Penn Entertainment reported $1.85bn in revenue for the second quarter of 2026, up 5.2% year on year, and net income of $32.6m against an $18.3m loss in the same quarter of 2025. Consolidated adjusted EBITDA rose 32.4% to $312.6m.
For the first half of 2026, revenue reached $3.63bn, up around 3.4%, with consolidated adjusted EBITDA up 41% to $578.4m. Earnings are growing several times faster than the top line, and most of the quarterly gain came from the interactive segment losing less money.
Retail carries the quarter
Penn’s retail estate, reported across the Northeast, South, West and Midwest segments, generated $1.5bn in second-quarter revenue, up around 3.9%, with segment adjusted EBITDAR of $517.2m, up 5.6% from $489.6m a year earlier. Nine properties posted their strongest second quarter on record.
“Penn’s geographically diverse retail segment delivered portfolio-wide strength, with nine properties setting second-quarter records for revenue and adjusted EBITDAR,” said Penn chief executive Jay Snowden.
“We experienced another quarter of year-over-year growth in theoretical revenue, supported by meaningful contributions from mid- and high-worth customer segments, as well as growth in unrated revenue, underscoring broad-based consumer demand.”
Theoretical revenue is the win Penn expects from tracked player activity rather than the cash actually held, so growth there points to volume from carded players. Unrated revenue covers play Penn cannot attribute to a loyalty account.
The retail number does not yet include Hollywood Casino and Hotel Aurora, which opened in July after Penn converted its riverboat operation in Aurora, Illinois into a land-based resort. That property first contributes in the third quarter.
Interactive loss narrows to $9.5m
Interactive revenue rose 10.5% to $349.4m from $316.1m, and the segment’s adjusted EBITDA loss narrowed to $9.5m from $62.0m. That $52.5m swing accounts for most of the group’s EBITDA improvement for the quarter. Penn attributes the gain to iCasino growth in the United States and to Canada.
“Our Interactive segment delivered another quarter of meaningful year-over-year adjusted EBITDA improvement. In the US, standalone Hollywood iCasino experienced quarter-over-quarter as well as year-over-year growth, achieving record quarterly revenues,” Snowden said.
“In Ontario, gaming operations continued to gain momentum, supported by strong growth in online sports betting (“OSB”) revenues aided by solid World Cup engagement and cross-sell of the reactivated World Cup OSB user base into iCasino. We also successfully launched theScore Bet, as well as theScore Casino and Hollywood iCasino standalone apps, in Alberta on July 13.”
Penn’s interactive revenue is reported inclusive of a gaming tax gross-up, which inflates the top line without touching segment profitability, so the EBITDA line is the one that shows the operational change. On that measure the digital business is now within $10m of breaking even, after losing $62.0m in the same quarter last year and $102.8m in Q2 2024.
The Alberta launch on 13 July extends Penn’s Canadian footprint beyond Ontario, where it has operated theScore Bet since acquiring Score Media and Gaming. Canada has become the clearest growth market for the segment, at a point when several North American operators are competing for the same online casino spend.
Balance sheet improves year on year
As of 30 June, Penn reported $1.9bn in total liquidity, including $887.2m in cash and cash equivalents. Traditional net debt stood at $1.9bn. A year earlier, liquidity was $1.2bn with $671.6m in cash and traditional net debt of $2.1bn, so the company has added roughly $700m of available liquidity and cut net debt by $200m over 12 months.
The direction of travel matches what other US-listed operators have reported this year. Bally’s grew Q1 2026 revenue 28.3% to $755.7m, though on the back of the Intralot transaction rather than organic digital growth, while Flutter posted a 17% Q1 revenue rise to $4.3bn from a far larger US base.
What to watch in the second half
One of the drivers Snowden named has already gone. The World Cup ended on 19 July, taking with it the Ontario sports betting volumes and the cross-sell base he credited for the quarter, and the third quarter will show how much of that reactivated user base stays in iCasino once the tournament schedule stops. Aurora starts contributing in the same period, which should support retail comparisons but carries the ramp-up costs of a new property.
The number that decides the year is the interactive line. Penn has taken $52.5m out of the quarterly loss in 12 months and has $9.5m left to close. Whether it clears that in the second half, without the World Cup, is the test of whether the digital strategy works at the scale Penn has been spending against it.
Source: Penn Entertainment
