PENN Entertainment (PENN) lifts Q1 2026 EBITDA as interactive loss narrows
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
PENN Entertainment, Inc. reported higher first quarter 2026 revenue of $1,779.1 million, up from $1,672.5 million a year earlier, driven by both retail and interactive operations. Consolidated Adjusted EBITDA rose to $265.8 million from $173.3 million, reflecting stronger operating performance.
The company posted a small net loss of $2.8 million, compared with net income of $111.5 million in the prior-year quarter, largely due to a prior-period gain on a financing arrangement. Adjusted EPS improved to $0.11 from a loss of $0.25, and the Interactive segment significantly narrowed its Adjusted EBITDA loss to $10.8 million from $89.0 million.
Retail segment revenues were $1.4 billion with Segment Adjusted EBITDAR of $471.4 million and margins of 33.2%. Liquidity totaled $1.7 billion as of March 31, 2026, including $708.0 million in cash, while traditional net debt stood at $2.24 billion and the lease-adjusted net leverage ratio improved to 6.4x from 6.8x.
Positive
- Strong Adjusted EBITDA growth: Consolidated Adjusted EBITDA increased to $265.8 million from $173.3 million, indicating significantly better operating performance across segments.
- Interactive segment turnaround: Interactive Adjusted EBITDA loss narrowed to $10.8 million from $89.0 million, supported by about 15% iCasino revenue growth and record standalone iCasino revenue.
- Deleveraging progress: Traditional net leverage improved to 3.8x from 4.5x, and lease-adjusted net leverage improved to 6.4x from 6.8x, with liquidity of $1.7 billion.
Negative
- GAAP profitability pressure: The company reported a Q1 2026 net loss of $2.8 million versus net income of $111.5 million a year earlier, reflecting the absence of a prior-period financing gain and ongoing interest and lease burdens.
- High absolute leverage: Traditional net debt was $2.24 billion and lease-adjusted net leverage was 6.4x, indicating a still-elevated debt and lease load despite recent improvements.
Insights
Stronger operations and deleveraging progress despite a small GAAP loss.
PENN Entertainment delivered solid operating momentum in Q1 2026. Revenue increased to $1,779.1 million from $1,672.5 million, while Consolidated Adjusted EBITDA climbed to $265.8 million from $173.3 million, indicating broad-based margin improvement, especially in the Retail and Interactive segments.
The Interactive unit’s Adjusted EBITDA loss shrank sharply to $10.8 million from $89.0 million, supported by approximately 15% iCasino revenue growth and record quarterly standalone iCasino revenue. Retail Segment Adjusted EBITDAR reached $471.4 million on $1.4 billion of revenue, with 33.2% margins, showing healthy visitation and spend trends.
Capital structure actions were notable: the company issued $600.0 million of 6.75% unsecured notes due 2031 and used proceeds to repay revolving credit borrowings, helping traditional net leverage improve to 3.8x from 4.5x. Lease-adjusted net leverage eased to 6.4x from 6.8x, and liquidity was strong at $1.7 billion with $708.0 million in cash as of March 31, 2026.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Revenue: $1,779.1 million
Net income (loss): -$2.8 million
Consolidated Adjusted EBITDA: $265.8 million
+5 more
8 metrics
Revenue
$1,779.1 million
For the quarter ended March 31, 2026
Net income (loss)
-$2.8 million
For the quarter ended March 31, 2026
Consolidated Adjusted EBITDA
$265.8 million
For the quarter ended March 31, 2026
Adjusted EPS
$0.11
For the quarter ended March 31, 2026
Interactive Adjusted EBITDA
-$10.8 million
For the quarter ended March 31, 2026
Cash and cash equivalents
$708.0 million
As of March 31, 2026
Traditional net debt
$2,240.9 million
As of March 31, 2026
Lease-adjusted net leverage ratio
6.4x
Trailing twelve months ended March 31, 2026
Key Terms
Consolidated Adjusted EBITDA, Segment Adjusted EBITDAR, Traditional net debt, Lease-adjusted net leverage ratio, +2 more
6 terms
Consolidated Adjusted EBITDA financial
"The Non-GAAP Financial Measures used in this press release include Consolidated Adjusted EBITDA, Adjusted EPS, Traditional net debt"
Consolidated adjusted EBITDA is a company’s combined operating profit across all its units before interest, taxes, depreciation and amortization, further cleaned up by removing one‑time, noncash or unusual items so it shows the ongoing cash-generating performance. Think of it as the business’s engine power after stripping out financing, tax rules and one-off events—investors use it to compare operating health and value companies, but it’s not a formal accounting measure.
Segment Adjusted EBITDAR financial
"Segment Adjusted EBITDAR is our measure of profit or loss for our reportable segments and underlying operating segments."
