TLDR
- PENN posted Q3 adjusted EPS of 32 cents, beating the 12 cent consensus.
- Revenue hit $1.84 billion, and net income was $32.6 million.
- Retail guidance for 2026 was raised to $5.89 billion in revenue.
- Interactive segment losses narrowed to $18.3 million from $76.6 million.
- CEO Jay Snowden said Tuesday’s elections were good for PENN and the sector.
PENN Entertainment beat Wall Street’s profit forecast for the third quarter, posting adjusted earnings of 32 cents per share. Analysts had expected 12 cents, according to TheFly.
Revenue for the three months ended Sept. 30 came in at $1.84 billion, matching the consensus estimate. That was up from $1.72 billion in the same quarter last year.
The casino and online gaming operator reported net income of $32.6 million. A year earlier, it posted a net loss of $865.1 million, which included $825.0 million in impairment charges tied to its Interactive segment.
Consolidated Adjusted EBITDA rose to $284.0 million from $194.9 million. The company reported total liquidity of $2.0 billion, including $1.0 billion in cash, and traditional net debt of $1.8 billion as of Sept. 30.
Retail Hits a Record as Online Losses Narrow
PENN’s Retail segment, which covers its physical casinos, generated $1.5 billion in revenue. CEO Jay Snowden said it was a record third quarter for the unit, helped by completed development projects.
Retail Segment Adjusted EBITDAR reached $501.8 million, with a margin of 33.7%. CFO Felicia Hendrix said PENN raised its full-year 2026 retail guidance to $5.89 billion in revenue and $1.973 billion in Adjusted EBITDAR, according to a Benzinga transcript of the call.
The Interactive segment includes online sports betting, iCasino and social gaming. It posted revenue of $348.4 million, including a tax gross-up of $191.4 million.
That segment’s Adjusted EBITDA loss shrank to $18.3 million from $76.6 million a year ago. Snowden credited revenue growth in U.S. standalone Hollywood iCasino and Canada, citing more users and higher revenue per user in Ontario.
He also said PENN was pleased with early results from its Alberta iCasino and online sports betting launch. Hendrix guided to a fourth-quarter Interactive Adjusted EBITDA loss of $18.7 million, which she said would bring the segment to a $20 million loss for the year, including a $20 million investment in Alberta.
Snowden said healthy trends in both segments continued through October. He said that supports the company’s confidence in hitting its full-year Interactive target.
Snowden Weighs In on Election Results
On the earnings call, Snowden was asked about Tuesday’s midterm elections. “I think Tuesday night was a good day and a good night, I think, for the sector in a lot of ways,” he said, adding it was “a really good day and night for PENN Entertainment specifically.”
He pointed to PENN’s two Texas racetracks, Retama near San Antonio and Sam Houston in Houston. Gambling expansion was debated in Texas during this year’s elections.
“We’ve got two great assets there and we’re ready to play offense,” Snowden said. He added that it is “always hard to predict what’s going to happen.”
Snowden said most lawmakers who supported skill-based games in Pennsylvania and Missouri “either lost outright or lost a lot of influence and power.” Pennsylvania’s skill games were shut down on Oct. 14.
He said that date lined up with PENN’s strongest year-over-year gaming revenue growth in Pennsylvania in 2026, “largely fueled by the back half of the month.” He cautioned, “I don’t know how long it lasts.”
Snowden also commented on a referendum in northeast Indiana, where Allen, DeKalb and Steuben counties rejected hosting a casino. He called the vote “a really good outcome” for PENN as an existing operator in the region.
