PENN Entertainment reports stronger Q2 revenue and improved profitability

PENN Entertainment delivered a stronger second quarter in 2026, reporting higher revenue, a return to quarterly net income and substantial improvement in Adjusted EBITDA as both its Retail and Interactive operations showed positive developments. The results cover the three months ended June 30, 2026 and point to continued progress against the company’s strategic priorities for the year.

The company generated revenue of $1.86 billion during the quarter, compared with $1.77 billion in the same period of 2025. Net income reached $32.6 million, reversing a net loss of $18.3 million recorded a year earlier. The improvement reflects stronger operating performance across the business as well as continued efforts to manage costs and improve profitability.

Retail segment delivers record quarterly revenue

The Retail segment remained the principal contributor to PENN Entertainment’s financial performance during the quarter. Revenue reached approximately $1.5 billion while Segment Adjusted EBITDAR increased to $517.2 million.

The resulting Adjusted EBITDAR margin was 34.4%, highlighting the continued contribution of the company’s land-based casino portfolio. Management said the performance was supported by broad strength across its geographically diverse properties and by recently completed development projects.

Nine properties recorded second-quarter records for revenue and Adjusted EBITDAR. According to management, the results reflected stronger theoretical revenue as well as contributions from mid- and high-worth customers and growth in unrated revenue.

The company also reported sequential and year-over-year improvement in its Retail segment margin. This suggests that stronger customer demand was being converted into operating performance while property-level teams continued to focus on cost discipline and operational efficiency.

The second quarter also marked an important stage in PENN Entertainment’s development programme. The company opened the new hotel tower at Hollywood Casino Columbus in June as well as the new Hollywood Casino Aurora in Illinois.

The Hollywood Columbus project added a 203-room hotel to the property, expanding its accommodation and entertainment offering. Meanwhile, Hollywood Casino Aurora represented a larger redevelopment initiative designed to provide a new land-based gaming and entertainment destination.

Management said early trends at both properties were encouraging, including visitation from VIP customers. The openings are strategically important because they give PENN additional capacity to capture gaming, hospitality, food and beverage and entertainment spending.

Interactive losses narrow substantially

PENN Entertainment’s Interactive segment also recorded meaningful progress during the quarter. Revenue increased to $349.4 million from $316.1 million in the second quarter of 2025.

The reported Interactive revenue includes a tax gross-up of $185.5 million. While the segment remained loss-making on an Adjusted EBITDA basis, the loss narrowed significantly to $9.5 million compared with $62.0 million a year earlier.

That represents an improvement of $52.5 million year-over-year and is one of the clearest indicators of the company’s progress in reshaping its digital operations.

The improvement comes as PENN continues to focus its Interactive strategy on areas where it sees stronger long-term potential, particularly online casino operations and its Canadian business.

In the United States, standalone Hollywood iCasino recorded both quarter-over-quarter and year-over-year growth. The business also achieved record quarterly revenue, providing another indication that PENN’s digital casino strategy is gaining traction.

Management has increasingly emphasized iCasino as an important part of its Interactive strategy. The latest results suggest that the company is moving toward a more sustainable digital operating model after several periods of significant losses.

Canadian operations gain momentum

Canada remained another important area of focus during the quarter. PENN Entertainment said its Ontario operations continued to gain momentum, with online sports betting revenue benefiting from World Cup engagement and cross-selling activity involving users who returned to the sports betting product.

The company’s Canadian expansion also moved into a new phase with the launch of its digital products in Alberta.

PENN launched theScore Bet as well as theScore Casino and Hollywood iCasino standalone apps in Alberta on July 13. The launch came shortly after the end of the second quarter, meaning its full financial contribution will be more relevant to the company’s third-quarter performance.

The Alberta market provides PENN with an opportunity to build on its existing Canadian brand recognition while expanding its regulated online gaming footprint. The company has previously highlighted theScore brand’s position in Canadian sports media as an important asset for its Interactive strategy.

Management will therefore be watching customer acquisition, retention, sports betting activity and iCasino adoption closely as the Alberta operation develops.

