PENN Entertainment posted Q1 2026 revenue of $1.78bn, up 6.4% year-on-year from $1.67bn, as a narrowing Interactive segment loss and retail stability point toward a digital turnaround — though a planned July 13 Alberta launch will widen that loss before it closes.
Retail Holds, Interactive Recovers
The retail segment generated $1.40bn in revenue with adjusted EBITDAR of $471.4m and a margin of 33.2%. The Interactive segment posted $358.3m in revenue — including a tax gross-up of $185.8m — and an adjusted EBITDA loss of $10.8m, down sharply from a $89.0m loss in Q1 2025.
Consolidated adjusted EBITDA reached $265.8m, up from $173.3m in the prior-year quarter. PENN reported a net loss of $2.8m, or -$0.02 per diluted share, compared to net income of $111.5m, or $0.68 per diluted share, in Q1 2025. Net debt stood at $2.2bn as of 31 March 2026, with total liquidity of $1.7bn.
The adjusted EPS figure of $0.11 beat analyst consensus of $0.05. Total revenue of $1.78bn came in ahead of the $1.75bn estimate.
iCasino Drives the Digital Story
iCasino revenue grew approximately 15% year-on-year, with standalone iCasino achieving record quarterly revenue in Q1 and record monthly revenue in March. Online sports betting adjusted revenue rose 5.2% to $65.2m, with hold improving from 7.5% to 8.4%.
“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 Alberta.” — Jay Snowden, CEO and President, PENN Entertainment
Snowden described Q1 as the first full quarter under PENN’s realigned digital strategy, focused on U.S. iCasino states and Canada while operating under a tighter cost structure. Interactive marketing spend was cut by more than 65% through disciplined customer acquisition and a shift toward high-value user retention.
Alberta Launch Shapes Full-Year Outlook
theScore Bet has been approved as a registered iGaming operator by the Alberta Gaming, Liquor and Cannabis Commission, and pre-registration is underway ahead of the July 13 go-live date.
PENN updated its 2026 Interactive guidance to approximately $1.6bn in revenue — inclusive of an estimated $820m tax gross-up — and an adjusted EBITDA loss of $20m. Snowden was explicit on the earnings call: the entire deviation from prior breakeven guidance is attributable to the Alberta launch investment. Outside Alberta, the breakeven Interactive guide for the year is unchanged.
“Our Interactive segment delivered a meaningful Adjusted EBITDA improvement year-over-year, which marks the first full quarter under our realigned digital strategy. The trends we are seeing provide us with confidence in the trajectory of the business and upcoming launch in Alberta.” — Jay Snowden, CEO and President, PENN Entertainment
Management expects Q2 Interactive performance to be similar to Q1, with Q3 carrying the largest loss of the year due to Alberta launch spending. Interactive segment profitability is targeted for Q4 2026, with overall profitability the goal heading into 2027.
PENN raised its full-year consolidated revenue guidance by $12m to $1.93bn. For further context on the North American digital landscape, see BetMGM Q3 strong performance, raises full-year guidance.
Retail Development Pipeline
Four major retail development projects are projected to generate returns of 15% or above on an aggregate $800m investment. The Pennsylvania Supreme Court is expected to hear a case in the coming months on the legality of certain gaming devices, the outcome of which could affect the retail segment.
Canada is identified by management as its highest-margin market, given favourable tax rates and the integrated iCasino and online sports betting model. PENN expects Alberta market share to mirror its performance in Ontario, where theScore Bet has shown consistent growth in monthly active users and revenue. For a broader view on operator impact from shifting tax structures, see Flutter faces £540m impact from UK tax increases.
Shares edged up 1.35% in pre-market trading following the results.
Source: PENN Entertainment
