes in internal control over financial reporting occurred during the period covered by this report[219](index=219&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=49&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding the company's legal proceedings is referenced in Note 5 of the Consolidated Condensed Financial Statements and Note 8 of the 2024 Annual Report, with cautionary statements about forward-looking information - Legal proceedings are discussed in Note 5 of the Consolidated Condensed Financial Statements in this report and Note 8 of the 2024 Annual Report[222](index=222&type=chunk) - Forward-looking statements are subject to numerous known and unknown risks and uncertainties, many beyond the company's control, including economic downturns, regulatory changes, cybersecurity breaches, and debt obligations[224](index=224&type=chunk)[226](index=226&type=chunk) [Item 1A. Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in Part I, Item 1A of the 2024 Annual Report during the six months ended June 30, 2025 - No material changes to risk factors during the six months ended June 30, 2025, from those reported in the 2024 Annual Report[231](index=231&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **4,188,466 shares** of common stock for **$100 million** in April 2025 under its **$500 million** 2024 Share Repurchase Program, with **$350 million** remaining authorized Issuer Purchases of Equity Securities (April 2025): | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) | | :--- | :--- | :--- | :--- | :--- | | April 1, 2025 to April 30, 2025 | 4,188,466 | $23.84 | 4,188,466 | $350 | - The 2024 Share Repurchase Program, authorized for **$500 million**, had **$350 million** remaining as of June 30, 2025[232](index=232&type=chunk) [Item 3. Defaults Upon Senior Securities](index=51&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - No defaults upon senior securities were reported[233](index=233&type=chunk) [Item 4. Mine Safety Disclosures](index=51&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Mine Safety Disclosures are not applicable to Caesars Entertainment, Inc[234](index=234&type=chunk) [Item 5. Other Information](index=51&type=section&id=Item%205.%20Other%20Information) Recreational Enterprises, Inc. (REI) entered into a Rule 10b5-1 trading arrangement on May 9, 2025, for the potential sale of up to **800,086 shares** of common stock between August 8, 2025, and May 8, 2026 - Recreational Enterprises, Inc. (REI) entered into a Rule 10b5-1 trading arrangement on May 9, 2025, for the potential sale of up to **800,086 shares** of common stock[236](index=236&type=chunk) - The trading plan is scheduled between August 8, 2025, and May 8, 2026[236](index=236&type=chunk) [Item 6. Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including organizational documents, amendments to agreements, certifications, and XBRL-related documents - Exhibits include Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, Amendment to Director Appointment and Nomination Agreement, Thirteenth Amendment to Lease, Certifications of CEO and CFO, and Inline XBRL documents[239](index=239&type=chunk) [Signatures](index=53&type=section&id=Signatures) The report is duly signed on July 29, 2025, by Thomas R. Reeg, Chief Executive Officer, and Bret Yunker, Chief Financial Officer, certifying its submission - The report was signed on July 29, 2025, by Thomas R. Reeg (CEO) and Bret Yunker (CFO)[243](index=243&type=chunk)

Core Viewpoint - Caesars Entertainment, Inc. (CZR) is set to report its second-quarter 2025 results on July 29, with expectations of a mixed performance based on recent trends and estimates [1][9]. Estimate Revision Trend - The Zacks Consensus Estimate for CZR's earnings per share (EPS) has decreased from 16 cents to 7 cents over the past 30 days, while the revenue estimate stands at approximately $2.9 billion, reflecting a 1.6% increase year-over-year [2]. Factors Influencing Q2 Results - CZR's second-quarter performance is anticipated to benefit from improving regional trends, digital momentum, and strategic investments across its properties [3]. - The company is expected to gain from newly ramped regional properties and a focus on cost efficiencies, with regional revenues estimated at $1.4 billion, indicating a 2.9% year-over-year increase [4]. Digital Segment Growth - The digital segment is projected to be a significant growth driver, with total Caesars Digital revenues estimated at $330 million, representing a 19.6% increase from the previous year [6]. Las Vegas Operations - Las Vegas operations are expected to show resilience despite tough comparisons from the previous year, with total revenues estimated at $1.07 billion, reflecting a 2.9% decline year-over-year [7]. Margin Pressures - Elevated operating expenses and ongoing capital expenditures related to renovations and digital technology rollouts may negatively impact margins in the second quarter [8]. Earnings Prediction Model - The model indicates that CZR is projected to post Q2 EPS of $0.07 on revenues of $2.9 billion, with potential support from property ramp-ups and digital strength, although elevated expenses could weigh on margins [9].

Core Insights - Caesars Entertainment is launching a new premium credit card, the Caesars Rewards Prestige Visa Signature, in partnership with Bread Financial, aimed at enhancing customer experience and loyalty [1][2][3] Group 1: Credit Card Features - The Caesars Rewards Prestige Visa Signature credit card has a $149 annual fee and offers up to $450 in annual value through various perks [1][2] - Cardmembers can earn rewards on everyday purchases and unlock exclusive benefits in travel, entertainment, dining, and gaming [2][3] - The card includes a complimentary hotel night upon anniversary (up to $300), $50 Slot Play, and $100 Caesars dining credit [4] Group 2: Tier Credits and Bonuses - New cardholders can earn up to 25,000 additional Tier Credits in their first year, accelerating their progress in the Caesars Rewards loyalty program [2][5] - The card provides multiple opportunities for earning Tier Credits, including bonuses for spending outside Caesars Rewards destinations [5] Group 3: Company Background - Caesars Entertainment is the largest casino entertainment company in the U.S., operating under various brand names and offering a wide range of gaming and hospitality services [7] - The company focuses on enhancing guest value through its Caesars Rewards loyalty program and a commitment to operational excellence and technology leadership [7] Group 4: Partner Company Overview - Bread Financial is a tech-forward financial services company that provides personalized payment and lending solutions, enhancing customer experiences in various sectors [8]