PENN Entertainment reported fourth‑quarter 2025 results with total revenue of $1.806 billion, an 8.2% year‑over‑year increase, and an adjusted earnings per share of $0.07, a turnaround from the $0.44 loss reported in the same period a year earlier. The earnings beat analyst expectations of a $-0.21 loss, a $0.27 improvement that reflects disciplined cost control and a favorable mix shift toward higher‑margin interactive revenue.
The interactive segment generated $398.7 million in revenue, up 52% from $256.5 million a year earlier. Positive adjusted EBITDA in December was driven by the launch of theScore Bet and continued growth of the Hollywood iCasino product. Management highlighted that the first month of operation under theScore Bet produced positive adjusted EBITDA, underscoring the success of the rebranding and the strength of the iCasino momentum.
Retail revenue stood at $1.4 billion, largely unchanged from the prior year, but the segment’s adjusted EBITDAR grew year‑over‑year after adjusting for poor weather in December and new supply in certain markets. The retail portfolio remains a stable contributor to earnings, though it faces seasonal headwinds that the company is monitoring closely.
Management guided for year‑over‑year segment adjusted EBITDAR growth of 20% in 2026, signaling confidence in the continued expansion of the interactive business and the digital focus that follows the termination of the ESPN partnership. The company also noted a $150 million annual savings from ending the ESPN agreement, effective December 1 2025, and emphasized a shift toward its growing iCasino business while maintaining its omnichannel advantage as the nation’s leading regional retail casino operator.
Investors reacted positively to the earnings beat and the interactive turnaround. Analysts noted the company’s ability to generate positive adjusted EBITDA in the interactive segment and the strong performance of the iCasino product as key drivers of the upside.
"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. 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." – CEO Jay Snowden
"We are excited about the year ahead as we expect to generate year-over-year segment adjusted EBITDAR growth of 20% in 2026." – CEO Jay Snowden
"Although we made significant progress in improving our product offering and building a cohesive ecosystem with ESPN, we have mutually and amicably agreed to wind down our collaboration. We plan to realign our digital focus on our growing iCasino business, while continuing to capitalize on our omnichannel advantage as the nation's leading regional retail casino operator." – CEO Jay Snowden
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