Caesars reports $2.99 billion in revenue in the second quarter of 2026
Caesars Entertainment ended the second quarter of 2026 with moderate revenue growth, a narrower net loss, strong performance from its regional operations, but also slower performance in Las Vegas and lower operating profitability. The results reflect a company that continues to expand across both traditional and digital markets, although it still faces challenges in converting that growth into stronger cash generation.
Between April and June, the operator reported net revenue of US$2.99 billion, a 3 per cent increase from the US$2.91 billion recorded during the same period in 2025. Net loss attributable to shareholders narrowed from US$82 million to US$62 million, while adjusted EBITDA declined from US$955 million to US$920 million, indicating that revenue growth was partially offset by higher costs and weaker contributions from some strategic operations.
Although the three indicators moved in different directions, they pointed to the same underlying trend. Caesars increased its revenue and reduced accounting losses, but its operating efficiency declined compared with the previous year. For investors, this combination typically indicates that the company continues to grow, but in a more competitive environment where higher revenue does not necessarily translate into stronger operating cash generation.
The results also reinforce an important shift in the company’s business mix. For many years, Las Vegas represented Caesars’ main growth engine. During the second quarter, however, regional casinos across the United States accounted for virtually all of the company’s revenue growth, offsetting the slowdown recorded in what is widely regarded as the world’s leading entertainment and gaming destination.
Regional operations offset slowdown in Las Vegas
The Regional segment was once again the highlight of the quarter. Properties outside Las Vegas generated US$1.57 billion in revenue, up 9.4 per cent from the US$1.44 billion recorded a year earlier. This business alone accounted for more than half of the company’s consolidated revenue during the period and was responsible for virtually all of Caesars’ revenue growth.
The performance demonstrates how the group continues to reduce its dependence on Nevada’s major resorts. Over the past several years, the company has expanded its presence across multiple US states through acquisitions and investments in regional casinos. This strategy is particularly important at a time when Las Vegas is experiencing slower growth.
In addition to higher revenue, the regional operations recorded a significant improvement in profitability. Segment income improved from a US$11 million loss in the second quarter of 2025 to a US$23 million profit this year. Adjusted EBITDA also increased from US$439 million to US$488 million, a gain of 11.2 per cent, making it the company’s largest contributor to operating cash generation.
Las Vegas revenue fell 3.5 per cent, declining from US$1.05 billion to US$1.02 billion. Although the business remains highly profitable, its profitability also weakened. Segment income declined from US$212 million to US$156 million, while adjusted EBITDA dropped 12.6 per cent to US$410 million. Despite remaining one of the group’s largest businesses, Las Vegas was no longer the primary driver of Caesars’ consolidated growth during the quarter.
Caesars Digital continues to grow, but margins decline
Another segment that continued to expand was Caesars Digital, which oversees the company’s online sports betting and iGaming operations. The division generated US$351 million in revenue, a 2.3 per cent increase from the US$343 million reported in the second quarter of 2025. Although the growth was more modest than that of the regional casinos, it shows that the digital business continues to increase its share within the group.
Despite the revenue increase, the segment recorded weaker profitability during the quarter. Segment income declined from US$39 million to US$27 million, while adjusted EBITDA fell from US$80 million to US$68 million, a 15 per cent decrease. The figures suggest that the business continued investing to maintain its competitiveness in an increasingly competitive market, temporarily putting pressure on its margins.
Even so, an analysis of the first half of the year presents a more favourable picture for the digital segment. Between January and June, revenue increased from US$678 million to US$725 million, representing 6.9 per cent growth. During the same period, adjusted EBITDA rose from US$123 million to US$137 million, while net income attributable to shareholders increased from US$39 million to US$49 million. This indicates that, despite the pressure observed specifically during the second quarter, the digital business continues to perform well over the longer term.
The continued expansion of Caesars Digital is particularly significant because the company considers the segment one of its main long-term growth drivers. The US online sports betting market continues to undergo gradual regulatory expansion, while iGaming remains limited to a small number of states, leaving room for future growth as additional jurisdictions approve such operations.
