Burdened by US$11.9 billion (£8.76bn) in aggregate debt, Vegas dominator Caesars Entertainment (CZR) has reported a hefty net loss of -US$502 million (-£369.89m) for FY25 – but with its iGaming vertical, Caesars Digital, still presenting some cheer amid the fiscal gloom.
Nevertheless, the money markets–perhaps noting that Caesars, home of the most famous casino in the world, Caesars Palace, with another seven top-line gambling seraglios on the storied Las Vegas Strip, is too big to fail–has reacted with cautious optimism to the fiscal dampener.
A round-up of a dozen respected financial analysts predict that Caesars, headed by Tom Reeg, estimates that company stock will hit an average of US$29.83 in the forthcoming 12-months, representing a 46.87 percent rise on the latest price of US$20.31.
For the fourth quarter, ending December 31, Caesars recorded net revenues of US$2.9 billion (£2.13bn), compared to US$2.8 billion (£2.06bn) in Q4 2024 and reported a net loss of US$250 million for the quarter – against net income of US$11 million (£8.10m) in the same quartile the previous year.
Adjusted EBITDA for Q4 was US$901 million (£664.09m), up from US$882 million (£650.09m); while Caesars Digital Adjusted EBITDA rose to US$85 million (£62.65m) from US$20 million (£14.74m) in Q4, 2024.
For FY25 Caesars reported net revenues of US$11.5 billion (£8.47bn), compared to US$11.2 billion (£8.25bn) in 2024. Net loss was recorded as -US$502 million (-£369.96m), against a net loss of -US$278 million (-£204.89m) in 2024.
Adjusted EBITDA for 2025 totalled US$3.6 billion (£2.565bn), compared to US$3.7 billion (£2.72bn) in 2024.
Online Scaling
Within Caesars Digital, full-year revenues reached US$1.4 billion (£1.03bn) compared to US$1.16 billion (£850m) in 2024.
Caesars Digital Adjusted EBITDA for the full year was US$236 million (£173.89m), up from US$117 million (£86.21m), reflecting “continued scaling” of [our] iGaming and online betting activities, said the company in its financial report.
Caesars said it ended 2025 with US$11.9 billion in aggregate principal debt outstanding and US$887 million (£653.61m) in cash and cash equivalents.
Amid wider industry debates of whether share buy-back schemes represent fiscal strength or weakness, Caesars also noted its ongoing share repurchases since mid-2024.
“As we look ahead to 2026, the brick-and-mortar operating environment remains stable,” affirmed CEO Reeg.
“We are expecting another year of strong net revenue and Adjusted EBITDA growth in our Caesars Digital segment.
“When combined with lower capex and cash interest expense, 2026 is forecasted to deliver strong free cash flow that we expect to use to pay down debt and opportunistically repurchase our common stock.”
Some may call it a financial strategy of back to the future.
