PENN Entertainment (PENN) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly retail revenues and adjusted EBITDA, driven by strong performance across the portfolio and four new development projects, with nine properties setting Q2 records.

• Opened new hotel towers at Hollywood Columbus and Aurora in June 2026, both showing strong early KPIs and market expansion.

• Interactive segment delivered significant year-over-year adjusted EBITDA improvement, with U.S. iCasino and Canadian operations gaining momentum.

• Adjusted EBITDA increased by $52.5 million year-over-year, reflecting disciplined execution and profitability focus.

• Continued focus on cash flow growth, de-leveraging, and disciplined capital allocation.

Financial highlights

• Q2 2026 total revenues were $1.86 billion, up from $1.77 billion in Q2 2025; retail segment revenues were $1.5 billion (up 4% YoY), with adjusted EBITDAR of $517.2 million and margin of 34.4%.

• Net income for Q2 2026 was $32.6 million, reversing a $18.3 million loss in Q2 2025.

• Consolidated adjusted EBITDA reached $312.6 million, up from $236.1 million year-over-year.

• Interactive segment Q2 revenue: $349.4 million (includes $185.5 million skin tax gross-up); adjusted EBITDA loss: $9.5 million, a significant improvement from the prior year.

• Total liquidity at quarter-end: $1.9 billion, including $887 million in cash.

Outlook and guidance

• Raised full-year 2026 guidance for both retail revenue and adjusted EBITDA due to strong Q2 performance and positive outlook for the second half.

• Revised 2026 revenue guidance midpoint: $5.87 billion; adjusted EBITDA: $1.963 billion, implying 50 bps YoY margin improvement in H2.

• Retail adjusted EBITDA expected to grow mid-single digits YoY, mirroring Q2's 5.6% growth.

• Interactive segment 2026 revenue guidance: $1.57 billion (down from $1.6 billion); adjusted EBITDA loss expected at $20 million.

• Project CapEx for 2026 refined to $180 million; maintenance CapEx guidance reiterated at $220 million.