PENN Entertainment (PENN) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong year-over-year growth in both Retail and Interactive segments, with Retail led by the West and Midwest regions and Interactive driven by iCasino and online sports betting revenue growth, supported by development projects and a realigned digital strategy.

• Retail segment delivered notable performance at M Resort and Hollywood Joliet, while Interactive saw significant adjusted EBITDA improvement and reduced marketing spend.

• Updated full-year guidance reflects Q1 Retail upside and the upcoming July launch of iCasino & OSB in Alberta, with continued focus on cash flow generation and deleveraging.

• Net loss for the quarter was $2.8 million, compared to net income of $111.5 million in the prior year.

• Positive trends continue into April, with stable consumer demand despite macro headwinds.

Financial highlights

• Retail segment Q1 revenues reached $1.4 billion, with adjusted EBITDA of $471.4 million and a 33.2% margin; total Q1 revenue was $1.78 billion, up from $1.67 billion year-over-year.

• Interactive segment Q1 revenues were $358.3 million (including $185.8 million tax gross-up), with an adjusted EBITDA loss of $10.8 million, a significant improvement year-over-year.

• Consolidated Adjusted EBITDA rose to $265.8 million from $173.3 million year-over-year.

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

• One-time legal accrual adjustment provided a $5 million benefit to adjusted EBITDA, mainly in the South region.

Outlook and guidance

• 2026 retail revenue guidance raised to $5.73–$5.86 billion and adjusted EBITDA to $1.88–$1.98 billion, with Retail Segment Adj. EBITDAR midpoint increased by $12 million to $1,932 million.

• 2026 interactive revenue expected at ~$1.6 billion (including $820 million tax gross-up), with a $20 million adjusted EBITDA loss due to Alberta launch.

• Second half of 2026 to benefit from all four development projects; mid-single digit year-over-year adjusted EBITDA growth expected.

• Interactive segment expected to be profitable in Q4 2026.

• Total 2026 CapEx revised down to $420 million, with $200 million for projects and $220 million for maintenance.