PENN Entertainment, Inc. (PENN) Earnings
PENN Entertainment, Inc. is expected to report next earnings on November 5, 2026 (in NaN days), with a consensus EPS estimate of $0.21. PENN has beaten EPS estimates in 5 of its last 12 reported quarters (average surprise -43.1% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 6, 2026 | $0.37 | $0.25 | -33.1% | $1.9B | -0.2% |
| Apr 23, 2026 | $0.05 | $0.11 | +120.0% | $1.8B | +1.7% |
| Feb 26, 2026 | $-0.23 | $-0.55 | -139.1% | $1.8B | +2.6% |
| Nov 6, 2025 | $-0.10 | $-0.22 | -120.0% | $1.7B | -2.4% |
| Aug 7, 2025 | $-0.04 | $0.10 | +350.0% | $1.8B | +2.6% |
| May 8, 2025 | $-0.29 | $-0.25 | +13.8% | $1.7B | -3.6% |
| Feb 27, 2025 | $-0.41 | $-0.44 | -7.3% | $1.7B | -3.6% |
| Nov 7, 2024 | $-0.28 | $-0.24 | +14.3% | $1.6B | -3.7% |
| May 2, 2024 | $-0.59 | $-0.79 | -33.9% | $1.6B | -3.9% |
| Feb 15, 2024 | $-0.57 | $-1.75 | -207.0% | $1.4B | -16.1% |
| Nov 2, 2023 | $0.33 | $1.21 | +266.7% | $1.6B | +0.5% |
| May 4, 2023 | $0.38 | $0.31 | -18.4% | $1.7B | +4.9% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 6, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Overall Strategic Execution - The company remains on track to deliver over 20% year-over-year adjusted EBITDA growth for full-year 2026, driven by strong retail performance and interactive segment profitability improvement - Faster-than-planned balance sheet deleveraging is enabled by stronger cash flow growth from improved profitability and corporate overhead optimization - Core priorities for the remainder of 2026 include growing cash flow, reducing leverage, optimizing corporate overhead, and maintaining disciplined capital allocation ### Retail Business Highlights - Nine retail properties set Q2 2026 records for both revenue and adjusted EBITDA, with broad-based demand reflected by five years of unrated revenue growth in the last seven quarters - Recent development projects have delivered strong early results: Hollywood Casino Joliet maintains strong momentum after its August 2025 opening; M-Resort achieved record revenue and adjusted EBITDA following its new hotel tower opening, hosting three of the company's top five largest groups by revenue ever; the new Hollywood Columbus hotel tower opened June 12 2026, driving an all-time July net revenue record with 85% of hotel cash revenue coming from out-of-market guests and a 10% increase in average daily worth for rated guests staying at the hotel; Hollywood Casino Aurora opened June 24 2026, with early results showing doubled admissions, slot/table volumes and non-gaming revenue versus prior year, 20% new guests and 25% reactivated customers, and 21% higher average daily worth for rated guests staying at the on-site hotel - The next retail project, the relocation of Hollywood Council Bluffs to a new land-based facility connected to the existing hotel, is expected to open in 2028 with a total construction budget of $180 to $200 million, with design and programming similar to the successful Hollywood Casino Joliet ### Interactive Business Highlights - The US Hollywood-branded standalone iCasino app achieved record Q2 2026 revenue with both quarter-over-quarter and year-over-year growth - Ontario operations continued to gain momentum, with strong OSB revenue growth driven by World Cup engagement, and successful cross-selling of reactivated World Cup OSB users into iCasino - The Scorebet Sportsbook and Casino, plus standalone Score Casino and Hollywood Casino apps, launched in Alberta, Canada on July 13 2026; early per capita user and handle volumes are encouraging, supported by an exclusive strategic partnership with the Toronto Blue Jays, with full-year 2026 planned investment of $20 million - The 2026 World Cup delivered meaningful user engagement and reactivation: 70% of existing Sportsbook users placed a World Cup wager, 45% of those bettors placed their first soccer wager, positioning the company well for the upcoming NFL season - Management is focused on prioritizing profitable growth by shifting away from unprofitable, low-value customer segments, which has improved marketing efficiency consistent with the company's previously outlined disciplined strategy
Guidance
- Full-year 2026 retail segment guidance was raised to reflect better-than-expected Q2 results, with a new revenue guidance midpoint of $5.87 billion and adjusted EBITDA guidance midpoint of $1.963 billion. Management expects mid-single digit year-over-year retail adjusted EBITDA growth (matching the 5.6% growth reported in Q2 2026) and a 50 basis point year-over-year adjusted EBITDA margin improvement in the second half of 2026, with normalized seasonality. - Full-year 2026 interactive segment revenue guidance was revised down slightly to $1.57 billion from the prior $1.6 billion, reflecting current operating trends. The guidance includes an expected $830 million skin tax gross up (up from $820 million prior), and assumes modest year-over-year growth for both OSB and iCasino in the second half, with faster growth for iCasino. Interactive adjusted EBITDA guidance remains unchanged at a full-year loss of $20 million, inclusive of the $20 million Alberta launch investment. Q3 2026 is expected to be the largest quarterly interactive loss of the year due to Alberta investment, and Q4 2026 interactive adjusted EBITDA is expected to be positive. - Full-year 2026 other category adjusted EBITDA guidance remains unchanged at a loss of $119 million. - Total 2026 CapEx guidance was revised down to $400 million from $420 million: maintenance CapEx guidance remains unchanged at $220 million, while project CapEx was revised to $180 million from $200 million due to a shift of some spending from 2026 to 2027. - Guidance for 2026 triple net lease cash payments ($1 billion), net cash interest expense ($150 million), and cash taxes (no expected cash tax payment in 2026) all remain unchanged.