A segment adjusted EBITDAR is a profitability measure for a particular business unit that starts with operating profit and then adds back interest, taxes, depreciation, amortization and rent, plus one-time or non-recurring items specific to that segment. It isolates the segment’s underlying cash-generating performance by removing financing, accounting and unusual effects, helping investors compare and value different parts of a company — like judging store performance by sales and running costs while ignoring differing lease or loan arrangements.
Traditional net debt financial
"We calculate Traditional net debt as Total traditional debt, which is the principal amount of debt outstanding less Cash and cash equivalents."
Lease-adjusted net leverage ratio financial
"The Company’s Lease-adjusted net leverage ratio’s numerator is calculated as cash rent payments to REIT landlords"
A lease-adjusted net leverage ratio measures a company’s debt burden after treating long-term lease commitments as if they were debt, then comparing that total to the company’s operating earnings (often EBITDA, a common proxy for recurring cash profit). It gives investors a clearer, apples-to-apples view of how much fixed obligation the business carries relative to its ability to pay, useful when comparing firms with different leasing practices — like adding a car lease to a mortgage before judging monthly affordability.
triple net operating leases financial
"Collectively these arrangements are referred to as our “triple net operating leases.”"
A triple net operating lease is a long-term rental agreement for real estate in which the tenant pays not only rent but also the property taxes, insurance and routine upkeep. Think of it like renting a house where the tenant also covers the bills and yard work; the owner gets steadier cash with fewer day-to-day costs but bears risks tied to tenant credit and long-term property value. Investors care because these leases create predictable income streams and shift many operating costs away from the property owner.
REIT Landlords financial
"Consists of total cash payments made to GLPI and VICI (referred to collectively as our “REIT Landlords”)"
REIT landlords are companies organized as real estate investment trusts that own and manage income-producing properties—think of a landlord that sells shares to many investors instead of renting from a single owner. They matter to investors because their revenue and dividends come from rents and property values, so changes in occupancy, rental rates, property demand or interest rates can directly affect the income and share price.
Earnings Snapshot
Revenue: $1,779.1 million
Q1 2026
Revenue
$1,779.1 million
Net income (loss)
-$2.8 million
Consolidated Adjusted EBITDA
$265.8 million
Adjusted EPS
$0.11
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
_____________________________________________________________________________________
FORM 8-K
_____________________________________________________________________________________
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): April 23, 2026
_____________________________________________________________________________________
(Exact Name of Registrant as Specified in Charter)
_____________________________________________________________________________________
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||||||||
(Address of Principal Executive Offices, and Zip Code)
Registrant's Telephone Number, Including Area Code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On April 23, 2026, PENN Entertainment, Inc. (the “Company”) issued a press release announcing the results of operations and financial condition for the three months ended March 31, 2026. A copy of this press release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description of Exhibit | |||||||
| 99.1 | Press release dated April 23, 2026 of PENN Entertainment, Inc. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: | April 23, 2026 | PENN Entertainment, Inc. | |||||||||
| By: | /s/ Christopher Rogers | ||||||||||
Christopher Rogers | |||||||||||
Executive Vice President, Chief Strategy and Legal Officer and Secretary | |||||||||||
Exhibit 99.1
PENN Entertainment, Inc. Reports First Quarter Results
WYOMISSING, PA (April 23, 2026) - PENN Entertainment, Inc. (“PENN” or the “Company”) (Nasdaq: PENN) today reported financial results for the quarter ended March 31, 2026.
Jay Snowden, Chief Executive Officer and President, said: “We are pleased to report another solid quarter. Retail Segment Adjusted EBITDAR grew year-over-year and stable trends are carrying into April. In our Interactive segment, continued online casino growth combined with positive trends in Ontario are driving momentum as we prepare for the anticipated July 13 launch of regulated iCasino and online sports betting in Alberta1. Importantly, we are executing on the plan we outlined last quarter, driving Retail and Interactive growth, optimizing corporate overhead, making disciplined capital investments, and continuing to delever.
First Quarter Retail Segment Highlights2:
•Revenues of $1.4 billion;
•Segment Adjusted EBITDAR of $471.4 million; and
•Segment Adjusted EBITDAR margins of 33.2%.
“Trends were encouraging across the portfolio, with strength in our West segment reflecting the continued ramp of M Resort’s new hotel tower and strong execution by the team at Ameristar Casino Resort and Spa in Black Hawk, Colorado,” said Mr. Snowden. “Increased visitation and higher spend per visit companywide supported year-over-year theoretical revenue growth across all rated worth segments, representing our largest quarterly increase in three years. We recently announced the June opening dates1 for the new hotel tower at Hollywood Columbus and the new Hollywood Casino Aurora and remain excited about the anticipated returns on our development project investments based on the success to date from our recent openings at Hollywood Casino Joliet and M Resort.
First Quarter Interactive Segment Highlights:
•Revenues of $358.3 million (including tax gross up of $185.8 million); and
•Adjusted EBITDA loss of $10.8 million.
