Caesars Entertainment (NASDAQ:CZR) reported what management described as “solid results” for 2025, driven by portfolio diversity, an omni-channel strategy, and continued investment in its loyalty platform and flagship properties. On the company’s fourth-quarter and full-year 2025 earnings call, executives said quarterly results were in line with expectations, with growth in consolidated net revenue and a record quarterly EBITDA performance in the digital segment.
Fourth-quarter performance and full-year momentum
President and COO Anthony Carano said full-year same-store enterprise net revenues increased $266 million, or 2%, year over year. For the fourth quarter, Caesars posted consolidated net revenues of $2.9 billion, up 4% year over year, and adjusted EBITDA of $901 million, up 2%.
Las Vegas: strong events and group business offset leisure softness
In Las Vegas, Caesars reported same-store adjusted EBITDA of $447 million versus $477 million in the prior year. Carano said the quarter was impacted by lower occupancy (92% versus 96.5% last year) and a 5% decline in average daily rate.
Management highlighted a strong event calendar during the quarter, including what Carano called a record Formula 1 event for Caesars and a strong New Year’s Eve. Group and convention room nights accounted for 17% of the mix during the quarter.
Executives also discussed capital investments aimed at elevating the customer experience. Carano said Caesars Palace added two new presidential villas atop the Colosseum Tower and 29 new sky villas atop the Octavius Tower, with strong VIP guest feedback. He also said renovations helped Caesars Palace set an all-time record for slot volume in 2025, including a fully remodeled Palace Court Slots area.
Looking ahead, Carano said Las Vegas trends were improving sequentially, citing stabilizing leisure trends and a strong group and convention calendar. CEO Tom Reeg offered additional color, saying the company had been coming off a “very soft summer” in Las Vegas, driven by leisure weakness, but leisure softness has become “not as pronounced” as it was. Reeg said peak weekends, major events, and large conferences were performing well, while demand has been more challenging during shoulder periods without major events.
Reeg described staffing as a particular challenge given the volatility between softer midweek periods and fully occupied weekends. Still, he said margins held in the mid-40% range in the fourth quarter. He also pushed back on the idea of a crisis, noting the company’s Las Vegas portfolio averaged roughly 92.5% occupancy across about 20,000 rooms and characterizing the quarter as among the best fourth quarters in the company’s history.
When asked about 2026 dynamics, Reeg said the company does not provide guidance but expects first-quarter sequential improvement versus the fourth quarter, and he said the second quarter “starts to look even better.” He added that Caesars plans to remodel the Augustus Tower at Caesars Palace over the summer, affecting “a little less than 1,000 rooms,” with work timed for a softer leisure period and rooms expected back online for Formula 1.
Regional: weather headwinds, customer reinvestment, and 2026 tailwinds
In the regional segment, Caesars reported fourth-quarter adjusted EBITDA of $407 million, down slightly year over year. Carano said results were negatively impacted by poor winter weather in December, and that absent the weather, regional EBITDA would have increased year over year. Reeg quantified the late-December snow impact as “a little over $10 million of EBITDA,” saying October and November had been quite strong.
Management highlighted benefits from strategic reinvestment in the Caesars Rewards customer database and said rated play trends were strong. Carano said the company would continue refining its marketing approach to focus on returns.
Looking to 2026, Carano outlined expected regional tailwinds including:
- A stronger group mix in Reno
- The transition of Caesars Windsor from a managed to an owned property in March
- Completion of a $200 million Tahoe master plan renovation in the summer
- Hosting select property events around the World Cup
- Continued ROI from marketing changes
- The opening of Harrah’s Oklahoma (a managed property) expected on April 9
Reeg also noted that the first quarter of last year included a Super Bowl benefit in New Orleans of “a little over $10 million” that will not recur, but said the business has multiple tailwinds after the first quarter, including Windsor coming online in early March and Tahoe’s expansion in the third quarter.
Digital: record quarter, iCasino growth, and marketing contract roll-offs
President of Caesars Sports and Online Eric Hession said Caesars Digital delivered fourth-quarter net revenue of $419 million and adjusted EBITDA of $85 million, with hold-normalized adjusted EBITDA of $90 million. He said flow-through was 56%, better than targeted.
Hession said mobile sports handle grew 4% year over year in the quarter, and total parlay mix improved by about 210 basis points. He also cited growth in average legs per parlay and a higher cash-out mix. In iCasino, he said net revenue rose 28% year over year, driven by strength in volume and average monthly active users, alongside product enhancements such as new in-house games, improved bonusing, and an “elevated live dealer product.” Total monthly unique players increased 19% to 585,000.
For the full year, Hession reported digital net revenues of $1.4 billion, up 21%, and EBITDA of $236 million, up 100%, with flow-through of 50% in line with target. He also said the company’s universal digital wallet and proprietary player account management system was live in 26 jurisdictions and should be live in all jurisdictions by the end of the current quarter. Caesars also launched sports betting in Missouri, which Hession said was the first state where the company offered a shared wallet on day one.
Reeg said fixed marketing expense in digital will change meaningfully as contracts roll off, with “a little over $35 million” expiring in 2026 (primarily impacting the second half of the year) and “another 20+” rolling off in 2027. He said most of the benefit should flow to EBITDA, though Caesars expects to reinvest some where returns justify it.
Balance sheet, capital allocation, and regulatory commentary
CFO Bret Yunker said Caesars reduced debt in 2025 while executing opportunistic share repurchases. Looking into 2026, he said Caesars expects to benefit from decreasing capital expenditures, decreasing interest expense, and cash taxes “well below $100 million.” Yunker added that the nearest debt maturity is the company’s relationship bank financing, which matures 24 months from now.
Reeg said Caesars expects to be a “significant free cash flow generator” in 2026 and intends to use cash for a mix of debt paydown and share repurchases, with activity varying by quarter. He also said management views tax refund season and changes in withholding as potential tailwinds for consumer discretionary spending in 2026.
On prediction markets, Reeg said Caesars does not expect to participate under the current regulatory environment, citing the importance of gaming licenses and noting that pursuing prediction markets could put brick-and-mortar licenses at risk in some states. He said Caesars would look to participate only if there is regulatory clarity and a legal path acceptable to regulators.
Executives also discussed iGaming legislative developments, saying Maine appeared “highly likely” to launch and that Virginia legislation remained active, though management cautioned that political outcomes can shift quickly.
About Caesars Entertainment (NASDAQ:CZR)
Caesars Entertainment Corporation is a leading integrated gaming and hospitality company headquartered in Las Vegas, Nevada. The company owns and operates a global portfolio of resorts, casinos, and entertainment venues designed to deliver comprehensive hospitality experiences. Its business activities span hotel accommodations, gaming operations, food and beverage services, live events, and convention services, with a focus on delivering luxury and entertainment to both leisure and business travelers.
The company traces its lineage to the founding of Harrah’s by William F.
