Caesars Entertainment NASDAQ: CZR reported what executives called a “solid” start to 2026, with year-over-year gains in consolidated revenue and incremental improvement in adjusted EBITDA, supported by stronger group and convention business in Las Vegas, continued resilience in regional gaming, and record first-quarter results in its digital segment.
First-quarter financial snapshot
President and Chief Operating Officer Anthony Carano said consolidated net revenues rose to $2.9 billion, up $77 million, or 3%, from the prior-year period. Adjusted EBITDA was $887 million, up $3 million year-over-year.
Carano highlighted “continued sequential improvements in operating trends in Las Vegas,” regional revenue and EBITDA growth when excluding last year’s Super Bowl impact in New Orleans, and “record Q1 revenues and EBITDA” in digital.
Las Vegas: strong group mix, improving leisure trends
In Las Vegas, Caesars generated adjusted EBITDA of $426 million compared with $433 million a year ago, on flat revenues. Carano said the company saw a “significant sequential improvement in the hospitality vertical” with occupancy of 95.3% and 1% year-over-year growth in average daily rate. Group occupied room mix was 19% during the quarter, which management said helped results, while leisure demand remained down year-over-year but improved versus the second half of 2025.
CEO Tom Reeg described the market as “in a much healthier spot” than mid-2025, though he emphasized that performance continues to hinge on the event calendar. Weeks with large conventions or major events were “exceedingly strong,” he said, while “soft” weeks still occur when the market lacks big attractions. Reeg pointed to CONEXPO-CON/AGG week as “spectacular across the market,” and said Caesars is working with the Las Vegas Convention and Visitors Authority to pursue more citywide group events that “lift all boats.”
Looking to the second quarter, Reeg said he previously expected the quarter to be slightly up year-over-year, but April was “a little softer than we anticipated,” largely due to lower hold compared with last year. He said Caesars would “still likely be just short of last year,” but “much healthier than it’s been,” adding that comps versus a “tough summer” last year should become more favorable.
On pricing and value, management noted it is working to attract guests “at every price point,” including “all you can eat and drink” offerings at several properties. Asked about all-inclusive packages, Reeg said Caesars is “not pricing anything to break even,” and views the offerings as a way to bring in customers profitably during softer periods rather than as loss leaders. He also said the first-quarter 95%+ occupancy did not reflect a meaningful shift in casino-room mix, but did reflect more group business that “crowded out some OTA business.”
Caesars also outlined several Las Vegas product initiatives, including renovated villas and casino floor remodels at Caesars Palace, the planned opening of OMNIA Dayclub at Caesars Palace on May 15, a full remodel of the Augustus Tower targeted for completion by early 2027, and the opening of “Category 10 by Luke Combs” at Flamingo later this year.
Regional: Super Bowl comparisons and continued reinvestment discipline
In the regional segment, Caesars posted net revenues of $1.4 billion, up 3% year-over-year, and adjusted EBITDA of $435 million, down $5 million from the prior year. Both Carano and Reeg pointed to last year’s Super Bowl in New Orleans as a major factor in the year-over-year comparison. Reeg said the Super Bowl provided “a little over $10 million of incremental EBITDA” in last year’s first quarter that did not repeat.
Excluding that impact, management said regional performance improved. Carano credited targeted marketing reinvestment for driving an increased rate of play, while Reeg said the regional consumer has been “remarkably resilient,” and that the business is “off to a very strong start in April.”
Caesars also updated investors on portfolio developments and capital projects:
- Caesars Windsor acquisition: Carano said Caesars closed on the acquisition of Caesars Windsor on March 3, and results are now included in the regional segment. CFO Bret Yunker added the company acquired the operations for $54 million and entered into a 20-year operating agreement with the Ontario Lottery and Gaming Corporation.
- Harrah’s Oklahoma: Carano said the company opened its newest managed property on April 9, expanding Caesars Rewards into a new market.
- Tahoe renovation timeline: Carano said the company expects to complete its $200 million Tahoe master plan renovation this summer, with completion scheduled in June 2026. Reeg said the project should be complete by the beginning of the third quarter and is “less disruptive than it was last year.”