“Our Interactive segment delivered a meaningful Adjusted EBITDA improvement year-over-year, which marks the first full quarter under our realigned digital strategy. iCasino revenue growth of approximately 15% year-over-year was driven by the continued momentum of standalone iCasino, which notably achieved record quarterly revenue in the first quarter as well as record monthly revenue in March. The trends we are seeing provide us with confidence in the trajectory of the business and upcoming launch in Alberta1,” concluded Mr. Snowden.
1 Subject to regulatory approvals.
2 Retail Segment consists of retail operating segments which are composed of our Northeast, South, West, and Midwest reportable segments.
Liquidity and Financial Position
On March 16, 2026, the Company issued $600.0 million of unsecured notes due 2031 at an interest rate of 6.75%. Net proceeds were used to repay borrowings under PENN’s revolving credit facility.
Total liquidity as of March 31, 2026 was $1.7 billion inclusive of $708.0 million in Cash and cash equivalents. Traditional net debt as of the end of the quarter was $2.2 billion.
On April 16, 2026, the Company amended its Second Amended and Restated Credit Agreement in order to refinance and extend the term of its $1.0 billion Amended Revolving Credit Facility and $446.9 million Amended Term Loan A Facility. The Company’s existing Amended Term Loan B Facility was not refinanced as part of this transaction.
Summary of First Quarter Results
| For the quarter ended March 31, | |||||||||||
| (in millions, except per share data, unaudited) | 2026 | 2025 | |||||||||
| Revenues | $ | 1,779.1 | $ | 1,672.5 | |||||||
Net income (loss) | $ | (2.8) | $ | 111.5 | |||||||
Consolidated Adjusted EBITDA (1) | $ | 265.8 | $ | 173.3 | |||||||
Rent expense associated with triple net operating leases (2) | 163.3 | 155.9 | |||||||||
Cash payments to our REIT Landlords under Triple Net Leases (3) | $ | 247.7 | $ | 240.0 | |||||||
Diluted earnings (loss) per common share | $ | (0.02) | $ | 0.68 | |||||||
(1)For more information, definitions, and reconciliations see the “Non-GAAP Financial Measures” section below.
(2)Consists of the operating lease components of (i) our triple net master lease dated November 1, 2013 with Gaming and Leisure Properties, Inc. (Nasdaq: GLPI) (“GLPI”), as amended and restated effective January 1, 2023 (the “AR PENN Master Lease”), (ii) our triple net master lease entered into in conjunction with, and coterminous with, the AR PENN Master Lease (the “2023 Master Lease”), and (iii) our triple net master lease dated December 4, 2025 with VICI Properties Inc. (NYSE: VICI) (“VICI”) for the real estate assets used in the operations of Margaritaville Resort Casino and Hollywood Casino at Greektown (the “VICI Master Lease”), which replaced the Company’s prior separate triple net leases with VICI for such properties. Collectively these arrangements are referred to as our “triple net operating leases.” The expense related to operating lease components contained within our triple net operating leases are recorded as “General and administrative” within the unaudited Consolidated Statements of Operations.
(3)Consists of total cash payments made to GLPI and VICI (referred to collectively as our “REIT Landlords”) under our triple net operating leases (as defined above), the Pinnacle Master Lease, and the Morgantown Lease and collectively referred to as our “Triple Net Leases.”
2
Adjusted EPS
The following table reconciles diluted earnings (loss) per share (“EPS”) to Adjusted EPS (approximate EPS impact shown, per share; positive adjustments represent charges to income):
| For the quarter ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
Diluted earnings (loss) per share | $ | (0.02) | $ | 0.68 | |||||||
| Pre-opening expenses | 0.03 | — | |||||||||
| Legal matters inclusive of litigation settlements | 0.04 | 0.05 | |||||||||
| Transaction costs and other | 0.10 | — | |||||||||
| Non-operating items: | |||||||||||
| Gain on financing arrangement | — | (1.29) | |||||||||
Income tax impact on net income (loss) adjustments (1) | (0.04) | 0.31 | |||||||||
| Adjusted EPS | $ | 0.11 | $ | (0.25) | |||||||
(1)The income tax impact reflects current and deferred tax effects based on the nature of each adjustment and the applicable tax jurisdiction.
