PENN Entertainment, Inc.

PENN’s Retail segment posted record quarterly revenue of $1.5 billion and adjusted EBITDAR of $517.2 million, up approximately 4% and 6% year over year, respectively. Adjusted EBITDA margin was 34.4%, with same-store revenue and adjusted EBITDAR up approximately 2% and 4%. The Interactive segment generated revenue of $349.4 million, including a skin tax gross-up of $185.5 million, and an adjusted EBITDA loss of $9.5 million. Management raised full-year 2026 retail guidance to a midpoint of $5.87 billion in revenue and $1.963 billion in adjusted EBITDAR, and it lowered 2026 Interactive revenue guidance to $1.57 billion from $1.6 billion while keeping the Interactive adjusted EBITDA loss guide at $20 million. Total liquidity ended the quarter at $1.9 billion, including $887 million in cash and cash equivalents, and CapEx in the quarter was $98 million, including $58 million of project CapEx.

Jay Snowden said the company is executing on its 2026 priorities, with retail and Interactive both contributing to better cash flow and faster-than-expected deleveraging. He emphasized record property-level results, continued momentum into July, and a disciplined approach to capital allocation, including corporate overhead optimization and selective growth projects at existing properties. On Interactive, he highlighted better profitability, the Alberta launch, and a focus on higher-value customers rather than broad-based spending.

Felicia Kantor Hendrix focused on the quarter’s financial outperformance and guidance changes. She said Retail margins improved to 34.4%, flow-through improved sequentially and year over year, and the revised full-year retail guidance reflects stronger second-quarter results; the midpoint of retail revenue guidance is $5.87 billion and adjusted EBITDAR is $1.963 billion. On Interactive, she noted second-quarter revenue of $349.4 million and a $9.5 million adjusted EBITDA loss, then trimmed 2026 Interactive revenue guidance to $1.57 billion while keeping the $20 million loss outlook unchanged. She also cited $98 million of quarterly CapEx, $1.9 billion of liquidity, $887 million of cash and equivalents, $220 million of maintenance CapEx for 2026, $180 million of project CapEx, $150 million of cash interest expense, and no expected cash taxes in 2026.

Analysts pressed management on the lower Interactive revenue guide, and Aaron LaBerge said the company offset weaker sportsbook volumes and customer-friendly outcomes with marketing cuts, labor efficiencies, and lower third-party/technology costs. Questions also centered on casino growth and competitive pressure; management said standalone iCasino remains strong, cross-sell from sportsbook is helping, and the company expects a very competitive football season but believes it is positioned well. On the retail side, management said it is not assuming any Pennsylvania Supreme Court-related benefit in the current guide, and it explained that recent margin pressure in some regions was affected by accounting adjustments that wash out over time.