\nPENN Entertainment, Inc. (\u201cPENN\u201d or the \u201cCompany\u201d) (Nasdaq: PENN) today reported financial results for the three and six months ended June 30, 2026.<\/p>\n
Jay Snowden, Chief Executive Officer and President, said: \u201cWe continued to execute against our 2026 strategic priorities this quarter: delivering Segment Adjusted EBITDAR growth, optimizing corporate overhead, growing cash flow, and deleveraging the balance sheet. PENN achieved record quarterly Retail segment revenues, supported by strong performance across our portfolio including our four recently completed development projects. Our Interactive segment remains on track to deliver upon our previously stated goals, supported by growth in U.S. iCasino and Canada. Adjusted EBITDA improved by $52.5 million year-over-year, reflecting disciplined execution of our strategy to drive profitability. The encouraging trends in our Retail and Interactive operating segments have continued through July.\u201d\n<\/p>\n
Second Quarter Retail Segment Highlights1<\/sup>:<\/b><\/p>\n \n\u201cPENN\u2019s geographically diverse Retail segment delivered portfolio-wide strength, with nine properties setting second-quarter records for revenues and Adjusted EBITDAR,\u201d said Mr. Snowden. \u201cWe experienced another quarter of year-over-year growth in theoretical revenue, supported by meaningful contributions from mid- and high-worth customer segments, as well as growth in unrated revenue, underscoring broad-based consumer demand. Second-quarter Segment Adjusted EBITDAR margins improved quarter-over-quarter and year-over-year, reflecting our property teams\u2019 focus on converting solid demand into favorable operating results. In June 2026, we opened both the new hotel tower at Hollywood Columbus and the new Hollywood Casino Aurora, and early trends at both properties are encouraging, including strong visitation from VIP players.\u201d<\/p>\n Second Quarter Interactive Segment Highlights:<\/b><\/p>\n \n\u201cOur Interactive segment delivered another quarter of meaningful year-over-year Adjusted EBITDA improvement. In the U.S., standalone Hollywood iCasino experienced quarter-over-quarter as well as year-over-year growth, achieving record quarterly revenues. In Ontario, gaming operations continued to gain momentum, supported by strong growth in online sports betting (\u201cOSB\u201d) revenues aided by solid World Cup engagement and cross-sell of the reactivated World Cup OSB user base into iCasino. We also successfully launched theScore Bet, as well as theScore Casino and Hollywood iCasino standalone apps, in Alberta on July 13,\u201d concluded Mr. Snowden.<\/p>\n 1<\/sup> Retail Segment consists of retail operating segments which are composed of our Northeast, South, West, and Midwest reportable segments.<\/p>\n Liquidity and Financial Position<\/b><\/p>\n \nTotal liquidity as of June 30, 2026 was $1.9 billion, including $887.2 million of Cash and cash equivalents. Traditional net debt as of June 30, 2026 was $1.9 billion.<\/p>\n \nOn April 16, 2026, the Company amended its Second Amended and Restated Credit Agreement in order to refinance and extend the term of its $1.0 billion Amended Revolving Credit Facility and $446.9 million Amended Term Loan A Facility. The Amended Revolving Credit Facility and Amended Term Loan A Facility mature in April 2031.<\/p>\n \nOn May 15, 2026, the Company repaid the remaining $106.7 million principal balance of its 2.75% Convertible Notes due 2026, eliminating approximately 4.6 million potentially dilutive shares associated with the notes.<\/p>\n \nOn May 28, 2026, the Company amended its Second Amended and Restated Credit Agreement in order to reprice and extend the term of its $962.5 million Amended Term Loan B Facility. The Amended Term Loan B Facility matures in May 2033.<\/p>\n Summary of Second Quarter Results<\/b><\/p>\n \n\u00a0<\/p>\n<\/td>\n For the three months (in millions, except per share data, unaudited)<\/span><\/i><\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2026<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2025<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nRevenues<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1,857.4<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1,765.0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nNet income (loss)<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n32.6<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(18.3<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nConsolidated Adjusted EBITDA (1)<\/sup><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n312.6<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n236.1<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nRent expense associated with triple net operating leases (2)<\/sup><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n163.3<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n156.0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCash payments to our REIT Landlords under Triple Net Leases (3)<\/sup><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n247.1<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n240.0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nDiluted earnings (loss) per common share<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.24<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(0.12<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n(1)<\/p>\n<\/td>\n \nFor more information, definitions, and reconciliations see the \u201cNon-GAAP Financial Measures\u201d section below.<\/p>\n<\/td>\n<\/tr>\n \n(2)<\/p>\n<\/td>\n \nConsists of the operating lease components of (i) our triple net master lease dated November 1, 2013 with Gaming and Leisure Properties, Inc. (Nasdaq: GLPI) (\u201cGLPI\u201d), as amended and restated effective January 1, 2023 (the \u201cAR PENN Master Lease\u201d), (ii) our triple net master lease entered into in conjunction with, and coterminous with, the AR PENN Master Lease (the \u201c2023 Master Lease\u201d), and (iii) our triple net master lease dated December 4, 2025 with VICI Properties Inc. (NYSE: VICI) (\u201cVICI\u201d) for the real estate assets used in the operations of Margaritaville Resort Casino and Hollywood Casino at Greektown (the \u201cVICI Master Lease\u201d), which replaced the Company\u2019s prior separate triple net leases with VICI for such properties. Collectively these arrangements are referred to as our \u201ctriple net operating leases.\u201d The expense related to operating lease components contained within our triple net operating leases are recorded as \u201cGeneral and administrative\u201d within the unaudited Consolidated Statements of Operations.<\/p>\n<\/td>\n<\/tr>\n \n(3)<\/p>\n<\/td>\n \nConsists of total cash payments made to GLPI and VICI (referred to collectively as our \u201cREIT Landlords\u201d) under our triple net operating leases (as defined above), the Pinnacle Master Lease, and the Morgantown Lease and collectively referred to as our \u201cTriple Net Leases.\u201d<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Adjusted EPS<\/b><\/p>\n \nThe following table reconciles diluted earnings (loss) per share (\u201cEPS\u201d) to Adjusted EPS (approximate EPS impact shown, per share; positive adjustments represent charges to income):<\/p>\n \n\u00a0<\/p>\n<\/td>\n For the three months \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2026<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2025<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n Diluted earnings (loss) per share<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.24<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(0.12<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nImpairment loss<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.10<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nGain on disposal of assets<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(0.03<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nPre-opening expenses<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.17<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.03<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nLegal matters inclusive of litigation settlements<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(0.02<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.06<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTransaction costs and other<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.14<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.01<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nNon-operating items:<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nLoss on early extinguishment of debt<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.01<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.08<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nGain related to debt and equity investments<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(0.01<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nOther income<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(0.02<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nForeign currency transaction loss<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.01<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nIncome tax impact on net income adjustments (1)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(0.07<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(0.04<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n Adjusted EPS<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.44<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.10<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n
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