3
PENN ENTERTAINMENT, INC. AND SUBSIDIARIES
Supplemental Information
The Company aggregates its operations into five reportable segments: Northeast, South, West, Midwest, and Interactive.
| For the quarter ended March 31, | |||||||||||
| (in millions, unaudited) | 2026 | 2025 | |||||||||
| Revenues: | |||||||||||
Northeast segment (1) | $ | 687.1 | $ | 680.9 | |||||||
South segment (2) | 281.3 | 288.3 | |||||||||
West segment (3) | 145.8 | 129.7 | |||||||||
Midwest segment (4) | 305.9 | 282.9 | |||||||||
Interactive (5) | 358.3 | 290.1 | |||||||||
Other (6) | 5.2 | 5.3 | |||||||||
Intersegment eliminations (7) | (4.5) | (4.7) | |||||||||
| Total revenues | $ | 1,779.1 | $ | 1,672.5 | |||||||
Segment Adjusted EBITDAR (8): | |||||||||||
Northeast segment (1) | $ | 194.6 | $ | 194.2 | |||||||
South segment (2) | 104.2 | 103.3 | |||||||||
West segment (3) | 53.9 | 45.7 | |||||||||
Midwest segment (4) | 118.7 | 113.8 | |||||||||
Interactive (5) | (10.8) | (89.0) | |||||||||
Other (6) | (31.5) | (38.8) | |||||||||
Rent expense associated with triple net operating leases | (163.3) | (155.9) | |||||||||
Consolidated Adjusted EBITDA (9) | $ | 265.8 | $ | 173.3 | |||||||
(1)The Northeast segment consists of the following properties: Ameristar East Chicago, Hollywood Casino at Greektown, Hollywood Casino Bangor, Hollywood Casino at Charles Town Races, Hollywood Casino Columbus, Hollywood Casino Lawrenceburg, Hollywood Casino Morgantown, Hollywood Casino at PENN National Race Course, Hollywood Casino Perryville, Hollywood Casino Toledo, Hollywood Casino York, Hollywood Gaming at Dayton Raceway, Hollywood Gaming at Mahoning Valley Race Course, Marquee by PENN, Hollywood Casino at The Meadows, and Plainridge Park Casino.
(2)The South segment consists of the following properties: 1st Jackpot Casino, Ameristar Vicksburg, Boomtown Biloxi, Boomtown Bossier City, Boomtown New Orleans, Hollywood Casino Gulf Coast, Hollywood Casino Tunica, L’Auberge Baton Rouge, L’Auberge Lake Charles, and Margaritaville Resort Casino.
(3)The West segment consists of the following properties: Ameristar Black Hawk, Cactus Petes and Horseshu, M Resort Spa Casino, and Zia Park Casino.
(4)The Midwest segment consists of the following properties: Ameristar Council Bluffs, Argosy Casino Alton, Argosy Casino Riverside, Hollywood Casino Aurora, Hollywood Casino Joliet, our 50% investment in Kansas Entertainment, LLC, which owns Hollywood Casino at Kansas Speedway, Hollywood Casino St. Louis, Prairie State Gaming, and River City Casino.
(5)The Interactive segment includes all of our online sports betting, online casino/iCasino and social gaming operations, management of retail sports betting, and media. Interactive revenues are inclusive of a tax gross-up of $185.8 million and $128.2 million for the quarters ended March 31, 2026 and 2025, respectively.
(6)The Other category, included in the tables to reconcile the segment information to the consolidated information, consists of the Company’s stand-alone racing operations, namely Sanford-Orlando Kennel Club, Sam Houston and Valley Race Park, and our management contract for Retama Park Racetrack. The Other category also includes corporate overhead, which consist of certain expenses, such as: payroll, professional fees, travel expenses, and other general and administrative expenses that do not directly relate to or have not otherwise been allocated. Corporate overhead was $28.2 million and $36.0 million for the quarters ended March 31, 2026 and 2025, respectively. Corporate overhead for the quarter ended March 31, 2025 included $7.7 million of legal and advisory costs related to activist activity in connection with our 2025 annual meeting of shareholders.
(7)Primarily represents the elimination of intersegment revenues associated with our retail sportsbooks, which are operated by PENN Interactive.
(8)See definition of Segment Adjusted EBITDAR within the “Reportable Segment Measures” section below.
(9)See definition of Consolidated Adjusted EBITDA within the “Non-GAAP Financial Measures” section below.
4
PENN ENTERTAINMENT, INC. AND SUBSIDIARIES
Reconciliation of Net Income (Loss) to Consolidated Adjusted EBITDA
| For the quarter ended March 31, | |||||||||||
| (in millions, unaudited) | 2026 | 2025 | |||||||||
Net income (loss) | $ | (2.8) | $ | 111.5 | |||||||
Income tax expense | 8.7 | 47.7 | |||||||||
| Interest expense, net | 101.0 | 110.8 | |||||||||
| Interest income | (1.9) | (3.2) | |||||||||
| Income from unconsolidated affiliates | (8.3) | (7.6) | |||||||||
Gain on financing arrangement | — | (215.1) | |||||||||
| Other (income) expenses | 0.4 | (1.3) | |||||||||
| Operating income | 97.1 | 42.8 | |||||||||
| Stock-based compensation | 14.1 | 15.6 | |||||||||
Cash-settled stock-based awards variance (1) | (3.4) | (3.2) | |||||||||
| Pre-opening expenses | 4.1 | 0.5 | |||||||||
| Depreciation and amortization | 117.0 | 108.0 | |||||||||
| Income from unconsolidated affiliates | 8.3 | 7.6 | |||||||||
Non-operating items of equity method investments (2) | 1.1 | 1.1 | |||||||||
Other expenses (3) | 27.5 | 0.9 | |||||||||
Consolidated Adjusted EBITDA | $ | 265.8 | $ | 173.3 | |||||||
(1)Our cash-settled stock-based awards are adjusted to fair value each reporting period based primarily on the price of the Company’s common stock. As such, significant fluctuations in the price of the Company’s common stock during any reporting period could cause significant variances to budget on cash-settled stock-based awards.
