WYOMISSING, Pa. – A few short years ago, PENN Entertainment, formerly Penn National Gaming, was a high-flying stock trading over $200 per share. When its venture with ESPN Bet failed, the stock plummeted and now trades below $15 per share.
As a result, significant board and management changes were made.
PENN Entertainment, the Berks County based operator of casinos, sports betting and entertainment, reported first quarter 2026 results on Thursday.
It wasn’t a great first quarter, but the company’s revenue and operating profit beat analysts’ expectations, and its stock creeped above $15 per share in morning training.
Jabin Bastian, writing for Stock Story, is not optimistic for the company. He wrote that “looking ahead, sell-side analysts expect revenue to grow 4.5% over the next 12 months, similar to its two-year rate. This projection is underwhelming and implies its products and services will see some demand headwinds.”
Management Comments
As you might expect, Jay Snowden, Chief Executive Officer and President, is more optimistic. He said in a statement: “We are pleased to report another solid quarter. Retail Segment Adjusted EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization and Rent) grew year-over-year, and stable trends are carrying into April.”
Snowden noted that in the interactive segment, continued online casino growth combined with positive trends in Ontario, Canada are driving momentum as PENN prepares for the anticipated July 13 launch of regulated iCasino and online sports betting in Alberta. “Importantly, we are executing on the plan we outlined last quarter, Snowden commented, “driving Retail and Interactive growth, optimizing corporate overhead, making disciplined capital investments, and continuing to delever(age).”
PENN Entertainment
Statement of Operations
In millions except per share
For the three months ended
31-Mar-26
31-Mar-25
Revenues
1,779
1,673
Net income (loss)
-2.8
111.5
Consolidated Adjusted EDITDA
266
173
Rent expense associated with triple net operating leases
163.3
155.9
Cash payments to REIT landlords
247.7
240
Diluted earnings (loss) per common share
-0.02
0.68
First Quarter Retail Segment Highlights
PENN reported revenues of $1.4 billion in the first quarter of 2026. Segment Adjusted EBITDAR was $471.4 million; and segment adjusted EBITDAR margins were 33.2%. Net income was a loss of $2.8 million.
“Trends were encouraging across the portfolio, with strength in our West segment reflecting the continued ramp of M Resort’s new hotel tower (in Henderson, NV) and strong execution by the team at Ameristar Casino Resort and Spa in Black Hawk, Colorado,” said Mr. Snowden. “Increased visitation and higher spend per visit companywide supported year-over-year theoretical revenue growth across all rated worth segments, representing our largest quarterly increase in three years.”
The company recently announced the June opening dates for a new hotel tower at Hollywood Columbus and the new Hollywood Casino Aurora PENN remains confident in the anticipated returns on its development project investments based on the success to date from its recent openings at Hollywood Casino Joliet and M Resort.
First Quarter Interactive Segment Highlights
According to PENN, first quarter revenues in the interactive segment were $358.3 million (including tax gross up of $185.8 million); and adjusted EBITDA loss was $10.8 million.
“Our Interactive segment delivered a meaningful Adjusted EBITDA improvement year-over-year, which marks the first full quarter under our realigned digital strategy. iCasino revenue growth of approximately 15% year-over-year was driven by the continued momentum of standalone iCasino, which notably achieved record quarterly revenue in the first quarter as well as record monthly revenue in March. The trends we are seeing provide us with confidence in the trajectory of the business and upcoming launch in Alberta,” concluded Mr. Snowden.
Liquidity and Financial Position
On March 16, 2026, the Company issued $600 million of unsecured notes due 2031 at an interest rate of 6.75%. The company said net proceeds from the notes were used to repay borrowings under PENN’s revolving credit facility.
PENN reported total liquidity as of March 31, 2026, was $1.7 billion, inclusive of $708.0 million in cash and cash equivalents. Traditional net debt as of the end of the quarter was $2.2 billion.
About PENN Entertainment
PENN Entertainment, Inc. operates 43 properties in 20 states, online sports betting in 19 jurisdictions and iCasino in five jurisdictions, under a portfolio of brands including Hollywood Casino®, L’Auberge®, and theScore BET Sportsbook and Casino®.