PENN Entertainment (PENN) Q4 2025 earnings summary

Executive summary

• Delivered solid Q4 performance with year-over-year Adjusted EBITDAR growth, despite December weather headwinds; diversified retail and interactive segments both contributed positively.

• Successfully rebranded U.S. online sportsbook to theScore Bet, achieving positive Adjusted EBITDA in December and strong iCasino momentum.

• Strategic focus on free cash flow generation, deleveraging, and capital returns, with multiple retail growth projects ramping up and new openings scheduled for 2026.

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

• Expecting 20% Adjusted EBITDAR growth in 2026, driven by retail and interactive segment improvements.

Financial highlights

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

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

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

• 2026 interactive revenue guidance: ~$1.6B (including ~$760M tax gross up), ~20% YoY growth ex-gross up.

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

Outlook and guidance

• 2026 Adjusted EBITDAR growth expected at 20%.

• Interactive segment forecasted to reach break-even Adjusted EBITDA for full year 2026, a $268M YoY improvement.

• Marketing spend to decline by ~$150M YoY as ESPN payments end and focus shifts to iCasino and Canada.

• Retail segment to see net Adjusted EBITDAR growth in 2026, with four new projects opening and ramping.

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