(2)Consists primarily of depreciation expense associated with our Kansas Entertainment joint venture.
(3)For the three months ended March 31, 2026, other expenses consist of settlement costs and related legal and advisory fees associated with the Cooperation Agreement with HG Vora Capital Management, LLC and related parties, as well as non-recurring restructuring charges (primarily severance) related to the Company’s new corporate organizational structure, and other transaction costs.
5
PENN ENTERTAINMENT, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
| For the quarter ended March 31, | |||||||||||
| (in millions, except per share data, unaudited) | 2026 | 2025 | |||||||||
| Revenues | |||||||||||
| Gaming | $ | 1,334.4 | $ | 1,298.3 | |||||||
| Food, beverage, hotel, and other | 444.7 | 374.2 | |||||||||
| Total revenues | 1,779.1 | 1,672.5 | |||||||||
| Operating expenses | |||||||||||
| Gaming | 807.9 | 853.8 | |||||||||
| Food, beverage, hotel, and other | 329.4 | 264.9 | |||||||||
| General and administrative | 427.7 | 403.0 | |||||||||
| Depreciation and amortization | 117.0 | 108.0 | |||||||||
| Total operating expenses | 1,682.0 | 1,629.7 | |||||||||
| Operating income | 97.1 | 42.8 | |||||||||
| Other income (expenses) | |||||||||||
| Interest expense, net | (101.0) | (110.8) | |||||||||
| Interest income | 1.9 | 3.2 | |||||||||
| Income from unconsolidated affiliates | 8.3 | 7.6 | |||||||||
Gain on financing arrangement | — | 215.1 | |||||||||
| Other | (0.4) | 1.3 | |||||||||
| Total other income (expenses) | (91.2) | 116.4 | |||||||||
| Income before income taxes | 5.9 | 159.2 | |||||||||
Income tax expense | (8.7) | (47.7) | |||||||||
Net income (loss) | (2.8) | 111.5 | |||||||||
| Net loss attributable to non-controlling interest | 0.5 | 0.3 | |||||||||
Net income (loss) attributable to PENN Entertainment, Inc. | $ | (2.3) | $ | 111.8 | |||||||
Earnings (loss) per share: | |||||||||||
Basic earnings (loss) per share | $ | (0.02) | $ | 0.73 | |||||||
Diluted earnings (loss) per share | $ | (0.02) | $ | 0.68 | |||||||
| Weighted-average common shares outstanding—basic | 133.4 | 152.3 | |||||||||
| Weighted-average common shares outstanding—diluted | 133.4 | 167.0 | |||||||||
6
Selected Financial Information and GAAP to Non-GAAP Reconciliations
| (in millions, unaudited) | March 31, 2026 | December 31, 2025 | |||||||||
| Cash and cash equivalents | $ | 708.0 | $ | 686.6 | |||||||
Total traditional debt | $ | 2,948.9 | $ | 2,904.1 | |||||||
Cash and cash equivalents | (708.0) | (686.6) | |||||||||
Traditional net debt (1) | $ | 2,240.9 | $ | 2,217.5 | |||||||
| Amended Revolving Credit Facility due 2027 | $ | 25.0 | $ | 570.0 | |||||||
| Amended Term Loan A Facility due 2027 | 446.9 | 453.8 | |||||||||
| Amended Term Loan B Facility due 2029 | 962.5 | 965.0 | |||||||||
| 5.625% Notes due 2027 | 400.0 | 400.0 | |||||||||
| 4.125% Notes due 2029 | 400.0 | 400.0 | |||||||||
| 6.75% Notes due 2031 | 600.0 | — | |||||||||
| 2.75% Convertible Notes due 2026 | 106.7 | 106.7 | |||||||||
| Other long-term obligations | 7.8 | 8.6 | |||||||||
| Total traditional debt | 2,948.9 | 2,904.1 | |||||||||
Debt discounts and debt issuance costs | (25.0) | (17.0) | |||||||||
| $ | 2,923.9 | $ | 2,887.1 | ||||||||
| Total traditional debt | $ | 2,948.9 | $ | 2,904.1 | |||||||
Cash and cash equivalents | (708.0) | (686.6) | |||||||||
Cash rent payments to REIT landlords (2) | 7,804.0 | 7,742.4 | |||||||||
| $ | 10,044.9 | $ | 9,959.9 | ||||||||
Consolidated Adjusted EBITDA (3) | $ | 922.6 | $ | 830.1 | |||||||
Rent expense associated with triple net operating leases (3) | $ | 639.2 | $ | 631.7 | |||||||
Lease-adjusted net leverage ratio (1) | 6.4x | 6.8x | |||||||||
Traditional net leverage (1) | 3.8x | 4.5x | |||||||||
(1)See “Non-GAAP Financial Measures” section below for more information as well as the definitions of Traditional net debt, Lease-adjusted net leverage ratio, and Traditional net leverage.
