PENN Entertainment (PENN) Q4 2025 earnings summary

Executive summary

• Diversified retail portfolio delivered solid Q4 results, with Adjusted EBITDAR growth year-over-year after adjusting for adverse December weather; fourth quarter revenues reached $1.81 billion, up from $1.67 billion, and consolidated adjusted EBITDA increased 37%.

• Interactive segment rebranded U.S. sportsbook to theScore Bet, achieving positive Adjusted EBITDA in December and targeting breakeven for 2026.

• Strategic focus on free cash flow generation, deleveraging, and capital returns to shareholders, with meaningful cash flow growth expected in 2026.

• Net loss for the quarter was $73.4 million, improved from $133.8 million in the prior year; adjusted EPS was $0.07 compared to $(0.44) last year.

• Four major retail growth projects ramping up, with two new openings expected by end of Q2 2026.

Financial highlights

• Retail segment Q4 revenues: $1.4 billion; Adjusted EBITDAR: $456.4 million; margin: 32.3%.

• Interactive Q4 revenues: $398.7 million (including $182.7 million tax gross up); Adjusted EBITDA loss: $39.9 million.

• 2026 retail net revenue guidance: $5.7–$5.85 billion; Adjusted EBITDAR: $1.86–$1.98 billion.

• Interactive adjusted EBITDA improved from -$268 million in 2025 to break-even in 2026 guidance (+$268 million year-over-year).

• Total liquidity at year-end was $1.1 billion, including $686.6 million in cash; traditional net debt stood at $2.2 billion.

Outlook and guidance

• Expects 20% year-over-year segment adjusted EBITDAR growth in 2026, with retail and interactive segments both contributing.

• Interactive segment forecasted to reach breakeven Adjusted EBITDA in 2026, with all components generating positive contribution margin.

• Retail net Adjusted EBITDAR growth anticipated in 2026, with margin improvement in the second half as new projects ramp.

• Identified over $10 million in annualized corporate overhead cost savings to phase in during the first half of 2026.

• Anticipates reducing lease-adjusted net leverage by more than 1 turn and traditional net leverage by more than 2 turns in 2026.