PENN Entertainment (PENN) Q1 2025 earnings summary

Executive summary

• Revenues reached $1.67 billion for Q1 2025, up from $1.61 billion year-over-year, with net income of $111.5 million compared to a net loss of $114.9 million in Q1 2024, driven by strong Interactive segment growth and a $215 million non-cash gain.

• Adjusted EBITDA rose to $173.3 million from $101.4 million, and Adjusted EBITDAR increased to $329.2 million from $256.2 million year-over-year.

• Interactive segment delivered record gaming revenue and significant year-over-year improvements in both revenue and Adjusted EBITDA, despite unfavorable sports betting hold.

• Four major development projects, including new Hollywood Casino in Council Bluffs, Joliet, Aurora, and Columbus, remain on time and on budget, with significant capital investments planned.

• Omnichannel strategy and cross-sell initiatives are driving increased engagement and spend, especially among VIP and mid-worth segments.

Financial highlights

• Q1 2025 Adjusted EPS was $(0.25), an improvement from $(0.79) in Q1 2024; diluted EPS was $0.68 versus $(0.76) year-over-year.

• Adjusted EBITDAR margin improved to 19.7% from 15.9% year-over-year.

• Total liquidity as of March 31, 2025 was $1.5 billion, including $591.6 million in cash and cash equivalents.

• Interactive segment Adjusted Revenue grew by $71 million year-over-year in Q1 2025, with Adjusted EBITDA loss improving by $107 million.

• Repurchased $35 million of shares year-to-date at an average price of $16.83, with a commitment to at least $350 million in repurchases for the year.

Outlook and guidance

• 2025 retail and interactive guidance remains unchanged, with positive interactive EBITDA expected by Q4 2025 and full-year 2026.

• Management remains committed to repurchasing at least $350 million of shares in 2025.

• Q2 interactive revenue guidance: $280–$320 million (including $116 million skin tax gross-up); EBITDA guidance: loss of $70–$50 million.

• Total 2025 CapEx forecast is $730 million, with $490 million for projects and $240 million for maintenance.

• Free cash flow positive outlook for 2025 and beyond.