(2)Amount equals 8 times the total cash rent payments to REIT landlords for the trailing twelve months.
(3)Balance is presented on a trailing twelve months basis.
Cash Flow Data
The table below summarizes certain cash expenditures incurred by the Company.
| For the quarter ended March 31, | |||||||||||
| (in millions, unaudited) | 2026 | 2025 | |||||||||
| Cash payments to our REIT Landlords under Triple Net Leases | $ | 247.7 | $ | 240.0 | |||||||
Cash refunds related to income taxes, net | $ | 16.7 | $ | 19.7 | |||||||
| Cash paid for interest on traditional debt | $ | 43.8 | $ | 36.7 | |||||||
| Capital expenditures | $ | 94.6 | $ | 125.2 | |||||||
7
Reportable Segment Measures
Segment Adjusted EBITDAR is our measure of profit or loss for our reportable segments and underlying operating segments. We define Segment Adjusted EBITDAR as earnings before interest expense, net, interest income, income taxes, depreciation and amortization, stock-based compensation, debt extinguishment charges, impairment losses, insurance recoveries, net of deductible charges, changes in the estimated fair value of our contingent purchase price obligations, gain or loss on disposal of assets, the difference between budget and actual expense for cash-settled stock-based awards, pre-opening expenses, loss on disposal of a business, non-cash gains/losses associated with REIT transactions, and other. Segment Adjusted EBITDAR excludes rent expense associated with triple net operating leases (which is a normal, recurring cash operating expense necessary to operate our business). Segment Adjusted EBITDAR is inclusive of income or loss from unconsolidated affiliates, with our share of non-operating items (such as interest expense, net, and depreciation and amortization) added back for our Kansas Entertainment, LLC joint venture. Segment Adjusted EBITDAR margin is Segment Adjusted EBITDAR divided by related segment revenues.
Non-GAAP Financial Measures
The Non-GAAP Financial Measures used in this press release include Consolidated Adjusted EBITDA, Adjusted EPS, Traditional net debt, Traditional net leverage ratio, and Lease-adjusted net leverage ratio. These non-GAAP financial measures should not be considered a substitute for, nor superior to, financial results and measures determined or calculated in accordance with GAAP.
We define Consolidated Adjusted EBITDA as earnings before interest expense, net, interest income, income taxes, depreciation and amortization, stock-based compensation, debt extinguishment charges, impairment losses, insurance recoveries, net of deductible charges, changes in the estimated fair value of our contingent purchase price obligations, gain or loss on disposal of assets, the difference between budget and actual expense for cash-settled stock-based awards, pre-opening expenses, loss on disposal of a business, non-cash gains/losses associated with REIT transactions, and other. Consolidated Adjusted EBITDA is inclusive of income or loss from unconsolidated affiliates, with our share of non-operating items (such as interest expense, net, and depreciation and amortization) added back for our Kansas Entertainment, LLC joint venture. Consolidated Adjusted EBITDA is inclusive of rent expense associated with our triple net operating leases with our REIT landlords. Although Consolidated Adjusted EBITDA includes rent expense associated with our triple net operating leases, we believe Consolidated Adjusted EBITDA is useful as a supplemental measure in evaluating the performance of our consolidated results of operations.
Consolidated Adjusted EBITDA has economic substance because it is used by management as a performance measure to analyze the performance of our business, and is especially relevant in evaluating large, long-lived casino-hotel projects because it provides a perspective on the current effects of operating decisions separated from the substantial non-operational depreciation charges and financing costs of such projects. We present Consolidated Adjusted EBITDA because it is used by some investors and creditors as an indicator of the strength and performance of ongoing business operations, including our ability to service debt, and to fund capital expenditures, acquisitions, and operations. These calculations are commonly used as a basis for investors, analysts and credit rating agencies to evaluate and compare operating performance and value companies within our industry. In order to view the operations of their casinos on a more stand-alone basis, gaming companies, including us, have historically excluded from their Consolidated Adjusted EBITDA calculations certain corporate expenses that do not relate to the management of specific casino properties. However, Consolidated Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with GAAP. Consolidated Adjusted EBITDA information is presented as a supplemental disclosure, as management believes that it is a commonly used measure of performance in the gaming industry and that it is considered by many to be a key indicator of the Company’s operating results.
