PENN Entertainment (PENN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $1.78 billion, up year-over-year, with growth in both Retail and Interactive segments, supported by development projects and a realigned digital strategy.

• Retail segment adjusted EBITDA/EBITDAR grew to $471.4 million, with strong property performance in the West and Midwest, notably at M Resort and Hollywood Joliet.

• Interactive segment revenue was $358.3 million, with a significant year-over-year improvement in adjusted EBITDA loss to $10.8 million, driven by iCasino and online sports betting growth and reduced marketing spend.

• Net loss for the quarter was $2.8 million, compared to net income of $111.5 million in the prior year, primarily due to the absence of a prior-year non-cash gain.

• Positive trends continue into April, with stable consumer demand and optimism for the July 13, 2026, launch of regulated iCasino and online sports betting in Alberta.

Financial highlights

• Q1 2026 consolidated revenues were $1.78 billion, with Retail segment revenue at $1.4 billion and Interactive segment revenue at $358.3 million.

• Consolidated adjusted EBITDA rose to $265.8 million from $173.3 million year-over-year; Retail segment adjusted EBITDA/EBITDAR was $471.4 million.

• Adjusted EPS was $0.11, compared to $(0.25) in the prior year; diluted EPS was $(0.02) versus $0.68.

• Cash and cash equivalents stood at $708 million, with total liquidity of $1.7 billion.

• Traditional net debt was $2.2 billion at quarter-end.

Outlook and guidance

• 2026 guidance midpoints raised: retail revenue to $5.73–$5.86 billion and adjusted EBITDA to $1.88–$1.98 billion; Interactive 2026 revenue guidance is $1.6 billion, with a $20 million adjusted EBITDA loss due to Alberta launch.

• Retail segment 2026 adjusted EBITDAR guidance midpoint increased to $1,932 million, reflecting Q1 upside.

• Interactive segment expected to be profitable in Q4 2026, with small losses in Q2 and Q3 (largest in Q3 due to Alberta launch).

• Free cash flow generation expected to strengthen, with $3+ per share in 2026 and further improvement in 2027.

• Lease-adjusted net leverage projected to improve from 6.8x (2024A) to 4.5x (2026F); traditional net leverage from 5.5x to 2.0–2.4x.