Penn Entertainment Posts Q4 Results, Expects Major Cost Savings in 2026

Penn Entertainment has published its financial report for Q4 2025, highlighting record digital gaming results and strong retail performance despite weather-related setbacks.

Penn’s Q4 Results Highlighted Its Strong Position

In its report, Penn Entertainment said that its Q4 revenues increased to $1.8 billion versus $1.7 billion in the prior year quarter. At the same time, the company’s net loss narrowed significantly to $73.4 million from $133.8 million, further highlighting the business’s strength.

Penn’s consolidated adjusted EBITDA for the period was $225.8 million, up from $165.2 million in the prior year quarter.

The company said that revenues attributable to its retail property business stood at $1.4 billion. The segment’s adjusted EBITDAR was $456.4 million at a margin of 32.3%.

The company noted that the retail business was negatively impacted by weather events in December, dealing a $7 million blow to its adjusted EBITDAR. Despite that, the core business trends were mostly stable, with Q4 being another quarter of year-on-year growth in theoretical revenue.

In the meantime, the interactive segment experienced record-breaking revenue of $398.7 million. The segment’s adjusted EBITDA loss, on the other hand, was $39.9 million. The strong iGaming revenue was attributed to the growth of the Hollywood iCasino product and Penn’s online sportsbook.

The Company Ended 2025 with Liquidity of Over a Billion Dollars

Penn Entertainment’s liquidity as of December 31, 2025, was $1.1 billion. This included $686.6 million in cash and cash equivalents. The company’s traditional net debt, on the other hand, was $2.2 billion.

Additional highlights included $150 million in funding from Gaming and Leisure Properties, which would fuel the construction of the second hotel tower at the M Resort in Las Vegas.

Speaking of which, Penn expects $225 million in funding from Gaming and Leisure Properties in relation to the opening of its $360 million land-side relocation of Hollywood Casino Aurora at the end of Q2 2026.

Penn Expects to Reduce Its Costs Significantly

Jay Snowden, Penn Entertainment’s chief executive officer and president, commented on the results, calling Q4 a “solid quarter.” He noted that the period saw the company’s US sportsbook rebrand to theScore Bet as the brand transitioned away from ESPN Bet.

Snowden said that the company expects to generate adjusted EBITDAR growth of 20% in 2026 thanks to the underlying strength of its retail and digital segments. Snowden added that the company expects to make further cost savings thanks to the identification of over $10.0 million in annualized run-rate cost savings in corporate overhead. The company also expects to return to pre-COVID spending levels thanks to its recent investments.

Snowden concluded: “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.”