PENN Entertainment posted Q4 2025 revenue of $1.81 billion, beating Wall Street’s $1.76 billion estimate by 2.6%. Adjusted EPS came in at $0.07, crushing the consensus loss forecast of -$0.16 to -$0.23. The stock surged over 6.5% to $13.35 immediately following the announcement, with shares climbing as high as 16.7% in early trading sessions.
About PENN Entertainment
PENN Entertainment, Inc. (Nasdaq: PENN) is North America’s leading provider of integrated entertainment, sports content, and casino gaming experiences. Founded in 1982, the company is headquartered in Wyomissing, Pennsylvania, and operates 44 properties across 20 states, alongside online sports betting in 13 jurisdictions and iCasino in five states. PENN’s brand portfolio includes Hollywood Casino, L’Auberge, and the recently rebranded theScore Bet sportsbook and casino.
As of late February 2026, PENN’s market capitalization stands at approximately $2.08 billion, with a forward P/E ratio of 13.98 and trailing P/E at a loss (-1.98). The company employs over 23,000 people across the United States. PENN operates through five reportable segments: Northeast, South, West, Midwest, and Interactive. The Interactive segment encompasses online sports betting, online casino, social gaming, and media operations. Revenue for the trailing twelve months stands at $6.96 billion.
Top Financial Highlights
- Total Q4 2025 revenue reached $1.81 billion, reflecting an 8.2% year over year increase from $1.67 billion and exceeding analyst expectations of $1.76 billion by 2.6%, indicating stronger than anticipated quarterly performance.
- The company reported a net loss of $73.4 million, representing a substantial improvement from the $133.8 million loss recorded in Q4 2024.
- Adjusted EPS came in at $0.07, compared to -$0.44 in the prior year quarter and significantly ahead of consensus estimates ranging between -$0.16 and -$0.23, demonstrating improved earnings quality.
- Diluted GAAP loss per share narrowed to -$0.55, compared to -$0.88 in Q4 2024, reflecting strengthened operational efficiency.
- Consolidated adjusted EBITDA increased to $225.8 million, up from $165.2 million in the prior year period, highlighting margin recovery.
- Retail segment revenue totaled $1.4 billion, generating adjusted EBITDAR of $456.4 million and delivering a margin of 32.3%, supported by stable property level performance.
- Interactive segment revenue reached $398.7 million, including a $182.7 million tax gross up. Adjusted EBITDA loss narrowed to $39.9 million, compared to a loss of $109.8 million in Q4 2024, indicating operational improvement.
- Interactive revenue growth excluding the tax gross up was 52% year over year, driven by iCasino growth exceeding 40% and online sportsbook growth of 73%, reflecting strong digital demand.
- Free cash flow was -$190.4 million, compared to -$118.1 million in the prior year quarter, influenced by investment and working capital movements.
- Total liquidity stood at $1.1 billion, including $686.6 million in cash and cash equivalents, providing balance sheet flexibility.
- Full year 2025 capital expenditure totaled $647.7 million, compared to $482.7 million in 2024, reflecting higher investment activity.
- Full year 2025 revenue increased to $6.96 billion, up from $6.58 billion, while adjusted EBITDA rose to $830.1 million, compared to $672.2 million in 2024.
- For 2026, projected free cash flow is expected to exceed $3 per share, indicating anticipated improvement in cash generation.
- 2026 retail guidance includes net revenue in the range of $5.7 billion to $5.85 billion and adjusted EBITDAR between $1.86 billion and $1.98 billion, signaling continued operational stability.
Summary of Fourth Quarter Results
Beat or Miss?
| Metric | Reported | Analyst Estimate | Difference |
| Revenue | $1.81B | $1.76B | +2.6% beat |
| Adjusted EPS | $0.07 | -$0.16 to -$0.23 | Significant beat (+$0.23 to +$0.30) |
| Consolidated Adj. EBITDA | $225.8M | N/A (consensus not specified) | EBITDA fell short of some estimates |
| Operating Margin | -1% | N/A | Down from 2.4% YoY |
| Free Cash Flow | -$190.4M | N/A | Worse than -$118.1M in Q4 2024 |
PENN delivered a strong double beat on both revenue and adjusted EPS, the two most closely watched metrics. Revenue topped estimates by 2.6%, while adjusted EPS of $0.07 dramatically outperformed expectations of a loss. However, EBITDA fell short of certain analyst models, and operating margin declined year-over-year, partly due to rising expenses and investment in the Interactive segment’s rebrand.
What Leadership Is Saying?
CEO Jay Snowden on Strategy and Vision
“PENN’s diversified retail portfolio delivered a solid quarter during which retail adjusted EBITDAR grew year-over-year, after adjusting for poor weather in December. In our Interactive segment, we successfully rebranded our U.S. online sportsbook to theScore Bet and achieved positive adjusted EBITDA in December, driven by iCasino momentum, disciplined cost management, and strong online sports betting hold rates. We are excited about the year ahead as we expect to generate year-over-year segment adjusted EBITDAR growth of 20% in 2026.”