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Adjusted EPS is diluted earnings or loss per share adjusted to exclude gains/losses on the disposal of a business, non-cash gains/losses associated with REIT transactions, impairment losses, pre-opening expenses, debt extinguishment charges, gains/losses on the disposal of assets, foreign currency gains/losses, transaction related expenses, business interruption insurance proceeds, net gains/losses related to equity investments, and other.
Adjusted EPS is a non-GAAP measure and is presented solely as a supplemental disclosure to reported GAAP measures because management believes this measure is useful in providing period-to-period comparisons of the results of the Company’s operations to assist investors in reviewing the Company’s operating performance over time. Management believes it is useful to exclude certain items when comparing current performance to prior periods because these items can vary significantly depending on specific underlying transactions or events. Further, management believes certain excluded items may not relate specifically to current operating trends or be indicative of future results. Adjusted EPS should not be construed as an alternative to GAAP earnings per share as an indicator of the Company’s performance.
We calculate Traditional net debt as Total traditional debt, which is the principal amount of debt outstanding less Cash and cash equivalents. Management believes that Traditional net debt is an important measure to monitor leverage and evaluate the balance sheet. With respect to Traditional net debt, Cash and cash equivalents are subtracted from the GAAP measure because they could be used to reduce the Company’s debt obligations. A limitation associated with using Traditional net debt is that it subtracts Cash and cash equivalents and therefore may imply that there is less Company debt than the most comparable GAAP measure indicates. Management believes that investors may find it useful to monitor leverage and evaluate the balance sheet.
The Company’s Traditional net leverage ratio is defined as Traditional net debt (as defined above) divided by (i) Consolidated Adjusted EBITDA (as defined above) for the trailing twelve months plus (ii) rent expense associated with triple net operating leases for the trailing twelve months less (iii) cash rent payments to REIT landlords for the trailing twelve months. Management believes this measure is useful as a supplemental measure and provides an indication of the results generated by the Company in relation to its level of indebtedness with the cash generated from Company operations.
The Company’s Lease-adjusted net leverage ratio’s numerator is calculated as cash rent payments to REIT landlords for the trailing twelve months capitalized at 8 times plus Traditional net debt (as defined above). The Company’s Lease-adjusted net leverage ratio’s denominator is Consolidated Adjusted EBITDA (as defined above) for the trailing twelve months plus rent expense associated with triple net operating leases for the trailing twelve months. Management believes this measure is useful as a supplemental measure and provides an indication of the results generated by the Company in relation to its level of indebtedness (including leases) with the cash generated from Company operations.
Each of these non-GAAP financial measures is not calculated in the same manner by all companies and, accordingly, may not be an appropriate measure of comparing performance among different companies. See the tables above, which present reconciliations of these measures to the GAAP equivalent financial measures.
Management Presentation, Conference Call, Webcast and Replay Details
PENN is hosting a conference call and simultaneous webcast at 8:00 a.m. E.T. today, both of which are open to the general public. During the call, management will review a presentation regarding the quarter and recent developments that can be accessed at http://investors.pennentertainment.com/events-and-presentations/presentations.
The conference call number is 785-424-1699 (conference ID: PENN); please call five minutes in advance to ensure that you are connected prior to the presentation. Interested parties may also access the live call at www.pennentertainment.com; allow 15 minutes to register, download, and install any necessary
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software. Questions and answers will be reserved for call-in analysts and investors. A replay of the call can be accessed for thirty days at http://www.pennentertainment.com.
This press release, which includes financial information to be discussed by management during the conference call and disclosure and reconciliation of non-GAAP financial measures, is available on the Company’s web site, http://www.pennentertainment.com/corp/investors (select link for “Press Releases”).
About PENN Entertainment, Inc.
PENN Entertainment, Inc., together with its subsidiaries (“PENN,” or the “Company,” “we,” “our,” or “us”), operates in 27 jurisdictions throughout North America, with a broadly diversified portfolio of casinos, racetracks, and online sports betting and iCasino offerings. PENN’s focus is on organic cross-sell opportunities, reinforced by its market-leading retail casinos, sports media assets and technology, including a proprietary state-of-the-art, fully integrated digital sports betting and iCasino platform, and an in-house iCasino content studio. The Company’s portfolio is further bolstered by its industry-leading PENN Play™ customer loyalty program, offering its approximately 34 million members a unique set of rewards and experiences.
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as “expects,” “believes,” “estimates,” “projects,” “intends,” “plans,” “goal,” “seeks,” “may,” “will,” “should,” “look forward to,” or “anticipates” or the negative or other variations of these or similar words, or by discussions of future events, strategies or risks and uncertainties.
