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Get filing alertsPENN Entertainment swings to Q1 loss despite revenue growth and narrowed interactive losses
Filed April 23, 2026 · Period ending April 23, 2026 · ~1 min read
Key Changes
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Q1 2026 revenues rose to $1.78 billion from $1.67 billion year-over-year, but net income swung to a $2.8 million loss from $111.5 million profit in Q1 2025, driven by higher operating expenses and absence of prior-year financing gain.
Exhibit 99.1 view on EDGAR → -
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Retail segment generated $1.4 billion in revenues with 33.2% Adjusted EBITDAR margins, posting the largest quarterly theoretical revenue growth in three years on increased visitation and spend per visit.
Exhibit 99.1 view on EDGAR → -
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Interactive segment narrowed Adjusted EBITDA loss to $10.8 million from $89.0 million year-over-year, with iCasino revenue up approximately 15% and standalone iCasino achieving record quarterly revenue in March.
Exhibit 99.1 view on EDGAR → -
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Issued $600 million of 6.75% unsecured notes due 2031 to repay revolving credit facility borrowings, extending debt maturity; traditional net leverage improved to 3.8x from 4.5x at year-end 2025.
Exhibit 99.1 view on EDGAR → -
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Total liquidity stood at $1.7 billion including $708 million cash as of March 31, 2026, with traditional net debt of $2.2 billion.
Exhibit 99.1 view on EDGAR →
Summary
PENN Entertainment reported mixed Q1 2026 results, with revenue growth offset by a swing to a small net loss. The company's retail casino operations drove the quarter, posting the strongest theoretical revenue growth in three years on higher customer traffic and spend per visit, while the Interactive segment made meaningful progress narrowing its Adjusted EBITDA loss by nearly 90% year-over-year to $10.8 million. The net loss of $2.8 million, compared to $111.5 million profit in Q1 2025, reflects higher operating expenses and the absence of a prior-year gain on a financing arrangement, though Adjusted EBITDA improved substantially to $265.8 million from $173.3 million.
The company strengthened its balance sheet during the quarter, issuing $600 million in unsecured notes to refinance revolving credit borrowings and extending debt maturities. Traditional net leverage improved to 3.8x from 4.5x at year-end, demonstrating continued deleveraging progress. With $1.7 billion in total liquidity and the Interactive segment approaching breakeven while retail operations remain strong, PENN appears positioned for the anticipated July launch of iCasino in Alberta.
Section-by-Section Diff
Event · Exhibit 99.1
PENN Entertainment reported Q1 2026 results with retail segment growth, narrowed interactive losses, and issued $600M notes to refinance debt.
Added in current filing · view on EDGAR →
Revenues $1,779.1 $1,672.5
Net income (loss) $(2.8) $111.5
Consolidated Adjusted EBITDA (1) $265.8 $173.3
PENN reported Q1 2026 revenues of $1,779.1 million (up from $1,672.5 million in Q1 2025) but a net loss of $2.8 million (versus $111.5 million net income in Q1 2025). Consolidated Adjusted EBITDA rose to $265.8 million from $173.3 million year-over-year. The net loss reflects higher operating expenses and the absence of a prior-year gain on financing arrangement, while the Adjusted EBITDA improvement was driven by retail segment strength and narrowed interactive losses.
Added in current filing · view on EDGAR →
Interactive Segment Highlights:
•Revenues of $358.3 million (including tax gross up of $185.8 million); and
•Adjusted EBITDA loss of $10.8 million.
The Interactive segment reported revenues of $358.3 million (including $185.8 million tax gross-up) and an Adjusted EBITDA loss of $10.8 million, a meaningful improvement from the $89.0 million loss in Q1 2025. Management cited iCasino revenue growth of approximately 15% year-over-year, with standalone iCasino achieving record quarterly and monthly revenue in March, and positive trends in Ontario ahead of the anticipated July 13 Alberta launch.
Added in current filing · view on EDGAR →
On March 16, 2026, the Company issued $600.0 million of unsecured notes due 2031 at an interest rate of 6.75%. Net proceeds were used to repay borrowings under PENN’s revolving credit facility.
PENN issued $600 million of 6.75% unsecured notes due 2031 and used the net proceeds to repay revolving credit facility borrowings. This refinancing extends debt maturity and reduces reliance on the revolver. On April 16, 2026, the company also amended its credit agreement to refinance and extend the $1.0 billion Amended Revolving Credit Facility and $446.9 million Amended Term Loan A Facility.
Added in current filing · view on EDGAR →
Total liquidity as of March 31, 2026 was $1.7 billion inclusive of $708.0 million in Cash and cash equivalents. Traditional net debt as of the end of the quarter was $2.2 billion.
PENN ended Q1 2026 with $1.7 billion in total liquidity (including $708 million cash) and $2.2 billion in traditional net debt. The traditional net leverage ratio improved to 3.8x from 4.5x at year-end 2025, and the lease-adjusted net leverage ratio improved to 6.4x from 6.8x, reflecting the company's deleveraging progress.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 24, 2026 · How we verify