Second Quarter 2026
Filed Aug 6, 2026Record quarterly Retail segment revenues and $52.5 million year-over-year improvement in Consolidated Adjusted EBITDA.
Retail delivered record quarterly revenue, consolidated revenue and profitability improved versus 2025, and Interactive materially narrowed its Adjusted EBITDA loss. The remaining Interactive loss, substantial rent obligations, and $1.9 billion of traditional net debt remain important constraints.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $1,857.4 million | – | – |
| Net incomeGAAP | $32.6 million | – | – |
| Consolidated Adjusted EBITDAnon-GAAP | $312.6 million | – | improved by $52.5 million year-over-year |
| Operating incomeGAAP | $131.7 million | – | – |
| Diluted earnings (loss) per common shareGAAP | $0.24 | – | – |
| Adjusted EPSnon-GAAP | $0.44 | – | – |
| Retail segment revenuesother | $1.5 billion | – | – |
| Retail Segment Adjusted EBITDARnon-GAAP | $517.2 million | – | – |
| Retail Segment Adjusted EBITDAR marginsnon-GAAP | 34.4% | – | – |
| Interactive Adjusted EBITDA lossnon-GAAP | $9.5 million | – | – |
| Rent expense associated with triple net operating leasesGAAP | $163.3 million | – | – |
| Cash payments to REIT Landlords under Triple Net Leasesother | $247.1 million | – | – |
| Income tax expenseGAAP | $7.1 million | – | – |
| Interest expense, netGAAP | $100.9 million | – | – |
| Interest incomeGAAP | $(2.0) million | – | – |
| Income from unconsolidated affiliatesGAAP | $(8.6) million | – | – |
| Loss on early extinguishment of debtGAAP | $1.8 million | – | – |
| Other (income) expensesGAAP | $(0.1) million | – | – |
| Stock-based compensationGAAP | $17.4 million | – | – |
| Cash-settled stock-based awards varianceGAAP | $(2.6) million | – | – |
| Pre-opening expensesGAAP | $23.0 million | – | – |
| Depreciation and amortizationGAAP | $117.8 million | – | – |
| Impairment lossGAAP | $0 million | – | – |
| Total revenues, six months ended June 30GAAP | $3,636.4 million | – | – |
| Net income, six months ended June 30GAAP | $29.8 million | – | – |
| Consolidated Adjusted EBITDA, six months ended June 30non-GAAP | $578.4 million | – | – |
| Operating income, six months ended June 30GAAP | $228.7 million | – | – |
| Corporate overheadother | $29.5 million | – | – |
| Corporate overhead, six months ended June 30other | $57.7 million | – | – |
| Interactive revenue tax gross-upother | $185.5 million | – | – |
| Interactive revenue tax gross-up, six months ended June 30other | $371.3 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Northeast segmentPortfolio-wide strength; the Company said nine properties set second-quarter records for revenues and Adjusted EBITDAR. | $731.6 million | – | – |
| South segmentNo segment-specific driver reported. | $301.9 million | – | – |
| West segmentNo segment-specific driver reported. | $151.5 million | – | – |
| Midwest segmentJune openings of the new hotel tower at Hollywood Columbus and the new Hollywood Casino Aurora, with encouraging early trends including strong VIP-player visitation. | $320.6 million | – | – |
| InteractiveU.S. standalone Hollywood iCasino achieved record quarterly revenues; Ontario OSB revenue growth was aided by World Cup engagement and cross-sell into iCasino. | $349.4 million (including tax gross up of $185.5 million) | – | – |
What drove it
- The Company reported record quarterly Retail segment revenues, with theoretical revenue growth supported by mid- and high-worth customer segments and growth in unrated revenue.
- Retail Segment Adjusted EBITDAR margins improved quarter-over-quarter and year-over-year, according to the Company.
- Interactive's Adjusted EBITDA loss was $9.5 million, compared with a $62.0 million loss in the prior-year quarter.
- Ontario gaming operations gained momentum, supported by online sports betting revenue growth, World Cup engagement, and cross-sell into iCasino.
- The Company launched theScore Bet, theScore Casino, and Hollywood iCasino standalone apps in Alberta on July 13.
Concerns
- Interactive reported an Adjusted EBITDA loss of $9.5 million.
- Traditional net debt was $1.9 billion as of June 30, 2026.
- Cash payments to REIT Landlords under Triple Net Leases were $247.1 million.
- Rent expense associated with triple net operating leases was $163.3 million.
