PENN Entertainment (NASDAQ:PENN) Releases Earnings Results, Beats Estimates By $0.30 EPS

PENN Entertainment (NASDAQ:PENN) announced its quarterly earnings results on Thursday. The company reported $0.07 earnings per share for the quarter, topping the consensus estimate of ($0.23) by $0.30, FiscalAI reports. The company had revenue of $1.81 billion for the quarter, compared to analysts’ expectations of $1.76 billion. PENN Entertainment had a negative net margin of 13.24% and a negative return on equity of 4.59%. PENN Entertainment’s quarterly revenue was up 8.2% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.44) earnings per share.

Here are the key takeaways from PENN Entertainment’s conference call:

• The U.S. sportsbook rebrand to theScore Bet produced positive adjusted EBITDA in December, and management expects the interactive segment to reach breakeven adjusted EBITDA in 2026 (a ~$268M year-over-year improvement) while cutting marketing spend by about $150M to focus on iCasino and Canada.
• Retail remains healthy with Q4 retail adjusted EBITDAR of $456.4M and guidance for 2026 retail net revenue of $5.7B–$5.85B and adjusted EBITDAR of $1.86B–$1.98B, supported by a $20M reduction in recurring maintenance CapEx and an outlook for >$3/share free cash flow and >1 turn of lease-adjusted deleveraging.
• Four growth projects (including Aurora and the Columbus hotel tower), continued momentum at Joliet and M Resort, and anticipated GLPI funding (≈$225M for Aurora) underpin a development plan targeting ~15%+ cash-on-cash returns, with 2026 total CapEx guided to $445M (project CapEx ~$225M).
• Near-term headwinds include weather that cut retail adjusted EBITDAR by about $7M in December (and an estimated $5M–$10M impact so far in Q1), local new supply pressure in Louisiana and Council Bluffs, and an expected ~2-week downtime when Aurora opens in 2Q that will weigh on quarterly cadence.
• Regulatory and legal uncertainty is a material risk — management flagged unresolved issues around prediction markets and recent state-level actions (e.g., Maine’s iGaming decision being legally challenged) and emphasized it will not take actions that could jeopardize land‑based gaming licenses.

PENN Entertainment Trading Up 16.7%

Shares of PENN traded up $2.10 during mid-day trading on Thursday, reaching $14.64. 14,631,929 shares of the company’s stock traded hands, compared to its average volume of 4,126,100. The company has a debt-to-equity ratio of 3.65, a current ratio of 0.75 and a quick ratio of 0.75. The stock’s 50-day moving average is $13.76 and its two-hundred day moving average is $15.95. PENN Entertainment has a 12 month low of $11.65 and a 12 month high of $22.13. The stock has a market cap of $1.95 billion, a P/E ratio of -2.31, a P/E/G ratio of 0.39 and a beta of 1.39.

Trending Headlines about PENN Entertainment

Here are the key news stories impacting PENN Entertainment this week:

• Positive Sentiment: Q4 results beat expectations — PENN reported $1.81B revenue (+8.2% YoY) and $0.07 adjusted EPS, topping consensus and narrowing losses, which drove investor optimism. PENN Entertainment, Inc. Reports Fourth Quarter Results
• Positive Sentiment: Interactive segment showing clear improvement — rebrand to theScore Bet (Dec 1) and iCasino strength produced positive adjusted EBITDA in December and record Interactive performance that management highlighted as a key driver. PENN (PENN) Q4 2025 Earnings Call Transcript
• Positive Sentiment: Management set explicit 2026 targets — aiming for ~20% Interactive segment EBITDAR growth and ~$3 per share free cash flow while advancing restructuring and cost optimization, giving investors a clearer path to profitability and cash conversion. Penn targets 20% interactive segment EBITDAR growth and $3 per share free cash flow in 2026
• Positive Sentiment: Market reacted to Interactive momentum and ESPN Bet exit — coverage notes and trading activity show the post-ESPN Bet operational improvement was a catalyst for the stock move. Penn Stock Pops As Interactive Posts Positive Results After ESPN Bet Exit
• Neutral Sentiment: Legal/policy uncertainty — CEO pushed for quick resolution of prediction market lawsuits (hopes for Supreme Court), which could materially affect future product opportunities but is timing/ outcome uncertain. PENN CEO Hopes Prediction Market Lawsuits Get to Supreme Court ASAP
• Negative Sentiment: Near-term headwinds remain — management cited weather and market challenges that pressured retail results, PENN still reports negative GAAP margins and carries high leverage, so execution risk and macro/hold variability could reverse gains. PENN Entertainment Inc (PENN) Q4 2025 Earnings Call Highlights

Analyst Ratings Changes

PENN has been the topic of a number of research reports. Stifel Nicolaus upgraded shares of PENN Entertainment from a “hold” rating to a “buy” rating and boosted their target price for the stock from $19.00 to $21.00 in a report on Friday, November 7th. Citigroup reissued a “market outperform” rating on shares of PENN Entertainment in a research note on Monday, December 1st. Wells Fargo & Company started coverage on PENN Entertainment in a research report on Tuesday, November 18th. They set an “underweight” rating and a $15.00 price objective on the stock. Morgan Stanley lowered their price objective on PENN Entertainment from $17.00 to $15.00 and set an “equal weight” rating for the company in a research note on Friday, January 16th. Finally, Canaccord Genuity Group cut their target price on PENN Entertainment from $26.00 to $21.00 and set a “buy” rating on the stock in a research report on Tuesday, February 3rd. Nine analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $19.67.

Hedge Funds Weigh In On PENN Entertainment

Several hedge funds have recently bought and sold shares of the business. Quarry LP bought a new stake in shares of PENN Entertainment during the fourth quarter worth $36,000. Triumph Capital Management bought a new position in shares of PENN Entertainment in the third quarter worth about $54,000. Advisory Services Network LLC purchased a new position in PENN Entertainment in the 3rd quarter worth about $122,000. Kestra Advisory Services LLC bought a new stake in PENN Entertainment during the 4th quarter valued at about $94,000. Finally, BTG Pactual Asset Management US LLC purchased a new stake in PENN Entertainment in the 4th quarter valued at about $154,000. Institutional investors own 91.69% of the company’s stock.

About PENN Entertainment

PENN Entertainment, Inc (NASDAQ: PENN) is a leading operator of gaming and racing facilities in the United States. The company’s business activities encompass land-based casinos, pari-mutuel racetracks, off-track wagering, and ancillary amenities such as hotels, restaurants and entertainment venues. In August 2022, the company rebranded from Penn National Gaming to PENN Entertainment to reflect its expanding footprint across digital and traditional segments of the gaming industry.

The company’s portfolio includes well-known properties under the Hollywood Casino and Ameristar Casino brands, located across multiple states including Pennsylvania, Ohio, Missouri and West Virginia.