WYOMISSING, PA — PENN Entertainment, Inc. (Nasdaq: PENN) returned to a quarterly profit as revenue and adjusted earnings increased in the three months ended June 30, 2026, supported by record retail casino revenue and a sharply smaller loss in its digital gaming business.
The company reported second-quarter revenue of $1.86 billion, up 5.2% from $1.77 billion a year earlier. Net income was $32.6 million, reversing an $18.3 million loss, while diluted earnings were $0.24 per share compared with a $0.12 loss per share.
Adjusted earnings were $0.44 per share, up from $0.10 a year earlier. Consolidated adjusted EBITDA rose to $312.6 million from $236.1 million, an increase of about 32%.
The Wyomissing-based casino and online gaming operator’s retail business generated $1.5 billion in revenue and $517.2 million in segment adjusted EBITDAR, with a margin of 34.4%. Nine properties posted second-quarter records for both revenue and adjusted EBITDAR, according to the company.
PENN Chief Executive Officer and President Jay Snowden said the results reflected growth across its casino portfolio and contributions from four recently completed development projects. The company also reduced corporate overhead and continued efforts to lower leverage during the quarter.
The company opened a new hotel tower at Hollywood Casino Columbus and the new Hollywood Casino Aurora in June. PENN reported early visitation gains at both properties, including among higher-value players.
Retail performance was strongest on a percentage-growth basis in the West and Midwest. West segment revenue rose to $151.5 million from $137.7 million, while Midwest revenue increased to $320.6 million from $297 million. Northeast revenue climbed to $731.6 million from $711.6 million, while the South was nearly flat at $301.9 million.
PENN’s Interactive segment, which includes online sports betting, online casino operations and media, remained unprofitable but narrowed its loss substantially. The unit generated $349.4 million in second-quarter revenue, including a $185.5 million tax gross-up, and posted an adjusted EBITDA loss of $9.5 million.
That compares with a $62 million Interactive adjusted EBITDA loss a year earlier. Interactive revenue was $316.1 million in the second quarter of 2025.
Snowden said the standalone Hollywood iCasino generated record quarterly revenue, while PENN’s Ontario operations benefited from growth in online sports betting tied partly to World Cup activity. The company expanded further in Canada on July 13 with the launch of theScore Bet, theScore Casino and standalone Hollywood iCasino apps in Alberta.
The improvement in digital operations contributed to broader earnings gains. Interactive adjusted EBITDA losses narrowed to $20.4 million for the first six months of 2026 from $151 million in the comparable period last year, while consolidated adjusted EBITDA increased to $578.4 million from $409.4 million.
PENN generated $3.64 billion in total revenue during the first half, compared with $3.44 billion a year earlier. Net income totaled $29.8 million, down from $93.2 million, with the prior-year period benefiting from a $215.1 million gain on a financing arrangement.
The company also continued reshaping its balance sheet. Traditional net debt fell to $1.93 billion at June 30 from $2.22 billion at the end of 2025, while cash and cash equivalents increased to $887.2 million from $686.6 million. Traditional net leverage declined to 2.9 times from 4.5 times, and lease-adjusted net leverage fell to 5.9 times from 6.8 times.
PENN reported total liquidity of $1.9 billion at quarter-end. During the quarter, it refinanced and extended its $1 billion revolving credit facility and $446.9 million Term Loan A facility to April 2031 and repriced and extended a roughly $962.5 million Term Loan B facility to May 2033.
The company also repaid the remaining $106.7 million principal balance of its 2.75% convertible notes due in 2026, eliminating approximately 4.6 million potentially dilutive shares associated with the securities.
Capital expenditures declined to $97.5 million during the quarter from $159.4 million a year earlier and to $192 million for the first six months from $284.6 million.
Snowden said the operating trends in PENN’s retail and Interactive businesses continued into July.
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