Penn Entertainment Posts $1.4 Billion in Quarterly Revenue

Penn Entertainment reported revenues of $1.4 billion for the first quarter of 2026, marking a significant milestone in the company’s financial performance. The gaming and entertainment company posted Segment Adjusted EBITDAR of $471.4 million, driven by increased visitation and higher spend per visit across all rated worth segments. Indeed, this represented the company’s largest quarterly increase in three years. Penn Entertainment’s interactive segment generated revenues of $358.3 million, including tax gross up of $185.8 million, while the segment’s Adjusted EBITDA showed improvement with a loss of $10.8 million. The company’s iCasino business demonstrated strong momentum with approximately 15% year-over-year revenue growth.

Penn Entertainment Reports Strong Q1 2026 Financial Results

On April 24, 2026, Penn Entertainment announced first-quarter results that exceeded market expectations, with total revenues reaching $1.78 billion. The company achieved Consolidated Adjusted EBITDA of $265.80 million for the quarter ended March 31, 2026. Total revenue climbed 6% year-over-year, surpassing analysts’ consensus estimates of $1.74 billion.

The company reported adjusted earnings per share of $0.11, which fell short of the $0.14 analyst estimate. Despite the EPS miss, Penn Entertainment’s retail operations demonstrated strength with Segment Adjusted EBITDAR margins of 33.2%. Following the announcement, the company’s stock experienced a surge, reflecting investor confidence in the growth trajectory.

CEO Jay Snowden expressed satisfaction with the quarter’s performance, noting that retail Segment Adjusted EBITDAR grew year-over-year with stable trends carrying into April. Snowden stated that the company benefited from higher tax refunds compared to 2025, which rose by approximately 11% to 12%, contributing to healthy spending trends. “April feels very much through the first three weeks, like a continuation of Q1, which is good. We’re not seeing any cracks in the armor,” Snowden added.

Consequently, Penn Entertainment increased the midpoints of its 2026 retail revenue and adjusted EBITDA guidance by $20 million and $12 million respectively.

How Did Penn’s Retail Properties Drive Year-Over-Year Growth?

Penn’s retail segment generated $1,420.1 million in revenue during the first quarter, representing a 2.8% year-over-year increase from $1,381.8 million in Q1 2025. Retail segment adjusted EBITDAR grew 3.2% to $471.4 million, maintaining a 33.2% margin.

Regional performance varied considerably across Penn’s portfolio. The West segment led growth with a 12.4% revenue increase, driven by strong performance at M Resort and Ameristar Black Hawk. The Midwest segment posted 8.1% revenue growth led by St. Louis properties and the new Hollywood Joliet location. The South region declined 2.4%, while the Northeast rose less than 1% year-over-year.

The M Resort expansion proved particularly impactful. The $206 million project added a 375-room hotel tower that opened December 1, 2025, increasing total capacity to 765 rooms. The property achieved record net revenue for both the quarter and March specifically. The resort hosted its five largest group bookings in its 17-year history during this period.

Hollywood Joliet, which relocated to a new land-based facility in August 2025, delivered record net revenue in Q1 2026 and March 2026. Slot volumes increased 1.6 times year-over-year, while table volumes surged 2.6 times.

Penn scheduled two additional major projects for June: a new hotel tower at Hollywood Columbus and a relocation of Hollywood Aurora, with Hollywood Council Bluffs planned for 2028.

Penn’s Interactive Segment Shows Meaningful EBITDA Improvement

The interactive segment narrowed its adjusted EBITDA loss by 87.9% to $10.8 million compared to an $89 million loss in the prior-year quarter. This dramatic improvement reflected the first full quarter under the company’s realigned digital strategy, which emphasized operational efficiency over aggressive customer acquisition.

iCasino revenue climbed 14.9% year-over-year to $70.9 million, while online sportsbook revenue increased 5.2% to $65.2 million. Marketing spend plummeted more than 65%, directly contributing to the significant EBITDA improvement. Average revenue per monthly active user surged 14% to $84, demonstrating improved monetization despite a modest 3.5% decline in average MAUs to 540,000.

The standalone iCasino product showed particularly strong momentum. Net gaming revenue from standalone iCasino operations exploded 362% year-over-year in Q1 2026, while average monthly active users increased 345%. Quarter-over-quarter growth remained robust at 24% for NGR and 19% for MAUs.

Penn received approval from Alberta Gaming, Liquor, and Cannabis to operate theScore Bet in Alberta. The anticipated July 13, 2026 launch prompted management to update its full-year interactive segment adjusted EBITDA guidance to negative $20 million, reflecting approximately $20 million in launch costs.