Caesars Entertainment posts revenue growth as third-quarter EBITDA falls

Caesars Entertainment reported higher revenue but lower profitability for the third quarter of 2026, highlighting the different performance trends across its casino operations and digital business. Revenue reached $2.94 billion for the three months ended September 30, compared with $2.87 billion in the same period of 2025. However, Consolidated Adjusted EBITDA declined to $865 million from $884 million.

The results, released on October 27, show that revenue growth did not translate into stronger adjusted earnings. The company also recorded a wider net loss attributable to Caesars, which increased to $123 million or $0.61 per share, compared with $55 million or $0.27 per share, a year earlier.

Operating income fell to $457 million from $513 million. Meanwhile, net interest expense reached $570 million, exceeding operating income by $113 million. The figures illustrate the distinction between the company's operating performance and the financial burden reflected in its final earnings.

Las Vegas records the largest segment decline

The Las Vegas segment remained a significant contributor to Caesars Entertainment's operating results, but its third-quarter performance weakened year over year. Adjusted EBITDA declined to $343 million from $379 million, a reduction of $36 million. That decrease was substantially larger than the $19 million decline in consolidated Adjusted EBITDA.

Las Vegas revenue also fell to $930 million from $952 million, a decrease of approximately 2.3%. Based on the reported segment figures, Adjusted EBITDA represented approximately 36.9% of revenue, compared with 39.8% a year earlier. This represents a reduction of around 2.9 percentage points.

The decline in both revenue and margin indicates that the segment generated less adjusted earnings from a smaller revenue base. The figures alone do not establish the precise causes of the change, but the next quarterly report should provide another useful comparison of the segment's revenue and operating performance.

General and administrative expenses across the group increased to $517 million from $483 million. That $34 million increase adds context to the earnings picture, although the reported figures do not establish that the higher expense alone explains the change in consolidated results.

Regional operations and digital gaming provide support

Performance outside Las Vegas helped offset part of the decline. Caesars Entertainment's Regional segment recorded Adjusted EBITDA of $524 million, up from $506 million in the third quarter of 2025. Its $18 million increase represented an important contribution to the group's overall operating performance.

Regional revenue rose to $1.627 billion from $1.536 billion, an increase of approximately 5.9%. However, its Adjusted EBITDA margin eased to around 32.2% from 32.9%. The improvement in adjusted earnings therefore occurred alongside revenue growth rather than an expansion in the segment's margin.

Caesars Digital also reported an improvement. Adjusted EBITDA increased to $44 million from $28 million, while revenue advanced to $326 million from $311 million. Its adjusted margin rose to approximately 13.5% from 9.0%, representing an improvement of about 4.5 percentage points.

Digital accounted for approximately 11.1% of group revenue and 5.1% of consolidated Adjusted EBITDA. In the prior-year quarter, those proportions were around 10.8% and 3.2%, respectively. The results indicate that digital operations increased their contribution to adjusted earnings, although the segment remained smaller than the company's Regional and Las Vegas businesses.

The Managed and Branded segment generated $17 million in Adjusted EBITDA, compared with $18 million a year earlier. Corporate and Other recorded a loss of $63 million, against a loss of $47 million in the prior-year period. The additional $16 million loss offset the improvement reported by Caesars Digital.

Together, the five reporting categories reconcile to the $19 million decline in consolidated Adjusted EBITDA. The Regional and Digital segments added $34 million, while the Las Vegas decline and the changes in Managed and Branded and Corporate and Other reduced the overall result.

Interest expense remains a significant consideration

The relationship between operating income and interest expense is central to understanding the quarter. Caesars Entertainment reported $457 million in operating income against $570 million in net interest expense. In the third quarter of 2025, operating income was $513 million and net interest expense was $576 million.

Although net interest expense decreased by $6 million year over year, it remained above operating income. The company recorded a pretax loss of $117 million, compared with $64 million in the corresponding period last year. Its income tax benefit also declined to $10 million from $25 million, contributing to the overall earnings comparison.

Adjusted EBITDA is a non-GAAP financial measure intended to provide additional information about operating performance. It should not be treated as equivalent to net income, free cash flow or liquidity. Financing costs, taxes and other accounting items can materially affect the final reported result.

Caesars Entertainment's balance sheet showed some improvement in debt measures compared with year-end 2025. Total outstanding debt stood at $11.659 billion on September 30, down from $11.905 billion on December 31. Net debt decreased to $10.795 billion from $11.018 billion.

Cash and cash equivalents declined to $864 million from $887 million over the same period. The company reported available liquidity of $2.947 billion under its stated measure, which incorporates cash and unused revolving credit after relevant commitments and restrictions. These figures provide context for assessing its financial position as it continues to manage debt and pursue its proposed transaction.

No numerical outlook accompanies the results

The third-quarter release did not provide a numerical revenue or Adjusted EBITDA forecast for the fourth quarter or full year. It therefore did not announce a revised numerical outlook in either direction.