- Regional capital cycle: Carano said Caesars will have completed all major planned regional CapEx projects since the 2020 merger once Tahoe wraps, and noted more than $3 billion has been invested in regional CapEx over the past five years.
When asked about competition in certain regional markets, Carano said Caesars is leaning on service, Caesars Rewards, and marketing reinvestment adjustments. He said reinvestment has been “ramped…down quarter by quarter over the past four quarters” to become more efficient while retaining customers.
Digital: record quarter, expanding margins, and technology rollout
President of Caesars Sports and Online Eric Hession said Caesars Digital delivered record first-quarter net revenue of $374 million and adjusted EBITDA of $69 million. Flow-through was “just over 66%,” and EBITDA margin expanded 566 basis points to 18.4%.
Hession said sports net revenue increased 9%, while total volume declined 3% and mobile sports volume declined 1%. He said those declines were “more than offset by hold,” which increased 100 basis points to 8.3%, and he noted increases in parlay mix, average legs per parlay, and cash-out mix.
In iCasino, Hession said net revenue grew 18%, driven by volume strength and growth in average monthly active users. He cited product initiatives including new in-house games, improved bonusing capability, and cross-play incentives tied to brick-and-mortar engagement through efforts such as Remote Reels, exclusive product launches, and customer events. Overall monthly unique players rose about 2% to 512,000, while average revenue per monthly player increased 15% to $219.
On technology, Hession said the company continues converting jurisdictions to its universal wallet and proprietary player account management system, which is live in 27 jurisdictions and expected to be live in all jurisdictions by the end of April.
Reeg said Caesars’ ability to acquire customers through the Caesars Rewards database has helped keep acquisition costs steadier than peers, particularly amid industry discussion of prediction markets affecting customer acquisition. Reeg also noted “significant partnership expenses” rolling off in 2026, with most of the benefit expected in the third and fourth quarters of 2026 and into the first quarter of 2027. He reiterated that digital remains on the path toward “$500 million or more of EBITDA.”
Looking ahead, management discussed Alberta as an upcoming opportunity. Hession said the province is smaller but has relatively high wealth per person and will allow both sports and iCasino. He said Caesars’ app is significantly improved versus its Ontario launch, and the company plans to launch with the Horseshoe and Caesars Palace brands, though he noted the company’s existing database in Alberta is “not all that significant” and referenced data-transfer restrictions.
Balance sheet, free cash flow priorities, and capital allocation
Yunker said Caesars expects “strong free cash flow in 2026” over the balance of the year, driven by continued operating momentum, lower cash interest expense, and lower CapEx. Reeg described the company as being in a “free cash flow harvesting stage” following its capital cycle, with lower capital expenditures. He said Caesars has balanced debt reduction and share repurchases, though the company did not repurchase stock in the first quarter due to seasonal cash outflows, including bonus and interest payments and spending tied to the Windsor transaction.
Reeg said the company expects to return to a mix of debt paydown and buybacks during heavier free cash flow quarters (second through fourth quarter). On leverage, he said Caesars wants lease-adjusted leverage to be “sub five times.” Regarding M&A, Reeg said a near-term portfolio purchase is “unlikely” given the return profile of repurchasing Caesars stock, though he said the company remains willing to evaluate opportunities.
On other topics, Reeg said Caesars’ entertainment calendar in Las Vegas is more robust than last year, with more shows at The Colosseum and Planet Hollywood. He also declined to provide quarterly updates on discussions with VICI related to lease coverage, saying the company would report when there is something to disclose.
About Caesars Entertainment NASDAQ: CZR
Caesars Entertainment Corporation is a leading integrated gaming and hospitality company headquartered in Las Vegas, Nevada. The company owns and operates a global portfolio of resorts, casinos, and entertainment venues designed to deliver comprehensive hospitality experiences. Its business activities span hotel accommodations, gaming operations, food and beverage services, live events, and convention services, with a focus on delivering luxury and entertainment to both leisure and business travelers.
The company traces its lineage to the founding of Harrah's by William F.
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