CZR

Caesars Entertainment is one of the largest U.S. casino-and-hospitality operators, and the equity is effectively a leveraged claim on its property cash flows. Operationally the business works: FY2025 revenue was stable at $11.5B, operating income was a solid $1.86B (16.2% operating margin), and operating cash flow grew 21.1% to $1.30B. The problem is the capital structure inherited from the Eldorado/Caesars merger — $11.7B of long-term debt against just $3.50B of equity (7.98x liabilities/equity) — whose interest burden turns that $1.86B operating profit into a -$502M net loss (EPS -$2.42). Net losses have been the norm (four of the last five years), and retained earnings sit at -$3.30B.