WYOMISSING, PA — PENN Entertainment, Inc. (Nasdaq: PENN) reported third-quarter results marked by a steep net loss and a strategic reset of its digital operations following the early termination of its U.S. online sports betting partnership with ESPN.
For the quarter ended September 30, PENN posted revenues of $1.72 billion, up from $1.64 billion a year earlier. Despite the top-line growth, the company recorded a net loss of $865.1 million, driven largely by an $825 million impairment in its Interactive segment. Adjusted EBITDA held steady at $194.9 million, essentially flat from last year.
The unwinding of the ESPN alliance is reshaping PENN’s digital future. Under the termination agreement, PENN’s marketing exclusivity with ESPN ends December 1, 2025. ESPN will keep its vested warrants, while unvested warrants will be forfeited. PENN will rebrand its U.S. online sportsbook as theScore Bet, aligning its U.S. and Canadian digital offerings under a single platform. CEO Jay Snowden said the mutual decision to end the partnership reflects the companies’ inability to reach “a podium position” in the highly competitive sports betting market.
PENN is shifting to an iCasino-first approach, leveraging stronger performance in its North American online casino business, which posted nearly 40% year-over-year revenue growth. The company reported record cross-sell rates from sportsbook users into iCasino products, boosted by rising monthly active users and the integration of theScore’s media assets.
In retail gaming, PENN noted stable demand across most regions, with solid results in the West, Ohio, St. Louis, and Illinois. Newly opened or upgraded properties—including the Hollywood Casino in Joliet and expansions at M Resort Las Vegas—are expected to lift fourth-quarter performance.
The company continued its aggressive share repurchase strategy, buying back 7.97 million shares for $154.1 million in the quarter at an average price of $19.34. Year-to-date, PENN has repurchased $354.4 million in stock and has authorized a new $750 million repurchase program beginning in 2026. Liquidity stood at $1.1 billion as of quarter-end.
While PENN’s significant impairment charges and digital losses weighed heavily on results, the company’s realignment signals a pivot toward segments with stronger long-term economics. Management says narrowing the digital portfolio, reducing fixed media expenses, and focusing on iCasino growth will help rebuild profitability as the industry continues to evolve.
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