CZR earnings analysis
What we found in CZR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Caesars delivered Q2 revenue of $2.993 billion, up 3.0% year over year and above consensus, but reported a diluted GAAP loss of $0.30 per share versus a $0.39 loss a year earlier. Regional growth of 9.4% and positive six-month free cash flow of $340 million offset a 3.5% Las Vegas revenue decline and a 2.2-point contraction in consolidated Adjusted EBITDA margin to 30.7%. The pending Fertitta merger dominates the risk profile, with up to a $200 million termination fee and no standalone earnings or revenue outlook provided.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew 3% and exceeded $2.99B
- Q2 revenue rose 3.0% year over year to $2.993 billion and increased 4.3% from $2.870 billion in Q1 2026. Casino revenue increased $91 million, or 5.5%, to $1.759 billion.
- Regional segment drove consolidated growth
- Regional revenue increased $135 million, or 9.4%, to $1.570 billion, while Adjusted EBITDA rose $49 million, or 11.2%, to $488 million. Growth reflected Caesars Windsor consolidation, northern Nevada visitation and capital investments in Lake Tahoe and New Orleans.
- Digital iGaming metrics improved
- Caesars Digital revenue increased 2.3% to $351 million, supported by a 2.7% increase in iGaming handle to $4.831 billion and a 0.3-point increase in iGaming hold to 3.9%.
- Cash generation remained positive
- Six-month operating cash flow was $675 million, nearly flat with $680 million a year earlier; less $335 million of capex, this implies $340 million of free cash flow. Capex represented 5.7% of $5.863 billion of six-month revenue.
- Liquidity remained substantial
- Cash and cash equivalents were $965 million at June 30, 2026, and total reported cash plus available revolving capacity was $2.928 billion. The company reported compliance with all applicable financial covenants.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Las Vegas weakness compressed profitability
- Las Vegas revenue declined $37 million, or 3.5%, to $1.017 billion, and Adjusted EBITDA fell $59 million, or 12.6%, to $410 million. Table-games hold dropped 4.5 points to 16.6%, alongside lower leisure visitation and hotel occupancy.
- Merger failure could trigger $200M fee
- The updated merger risks state that failure to close could require Caesars to pay Fertitta Gaming a termination fee of up to $200 million under certain circumstances. The merger closing deadline is May 27, 2027, with potential extensions to August 27, 2027 and November 27, 2027.
- Merger pendency adds cost and disruption risk
- The filing added risks that merger pendency can disrupt customers, suppliers and employee retention while limiting business actions. Caesars recorded $10 million of pending-merger transaction costs during both the three- and six-month periods ended June 30, 2026.
- Closing conditions coincide with high leverage
- The updated merger disclosure highlights financing, regulatory and stockholder-approval conditions. Variable-rate borrowings totaled $6.0 billion, or approximately 51% of consolidated long-term debt, exposing the company to financing and rate-related pressure during the transaction period.
- Margin pressure offset revenue growth
- Consolidated Adjusted EBITDA decreased $35 million, or 3.7%, to $920 million and its margin contracted 2.2 points to 30.7%. Digital Adjusted EBITDA fell $12 million, or 15.0%, to $68 million as gaming-tax rates increased and sports-betting hold declined 0.5 point to 8.4%.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.3
- Gross margin
- 50.1%
- Operating margin
- 17.1%
- Segment
- Las Vegas revenue: $1.017 billion, down $37 million (3.5%) year over year
- Segment
- Regional revenue: $1.570 billion, up $135 million (9.4%) year over year
- Segment
- Caesars Digital revenue: $351 million, up $8 million (2.3%) year over year
- Segment
- Managed and Branded revenue: $57 million, down $17 million (23.0%) year over year
- Segment
- Corporate and Other revenue: negative $2 million, versus positive $1 million year over year
What they said about what is next.
No earnings or revenue guidance was provided, amid the pending Fertitta Entertainment merger. Management quantified remaining 2026 capital expenditures at $310 million to $390 million, after $335 million spent in the first six months, and expects current liquidity and operating cash flow to fund operations, capital needs and debt service for at least the next 12 months.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 28, 2026
- Caesars reported Q1 2026 net revenues of $2,870.0 million, up $76 million or 2.7% year-over-year, driven by higher casino revenues and consolidation of Caesars Windsor. Consolidated Adjusted EBITDA was $887 million (vs.…
- 10-K · February 17, 2026
- Caesars positions itself as a geographically diversified gaming and hospitality operator combining brick‑and‑mortar casinos (slots, table games) with a growing digital platform (Caesars Sportsbook, iGaming) and a…
- 10-Q · October 28, 2025
- Caesars reported Q3 net revenues of $2,869 million, essentially flat with Q3 2024 ($2,874 million) while operating income declined to $513 million from $644 million a year ago, compressing operating margin to ~17.9%.…
- 10-Q · July 29, 2025
- Caesars reported Q2 net revenues of $2,907 million, up $77 million versus 2Q24 and up versus the prior quarter, with operating income of $526 million (18.1% operating margin). The company generated stronger operating…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing CZR makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever