Caesars Entertainment (CZR) investor relations material

Executive summary

• Net revenues rose 2.7% year-over-year to $2.9 billion for Q1 2026, with consolidated Adjusted EBITDA of $887 million and a margin of 30.9%.

• Net loss narrowed to $83 million from $98 million in Q1 2025, with improved digital and group business performance.

• Caesars Digital achieved record Q1 net revenue of $374 million and Adjusted EBITDA of $69 million, driven by iGaming handle growth and improved sports betting hold.

• Las Vegas segment showed sequential improvement, with 95.3% occupancy, higher ADR, and strong group/convention business.

• Caesars Windsor operations were consolidated into the Regional segment following a $54 million acquisition and 20-year operating agreement.

Financial highlights

• Casino revenues increased 4.5% year-over-year to $1.67 billion, while food and beverage declined 2.5%.

• Adjusted EBITDA margin was 30.9%, with net loss margin improving to (2.9)%.

• Operating cash flow was $204 million, down from $218 million in Q1 2025.

• Capital expenditures totaled $168 million, focused on growth, renovation, and digital investments.

• Interest expense remained high at $569 million for the quarter.

Outlook and guidance

• Management expects strong free cash flow in 2026, driven by operating momentum, lower cash interest expense, and reduced capital expenditures.

• 2026 capital expenditures are projected at $675 million, with full-year cash interest expense expected at $720 million.

• Continued investment planned in digital platforms and property renovations.

• Free cash flow is targeted for debt repayment and/or share repurchases.