PENN Entertainment has released its financial results for the first quarter of 2025, reporting consolidated revenues of $1.67 billion, up from $1.61 billion in Q1 2024. The increase reflects ongoing strength across multiple verticals, including retail and online operations.
The company recorded net income of $111.5 million, a reversal from the $114.9 million net loss reported in the same period last year. Adjusted EBITDA rose to $173.3 million, up from $101.4 million in Q1 2024, while Adjusted EBITDAR reached $329.2 million, compared to $256.2 million a year prior.
The Interactive segment reported revenues of $290.1 million, including tax gross-ups, with an Adjusted EBITDA loss of $89 million, reflecting continued investment in digital expansion. PENN’s online gaming performance delivered record quarterly revenue, reinforcing the segment’s growth trajectory.
The company also repurchased approximately 2.05 million shares for a total of $34.6 million during and after the quarter, leaving $714.6 million available under its existing buyback authorization as of May 7, 2025.
PENN reported total liquidity of $1.5 billion as of March 31, 2025, including $591.6 million in cash and cash equivalents. Traditional net debt stood at $2.05 billion, with a lease-adjusted net leverage ratio of 7.1x and traditional net leverage of 5.0x.
Geographically, the Northeast and Interactive segments were the highest contributors to revenue, generating $680.9 million and $290.1 million respectively. Across its land-based business, PENN continues to operate a diverse portfolio of properties in key U.S. regions including the Midwest, South, and West.
The company reaffirmed its focus on strengthening omnichannel capabilities and managing capital allocation as it navigates the evolving gaming landscape.
Jay Snowden, Chief Executive Officer and President, said: “PENN’s properties demonstrated strong resilience in the quarter following severe weather challenges earlier in the year, as gaming volumes rebounded in March and remained consistent through April and early May. In our Interactive segment we generated record gaming revenue and significant year-over-year improvements in both revenue and Adjusted EBITDA despite industry-wide unfavorable sports betting hold. Our corporate overhead costs were higher by approximately $8 million in the quarter due to legal and advisory expenses. Through May 7, 2025 we have repurchased $35 million of shares and remain committed to our previously stated goal to repurchase at least $350 million of shares this year.
“Portfolio-wide weather events in January and February negatively impacted Adjusted EBITDAR by at least $10 million,” said Mr. Snowden. “Core business trends were otherwise stable, particularly in markets not impacted by the continued growth of new supply. Our industry leading customer loyalty program, PENN Play™, combined with our investments in hospitality and entertainment offerings, contributed to strong engagement with our VIP and mid-worth customer segments. We are also seeing the benefits of our differentiated omni-channel strategy, as those pre-existing customers in Pennsylvania and Michigan who have engaged with our standalone Hollywood iCasino app have increased their spend meaningfully across both retail and online channels.
“Our Interactive segment generated significant top and bottom-line year-over-year growth, highlighting the improved flow through we are seeing in the business. These results are despite customer-friendly sports betting outcomes that negatively impacted Adjusted EBITDA by approximately $10 million in the quarter. Importantly, ESPN BET and theScore BET continue to provide a strong top of funnel for our online casino platforms, which achieved record gaming revenue in the quarter and are contributing meaningfully to our results. Our online casino momentum is bolstered by the compelling early results of our standalone iCasino app in Pennsylvania and Michigan, which recently expanded into New Jersey and Ontario. Additionally, since the year began, we have rolled out several ESPN BET product enhancements and new features leveraging account linking, including adding ESPN favorites to the app homepage and creating a new rewards program. Throughout the year we plan to continue executing our strategy to provide a differentiated, personalized digital offering while also working to deliver on our performance goals,” concluded Mr. Snowden.
