Caesars Entertainment Q2 Earnings Miss Estimates, Decline Y/Y

Caesars Entertainment, Inc. CZR posted second-quarter 2025 results with earnings missing the Zacks Consensus Estimate but revenues surpassing the same. The top line increased year over year, while the bottom line declined from the prior-year quarter’s figure.

For the quarter, the company reported dismal Las Vegas performance due to a softer leisure travel environment and the absence of high-profile entertainment events. Same-store occupancy declined to 97% from 99% last year. Gaming volumes fell, particularly among high-end clientele. Management anticipates the headwinds to persist through the third quarter of 2025.

Following the results, the company’s shares fell 2.4% in yesterday’s after-hours trading session.

CZR’s Q2 Earnings & Revenue Discussion

For the quarter, the company recorded an adjusted loss per share of 39 cents, which missed the Zacks Consensus Estimate of earnings of 7 cents. It reported an adjusted break-even earnings per share in the prior-year quarter.

Net revenues of $2.9 billion beat the consensus mark of $2.88 billion by 1.1% and increased 2.7% year over year.

Q2 Segmental Performance of Caesars Entertainment

Las Vegas: Net revenues in this segment totaled $1.05 billion, down 4.3% from the $1.10 billion in the year-ago quarter. The segment’s adjusted EBITDA was $469 million, down from $514 million in the prior-year quarter.

Regional: The segment’s quarterly net revenues were $1.44 billion, up 3.6% year over year from $1.39 billion in the year-ago quarter. Adjusted EBITDA reached $439 million, down from $469 million in the prior-year quarter.

Caesars Digital: The segment’s net revenues were $343 million, up 24.3% year over year from $276 million. Adjusted EBITDA totaled $80 million, up from $40 million reported in the year-ago quarter.

Managed and Branded: Net revenues in this segment were $74 million, up 5.7% year over year from $68 million. The segment’s adjusted EBITDA was $17 million, flat year over year.

Corporate and Other: The segment’s net revenues were $1 million against negative $2 million reported a year ago. Adjusted EBITDA totaled negative $50 million compared with negative $40 million in the year-ago quarter.

Balance Sheet of CZR

As of June 30, 2025, Caesars Entertainment’s cash and cash equivalents were $982 million, up from $866 million as of Dec. 31, 2024.

Net debt, as of June 30, 2025, was $11.29 billion, slightly down from $11.43 billion as of Dec. 31, 2024.

CZR’s Zacks Rank & Key Picks

Caesars Entertainment currently has a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks from the Zacks Consumer-Discretionary sector are Carnival Corporation & plc CCL, Monarch Casino & Resort, Inc. MCRI and Planet Fitness, Inc. PLNT.

Carnival presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
 
Carnival delivered a trailing four-quarter earnings surprise of 169.9%, on average. The stock has gained 19.2% in the year-to-date period. The Zacks Consensus Estimate for Carnival’s 2025 sales and EPS implies growth of 5.8% and 40.9%, respectively, from the year-ago levels.
 
Monarch Casino presently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 11.1%, on average. The stock has rallied 30.4% in the year-to-date period.
 
The Zacks Consensus Estimate for Monarch Casino’s 2025 sales and EPS indicates an increase of 4.5% and 9.9%, respectively, from the year-ago levels.

Planet Fitness currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 6.9%, on average. The stock has gained 11.7% in the year-to-date period.
 
The Zacks Consensus Estimate for Planet Fitness’ 2025 sales and EPS indicates growth of 10.5% and 12.4%, respectively, from the year-ago period’s levels.

#1 Semiconductor Stock to Buy (Not NVDA)

The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.

One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Source Zacks-com