- Pre-opening expenses were $23.0 million, compared with $4.4 million in the prior-year quarter.
What to watch
- Whether the encouraging July trends in Retail and Interactive continue.
- Early visitation and operating performance at the new hotel tower at Hollywood Columbus and the new Hollywood Casino Aurora.
- Interactive profitability progress following the $9.5 million Adjusted EBITDA loss.
- Performance of the Alberta launches of theScore Bet, theScore Casino, and Hollywood iCasino standalone apps.
- Execution against the stated priorities of cash-flow growth and deleveraging.
Balance sheet and cash flow
- Total liquidity as of June 30, 2026 was $1.9 billion, including $887.2 million of Cash and cash equivalents.
- Traditional net debt as of June 30, 2026 was $1.9 billion.
- On May 15, 2026, the Company repaid the remaining $106.7 million principal balance of its 2.75% Convertible Notes due 2026, eliminating approximately 4.6 million potentially dilutive shares associated with the notes.
- The $1.0 billion Amended Revolving Credit Facility and $446.9 million Amended Term Loan A Facility mature in April 2031.
- The $962.5 million Amended Term Loan B Facility matures in May 2033.
Analysis
PENN reported second-quarter total revenues of $1,857.4 million, compared with $1,765.0 million in the prior-year quarter. Net income was $32.6 million, compared with a net loss of $(18.3) million, while diluted earnings per common share were $0.24, compared with a loss per common share of $(0.12). Consolidated Adjusted EBITDA was $312.6 million, compared with $236.1 million, and management described the year-over-year improvement as $52.5 million.
Retail was the principal operating strength. The Company reported record quarterly Retail segment revenues of $1.5 billion, Segment Adjusted EBITDAR of $517.2 million, and Segment Adjusted EBITDAR margins of 34.4%. Management cited growth in theoretical revenue from mid- and high-worth customers and unrated revenue. It also said nine properties set second-quarter records for revenues and Adjusted EBITDAR, while new developments at Hollywood Columbus and Hollywood Casino Aurora opened in June with encouraging early trends.
Interactive revenue was $349.4 million, including a $185.5 million tax gross-up, and the segment recorded a $9.5 million Adjusted EBITDA loss versus a $62.0 million loss in the prior-year quarter. Management attributed momentum to record quarterly U.S. standalone Hollywood iCasino revenues and Ontario online sports betting growth supported by World Cup engagement and cross-sell into iCasino. The Alberta app launches occurred on July 13 and represent a further execution point for the segment.
Profitability also benefited from lower corporate overhead of $29.5 million versus $38.7 million, although pre-opening expenses rose to $23.0 million from $4.4 million. The balance sheet showed $1.9 billion of total liquidity, including $887.2 million of cash and cash equivalents, alongside $1.9 billion of traditional net debt. PENN repaid the remaining $106.7 million principal balance of its 2.75% Convertible Notes due 2026, while rent expense and cash payments under Triple Net Leases were $163.3 million and $247.1 million, respectively. The release gave no quantitative forward guidance.
Management, verbatim
We continued to execute against our 2026 strategic priorities this quarter: delivering Segment Adjusted EBITDAR growth, optimizing corporate overhead, growing cash flow, and deleveraging the balance sheet.
Jay Snowden, Chief Executive Officer and President
PENN achieved record quarterly Retail segment revenues, supported by strong performance across our portfolio including our four recently completed development projects.
Jay Snowden, Chief Executive Officer and President
Our Interactive segment delivered another quarter of meaningful year-over-year Adjusted EBITDA improvement.
Jay Snowden, Chief Executive Officer and President
Not in the filing
stated, not guessed- Forward guidance for revenue, gross margin, operating expenses, tax rate, EBITDA, EPS, capital expenditures, operating cash flow, free cash flow, and other metrics was not provided.
- Previous-period outlook was not provided.
- GAAP gross profit and gross margin were not provided.
- GAAP operating expenses were not provided.
- Operating cash flow was not provided.
- Free cash flow was not provided.
- Share repurchases and dividends were not provided.
- Prior-quarter figures and quarter-over-quarter changes for reported financial metrics were not provided.
- Percentage year-over-year changes for reported revenue, earnings, EBITDA, EPS, and segment metrics were not provided.
- Segment revenue percentage year-over-year and quarter-over-quarter changes were not provided.
- Six-month diluted EPS and Adjusted EPS were not provided in the supplied filing text.
- The supplied filing text is truncated during the Consolidated Adjusted EBITDA reconciliation; subsequent reconciliation line items are unavailable.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.