Las Vegas a sore spot for Caesars in Q2 amid Fertitta acquisition

On Tuesday, Caesars Entertainment released its first quarterly earnings results since being acquired by Fertitta Entertainment in late May, and while its Q2 and half-year results were something of a mixed bag, its Las Vegas business was down across the board.

The operator did not host a call with analysts this quarter in light of the acquisition and take-private, which is expected to close in spring 2027. Neither Caesars nor Fertitta have said anything substantive about the $17.6 billion deal to this point. Two Fertitta executives — CFO Richard Liem and general counsel Steven Scheinthal — were licensed in Nevada this month in conjunction with the acquisition, but neither divulged any long-term plans. Caesars declined to comment on the deal last week.

Mixed quarterly results

For the quarter just past, group net revenue increased 3% year-over-year to $2.99 billion, and the half-year total of $5.9 billion was a similar increase. Caesars topped analysts’ consensus estimates of $2.96 billion for the three-month period.

Adjusted EBITDA fell 4% YoY to $920 million for the quarter and 2% for the half-year ($1.8 billion). Within group net income, Caesars reported a $62 million loss, though this was an improvement over the $82 million loss in the prior-year period. Half-year net income was a $160 million loss compared to a $197 million loss last year.

In Las Vegas, silver linings were hard to come by:

• Q2 net revenue fell 3.5% to $1 billion; H1 net revenue fell 2% to $2 billion
• Q2 net income fell 26% to $156 million; H1 net income fell 15% to $332 million
• Q2 adjusted EBITDA fell 13% to $410 million; H1 adjusted EBITDA fell 7% to $836 million

Caesars ended the quarter with $965 million in cash and equivalents, up from $887 million at the end of 2025. Its total outstanding debt was pared from $11.9 billion to $11.8 billion during that span.

Growth in regionals

On the regional side, Caesars saw net revenue increase nearly 10% for the quarter ($1.5 billion) and 6% for the half-year ($3 billion). Adjusted EBITDA, meanwhile, increased 11% ($488 million) in Q2 and 5% ($923 million) in H1. Net income was $23 million for the quarter but just $3 million for the half-year, which represented a 66% slide YoY.

Caesars’ regional assets will likely look significantly different under Fertitta if the deal is cleared. Fertitta’s existing Golden Nugget brand competes with Caesars in six markets, five of which are considered regional, or outside of Las Vegas:

• Lake Tahoe, NV
• Laughlin, NV
• Atlantic City, NJ
• Lake Charles, LA
• Biloxi, MS

Fertitta has filed an Hart-Scott-Rodino antitrust application to the Federal Trade Commission, and state-level regulators may also require divestitures. Such was the case in 2020, when Caesars was acquired by Eldorado Resorts — both companies had to divest assets in order for that transaction to close.

Down quarter for digital

Caesars Digital had a rare down quarter in Q2, but its H1 results were still in line with its solid growth pace over the last two years. The segment’s quarterly net revenue of $351 million was a 2% gain YoY, but adjusted EBITDA fell 15% to $68 million and net income slid 31% to $27 million. For the half-year, revenue increased 7% while adjusted EBITDA was up 11% to $137 million. Caesars reported net income of $49 million, an increase of 25% from the first half of 2025.

In a note to investors Tuesday, Truist analyst Barry Jonas called regionals a “bright spot” while noting the softness in Las Vegas. From a digital perspective, Jonas pointed to lower online sports betting hold as a drag on results but said iGaming “showed strength” for the quarter. Notably, he also wrote that while the Fertitta acquisition is now definitive after a go-shop period expired 11 July, its closing is “likely still some time away”.

Jonas maintained a hold rating and left the target price unchanged at $31. Caesars posted an EPS loss of $0.30, missing analysts’ estimates for a per-share earnings loss of $0.05. Caesars shares were flat in trading Tuesday, hovering just under $30.