Segment performance
1. Retail Segment: Generated record quarterly revenue of $1.5 billion, representing 4% year-over-year growth, and adjusted EBITDA of $517.2 million, representing 6% year-over-year growth. Adjusted EBITDA margin was 34.4%. Same-store revenues grew 2% year-over-year, while same-store adjusted EBITDA grew 4% year-over-year. This segment accounted for approximately 81.1% of total company revenue in Q2 2026. 2. Interactive Segment: Generated total revenue of $349.4 million, including a $185.5 million skin tax gross up, and an adjusted EBITDA loss of $9.5 million, a meaningful year-over-year improvement in profitability. Solid growth in US iCasino and Canadian operations was partially offset by customer-favorable online sportsbook outcomes and lower operating volumes from reduced marketing spend targeting unprofitable customers. This segment accounted for approximately 18.9% of total company revenue in Q2 2026.
Risks & headwinds
- The interactive segment faces heightened competitive marketing intensity for the 2026 NFL season, including increased customer acquisition spend from new prediction market entrants and incumbent digital-only OSB operators, particularly in competitive markets like Michigan. - iCasino faces increasing competitive entry into existing operating markets, requiring ongoing investment in customer relationship management and promotional activity to retain high-value users. - Potential regulatory uncertainty remains around the legalization and taxation of skill-based games in Pennsylvania, with outcome of pending state legislation not yet certain. The company has not included any potential revenue benefit from regulatory changes in its 2026 guidance. - New retail development projects carry execution risk and ramp uncertainty, with early strength from newly opened properties not guaranteed to be sustained as initial opening hype fades. - Forward-looking statements and guidance are inherently uncertain, and actual results could differ materially from projections due to unforeseen changes in market conditions, consumer demand, or competitive dynamics.
Analyst Q&A
Q: Why was interactive revenue guidance lowered but adjusted EBITDA loss guidance held steady at $20 million, and what cost drivers offset the revenue decline? /
A: Lower revenue was offset by realized cost savings across the business, including labor efficiencies, technology and third-party vendor cost reductions, and lower overall marketing spend from cutting spend targeting unprofitable customer segments. Management confirmed that the projected profitability improvement path for the interactive segment remains on track, with no changes to the full-year outlook. /n/nQ: How should investors expect retail margin expansion to trend in the second half of 2026 given the strong Q2 results and newly opened properties? / A: Management expects the same year-over-year growth cadence seen in Q2 to hold for the second half: 4% revenue growth and 6% adjusted EBITDA growth, even accounting for the typical seasonal weakness of Q4. A 50 basis point year-over-year adjusted EBITDA margin improvement is expected for both Q3 and Q4, matching the 55 basis point improvement achieved in Q2. /n/nQ: How does the iCasino growth trajectory look, given reported segment softness that doesn't reflect the company's strategic focus on standalone iCasino? / A: The standalone Hollywood-branded iCasino product has delivered strong consistent growth since launch. The slight reported segment softness comes from lower volume in the cross-sell of casino from the core sportsbook app, not weakness in the standalone business. Management remains confident in standalone iCasino growth through the end of the year. /n/nQ: What is the company's outlook on M&A and capital allocation priorities after accelerating balance sheet deleveraging? / A: The top near-term priority remains deleveraging to get lease-adjusted net leverage below 5x and traditional net leverage below 2x, which is progressing faster than expected. Share repurchases are very attractive at current trading levels, with 2027 consensus free cash flow yield near 20%. Internal growth projects are also a priority, with three potential projects (one hotel expansion and two riverboat-to-land conversions) currently under review, spread out over 2028-2030 to avoid straining cash flow. Any M&A must clear a high bar, matching or exceeding the returns available from share repurchases and internal projects, and must add strategic geographic or omnichannel value. /n/nQ: What is the expected ramp and ROI for the upcoming Hollywood Council Bluffs project, and how does the early Aurora ramp compare to the earlier Joliet opening? / A: Council Bluffs will match Joliet's budget, design and programming, so a similar ramp is expected, with target margins achieved 12 to 15 months after opening, matching the Joliet trajectory. Early Aurora results are very strong, with first full month volumes nearly doubling prior year levels, driven by the new 225-room hotel that attracts higher-worth VIP guests with a 20% uplift in average daily worth. Joliet has outperformed expectations, with year-over-year growth now reaching 75-80% 12 months after opening.