PENN Entertainment Inc. (NASDAQ:PENN) reported first-quarter results on Thursday that beat profit expectations but came in slightly below revenue forecasts.
The company posted adjusted earnings per share of $0.11, more than double the analyst estimate of $0.05. Revenue totaled $1.78 billion, missing the consensus estimate of $1.75 billion, though still representing a 6.4% increase from $1.67 billion a year earlier.
Shares rose 1.35% in premarket trading following the release.
Retail segment remains a key driver
The retail division generated $1.4 billion in revenue, with segment adjusted EBITDAR of $471.4 million and a margin of 33.2%.
Meanwhile, the interactive segment reported revenue of $358.3 million, including a tax gross-up of $185.8 million, and posted an adjusted EBITDA loss of $10.8 million—an improvement from a loss of $89.0 million in the same quarter last year.
Interactive growth gains momentum
“We are pleased to report another solid quarter. Retail Segment Adjusted EBITDAR grew year-over-year and stable trends are carrying into April,” said Jay Snowden, Chief Executive Officer and President. “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.”
The company recorded approximately 15% year-on-year growth in iCasino revenue, with the segment achieving record quarterly revenue in Q1 and record monthly revenue in March.
Profitability improves, but net loss reported
Consolidated adjusted EBITDA rose to $265.8 million from $173.3 million in the prior-year quarter.
However, PENN reported a net loss of $2.8 million, or -$0.02 per diluted share, compared with net income of $111.5 million, or $0.68 per share, in the first quarter of 2025.
Balance sheet and liquidity
As of March 31, 2026, the company’s traditional net debt stood at $2.2 billion, with total liquidity of $1.7 billion.