Caesars Reports $2.9 Billion Net Revenue in Q3 Despite Hold Issues
Caesars Entertainment, Inc. (CZR) reported $2.9 billion in net revenue for the third quarter ended September 30, 2025. This result was flat compared to the previous year. The company’s Adjusted EBITDA dropped to $884 million, marking an 11.2% decline year-over-year on a same-store basis.
The company’s bottom line was hurt by a $55 million net loss attributable to Caesars, up from a $9 million loss in the prior year’s period. Chief Executive Officer Tom Reeg cited “poor table games hold” in Las Vegas and “lower-than-expected sports hold during September” in the digital segment as key issues.
Same-Store Performance Affected by Hold
Caesars’ financial performance was heavily impacted by the casino’s win rate, or “hold.” When adjusted to remove the effect of this fluctuation, the underlying trends show slight growth.
Hold-Adjusted Results
- Hold Adjusted Net Revenues grew by 3.0% year-over-year (YoY).
- Hold Adjusted Adjusted EBITDA was $927 million. This figure represents a smaller YoY decline of 4.4%, compared to the 11.2% unadjusted drop.
The company’s land-based and digital segments showed varied results:
The Regional segment was a strong point, delivering growth in both net revenue and Adjusted EBITDA due to consistent operating trends and positive returns from capital projects.
The Las Vegas segment saw its Adjusted EBITDA drop by 18.8%. This decline was primarily due to the low table games hold combined with lower city-wide visitation during the quarter.
Caesars Digital Volume is Strong, Profitability Drops
The Caesars Digital segment reported strong underlying volumes but saw its profitability cut in half.
Net revenues for Caesars Digital grew 2.6% to $311 million. However, Adjusted EBITDA plummeted by 46.2% to $28 million, down from $52 million in Q3 2024. This sharp drop was directly tied to the lower-than-expected sports hold rate in September.
Despite the profitability challenge, operating metrics showed expansion:
- Monthly Unique Payers (MUPs) grew 15% YoY.
- Sports gaming handle increased by +6% YoY.
- iGaming handle jumped by +24% YoY, with iGaming net revenue growing +30% YoY to $124 million.
CEO Tom Reeg expects improved operating performance in the fourth quarter, citing “continued momentum in our Caesars Digital segment” and stronger occupancy in Las Vegas. The digital unit continues its rollout of the Universal Digital Wallet across its 33 North American jurisdictions.
Debt Management and Share Repurchases
Chief Financial Officer Bret Yunker provided updates on the company’s balance sheet strategy. As of September 30, 2025, Caesars held $11.9 billion in total principal debt. Net debt measured $11.087 billion.
In July 2025, the company fully redeemed $546 million of 8.125% notes due in 2027. Yunker also noted that Caesars repurchased 3.9 million shares of its common stock for $100 million during and after the quarter.
He affirmed that the company continues to view its shares as “undervalued” and expects a balanced approach to free cash flow allocation between debt reduction and share buybacks.
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