Penn Entertainment reported third-quarter revenue of $1.84 billion, up from $1.72 billion a year earlier, and net income of $33 million, or 24 cents per diluted share, compared with a net loss of $859.8 million, or $6.03 per share, in the prior-year period. Consolidated Adjusted EBITDA increased to $284 million from $194.9 million.
The retail segment generated record third-quarter revenue of $1.5 billion, with Segment Adjusted EBITDAR of $501.8 million and a margin of 33.7%.
“Penn’s third-quarter results were highlighted by strong year-over-year growth in retail segment Adjusted EBITDAR, continued progress toward interactive profitability, and further balance-sheet deleveraging,” CEO Jay Snowden said. “Our retail segment achieved record third-quarter revenue, reflecting broad-based strength across the portfolio, including our completed development projects.”
The Northeast was the company’s largest regional segment, generating revenue of $708.3 million and Segment Adjusted EBITDAR of $208.1 million. Snowden attributed retail performance to same-store growth, higher spending per visit, contributions from mid- and high-worth customers, and continued growth in unrated revenue.
“Property-level performance was supported by increases in rated revenue and spend per visit across all age segments, meaningful contributions from mid- and high-worth customers, and continued growth in unrated revenue,” he added.
“For the third consecutive quarter, segment-adjusted (cash flow) margins improved year over year. We believe the returns we are generating from investments in our portfolio highlight the opportunity across our remaining development pipeline and position us well for future growth.”
The Interactive segment generated $348.4 million in revenue, including a $191.4 million tax gross-up. Its Adjusted EBITDA loss narrowed to $18.3 million from $76.6 million a year earlier.
“Sustained revenue growth in U.S. standalone Hollywood iCasino and Canada, together with operational discipline, reinforces our confidence in achieving our full-year Adjusted EBITDA target in our interactive segment. Importantly, the healthy operating trends we experienced across our retail and interactive segments continued through October,” Snowden said.
He also cited performance in Alberta iCasino and online sports betting operations.
“These encouraging trends reinforce our strategic focus on U.S. iCasino and Canada as key drivers of profitable growth,” Snowden said.
The second hotel tower at Henderson’s M Resort contributed to retail results. The 375-room tower, which opened in December last year, nearly doubled the property’s hotel capacity.
On the earnings call, Snowden described midterm election results as positive for Penn and the gaming industry. The company sees potential gaming expansion opportunities in Texas, where it operates Retama Park near San Antonio and Sam Houston, as well as possible retail gaming expansion in Georgia.
“We’ve got two great assets there, and we’re ready to play offense. It’s not a defensive play for us. We also think we’re positioned well, in that we have great relationships with the movers and shakers in Texas. We’re not going to get into names and entities, but we’ve got very strong aligned relationships there, and we have a great lobbying team, I think one of the best across the country, so we feel really good about the opportunity,” Snowden said.
Snowden also said election results had weakened support for skill-based gaming proposals among some state lawmakers. He identified Pennsylvania and Missouri as important markets for Penn, and said Pennsylvania’s October gaming revenue recorded its strongest year-over-year growth of 2026, following a state Supreme Court decision requiring skill games to shut down by October 14.
Analysts highlighted the company’s operating performance and returns from recent investments. Jefferies analyst David Katz said better-than-consensus results across most segments and the prospect of another development project were positive, although recent share-price gains could limit further upside.
JPMorgan analyst Daniel Politzer cited year-over-year growth in land-based revenue of 5%, or 1% excluding recent projects, and Adjusted EBITDAR growth of 8%, or 5% excluding those projects. Margins rose 80 basis points, according to the analyst.