PENN Entertainment reported second-quarter 2026 results with record retail revenue of $1.505bn and adjusted EBITDAR of $517.2m, up 5.6%. The retail margin reached 34.4%. Shares closed at $20.13, up 2.6%.
Consolidated revenue rose 5.2% to $1.857bn, with adjusted EBITDA climbing 32.4% to $312.6m. Two-thirds of the EBITDA gain came from narrowing interactive losses: the digital segment's adjusted EBITDA loss shrank from $62m to $9.5m. Nine properties set quarterly records for revenue and EBITDAR.
Interactive revenue stood at $349.4m, but that figure includes a tax gross-up of $185.5m. Net of the adjustment, digital revenue fell 8% to $163.9m. CEO Jay Snowden attributed the segment's improved margin to casino growth and high sportsbook hold, around $3m for the quarter.
PENN raised its retail guidance: full-year revenue is now expected to reach $5.87bn, with EBITDAR at $1.963bn. The interactive forecast was cut to $1.57bn in revenue and a $20m loss for the year. CFO Felicia Hendrix warned that the third quarter will be the weakest for digital due to the Alberta launch, but expects the interactive segment to turn EBITDA-positive in the fourth quarter.
Net debt declined from $2.218bn to $1.928bn. Free cash flow yield on the 2027 consensus is approaching 20%, which Snowden called an irrational market valuation.
