WYOMISSING, Pa. – Slowly, PENN Entertainment is creeping back into the black from its recent years of heavy losses. The Wyomissing-based operator of casinos, sports betting and entertainment reported third quarter increases in revenue and earnings while beating analysts’ consensus estimates.
All of the company’s reportable segments – Northeast, South, West, Midwest, and Interactive – reported revenue growth over the previous year’s third quarter, although the South segment barely grew by $800,000.
According to S&P, analysts expect revenue to grow 4.9% over the next 12 months, a slight deceleration versus the last two years.
PENN Entertainment stock is trading near the mid-point of its 52-week high of $22.36 per share and mid-morning it was down 3.15% at $16.89 per share.
Jay Snowden, chief executive officer and president, said in a statement: “PENN’s third quarter results were highlighted by strong year-over-year growth in Retail Segment adjusted EBITDAR (earnings before interest, taxes, depreciation, amortization, and rent), continued progress toward Interactive profitability, and further balance sheet deleveraging. Our Retail segment achieved record third quarter revenue, reflecting broad-based strength across the portfolio, including our completed development projects.”
Snowden also pointed to sustained revenue growth in U.S. standalone Hollywood iCasino and Canada. He also stated that the company’s operational discipline reinforces its confidence in achieving its full-year adjusted EBITDA target in its Interactive segment.
“Importantly,” he noted, “the healthy operating trends we experienced across both our Retail and Interactive segments continued through October.”
PENN Entertainment
Summary of 3Q Results
In millions except per share
For the three months ended
30-Sep-26
30-Sep-25
Revenues
1,840
1,717
Net income (loss)
32.6
-865.1
Consolidated Adjusted
284
195
EDITDA
Rent expense associated with
167.9
158.1
triple net operating leases
Cash payments to REIT
Landlords
251.8
241.9
Diluted earnings (loss) per
0.24
-6.03
common share
Third Quarter Retail Segment
For the third quarter of 2026, PENN reported revenues of $1.5 billion. The segment adjusted EBITDAR was $501.8 million; and segment adjusted EBITDAR margins increased to 33.7% compared to the prior year quarter.
“Our Retail segment delivered better than expected revenue and Adjusted EBITDAR results, driven by same-store growth and contributions from our completed development projects,” Snowden said.
PENN reported property-level performance was supported by increases in rated revenue and spend per visit across all age segments, meaningful contributions from mid- and high-worth customers and continued growth in unrated revenue.
The company noted for the third consecutive quarter, segment adjusted EBITDAR margins improved year-over-year.
“We believe the returns we are generating from investments in our portfolio highlight the opportunity across our remaining development pipeline and position us well for future growth,” Snowden said.
Third Quarter Interactive Segment
PENN reported revenues of $348.4 million (including tax gross-up of $191.4 million); and an adjusted EBITDA loss of $18.3 million.
“Adjusted EBITDA in our Interactive segment improved meaningfully year-over-year, reflecting continued execution against our plan to achieve profitability,” Snowden said. “U.S. iCasino revenue growth was driven by the strength of standalone Hollywood iCasino, supported by efficient user acquisition and reinvestment.”
He pointed out increased users and revenue per user in Ontario contributed to revenue growth across both iCasino and online sports betting (OSB) as PENN continues to reinvest in one of its most attractive jurisdictions.
“We are also pleased with the early performance of our Alberta iCasino and OSB operations,” Snowden said, “which further expand our Canadian presence.”
“These encouraging trends reinforce our strategic focus on U.S. iCasino and Canada as key drivers of profitable growth,” he concluded.
Liquidity and Financial Position
PENN reported total liquidity as of September 30, 2026, was $2 billion, including $1 billion of cash and cash equivalents. Also, traditional net debt as of September 30, 2026, was $1.762 billion, a decrease from $2.217 billion the previous year.
About PENN Entertainment
PENN Entertainment, Inc., together with its subsidiaries, operates in 28 jurisdictions throughout North America, with a broadly diversified portfolio of casinos, racetracks and online sports betting and iCasino offerings.
PENN 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®.
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