PENN Entertainment Q3 Earnings Call Highlights

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Key Points

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• Retail performance lifted PENN’s outlook: Third-quarter retail revenue rose 5% to $1.5 billion and adjusted EBITDA increased 7.7% to $502 million. The company raised full-year 2026 retail revenue guidance to $5.89 billion and adjusted EBITDA guidance to $1.973 billion.

• Interactive segment is targeting profitability: PENN expects the segment to post adjusted EBITDA profit in Q4 and for full-year 2027, following a third-quarter loss of $18.3 million. Growth in iCasino and Canada was offset by weaker online sports betting results and customer-friendly outcomes.

• Debt reduction remains the capital priority: PENN ended the quarter with $2 billion in liquidity and lease-adjusted net leverage of 5.6 times. Share repurchases are under consideration, but deleveraging comes first; 2026 capital expenditure guidance was reduced to $390 million.

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PENN Entertainment (NASDAQ:PENN) raised its 2026 retail guidance after reporting higher third-quarter revenue and earnings, as growth at existing casinos and contributions from recently completed projects helped offset higher gaming taxes and unfavorable table game results.

The company also expects its interactive segment to turn profitable in the fourth quarter, with Chief Executive Officer Jay Snowden forecasting a profit for the business for the full year in 2027. PENN plans to continue prioritizing debt reduction while considering share repurchases, he said.

Retail Growth Lifts Outlook

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Third-quarter retail revenue rose 5% from a year earlier to $1.5 billion, while retail adjusted EBITDA increased 7.7% to $502 million, Chief Financial Officer Felicia Hendrix said. Same-store revenue grew approximately 1% and same-store adjusted EBITDA rose about 5%. The retail adjusted EBITDA margin expanded 84 basis points to 33.7%.

Hendrix said rated revenue, which tracks play by identified customers, grew for an eighth consecutive quarter. Snowden said the company also saw growth in unrated revenue and spending per visit across age segments.

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PENN raised its full-year retail revenue guidance by $16 million to $5.89 billion and its retail adjusted EBITDA outlook by $10 million to $1.973 billion. Hendrix said the revision reflected better-than-expected third-quarter results and current trends.