Consolidated Adjusted EBITDA improves

At group level, PENN Entertainment reported Consolidated Adjusted EBITDA of $312.6 million for the second quarter. That compares with $236.1 million in the corresponding period of 2025.

The improvement of $76.5 million demonstrates the combined effect of stronger Retail performance and significantly reduced Interactive losses.

Diluted earnings per share also improved materially. PENN reported diluted EPS of $0.24 compared with a loss per share of $0.12 in the second quarter of 2025.

The earnings improvement is particularly significant because it shows that the company’s operating gains are translating into a stronger bottom-line result rather than being limited to revenue growth.

Management has placed considerable emphasis on improving cash generation and reducing the company’s financial leverage. The second-quarter results provide additional support for that strategy.

Liquidity and debt remain key priorities

PENN Entertainment ended the quarter with total liquidity of approximately $1.9 billion, including $887.2 million in cash and cash equivalents. Traditional net debt stood at approximately $1.9 billion.

The company also continued to work on its debt structure during the quarter. PENN refinanced and extended several credit facilities, repaid the remaining balance of its 2026 convertible notes and extended the maturity of its Term Loan B facility to 2033.

These steps are important as the company seeks to improve financial flexibility while continuing to invest in its operating portfolio.

Balance-sheet management has become a central part of PENN Entertainment’s broader strategy. The company is simultaneously seeking to grow operating earnings, improve cash flow and reduce leverage while funding selected investments in its Retail and Interactive businesses.

Management remains focused on 2026 priorities

Jay Snowden, Chief Executive Officer and President of PENN Entertainment, said the company continued to execute against its 2026 strategic priorities, including Segment Adjusted EBITDAR growth, corporate overhead optimisation, cash-flow growth and balance-sheet deleveraging.

“We continued to execute against our 2026 strategic priorities this quarter: delivering Segment Adjusted EBITDAR growth, optimising corporate overhead, growing cash flow and deleveraging the balance sheet. PENN achieved record quarterly Retail segment revenues, supported by strong performance across our portfolio, including our four recently completed development projects. Our Interactive segment remains on track to deliver upon our previously stated goals, supported by growth in U.S. iCasino and Canada. Adjusted EBITDA improved by $52.5 million year-over-year, reflecting disciplined execution of our strategy to drive profitability. The encouraging trends in our Retail and Interactive operating segments have continued through July.”

Snowden also pointed to the performance of PENN’s individual properties, noting that nine locations achieved second-quarter records for revenue and Adjusted EBITDAR.

“PENN’s geographically diverse Retail segment delivered portfolio-wide strength, with nine properties setting second-quarter records for revenues and Adjusted EBITDAR,” said Mr. Snowden. “We experienced another quarter of year-over-year growth in theoretical revenue, supported by meaningful contributions from mid- and high-worth customer segments, as well as growth in unrated revenue, underscoring broad-based consumer demand. Second-quarter Segment Adjusted EBITDAR margins improved quarter-over-quarter and year-over-year, reflecting our property teams’ focus on converting solid demand into favorable operating results. In June 2026, we opened both the new hotel tower at Hollywood Columbus and the new Hollywood Casino Aurora and early trends at both properties are encouraging, including strong visitation from VIP players.”

The CEO also highlighted the progress of the digital business.

“Our Interactive segment delivered another quarter of meaningful year-over-year Adjusted EBITDA improvement. In the U.S., standalone Hollywood iCasino experienced quarter-over-quarter as well as year-over-year growth, achieving record quarterly revenues. In Ontario, gaming operations continued to gain momentum, supported by strong growth in online sports betting (“OSB”) revenues aided by solid World Cup engagement and cross-sell of the reactivated World Cup OSB user base into iCasino. We also successfully launched theScore Bet, as well as theScore Casino and Hollywood iCasino standalone apps, in Alberta on July 13,” concluded Mr. Snowden.

What the results mean for PENN Entertainment

The second-quarter performance represents an important step in PENN Entertainment’s efforts to strengthen its overall financial profile.

