Caesars Q1 2025 Hits $2.8B Revenue with $43M Digital EBITDA
Caesars Entertainment kicked off Q1 2025 with $2.8 billion in net revenue, up from $2.7 billion in Q1 2024, and trimmed its net loss to $115 million from $158 million
Digital Drives a Strong Start
“During the first quarter of 2025, consolidated Adjusted EBITDA grew 4% over prior year driven by significant gains in our Digital segment which delivered a new Q1 record,” said CEO Tom Reeg. Adjusted EBITDA rose 4.1% to $884 million, with Caesars Digital stealing the show.
The Digital segment’s net revenue jumped 18.8% to $335 million, with adjusted EBITDA soaring from $5 million to $43 million, a 12.8% margin.
A 28.3% surge in iGaming handle, 8.7% growth in sports betting revenue, and a 21% rise in average revenue per monthly player to $190 fueled the record.
With 504,532 monthly unique players, up 3%, Digital’s momentum is undeniable.
Regional Growth Offsets Vegas Dip
The Regional segment posted $1.388 billion in net revenue, a 1.7% increase, with adjusted EBITDA up 1.6% to $440 million, driven by new venues like Caesars New Orleans.
“Growth in our regional segment with strong contributions from recently opened properties,” Reeg noted. The 32% EBITDAR margin reflects steady performance after $2.6 billion in investments since 2020.
Las Vegas net revenue fell 1.9% to $1.003 billion, adjusted for the LINQ Promenade sale, with adjusted EBITDA down 0.7% to $433 million.
“A solid quarter in Las Vegas against a tough Super Bowl compare last year,” Reeg said. The 43% EBITDAR margin held strong, backed by $800 million in upgrades.
Cash Flow and Debt Strategy
Caesars closed Q1 with $12.3 billion in gross debt, $884 million in cash, and $11.418 billion in net debt, eyeing reductions. “We continue to expect 2025 to benefit from meaningfully lower year-over-year capital expenditures and cash interest expense,” said CFO Bret Yunker.
Projected 2025 capital spending of $606 million and $775 million in interest costs will lift free cash flow.
“When combined with strong operating fundamentals, free cash flow this year will show a significant improvement,” Yunker added.
A $100 million share repurchase in April at $23.84 per share shows confidence, with no major debt due until 2027. “Accelerating free cash flow in 2025 will allow us to continue to reduce debt alongside opportunistic share repurchases,” Yunker said. Digital’s $1.2 billion trailing 12-month revenue, up 20%, adds fuel.
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