PENN Entertainment reported record second-quarter retail results as revenue reached $1.5 billion, an increase of about 4% year over year. Adjusted EBITDAR rose approximately 6% to $517.2 million, producing a 34.4% margin. Nine properties recorded their strongest second-quarter revenue and adjusted EBITDAR results.
Same-store revenue increased about 2%, while same-store adjusted EBITDAR climbed roughly 4%. Management attributed the performance partly to tighter control of labor, marketing and general administrative costs. Strong results also continued into July, supporting higher full-year expectations.
Retail Growth Supports Higher Forecast
PENN raised its 2026 retail revenue guidance to $5.87 billion at the midpoint and lifted adjusted EBITDAR guidance to $1.963 billion. The updated outlook implies a 50-basis-point improvement in second-half margins compared with the previous year.
Chief Executive Officer Jay Snowden said the company remains on course for more than 20% year-over-year adjusted EBITDA growth in 2026. Management pointed to stronger retail operations, improving interactive profitability and lower corporate overhead as factors supporting cash-flow growth and faster debt reduction.
New hotel towers at Hollywood Columbus and Hollywood Aurora have also contributed to operating momentum. The company reported higher customer worth, increased admissions and new customer acquisition following the launches.
PENN described the regional gaming market as healthy, with no irrational promotional activity. Management also identified potential internal projects, including a new hotel and water-to-land conversions.
Interactive Losses Narrow as Revenue Forecast Falls
PENN’s Interactive segment generated $349.4 million in second-quarter revenue, including a $185.5 million skin-tax gross-up. Adjusted EBITDA showed a $9.5 million loss, representing a substantial year-over-year improvement.
Growth in the US Hollywood-branded standalone Casino app and Ontario operations supported the segment. However, customer-friendly sportsbook results during the NBA Finals and World Cup reduced revenue, while lower marketing spending also affected volumes among lower-value customers.
The company reduced its 2026 interactive revenue guidance to $1.57 billion, including roughly $830 million from the skin-tax gross-up. Its adjusted EBITDA loss forecast remains $20 million. PENN expects the third quarter to carry the largest loss because of its Alberta launch investment, with positive interactive EBITDA expected in the fourth quarter.
Management also expects greater competition in online sports betting as operators increase reinvestment and prediction markets seek customers, potentially affecting marketing efficiency.
Debt Reduction Strengthens Financial Position
PENN ended the quarter with $1.9 billion of liquidity, including $887 million in cash and equivalents. The company refinanced major debt facilities and repaid the remaining $106.7 million principal balance on its 2.75% convertible notes due 2026, eliminating 4.5 million potentially dilutive shares.
Full-year capital expenditure guidance was reduced to $400 million, following $98 million of spending during the quarter, including $58 million on projects. PENN expects 2026 cash interest expense of $150 million, net of interest income, and does not expect to become a cash taxpayer during the year.
The company’s next significant debt maturity is $400 million of notes due in January 2027. Management nevertheless said the stronger balance sheet provides a clearer path toward faster deleveraging while it evaluates share buybacks and internal development opportunities.
Source:
“PENN Entertainment Q2 Earnings Call Highlights”, finance.yahoo.com, August 7, 2026
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