Penn Entertainment reports mixed Q2 2025 results amid portfolio diversification

Penn Entertainment has released its financial results for the second quarter of 2025, showing continued strength in its retail gaming operations alongside record performance in its interactive division, even as the company reported a net loss of $18.3m for the period.

Despite the headline loss, operational performance improved across several key areas, reflecting stability in consumer demand and strategic investments in digital gaming and development projects.

Penn’s retail portfolio continued to show resilience with Q2 revenues reaching $1.4bn. Adjusted EBITDAR for the segment came in at $489.6m, representing a margin of 33.8%.

Notably, properties unaffected by new market entrants recorded a 4% year-over-year revenue growth, demonstrating consistent customer engagement.

CEO Jay Snowden highlighted positive trends in visitation and spend per visit, as well as theoretical revenue growth across all rated age and worth segments.

Importantly, the company’s strategy of leveraging its omnichannel ecosystem – blending online and retail engagement – has shown tangible results. Online-to-retail player counts and related revenue grew 8% and 28% year-over-year, respectively.

Good to know: Looking ahead, Penn is preparing to open its new Hollywood Casino in Joliet on 11 August 2025, with other development projects reportedly progressing on time and within budget

The company’s Interactive segment, which includes online sports betting (OSB) and online casino (iCasino) operations, posted record revenue of $316.1m in Q2, inclusive of a $137.9m tax gross-up. However, the segment reported an adjusted EBITDA loss of $62m, reflecting ongoing investment and workforce adjustments, including $2.9m in severance costs.

Snowden pointed to continued momentum in the Hollywood iCasino app, noting that more than 70% of revenue to date has come from new, reactivated or retail-native users.

The ESPN Bet platform also saw enhancements, including the addition of features like Player Insights and the launch of FanCenter, designed to integrate sports media and betting experiences for the football season.

Penn continued to execute on its capital return strategy, repurchasing $90.3m of common stock during the quarter. Year-to-date repurchases total $115.3m, with a full-year target of at least $350m. The company has $634.4m of remaining authorization available as of 6 August.

Additionally, Penn completed a privately negotiated repurchase of convertible notes for $233.5m in cash, effectively eliminating 9.6 million potentially dilutive shares. As of 30 June 2025, only $106.7m in convertible notes remain outstanding.

Total liquidity stood at $1.2bn at the end of the quarter, including $671.6m in cash and equivalents. Traditional net debt was $2.1bn, with a lease-adjusted net leverage ratio of 7.1x. The company reported capital expenditures of $159.4m during the quarter, supporting development initiatives and platform enhancements.

Overall revenue for Q2 reached $1.77bn, up from $1.66bn in Q2 2024. Adjusted EBITDA improved to $236.1m, up from $212.1m the year prior. Despite the bottom-line loss, adjusted earnings per share (EPS) turned positive at $0.10, compared to a loss of $0.18 per share in Q2 2024, after adjusting for items such as impairment charges, legal expenses and pre-opening costs.

While certain segments like the Midwest and South saw modest declines in year-over-year performance, Penn’s diversification and digital-forward strategy have largely helped offset these variances.

Jack Found

Visit Profile

Players trust our reporting due to our commitment to unbiased and professional evaluations of the iGaming sector. We track hundreds of platforms and industry updates daily to ensure our news feed and leaderboards reflect the most recent market shifts. With nearly two decades of experience within iGaming, our team provides a wealth of expert knowledge. This long-standing expertise enables us to deliver thorough, reliable news and guidance to our readers.