PENN Reports $1.81B Q4 Revenue as Interactive Losses Narrow

PENN Entertainment closed 2025 with stronger fourth quarter performance and clearer guidance for 2026, pointing to retail stability and narrowing Interactive losses as core drivers of cash flow growth.

The company reported $1.81B in total Q4 revenue for the period ended December 31, up from $1.67B a year earlier. Consolidated adjusted EBITDA reached $225.8M compared with $165.2M in Q4 2024. Net loss narrowed to $73.4M, while adjusted EPS turned positive at $0.07 versus a loss of $0.44 in the prior year quarter.

Good to Know

• Q4 revenue rose to $1.81B from $1.67B year over year
• Consolidated adjusted EBITDA increased to $225.8M
• Interactive adjusted EBITDA loss improved to $39.9M

Retail operations generated $1.4B in revenue during the quarter. Segment adjusted EBITDAR totaled $456.4M with margins of 32.3 percent. CEO Jay Snowden said December weather reduced segment adjusted EBITDAR by roughly $7M, but core demand trends remained stable.

Regional performance stood out in Ohio, St. Louis, and L Auberge Lake Charles. Management also reported year over year growth in theoretical revenue across all rated worth and age segments. Older demographics and VIP play contributed meaningfully to the improvement.

Development projects now feed into 2026 projections. The new hotel tower at M Resort in Las Vegas and the recently opened Hollywood Casino Joliet produced early operating traction. Additional openings remain on track. The Hollywood Columbus hotel tower and the land side relocation of Hollywood Casino Aurora are expected to open before the end of the second quarter, pending regulatory approvals.

After several years of property upgrades and dockside to land relocations, management expects recurring maintenance capital expenditures to normalize closer to pre COVID levels. Snowden said ongoing maintenance CapEx should decline by roughly $20M.

“We’ve done an excellent job over the past six years of upgrading our casinos, refreshing our slot floors, and investing in non-gaming amenities, like updated hotel rooms, new retail sports books, new restaurants and entertainment venues,” Snowden said during Thursday earnings call.

Interactive performance also showed measurable progress. The segment generated Q4 revenue of $398.7M, including a tax gross up of $182.7M. Adjusted EBITDA loss narrowed to $39.9M from $109.8M a year earlier.

Excluding the tax gross up, revenue increased 52 percent year over year. Management attributed growth to 40 percent expansion in iCasino and 73 percent growth in online sports betting. Strong hold rates and tighter cost controls supported margin improvement.

December marked the first full month operating under theScore Bet brand in the United States following sportsbook rebranding. Snowden described Interactive trajectory as encouraging, citing a leaner cost base and regionally focused marketing that prioritizes states offering both online sports betting and legalized iCasino.

Chief Technology Officer Aaron LaBerge said iCasino growth currently exceeds 20 percent. Sports betting handle may moderate, but lower promotional intensity should improve profitability flow through.

For the full year, Interactive adjusted EBITDA loss narrowed to $267.5M compared with $499.5M in 2024. Management described that shift as tangible progress toward digital breakeven.

Liquidity at year end totaled $1.1B, including $686.6M in cash and cash equivalents. Traditional net debt stood at $2.2B.

Capital structure strategy remains active. In November, PENN received $150M from Gaming and Leisure Properties Inc related to the second hotel tower at M Resort. The company also expects $225M tied to the $360M land side relocation of Hollywood Casino Aurora.

Management plans to reduce leverage in 2026, targeting more than one turn reduction in lease adjusted net leverage and more than two turns in traditional net leverage. Executives also indicated openness to opportunistic capital returns to shareholders.

For 2026, PENN expects approximately 20 percent year over year growth in segment adjusted EBITDAR. Retail operations should benefit from new openings, anniversary effects tied to fresh supply, and stabilization in competitive regional markets.

Interactive breakeven remains the stated objective for 2026. If achieved, digital operations would shift from cash drag to contributor.

Additional cost savings will come from a new corporate organizational structure announced in early January. Management expects more than $10M in annualized run rate savings in corporate overhead, largely phased in during the first half of the year.

Snowden acknowledged competitive pressure in certain regional markets but expressed confidence that property upgrades, database optimization, and cross sell integration will support sustainable operating performance.

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