PENN Entertainment boosts EBITDA as retail growth offsets interactive decline
The gaming and entertainment operator reported total revenues of $1.86 billion for the second quarter.
PENN Entertainment (PENN) reported total revenues of $1.86 billion for the second quarter.
The results reflected a growing reliance on physical gaming assets to drive profitability as the company continued to manage losses in its digital business. The company saw a sequential increase in revenue from $1.78 billion in the first quarter.
Consolidated Adjusted EBITDA rose to $312.6 million. This figure represented an increase from $236.1 million in the second quarter of the previous year and $265.8 million in the prior quarter.
Growth was led by the retail segment, which reached record revenues of $1.5 billion. This was an increase from $1.4 billion reported in both the first quarter of 2026 and the fourth quarter of 2025. Retail Adjusted EBITDAR margins also expanded to 34.4%, up from 33.2% in the first quarter and 32.3% in the fourth quarter of 2025.
Performance in the interactive segment remained a drag on the top line, with revenues falling to $349.4 million. This followed $358.3 million in the first quarter and $398.7 million in the fourth quarter of 2025. However, the company narrowed the Adjusted EBITDA loss in the segment to $9.5 million, an improvement from a $10.8 million loss in the first quarter and a $39.9 million loss in the fourth quarter of 2025.
Corporate overhead decreased to $29.5 million from $38.7 million in the second quarter of the previous year. The company reported $15.6 million in other expenses, which consisted of transaction costs and non-recurring restructuring charges related to a new corporate organizational structure.
Traditional net debt fell to $1.9 billion as of June 30, 2026, down from $2.2 billion at the end of the previous year and the first quarter. This contributed to a traditional net leverage improvement to 2.9x from 4.5x as of December 31, 2025. The lease-adjusted net leverage ratio also improved to 5.9x from 6.8x over the same period.
On July 13, 2026, the company launched standalone apps for theScore Bet, theScore Casino, and Hollywood iCasino in Alberta.