Caesars Entertainment (CZR) has released its Q1 2026 financial results, revealing a mixed performance. The company surpassed analyst expectations with net revenue of $2.87 billion, exceeding the forecast of $2.85 billion and marking a 3% increase from the previous year’s $2.79 billion.
However, the earnings per share (EPS) painted a different picture, reporting a loss of -$0.48, significantly worse than the anticipated -$0.25. On a brighter note, adjusted EBITDA showed a slight improvement, reaching $887 million compared to $884 million in the same quarter last year.
The standout performer was the digital segment, which includes the Sportsbook and iCasino, achieving record results. Digital revenue surged by 11.6% to $374 million, while adjusted EBITDA hit a record $69 million.
CEO Tom Regg highlighted the impressive revenue growth, stating, “Caesars Digital revenue of $374 million and adjusted EBITDA of $69 million achieved record first quarter results… We continue to see a business capable of achieving 20% top-line revenue growth with 50% flow-through to EBITDA.”
Despite the strong revenue, the EPS figures were disappointing, trailing 92% behind analyst predictions. This shortfall is largely attributed to the company’s substantial debt, which amounted to $11.9 billion, resulting in $569 million in interest expenses during the quarter.
While the casinos are profitable, the high cost of servicing this debt is significantly impacting the bottom line. The regional segment also faced challenges, particularly as the New Orleans properties did not benefit from the Super Bowl LX windfall seen in Q1 2025, leading to a slight decline in EBITDA.
Additionally, the company must account for considerable depreciation and amortization expenses, which weigh heavily on EPS calculations. Management noted that the late March and early April period was softer than expected, suggesting that luck was not on the house's side during that time.