Caesars Entertainment (CZR) EPS Swing To Q4 Loss Tests Bullish Recovery Narrative

Caesars Entertainment (CZR) closed out FY 2025 with fourth quarter revenue of US$2.9 billion, a basic EPS loss of US$1.23 and a net income loss of US$250 million, compared with revenue of US$2.8 billion, basic EPS of US$0.05 and net income of US$11 million in the same quarter a year earlier. Over the past year, the company has seen quarterly revenue range from US$2.8 billion to US$2.9 billion, while basic EPS moved from a US$0.27 loss in Q3 2025 to a US$1.23 loss in Q4 2025. Trailing twelve month EPS sat at a US$2.41 loss alongside a net income loss of US$502 million on US$11.5 billion of revenue. For investors, the story this quarter is about how much of that top line is being eaten up before it reaches the bottom line, with margins under clear pressure.

See our full analysis for Caesars Entertainment.

With the latest numbers on the table, the next step is to see how this earnings profile lines up with the prevailing narratives around Caesars, and where the figures start to challenge those stories.

See what the community is saying about Caesars Entertainment

LTM loss of US$502 million keeps Caesars in the red

• On a trailing 12 month basis, Caesars recorded a net income loss of US$502 million on US$11.5b of revenue, compared with a single quarter loss of US$250 million in Q4 FY 2025 on US$2.9b of revenue.
• Bulls point to analysts expecting earnings to grow about 52.93% per year and see this as part of a recovery story, yet the current US$502 million trailing loss highlights how much work is still ahead.
  • Supporters of the bullish view highlight that losses have narrowed at an average rate of 47% per year over the past five years. They use that trend to argue the current loss profile may be a phase rather than a steady state.
  • At the same time, the consensus narrative leans on future margin expansion from digital, loyalty and property investments. The latest figures show margins are still negative today, so the gap between current earnings and the bullish endpoint remains wide.

On top of these headline losses, some bulls argue the real story sits in future earnings power rather than today’s income statement, and they dig into that in the 🐂 Caesars Entertainment Bull Case.

Revenue forecast of 2.8% a year vs 10.3% US market

• Revenue is forecast to grow 2.8% per year, compared with a 10.3% annual forecast for the broader US market, while the last 12 month revenue base sits at about US$11.5b.
• Bears focus on this slower revenue outlook and argue that even if Caesars improves profitability, a 2.8% revenue growth rate against a 10.3% market figure could limit how far earnings can scale.
  • The cautious narrative flags that heavy reliance on US properties, changing customer habits and higher labor costs could all make it harder to push revenue growth closer to market levels.
  • At the same time, the recent quarterly revenue range of US$2.8b to US$2.9b shows a relatively tight band, which critics see as consistent with modest growth rather than a sharp step up in the top line.

Skeptics also point out that if growth stays closer to 2.8% while costs from wages and property spending rise, it may be harder for Caesars to deliver the profit ramp that bearish analysts already build into their cautious case in 🐻 Caesars Entertainment Bear Case.

Low 0.3x P/S and DCF fair value of US$64.13 vs US$21.42 price

• Shares trade on a P/S of 0.3x against peers at 1.8x and the US Hospitality industry at 1.6x, while a DCF fair value of US$64.13 sits well above the current US$21.42 share price.
• Consensus narrative fans see this wide gap as an opportunity but also acknowledge that the valuation relies on earnings turning around from a US$502 million trailing loss to positive earnings in the next few years.
  • Supporters of the consensus view connect the low P/S and DCF fair value to expectations that revenue could reach around US$12.6b and earnings about US$540.9 million by 2028, paired with a higher margin profile than today.
  • Against that, the latest basic EPS loss of US$1.23 in Q4 FY 2025 and a trailing EPS loss of US$2.41 show that current profitability is still far from those consensus end points. This is why some investors focus closely on how quickly the income statement shifts from loss to profit.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Caesars Entertainment on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

The numbers here raise plenty of questions around Caesars current position, so consider reviewing the details while they are fresh and weighing the positives yourself. To round out your view, it is worth checking the company’s 4 key rewards before deciding how these earnings fit your own thesis.

See What Else Is Out There

Caesars is still working through a US$502 million trailing loss, negative margins and slower forecast revenue growth of 2.8% a year against a 10.3% US market figure.

If that mix of ongoing losses and tight revenue growth bands feels uncomfortable, you can quickly compare it with our 80 resilient stocks with low risk scores and see businesses that score better on stability and risk right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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