Specifically, forward-looking statements include, but are not limited to, statements regarding: the Company’s expectations of future results of operations and financial condition, including, but not limited to, projections of revenue, Segment Adjusted EBITDAR, Consolidated Adjusted EBITDA, and other financial measures; the assumptions provided regarding the guidance, including the scale and timing of the Company’s product and technology investments; the Company’s expectations regarding cash flow generation and near-term deleveraging; the Company’s expectations regarding results and customer growth and the impact of competition in retail/mobile/online sportsbooks (including prediction markets), iCasino, social gaming, and retail operations; the Company’s development and launch of its Interactive segment’s products in new jurisdictions and enhancements to existing Interactive segment products; the future success of theScore Bet, Hollywood iCasino and its other digital offerings; the Company’s expectations that its portfolio of assets provides a benefit of geographically-diversified cash flows from operations; management’s plans and strategies for future operations, including statements relating to the Company’s plan to expand gaming operations through the implementation and execution of a disciplined capital expenditure program at our existing properties, the pursuit of strategic acquisitions and investments, and the development of new gaming properties, including the development projects and the anticipated benefits; improvements, expansions, or relocations of our existing properties; entrance into new jurisdictions; expansion of gaming in existing jurisdictions; strategic investments and acquisitions; cross-sell opportunities between our retail gaming, online sports betting (“OSB”), and iCasino businesses; our ability to obtain financing for our development projects on attractive terms; the timing, cost and expected impact of planned capital expenditures on the Company’s results of operations; and the actions of regulatory, legislative, executive, or judicial decisions at the federal, state, provincial, or local level with regard to our business and the impact of any such actions.
Such statements are all subject to risks, uncertainties and changes in circumstances that could significantly affect the Company’s future financial results and business. Accordingly, the Company cautions that the forward-looking statements contained herein are qualified by important factors that could cause actual results to differ materially from those reflected by such statements. Such factors include: the effects of economic and market conditions in the markets in which the Company operates or otherwise, including the impact of global supply chain disruptions, price inflation, changes in interest
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rates, economic downturns, changes in trade policies, and geopolitical and regulatory uncertainty; competition with other retail and online gaming and sports betting, entertainment and sports content experiences; the timing, cost and expected impact of product and technology investments; risks relating to operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions; our ability to successfully acquire and integrate new properties and operations and achieve expected synergies from acquisitions; the availability of future borrowings under our Amended Credit Facilities or other sources of capital to enable us to service our indebtedness, make anticipated capital expenditures or pay off or refinance our indebtedness prior to maturity; the impact of indemnification obligations under the Barstool SPA; our ability to realize the anticipated benefits of our realigned digital strategy; our ability to attract and retain user adoption of theScore Bet and Hollywood iCasino apps in a rapidly evolving and highly competitive market; the outcome of any legal proceedings that may be instituted against the Company, or its respective directors, officers or employees; the ability of the Company to retain and hire key personnel; the impact of new or changes in current laws, regulations, rules or other industry standards; adverse outcomes of litigation involving the Company; our ability to maintain our gaming licenses and concessions and comply with applicable gaming law, changes in current laws, regulations, rules or other industry standards, and additional factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, each as filed with the U.S. Securities and Exchange Commission. The Company does not intend to update publicly any forward-looking statements except as required by law. Considering these risks, uncertainties and assumptions, the forward-looking events discussed in this press release may not occur.
CONTACT:
Mike Nieves
SVP, Finance & Treasurer
PENN Entertainment, Inc.
610-373-2400
Joseph N. Jaffoni
JCIR
212-835-8500 or penn@jcir.com
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FAQ
How did PENN (PENN) perform financially in Q1 2026?
PENN reported Q1 2026 revenue of $1,779.1 million, up from $1,672.5 million a year earlier. Consolidated Adjusted EBITDA rose to $265.8 million from $173.3 million, while the company recorded a modest net loss of $2.8 million.
How did PENN’s Interactive segment perform in Q1 2026?
The Interactive segment generated Q1 2026 revenue of $358.3 million and an Adjusted EBITDA loss of $10.8 million. This loss narrowed significantly from $89.0 million a year earlier, supported by approximately 15% iCasino revenue growth and record standalone iCasino revenue.
What were PENN’s Retail segment results for Q1 2026?
Retail segment revenues were approximately $1.4 billion with Segment Adjusted EBITDAR of $471.4 million and margins of 33.2%. Management highlighted increased visitation, higher spend per visit, and strong performance in the West segment and new development projects.
What is PENN’s debt and liquidity position as of March 31, 2026?
As of March 31, 2026, PENN had $708.0 million in cash and total liquidity of $1.7 billion. Traditional net debt was $2.24 billion, traditional net leverage was 3.8x, and lease-adjusted net leverage was 6.4x.
Did PENN issue new debt in Q1 2026 and how were proceeds used?
On March 16, 2026, PENN issued $600.0 million of unsecured notes due 2031 at a 6.75% interest rate. Net proceeds were used to repay borrowings under the company’s revolving credit facility, contributing to improved traditional net leverage metrics.