WYOMISSING, Pa. – How will a truce with activist investor HG Vora impact PENN Entertainment? The stock market had an optimistic take today.
PENN Entertainment, the Wyomissing- based operator of casinos, sports betting and entertainment, reported fourth quarter and full-year results. The results were mostly negative and the press release that announced the results included only selected balance sheet items.
Just three days ago the company appointed three new independent directors, Heather Ace, Jeffrey Fox, and Fabio Schiavolin. In connection with these appointments, the company noted it has entered into a cooperation agreement with HG Vora Capital Management, LLC and certain of its affiliates (collectively, HG Vora).
Vora has been a thorn in the side of PENN for several years. Vora sued PENN following a proxy battle last year, but has now dropped the suit in light of this week’s settlement announcement.
PENN did report positive fourth quarter EPS (Earnings Per Share) of $0.07 today. However, revenue came in at $1.4 billion and missed analysts’ estimates of $1.76 billion.
PENN’s stock closed up 16.75% on the day, but is down more than 28% since March of 2025. According to stock analysis site Investing Pro, PENN’s financial health is weak.
PENN Entertainment’s View
Jay Snowden, Chief Executive Officer and President, said in a statement: “PENN’s diversified retail portfolio delivered a solid quarter during which retail adjusted EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent) 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.”
He said PENN expects to generate year-over-year segment adjusted EBITDAR growth of 20% in 2026. In addition, he claimed, “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 quarter.”
In its Interactive segment, Snowden said the company continues 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 its new corporate organizational structure, which it announced on January 5, PENN has identified more than $10 million in annualized run-rate cost savings in corporate overhead, which will mostly phase in over the first half of the year.
“In addition,” according to Snowden, “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.”
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PENN Entertainment |
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Statement of Operations |
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In millions except per share |
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For the three months ended |
For the year end |
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31-Dec-25 |
31-Dec-24 |
31-Dec-25 |
31-Dec-24 |
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Revenues |
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Gaming |
1358.8 |
1290.9 |
5350 |
5169.5 |
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Food, beverage, hotel, other |
447.4 |
378.1 |
1611 |
1408.6 |
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Total revenues |
1806.2 |
1669 |
6,961 |
6578.1 |
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Operating Expenses |
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Gaming |
870.5 |
852.3 |
3446.4 |
3429 |
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Food, beverage, hotel, other |
331.1 |
270.3 |
1162.2 |
985.5 |
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General and Administrative |
402.6 |
398.3 |
1633.8 |
1568.4 |
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Depreciation, Amortization |
114.2 |
107.1 |
446.9 |
433.6 |
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Impairment Losses |
105.3 |
89.1 |
945.3 |
89.1 |
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Total operating expenses |
1823.7 |
1717.1 |
7634.6 |
6505.6 |
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Operating income (loss) |
-17.5 |
-48.1 |
-673.6 |
72.5 |
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Other income (expenses |
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Total other expenses |
-90.6 |
-100.7 |
-147.1 |
413.8) |
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Loss Before Income Taxes |
-108 |
-148.8 |
-820.7 |
-341.3 |
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Income Tax Benefit (expense) |
34.7 |
15 |
-24.6 |
28 |
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Net Loss |
-73.4 |
-133.8 |
-845.3 |
-313.3 |
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Net loss noncontrolling |
0.4 |
0.5 |
2.2 |
1.8 |
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interest |
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Net Loss PENN Entertainment |
-73 |
-133.3 |
-843.1 |
-311.5 |
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Loss per share |
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Basic |
-0.55 |
-0.88 |
-5.83 |
-2.05 |
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Diluted |
-0.55 |
-0.88 |
-5.83 |
-2.05 |
Fourth Quarter Retail Property Level Highlights
“Weather events in December negatively impacted Segment Adjusted EBITDAR by approximately $7.0 million,” Snowden said. “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.”
PENN experienced another quarter of year-over-year growth in theoretical revenue across all rated worth and age segments with its older demographics and VIP play contributing meaningfully to these results. Looking ahead, Snowden noted, 2026 will benefit from continued momentum at the new hotel tower at M Resort in Las Vegas, and at the new Hollywood Casino Joliet, which is delivering strong results from both new and reactivated customers.
Fourth Quarter Interactive Segment Highlights
PENN reported revenues of $398.7 million (including tax gross up of $182.7 million); and an adjusted EBITDA loss of $39.9 million.
According to Snowden, “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.”
Snowden stated the company is encouraged by the trajectory of its Interactive business, with a more streamlined cost structure and regionally focused marketing strategy that prioritizes jurisdictions with both legalized iCasino and online sports betting.
Liquidity and Financial Position
PENN reported total liquidity as of December 31, 2025 was $1.1 billion inclusive of $686.6 million in cash and cash equivalents. Traditional net debt as of the end of the quarter was $2.2 billion. On November 3, 2025, PENN received $150.0 million in funding from Gaming and Leisure Properties, Inc. at a 7.79% capitalization rate in connection with the second hotel tower construction at the M Resort Las Vegas. Also, the company said in conjunction with the opening of the $360 million land-side relocation of Hollywood Casino Aurora at the end of the second quarter, PENN expects to receive $225 million in funding from Gaming and Leisure Properties, Inc. at a 7.75% capitalization rate. Gaming and Leisure Properties, Inc. (GLPI) is a publicly traded real estate investment trust (REIT) that owns, acquires, and manages 69 premier gaming and related facilities across 20 U.S. states. It was formerly owned by Peter M. Carlino, one of the founders of PENN Entertainment (formerly Penn National Gaming, Inc.).
About PENN Entertainment
PENN Entertainment, Inc. operates 43 properties in 20 states, online sports betting in 19 jurisdictions and iCasino in five jurisdictions, under a portfolio of well-recognized brands including Hollywood Casino®, L’Auberge®, and theScore BET Sportsbook and Casino®.
