Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioShares of Caesars Entertainment (NASDAQ: CZR) fell over 3% in after-hours trading Tuesday following a mixed Q2 2025 earnings report.
While the company beat revenue expectations and posted strong digital growth, it missed earnings per share (EPS) estimates which drew a lukewarm response from investors.
Caesars closed around $29.08 in extended trading, down 3.3% on the day. The stock has now declined over 12% year-to-date and is approaching its 52-week low of $21.40.
Caesars’ performance contrasts with competitors like Las Vegas Sands and Churchill Downs, both reporting strong growth, beating analysts’ estimates.
Q2 2025 Earnings Snapshot
Revenue Grows, But EPS Disappoints
Caesars reported revenue of $2.91 billion for Q2, beating analysts’ estimates of $2.86 billion by 1.75%. The company reported a 2.9% year-over-year increase, driven by a significant 24.3% yearly growth for the Caesars Digital segment.
However, the company reported a net loss of $82 million, or -$0.39 per share, significantly lower than the consensus expectations of a $0.06 profit per share. Despite the disappointing result, it marked a 34.9% improvement from the $122 million loss in Q2 2024.
Management attributed the shortfall to increased promotional spending and continued softness in the Las Vegas leisure sector (down 3.7% compared to Q2 2024).
Despite these challenges, CEO Tom Reeg and the executive team highlighted the digital interactive division as a bright spot for the quarter.
Digital Division Hits Record EBITDA
The Caesars Digital division delivered net revenue of $343 million, a 24.3% year-over-year increase. It also reported a record $80 million in adjusted EBITDA, the strongest performance since the division’s launch. Meanwhile, Las Vegas generated $477 million (down 4.6% YoY) and Regional properties delivered $371 million (down 5.6% YoY).
On the earnings call, Reeg emphasized the Caesars Digital’s trajectory:
“We’re well on our way to that $500 million [digital EBITDA] target.”
The management team attributed the strong performance to improved customer retention, disciplined marketing, and expanding online sportsbook footprint.
Recent data from iGaming states like Michigan and New Jersey showcase the company’s flagship Caesars Palace Online Casino growth.
In Michigan, the platform had a 4.5% market share in July 2023. A year later, that grew to 6.3%, and as of May 2025, it holds 6.6% market share.
Meanwhile, in New Jersey, the platform grew its market share from 6.4% in May 2024 to 7.3% in May 2025.
Key Takeaways from Q2 Earnings Call
The Q2 earnings call focused on Caesars Digital but also addressed the weakness in other divisions.
As speculation increases that Caesars might spin-off or reorganize its online business, management did not mention anything on the topic.
When asked during the Q&A on strategic possibilities, executives said that they are focusing on growing EBITDA. Still, they indicated that they’re evaluating options.
Caesars’ management cited weaker leisure travel and tighter booking windows for the softness in the Las Vegas market. However, Reeg said the company is anticipating improvements later in the year and into 2026.
“We expect to see positive year-over-year growth by the fourth quarter,” he added.
Anthony Carano, President and COO, spoke on the regional properties’ performance. He noted that revenue increased due to the opening of two new properties and strategic reinvestment in our Caesars Rewards customer database.
As Regional’s EBITDA was down, Reeg noted that it was primarily due to one-offs, with construction, flooding, and lawsuits mentioned.
Notably, the management team did not mention anything about its ongoing casino bid in Times Square in New York City. Company representatives, along with partners SL Green Realty and Roc Nation, recently presented the project at a Community Advisory Committee hearing.
Outlook: Digital Drives the Future
Despite the disappointing earnings results, Caesars reiterated its long-term confidence in digital expansion. That was confirmed by its commitment to achieving $500 million in digital EBITDA by 2026. Management called Q2 a “breakthrough quarter” for Caesars Digital.
However, challenges, including Las Vegas softness, remain. Additional concerns, such as labor costs from new union contracts and pressures in international markets, could affect the company’s near-term forecast.
Still, there are reasons for optimism. With the digital division margins improving and expectations for Las Vegas revenues to rebound in the latter part of 2025, the company could translate digital growth into bottom-line gains.
