WYOMISSING, Pa.--(BUSINESS WIRE)--February 26, 2026--
PENN Entertainment, Inc. ("PENN" or the "Company") (Nasdaq: PENN) today reported financial results for the quarter and year ended December 31, 2025.
Jay Snowden, Chief Executive Officer and President, said: "PENN's diversified retail portfolio delivered a solid quarter during which retail adjusted EBITDAR grew year-over-year, after adjusting for poor weather in December. In our Interactive segment, we successfully rebranded our U.S. online sportsbook to theScore Bet$(R)$ and achieved positive adjusted EBITDA in December driven by iCasino momentum, disciplined cost management, and strong online sports betting hold rates.
"We are excited about the year ahead as we expect to generate year-over-year segment adjusted EBITDAR growth of 20% in 2026. Our retail adjusted EBITDAR is poised for a year of growth as we aim to build upon our recent openings in Joliet and in Las Vegas, deliver two additional retail growth projects by the end of the second quarter(1) , and anniversary new supply in several of our markets. In our Interactive segment, we continue to expect to achieve break-even adjusted EBITDA, which will be one of several meaningful drivers of cash flow growth in 2026. As part of our new corporate organizational structure, which we announced on January 5, we have identified more than $10.0 million in annualized run-rate cost savings in corporate overhead, which will mostly phase in over the first half of the year. In addition, we expect recurring maintenance capital expenditures to return to near pre-COVID spending levels following the investments we have made over the past several years at our properties including our water-to-land projects. Given this outlook, we expect to de-lever year-over-year, reducing lease adjusted net leverage by more than 1 turn and traditional net leverage by more than 2 turns and opportunistically return capital to shareholders.
Fourth Quarter Retail Property Level Highlights(2) :
-- Revenues of $1.4 billion; -- Segment Adjusted EBITDAR of $456.4 million; and -- Segment Adjusted EBITDAR margins of 32.3%. ________________________________ (1) Subject to regulatory approvals. (2) Retail property level consists of retail operating segments which are composed of our Northeast, South, West, and Midwest reportable segments.
"Weather events in December negatively impacted Segment Adjusted EBITDAR by approximately $7.0 million," said Mr. Snowden. "Core business trends were otherwise stable across the portfolio, with regional strength in Ohio and St. Louis, as well as at our L'Auberge Lake Charles property. We experienced another quarter of year-over-year growth in theoretical revenue across all rated worth and age segments with our older demographics and VIP play contributing meaningfully to these results. Looking ahead, 2026 will benefit from continued momentum at our new hotel tower at M Resort in Las Vegas, which is capturing previously unmet demand, and at the new Hollywood Casino Joliet, which is delivering strong results from both new and reactivated customers. The early performance of these projects gives us enthusiasm for the late second quarter openings(3) of the Hollywood Columbus hotel tower and the landside relocation of Hollywood Casino Aurora.
Fourth Quarter Interactive Segment Highlights:
-- Revenues of $398.7 million (including tax gross up of $182.7 million);
and
-- Adjusted EBITDA loss of $39.9 million.
"We experienced record Interactive segment gaming revenue in the fourth quarter driven by the continued growth of our standalone Hollywood iCasino product and increased cross-sell, as well as improvements in our online sportsbook product offering and operations. Revenue growth, excluding the tax gross-up, of 52% year-over-year was primarily attributable to iCasino growth of 40% and online sportsbook growth of 73%, including strong revenue and adjusted EBITDA performance in December, our first month operating as theScore Bet in the U.S. We are encouraged by the trajectory of our Interactive business, with a more streamlined cost structure and regionally focused marketing strategy that prioritizes jurisdictions with both legalized iCasino and online sports betting," concluded Mr. Snowden.
Liquidity and Financial Position
Total liquidity as of December 31, 2025 was $1.1 billion inclusive of $686.6 million in Cash and cash equivalents. Traditional net debt as of the end of the quarter was $2.2 billion.
On November 3, 2025, PENN received $150.0 million in funding from Gaming and Leisure Properties, Inc. at a 7.79% capitalization rate in connection with the second hotel tower construction at the M Resort Las Vegas.
In conjunction with the opening of the $360.0 million land-side relocation of Hollywood Casino Aurora at the end of the second quarter(2) , PENN expects to receive $225.0 million in funding near project opening from Gaming and Leisure Properties, Inc. at a 7.75% capitalization rate.
________________________________ (3) Subject to regulatory approvals.
Summary of Fourth Quarter Results
For the quarter ended
December 31,
---------------------------
(in millions, except per share data,
unaudited) 2025 2024
------------------------------------------- -------- --------
Revenues $ 1,806.2 $ 1,669.0
Net loss $ (73.4) $ (133.8)
Consolidated Adjusted EBITDA (1) $ 225.8 $ 165.2
Rent expense associated with triple net
operating leases (2) 161.8 155.5
Cash payments to our REIT Landlords under
Triple Net Leases (3) $ 245.9 $ 239.4
Diluted loss per common share $ (0.55) $ (0.88)
(1) For more information, definitions, and reconciliations see the
"Non-GAAP Financial Measures" section below.
(2) Consists of the operating lease components of (i) our triple net
master lease dated November 1, 2013 with Gaming and Leisure
Properties, Inc. (Nasdaq: GLPI) ("GLPI"), as amended and restated
effective January 1, 2023 (the "AR PENN Master Lease"), (ii) our
triple net master lease entered into in conjunction with, and
coterminous with, the AR PENN Master Lease (the "2023 Master
Lease"), and (iii) our individual triple net leases with VICI
Properties Inc. $(VICI)$ ("VICI") for the real estate assets
used in the operations of Margaritaville Resort Casino (the
"Margaritaville Lease") and Hollywood Casino at Greektown (the
"Greektown Lease"). The Margaritaville Lease and the Greektown
Lease were amended and restated into a single combined lease
effective December 4, 2025 ("the "VICI Master Lease"). Collectively
these arrangements are referred to as our "triple net operating
leases." The expense related to operating lease components
contained within our triple net operating leases are recorded as
"General and administrative" within the unaudited Consolidated
Statements of Operations.
(3) Consists of total cash payments made to GLPI and VICI (referred to
collectively as our "REIT Landlords") under our triple net
operating leases (as defined above), the Pinnacle Master Lease, and
the Morgantown Lease and collectively referred to as our "Triple
Net Leases."
Adjusted EPS
The following table reconciles diluted loss per share ("EPS") to Adjusted EPS (approximate EPS impact shown, per share; positive adjustments represent charges to income):
For the quarter ended
December 31,
-----------------------------
2025 2024
-------- -------
Diluted loss per share $ (0.55) $ (0.88)
Impairment losses 0.79 0.59
Insurance recoveries, net of deductible
charges -- (0.02)
Loss on disposal of assets 0.01 0.01
Transaction related expenses 0.01 0.01
Pre-opening expenses 0.02 --
Legal matters inclusive of litigation
settlements 0.01 0.03
Non-operating items:
Gain related to debt and equity
investments -- (0.02)
Other income (0.01) --
Income tax impact on adjustments (1) (0.21) (0.16)
-------- -------
Adjusted EPS $ 0.07 $ (0.44)
======== =======
(1) The income tax impact reflects current and deferred tax effects
based on the nature of each adjustment and the applicable tax
jurisdiction.
PENN ENTERTAINMENT, INC. AND SUBSIDIARIES
Supplemental Information
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