PENN Entertainment concluded 2025 with enhanced fourth-quarter performance and a positive outlook for 2026, as the company capitalizes on retail growth and a stabilizing Interactive segment to fuel cash flow expansion and debt reduction.
For the quarter ending December 31, 2025, the company’s total revenue was $1.81 billion, an increase from $1.67 billion in the previous year. Consolidated adjusted EBITDA stood at $225.8 million, up from $165.2 million in Q4 2024. The net loss decreased to $73.4 million, while adjusted EPS achieved a positive figure of $0.07 compared to a loss of $0.44 in the same period last year.
On a retail property level, revenue reached $1.4 billion, with segment adjusted EBITDAR of $456.4 million and margins of 32.3%. CEO Jay Snowden noted that December’s weather conditions negatively impacted segment adjusted EBITDAR by about $7 million, but the overall trends remained stable.
PENN underscored strong performance in Ohio, St. Louis, and at L’Auberge Lake Charles. The company also reported yearly growth in theoretical revenue across all rated demographics, with older age groups and VIP play playing significant roles.
Upcoming development projects are anticipated to bolster performance in 2026. The new hotel tower at M Resort in Las Vegas and the recently launched Hollywood Casino Joliet are yielding positive early outcomes, as per management.
Additional upcoming projects, including the Hollywood Columbus hotel tower and the land-side move of Hollywood Casino Aurora, are expected to debut by the end of the second quarter, pending regulatory approvals.
Snowden mentioned that after years of property upgrades and transitioning dockside operations to land-based venues, recurring maintenance capital expenditures are projected to return to near pre-COVID figures, with a forecasted reduction of $20 million in ongoing maintenance CapEx.
“Over the past six years, we’ve made significant upgrades to our casinos, enhancing our slot floors and investing in non-gaming amenities such as renovated hotel rooms, new retail sports books, and dining and entertainment facilities,” Snowden remarked during Thursday’s earnings call.
PENN’s Interactive segment claimed Q4 revenue of $398.7 million, inclusive of a tax gross-up of $182.7 million. The segment reported an adjusted EBITDA loss of $39.9 million, a notable improvement from the $109.8 million loss recorded in the year-ago quarter.
Without the tax gross-up, year-over-year revenue growth surged by 52%. Management attributed this rise to a 40% increase in iCasino and a 73% rise in online sports betting, aided by strong hold rates and meticulous cost controls.
December marked the first complete month of operations under theScore Bet brand in the U.S., following the rebranding of its online sportsbook. Snowden described the Interactive segment’s progress as promising, pointing to a more streamlined cost structure and a geographically focused marketing strategy that emphasizes regions with both online sports betting and legalized iCasino.
Chief Technology Officer Aaron LaBerge indicated that iCasino is currently witnessing growth in excess of 20%, while sports betting handles may stabilize. Reduced promotional expenditures are projected to enhance profitability flow-through.
For the entire year, Interactive adjusted EBITDA reflected a loss of $267.5 million, compared to a $499.5 million loss in 2024, indicative of what management views as tangible progress towards profitability.
As of December 31, 2025, PENN reported total liquidity of $1.1 billion, which includes $686.6 million in cash and cash equivalents. Traditional net debt stood at $2.2 billion.
The company is actively collaborating with its REIT partners. In November, PENN secured $150 million in funding from Gaming and Leisure Properties, Inc. (GLPI) for the second hotel tower at M Resort, and anticipates receiving $225 million in connection with the $360 million land-side relocation of Hollywood Casino Aurora.
Management plans to reduce leverage in 2026, aiming for a decrease of over one turn in lease-adjusted net leverage and more than two turns in traditional net leverage, while also evaluating opportunities for capital returns to shareholders.
Looking forward, PENN anticipates approximately 20% year-over-year growth in segment adjusted EBITDAR for 2026. Retail operations are expected to fuel this growth, backed by new openings, anniversaries of fresh supply, and stabilization in competitive markets.
Within the Interactive segment, the company remains optimistic about achieving adjusted EBITDA breakeven in 2026, positioning the digital segment as a key source of cash flow.
Enhanced cost discipline is projected to arise from a newly announced corporate organizational structure, with anticipated annual cost savings exceeding $10 million in corporate overhead, primarily implemented in the first half of the year.
Snowden acknowledged recent competitive pressures in select regional markets, yet voiced confidence that the company’s investments in property enhancements, database management, and cross-sell opportunities will drive sustained performance.