For the nine months ended September 30, Caesars Entertainment reported revenue of $8.803 billion, compared with $8.570 billion in the same period of 2025. That represents growth of approximately 2.7%. Consolidated Adjusted EBITDA decreased to $2.672 billion from $2.723 billion, a decline of approximately 1.9%.

The nine-month figures reinforce the pattern seen in the third quarter: revenue advanced while Adjusted EBITDA declined. Further results will help determine whether the gap narrows or persists across the company's reporting segments.

Several measures will be important in the next report. Las Vegas revenue and Adjusted EBITDA margin will show whether the segment stabilises after its year-on-year decline. The contribution from Caesars Digital will also matter, particularly if improvements in digital earnings are accompanied by a reduction in the Corporate and Other loss.

Debt service will remain another area to monitor. Lower debt balances may be relevant to the company's financial position, but the future effect on interest expense will depend on the applicable financing arrangements and other factors. Changes in cash and available liquidity will also provide useful context.

Fertitta Entertainment transaction remains a key development

The proposed acquisition by Fertitta Entertainment remains an important corporate development for Caesars Entertainment. Under the definitive agreement announced on May 28, 2026, shareholders are due to receive $31 in cash for each eligible share. The transaction was valued at approximately $17.6 billion, including the assumption of about $11.9 billion in Caesars debt.

The agreement is not subject to a financing condition and remains subject to regulatory approvals and other customary closing conditions. Caesars shareholders approved the transaction at a special meeting on September 22, 2026. The vote represents an important milestone, but shareholder approval by itself does not complete the acquisition.

The third-quarter results release did not specify a closing date. Under the announced terms, completion would result in Caesars Entertainment's common stock no longer being listed on Nasdaq and the company becoming privately held. Until the transaction closes, its public-company status remains unchanged.

Caesars also explained why it would not hold an earnings call for the quarter. The company stated that it would not be “hosting a quarterly conference call” because of the pending definitive agreement with Fertitta Entertainment. As a result, the earnings release contains the reported financial figures without additional executive commentary through a quarterly conference call.

Conclusion

Caesars Entertainment's third-quarter results present a mixed financial picture. Revenue increased by 2.5% year over year, but Consolidated Adjusted EBITDA declined by approximately 2.1%. The wider net loss and the fact that interest expense exceeded operating income also demonstrate why revenue growth alone does not provide a complete assessment of the company's performance.

Regional operations and Caesars Digital delivered higher adjusted earnings, partly offsetting the decline in Las Vegas. Yet the weaker Las Vegas margin and increased Corporate and Other loss reduced the benefit of those improvements. The nine-month figures show a similar divergence between rising revenue and lower adjusted earnings.

The company's debt and liquidity position will remain relevant to future results, while the proposed acquisition introduces an additional factor for shareholders and other stakeholders to monitor. Regulatory approvals and the timing of completion remain separate from the operating performance reported for the quarter.

The next results release should help clarify whether the improvement in digital earnings continues, whether Las Vegas stabilises and whether the relationship between revenue and Adjusted EBITDA improves. Until then, the third-quarter figures offer a measured picture of a company recording revenue growth while still facing profitability and financing considerations.

FAQs

What were Caesars Entertainment's third-quarter 2026 revenues?
Caesars Entertainment reported $2.94 billion in revenue for the third quarter ended September 30, 2026, compared with $2.87 billion in the same period of 2025.

How much did Consolidated Adjusted EBITDA decline?
Consolidated Adjusted EBITDA fell to $865 million from $884 million, a year-on-year decrease of approximately 2.1%.

Why did Caesars Entertainment report a larger net loss?
The company reported a net loss attributable to Caesars of $123 million, compared with $55 million a year earlier. Lower operating income and the effect of financing and other items contributed to the overall earnings outcome.

How did the Las Vegas segment perform?
Las Vegas generated $343 million in Adjusted EBITDA, down from $379 million. Revenue declined to $930 million from $952 million.

Did Caesars Digital improve its performance?
Yes. Caesars Digital's Adjusted EBITDA increased to $44 million from $28 million, while revenue rose to $326 million from $311 million.

What was Caesars Entertainment's total debt at the end of September 2026?
Total outstanding debt was $11.659 billion as of September 30, 2026, down from $11.905 billion at the end of 2025.

Why did Caesars Entertainment skip its third-quarter earnings call?
The company said it would not host a quarterly conference call because of its pending acquisition agreement with Fertitta Entertainment.

What are the terms of the proposed Fertitta Entertainment acquisition?
The announced agreement provides for $31 in cash per eligible Caesars share and values the transaction at approximately $17.6 billion, including assumed debt of about $11.9 billion.

Has the proposed acquisition been completed?
The company's shareholders approved the transaction on September 22, 2026, but completion remains subject to regulatory approvals and other customary closing conditions.

What should investors watch in the next quarterly report?
Important indicators include Las Vegas revenue and margins, Caesars Digital's adjusted earnings, Corporate and Other expenses, net interest expense and changes in debt and liquidity.