iGaming and retail casino operator PENN Entertainment, Inc. has reported fourth quarter 2025 revenues of $1.81bn, up from $1.67bn in the prior-year period, alongside consolidated adjusted EBITDA of $225.8m compared to $165.2m in Q4 2024. For the full year, revenue reached $6.96bn versus $6.58bn in 2024, while consolidated adjusted EBITDA totalled $830.1m, up from $672.2m.
The company recorded a net loss of $73.4m for the quarter, narrowing from a net loss of $133.8m a year earlier. For the full year, net loss widened to $845.3m compared to $313.3m in 2024, reflecting impairment charges of $945.3m during 2025, including $825.0m in the Interactive segment. Diluted loss per share for Q4 was $0.55 compared to $0.88 in the prior year, while adjusted EPS for the quarter was $0.07 versus a loss of $0.44 in Q4 2024.
Within the Interactive segment, which includes online sports betting and igaming operations, Q4 revenues were $398.7m, inclusive of a $182.7m tax gross-up, compared to $275.0m in the prior year. The segment reported an adjusted EBITDA loss of $39.9m, an improvement from a loss of $109.8m in Q4 2024. For the full year, Interactive revenues reached $1.30bn, up from $959.9m, while adjusted EBITDA loss narrowed to $267.5m from $499.5m.
Segment performance across PENN’s land-based portfolio was mixed. The Northeast segment generated Q4 revenues of $686.2m, broadly in line with the prior year, while the South, West and Midwest segments reported moderate year-on-year changes. Rent expense associated with triple net operating leases totalled $161.8m for the quarter, and consolidated adjusted EBITDAR margin stood at 32.3%.
As of 31 December 2025, total liquidity was $1.1bn, including $686.6m in cash and cash equivalents. Traditional net debt stood at $2.2bn. The company reported a traditional net leverage ratio of 4.5x and a lease-adjusted net leverage ratio of 6.8x, both improved compared to 2024. During the quarter, PENN received $150m in funding from Gaming and Leisure Properties, Inc. in connection with development at M Resort Las Vegas, and expects to receive $225m related to the Hollywood Casino Aurora relocation project, subject to regulatory approvals.
Operating cash flow for the year reflected $124.2m in cash interest payments and $967.8m in cash rent payments to REIT landlords under triple net leases. Capital expenditures totalled $647.7m in 2025, compared to $482.7m in 2024.
PENN aggregates its operations into five reportable segments: Northeast, South, West, Midwest and Interactive. The Interactive segment comprises online sports betting, online casino and social gaming, retail sports betting management and media operations. The company stated that its quarterly and annual results reflect ongoing investment in igaming and digital expansion alongside continued management of its retail casino estate.
Jay Snowden, Chief Executive Officer and President, said: “PENN’s diversified retail portfolio delivered a solid quarter during which retail adjusted EBITDAR grew year-over-year, after adjusting for poor weather in December. In our Interactive segment, we successfully rebranded our U.S. online sportsbook to theScore Bet® and achieved positive adjusted EBITDA in December, driven by iCasino momentum, disciplined cost management, and strong online sports betting hold rates.
“We are excited about the year ahead as we expect to generate year-over-year segment adjusted EBITDAR growth of 20% in 2026. Our retail adjusted EBITDAR is poised for a year of growth as we aim to build upon our recent openings in Joliet and in Las Vegas, deliver two additional retail growth projects by the end of the second quarter1, and anniversary new supply in several of our markets. In our Interactive segment, we continue to expect to achieve break-even adjusted EBITDA, which will be one of several meaningful drivers of cash flow growth in 2026. As part of our new corporate organisational structure, which we announced on January 5, we have identified more than $10.0 million in annualised run-rate cost savings in corporate overhead, which will mostly phase in over the first half of the year. In addition, we expect recurring maintenance capital expenditures to return to near pre-COVID spending levels following the investments we have made over the past several years at our properties, including our water-to-land projects. Given this outlook, we expect to de-lever year-over-year, reducing lease-adjusted net leverage by more than 1 turn and traditional net leverage by more than 2 turns and opportunistically return capital to shareholders.
“Weather events in December negatively impacted Segment Adjusted EBITDAR by approximately $7.0 million,” said Mr. Snowden. “Core business trends were otherwise stable across the portfolio, with regional strength in Ohio and St. Louis, as well as at our L’Auberge Lake Charles property. We experienced another quarter of year-over-year growth in theoretical revenue across all rated worth and age segments with our older demographics and VIP play contributing meaningfully to these results. Looking ahead, 2026 will benefit from continued momentum at our new hotel tower at M Resort in Las Vegas, which is capturing previously unmet demand, and at the new Hollywood Casino Joliet, which is delivering strong results from both new and reactivated customers. The early performance of these projects gives us enthusiasm for the late second quarter openings3 of the Hollywood Columbus hotel tower and the landside relocation of Hollywood Casino Aurora.
“We experienced record Interactive segment gaming revenue in the fourth quarter driven by the continued growth of our standalone Hollywood iCasino product and increased cross-sell, as well as improvements in our online sportsbook product offering and operations. Revenue growth, excluding the tax gross-up, of 52% year-over-year was primarily attributable to iCasino growth of 40% and online sportsbook growth of 73%, including strong revenue and adjusted EBITDA performance in December, our first month operating as theScore Bet in the U.S. We are encouraged by the trajectory of our Interactive business, with a more streamlined cost structure and regionally focused marketing strategy that prioritizes jurisdictions with both legalized iCasino and online sports betting,” concluded Mr. Snowden.
