During their recent earnings call, Caesars Entertainment gave an update on its Q4 performance, highlighting mixed results. Revenue for the quarter, ending December 31, 2025, reached $2.92bn - hitting the top end of analyst forecasts. This took annual revenue to $11.5bn, up 2.7% from 2024's $11.2bn.
However, Group earnings fell from $3.7bn in 2024 to $3.6bn in 2025, while the bottom line showed a $250m loss for the quarter, compared to $11m income the year before.
Meanwhile, 2024's income included $350m in asset sales, which were not repeated in 2025. Across the year, the group posted a $502m loss.
In 2024, the loss was reduced to $278m thanks to the sale of the LINQ Promenade and WSOP trademark.
Caesars Entertainment - The digital driver
Despite overall Group loss, the company's digital arm was the driving force behind the revenue gains, generating $419m of revenue – an increase of 38.7% compared to 2024.
Co-President of Caesars Digital, Eric Hession, said of digital's performance: "As we look forward to the full year of 2026, I'm pleased with the significant progress on the technology side of the business that's driving strong customer engagement in both sports and casino.
"The continuous progress we are making is showing up in our top-line results, and our focus on spending efficiency will drive solid, close through to EBITDA.
"We continue to see a business capable of driving 20% top-line growth with 50% closer to EBITDA, which keeps us on track to achieve our goals."
Las Vegas worries
Poor Las Vegas performance was seen as a key reason for the group's overall downturn, saying: "Keep in mind, we were, what, 90, 92.5% occupied for the quarter across 20,000 rooms.
"If you look back over the history of Caesars and Vegas, this was probably the third, fourth, best, fourth quarter of all time. So there's really no crisis happening in Vegas."
Caesars announced in January that it would close its dedicated Planet Hollywood poker room, despite it reopening less than a year ago. There are now only 18 poker rooms left in Sin City – indicative of dwindling visitor numbers across the region.
Possible Canada expansion
Elsewhere on the call, Reeg addressed whether Caesars would enter the burgeoning prediction market. He said he views such markets as gambling, and that Caesars has no intention of joining the growing number of platforms.
When asked about possible expansion in Canada, Reeg said the Canadian market is tricky because it requires lots of smaller venues, which is not how the Group usually operates.
Caesars currently operates Caesars Windsor by the Detroit River, but it looks unlikely that it will look to take advantage of the opening up of the Alberta market.
Despite the mixed results, the earnings call had a positive effect on Caesars' stock; having recently hit a five-year low of $18.05, the share price increased 15% on Tuesday night, peaking at $21.95. It has settled back down now, but is still trading at $21.42, suggesting the market has confidence in Reeg's ability to bring further improvements.