“We experienced record Interactive segment gaming revenue in the fourth quarter driven by the continued growth of our standalone Hollywood iCasino product and increased cross-sell, as well as improvements in our online sportsbook product offering and operations. Revenue growth, excluding the tax gross-up, of 52% year-over-year was primarily attributable to iCasino growth of 40% and online sportsbook growth of 73%.”
CFO Felicia Hendrix on Financials and Outlook
“Our retail segment generated revenues of $1.4 billion, Adjusted EBITDAR of $456.4 million, segment Adjusted EBITDAR margins of 32.3%. For 2026, we expect interactive revenues of approximately $1.6 billion, inclusive of an estimated tax gross-up of about $760 million, or a revenue improvement of roughly 20% year-over-year, excluding the tax gross-up. Our marketing expenses will decline significantly year-over-year as we made our last payment to ESPN in December 2025. We anticipate our marketing spend to come in approximately $150 million lower than in 2025.”
“We entered the fourth quarter with total liquidity of $1.1 billion, inclusive of $687 million in cash and cash equivalents. Total 2026 CapEx will be $445 million, which includes $225 million of project CapEx and $220 million of maintenance CapEx. We expect to generate more than $3 per share of free cash flow in 2026.”
Historical Performance
PENN Q4 2025 vs Q4 2024
| Category | Q4 2025 | Q4 2024 | Change (%) |
| Total Revenue | $1.81B | $1.67B | +8.2% |
| Net Loss | -$73.4M | -$133.8M | +45.2% improvement |
| Adjusted EPS | $0.07 | ($0.44) | Turned positive |
| Consolidated Adj. EBITDA | $225.8M | $165.2M | +36.7% |
| Retail Revenue | $1.41B | $1.39B | +1.3% |
| Retail Adj. EBITDAR | $456.4M | $461.2M | -1.0% |
| Interactive Revenue | $398.7M | $275.0M | +45.0% |
| Interactive Adj. EBITDA | -$39.9M | -$109.8M | +63.7% improvement |
| Operating Margin | -1.00% | 2.40% | -3.4 ppts |
The most significant year-over-year shift occurred in the Interactive segment, where adjusted EBITDA losses narrowed by $70 million. This was driven by a 95% adjusted flow-through rate, combining 52% revenue growth (ex-gross-up) with approximately 20% lower marketing spend.
Competitor Comparison: Q4 2025
| Category | PENN Entertainment | DraftKings (DKNG) | MGM Resorts (MGM) | Caesars (CZR) |
| Q4 2025 Revenue | $1.81B | ~$2.0B | $4.6B | $2.9B |
| Q4 2024 Revenue | $1.67B | ~$1.4B | $4.35B | $2.8B |
| Revenue Change YoY | +8.2% | +43% | +6% | +4.4% |
| Q4 2025 Net Income (Loss) | -$73.4M | $136M | $294M | -$250M |
| Q4 2024 Net Income (Loss) | -$133.8M | -$135M | $157M | $11M |
| Q4 2025 Adj. EBITDA | $225.8M | $343M | $635M | $901M (same-store) |
| Q4 2024 Adj. EBITDA | $165.2M | ~$86M | $528M | $882M |
| Adj. EBITDA Change YoY | +36.7% | ~4x (300%+) | +20% | +2.2% |
DraftKings posted the most dramatic growth among peers, with revenue surging 43% and adjusted EBITDA quadrupling year-over-year, achieving positive net income for the first time. MGM Resorts delivered steady gains driven by strength in Macau and regional operations.
Caesars saw modest top-line growth but reported a GAAP net loss of $250 million, largely due to the absence of prior-year asset-sale gains. PENN’s 8.2% revenue growth and 36.7% EBITDA improvement positioned it favorably on profitability trajectory, though it still trails DraftKings in online gaming momentum and MGM/Caesars in absolute scale.
How the Market Reacted
PENN Entertainment’s stock surged following the Q4 2025 earnings release on February 26, 2026. Shares rose approximately 6.5% to $13.35 in the immediate aftermath, with gains extending to as much as 16.7% in early trading sessions, pushing the stock toward $14.64. The rally was fueled by the significant earnings beat on both revenue and adjusted EPS, as well as management’s bullish outlook for 2026, including projected free cash flow exceeding $3 per share and a path to Interactive segment breakeven.
Barclays raised its price target on PENN to $22 from $21 and maintained an Overweight rating, reflecting confidence in the company’s turnaround trajectory. Overall market sentiment tilted firmly bullish, with 16 analysts maintaining an average “Buy” rating and a 12-month price target of $20.57, implying over 31% upside from recent levels.
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