Caesars Entertainment (CZR) Q1 2026 earnings summary

Executive summary

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

• Net loss narrowed to $83 million or $98 million from the prior year, with improved margins and strong digital segment gains.

• Caesars Digital achieved record Q1 revenues of $374 million and Adjusted EBITDA of $69 million, driven by iGaming handle 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; 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.

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

• Weighted average diluted shares outstanding: 204 million.

Outlook and guidance

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

• Digital business targets 20% top-line revenue growth with 50% flow-through to EBITDA.

• Regional segment to benefit from Caesars Windsor, Tahoe renovation, and World Cup events.

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

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