PENN Entertainment closed 2025 with improved fourth-quarter results and a more confident tone around its 2026 outlook, as the operator leans on retail momentum and a stabilizing Interactive segment to drive cash flow growth and deleveraging.
For the quarter ended December 31, 2025, the company reported total revenues of $1.81 billion, up from $1.67 billion a year earlier. Consolidated adjusted EBITDA reached $225.8 million, compared to $165.2 million in Q4 2024. Net loss narrowed to $73.4 million, while adjusted EPS turned positive at $0.07 versus a loss of $0.44 in the prior-year period.
At the retail property level, revenues totaled $1.4 billion, with segment adjusted EBITDAR of $456.4 million and margins of 32.3%. CEO Jay Snowden noted that December weather events negatively impacted segment adjusted EBITDAR by approximately $7 million, but underlying trends were otherwise stable.
Regionally, PENN highlighted strength in Ohio, St. Louis, and at L’Auberge Lake Charles. The company also reported year-over-year growth in theoretical revenue across all rated worth and age segments, with older demographics and VIP play contributing meaningfully.
Recent development projects are expected to underpin 2026 performance. The new hotel tower at M Resort in Las Vegas and the recently opened Hollywood Casino Joliet are delivering early results, according to management.
Additional projects, including the Hollywood Columbus hotel tower and the land-side relocation of Hollywood Casino Aurora, are slated to open by the end of the second quarter, subject to regulatory approvals.
Snowden added that after several years of property investments and dockside-to-land relocations, recurring maintenance capital expenditures are expected to return to near pre-COVID levels, with an anticipated $20 million reduction in ongoing maintenance CapEx.
“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’s earnings call.
PENN’s Interactive segment generated Q4 revenues of $398.7 million, including a tax gross-up of $182.7 million. The segment posted an adjusted EBITDA loss of $39.9 million, a significant improvement from the $109.8 million loss recorded in the prior-year quarter.
Excluding the tax gross-up, revenue growth was 52% year-over-year. Management attributed this to 40% growth in iCasino and 73% growth in online sports betting, supported by strong hold rates and disciplined cost management.
December marked the first full month operating under theScore Bet brand in the U.S., following the rebranding of its online sportsbook. Snowden described the Interactive segment’s trajectory as encouraging, citing a more streamlined cost structure and a regionally focused marketing strategy prioritizing jurisdictions with both online sports betting and legalized iCasino.
Chief Technology Officer Aaron LaBerge noted that iCasino is currently growing at more than 20%, while sports betting handle may moderate. Lower promotional spending is expected to improve profitability flow-through.
For the full year, Interactive adjusted EBITDA improved to a loss of $267.5 million, compared to a $499.5 million loss in 2024, reflecting what management characterized as tangible progress toward profitability.
As of December 31, 2025, PENN reported total liquidity of $1.1 billion, including $686.6 million in cash and cash equivalents. Traditional net debt stood at $2.2 billion.
The company continues to work closely with its REIT partners. In November, PENN received $150 million in funding from Gaming and Leisure Properties, Inc. (GLPI) related to the second hotel tower at M Resort. It also expects to receive $225 million in connection with the $360 million land-side relocation of Hollywood Casino Aurora.
Management expects to reduce leverage in 2026, targeting a reduction of more than one turn in lease-adjusted net leverage and more than two turns in traditional net leverage, while also exploring opportunistic capital returns to shareholders.
Looking ahead, PENN expects year-over-year segment adjusted EBITDAR growth of approximately 20% in 2026. Retail operations are projected to deliver growth, supported by new openings, anniversarying of new supply, and stabilization in competitive markets.
In the Interactive segment, the company continues to expect to reach adjusted EBITDA breakeven in 2026, positioning the digital business as a meaningful contributor to cash flow.
Additional cost discipline is expected to come from a new corporate organizational structure announced in early January, with more than $10 million in annualized run-rate cost savings in corporate overhead, largely phased in during the first half of the year.
Snowden acknowledged recent competitive pressures in certain regional markets but expressed confidence that the company’s investments in property upgrades, database management, and cross-sell capabilities will support sustainable performance.
Original article: https://www.yogonet.com/international/news/2026/03/02/117839-penn-reports-stronger-q4-2025-outlines-2026-growth-plan-across-retail-and-interactive