Meanwhile, the Managed and Branded segment, which is primarily responsible for managing third-party properties and licensing brands, delivered weaker results. Revenue declined from US$74 million to US$57 million, a 23 per cent decrease, accompanied by modest declines in both segment income and adjusted EBITDA. Although the segment represents a relatively small share of the company’s consolidated revenue, the decline shows that Caesars’ growth remained concentrated almost entirely in its regional operations and, to a lesser extent, in its digital business.
Revenue composition highlights strength of traditional casino operations
Casino operations remained by far the company’s largest source of revenue. Between April and June, gaming operations generated US$1.76 billion, up 5.5 per cent from the US$1.67 billion reported in the second quarter of 2025.
Hotel revenue declined from US$509 million to US$495 million, while food and beverage revenue remained virtually unchanged, edging down from US$428 million to US$426 million. The Other Revenue category, which includes a range of services provided by the company, increased from US$302 million to US$313 million.
On the expense side, revenue growth was accompanied by a broad increase in operating costs. Casino expenses rose from US$887 million to US$955 million, while administrative expenses increased from US$477 million to US$521 million. Corporate costs also climbed from US$84 million to US$94 million. By contrast, depreciation, amortisation, and transaction-related expenses declined compared with the previous year. This helps explain why revenue increased while adjusted EBITDA declined. Although the company generated higher sales, particularly through its regional operations, part of that growth was offset by rising operating expenses, reducing the conversion of revenue into cash.
Another factor that continues to have a significant impact on the company’s results is its capital structure. Caesars recorded US$573 million in net interest expense during the quarter, virtually unchanged from the US$579 million reported a year earlier. This expense alone exceeded operating income of US$513 million, causing the company to continue reporting a net loss despite generating operating profits before financing costs.
First half confirms moderate growth
When looking at the first six months of 2026, the results follow the same trend seen during the quarter. Consolidated revenue reached US$5.86 billion, an increase of 2.8 per cent compared with the US$5.70 billion recorded during the same period last year. Growth was driven primarily by the regional operations, whose revenue increased 6.3 per cent, and by Caesars Digital, which posted 6.9 per cent growth during the first half of the year.
Over the first six months of the year, Las Vegas showed a different performance. The segment generated US$2.02 billion in revenue, down from US$2.06 billion recorded in 2025, reinforcing that the slowdown seen in the second quarter was not an isolated event but part of a broader trend seen throughout the first half.
Net loss attributable to shareholders narrowed from US$197 million to US$160 million, while adjusted EBITDA for the first half reached US$1.81 billion, only 1.7 per cent below the level recorded during the first half of 2025. In other words, despite a decline in profitability in the second quarter, the company maintained much of its operating performance throughout the year.
Company reduces net debt and preserves liquidity
Another area closely watched by investors is Caesars‘ financial position. The company ended June with US$11.8 billion in total debt, a slight reduction from the US$11.9 billion reported at the end of 2025. At the same time, cash increased from US$887 million to US$965 million, helping reduce net debt to US$10.84 billion.
Although leverage remains high, this has been a defining characteristic of the company since the acquisition of Eldorado Resorts and the creation of the current Caesars Entertainment. Management also stated that, in addition to available cash, it had approximately US$2.93 billion in cash and available borrowing capacity at the end of the quarter, providing flexibility to fund operations and meet short-term financial obligations.
Fertitta acquisition marks transition to a new phase
The release of Caesars’ second quarter 2026 results comes as the company moves through its acquisition by Fertitta Entertainment. Because of the transaction announced in May, Caesars said it will not hold its traditional quarterly earnings conference call with investors, a common practice among publicly traded US companies.
Once the transaction is completed, Caesars shares will no longer trade on the Nasdaq, and the company will become privately held. The move is expected to mark the end of an important chapter for one of the largest casino operators in the United States and will change how the market monitors the company’s financial performance going forward.
This article was first published on the Portuguese SiGMA News page on 29 July 2026.
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