The company is no longer relying solely on revenue growth to demonstrate progress. Instead, the latest figures show simultaneous improvement in Retail profitability, Interactive losses and consolidated Adjusted EBITDA.

The Retail business continues to provide the company with a substantial earnings base while recently completed property investments are beginning to contribute to the portfolio. At the same time, the Interactive segment is moving closer to profitability as iCasino growth and Canadian operations support improved economics.

The Alberta launch adds another potential source of future growth, although its impact will become clearer as the business develops beyond its initial launch period.

Debt reduction will remain another important consideration. With traditional net debt at approximately $1.9 billion, continued cash-flow improvement could provide PENN with greater flexibility to reduce leverage while maintaining investment in its operating businesses.

Conclusion

PENN Entertainment’s second-quarter 2026 results show a company making measurable progress across several areas at the same time. Revenue increased, the company returned to net income and Consolidated Adjusted EBITDA rose substantially compared with the prior-year quarter.

The Retail segment remains the foundation of the business, with record quarterly revenue and strong Adjusted EBITDAR performance across a broad portion of the property portfolio. The opening of Hollywood Columbus’s new hotel tower and the new Hollywood Casino Aurora also gives the company additional opportunities to expand customer engagement and diversify revenue across gaming, hospitality and entertainment.

The Interactive segment provides an equally important part of the story. Although it remained slightly loss-making on an Adjusted EBITDA basis, the year-over-year improvement was substantial. Record quarterly revenue from standalone Hollywood iCasino and continued momentum in Ontario indicate that PENN’s revised digital strategy is producing more encouraging operating trends.

The Alberta launch could further shape the company’s Interactive performance during the second half of the year. Its success will depend on customer adoption, operating efficiency and the ability of PENN to leverage theScore brand in a newly regulated market.

Overall, the quarter presents a more balanced picture of PENN Entertainment. Stronger Retail economics, narrowing Interactive losses, improved consolidated earnings and continued balance-sheet actions provide a clearer foundation for the company’s remaining 2026 priorities. The next phase will be to determine whether these gains can be sustained while new investments mature and the company continues its efforts to improve cash flow and reduce debt.

FAQs

What revenue did PENN Entertainment report for Q2 2026?
PENN Entertainment reported $1.86 billion in revenue for the second quarter of 2026, compared with $1.77 billion in the same quarter of 2025.

Did PENN Entertainment report a profit in Q2 2026?
Yes. The company reported net income of $32.6 million for the second quarter, compared with a net loss of $18.3 million a year earlier.

How did PENN Entertainment’s Retail segment perform?
The Retail segment generated approximately $1.5 billion in revenue and $517.2 million in Adjusted EBITDAR, producing an Adjusted EBITDAR margin of 34.4%.

How did the Interactive segment perform?
Interactive revenue increased to $349.4 million, including a $185.5 million tax gross-up. Its Adjusted EBITDA loss narrowed to $9.5 million from $62.0 million a year earlier.

What was PENN Entertainment’s Consolidated Adjusted EBITDA?
Consolidated Adjusted EBITDA increased to $312.6 million in the second quarter of 2026 from $236.1 million in the second quarter of 2025.

What happened to PENN Entertainment’s earnings per share?
Diluted earnings per share improved to $0.24 from a loss per share of $0.12 in the second quarter of 2025.

How much liquidity did PENN Entertainment have?
PENN Entertainment ended the quarter with approximately $1.9 billion in total liquidity, including $887.2 million in cash and cash equivalents.

What new properties did PENN Entertainment open?
The company opened the new hotel tower at Hollywood Casino Columbus and the new Hollywood Casino Aurora in June 2026.

What is PENN Entertainment doing in Alberta?
PENN launched theScore Bet, theScore Casino and Hollywood iCasino standalone apps in Alberta on July 13, 2026 as part of the province's newly regulated online gaming market.

What are PENN Entertainment’s main priorities for 2026?
The company is focused on growing Segment Adjusted EBITDAR, optimising corporate overhead, increasing cash flow, improving Interactive profitability and deleveraging its balance sheet.