PENN Entertainment Inc. (NASDAQ:PENN) reported fourth-quarter results on Thursday that beat earnings expectations despite revenue coming in slightly below forecasts, sending shares higher in premarket trading.
The gaming and entertainment company posted adjusted earnings per share of $0.07, outperforming analyst estimates that had called for a loss of $0.07 per share. Revenue totaled $1.81 billion, missing consensus expectations of $1.76 billion but rising 8% year over year from $1.67 billion.
Shares gained 4.31% ahead of the market open, as investors focused on improving profitability and operational momentum.
PENN’s retail operations remained the primary earnings driver, generating $1.4 billion in revenue and segment adjusted EBITDAR of $456.4 million. Management said adverse weather conditions in December reduced segment adjusted EBITDAR by roughly $7.0 million.
The Interactive division reported revenue of $398.7 billion, including a tax gross-up of $182.7 million, while adjusted EBITDA losses narrowed significantly to $39.9 million from $109.8 million in the same quarter last year.
“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,” said Jay Snowden, Chief Executive Officer and President. “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.”
Looking ahead, PENN expects segment adjusted EBITDAR to grow approximately 20% year over year in 2026.
The company also identified more than $10.0 million in annualized corporate overhead cost savings, most of which are expected to be realized during the first half of the year.
Management said it plans to reduce lease-adjusted net leverage by more than one turn and traditional net leverage by more than two turns, while continuing to return capital to shareholders when appropriate.
As of December 31, 2025, PENN reported total liquidity of $1.1 billion, including $686.6 million in cash and cash equivalents, with traditional net debt standing at $2.2 billion.