Penn Entertainment Q3 2026: EPS Triples Estimates as Digital Losses Narrow
As seen on the 24/7 Wall St. homepage on November 5, 2026.
The Interactive segment's adjusted EBITDA loss narrowed to $18.3 million from $76.6 million a year ago, and management says October trends held. Net leverage of 2.3x gives the turnaround a balance sheet to stand on.
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Penn Entertainment reported adjusted earnings per share of $0.32 for the third quarter of 2026, nearly tripling the consensus estimate of $0.12. Revenue of $1.84 billion came in line with estimates and grew 7.1% compared to the same quarter a year earlier. Profitability underneath the top line improved sharply.
In the Interactive segment, the adjusted EBITDA loss narrowed to $18.3 million from $76.6 million a year ago. That swing reflects gathering traction in U.S. iCasino through the standalone Hollywood iCasino platform and continued growth in Canadian markets, including Ontario. CEO Jay Snowden said sustained revenue growth in those two channels, combined with operational discipline, reinforces management's confidence in hitting its full-year Interactive Adjusted EBITDA target.
Management described Q3 as a record third-quarter performance for the retail segment, with consolidated Adjusted EBITDA rising to $284 million from $194.9 million a year earlier. Snowden noted that for the third consecutive quarter, retail segment Adjusted EBITDAR margins improved year over year, driven by same-store growth and contributions from completed development projects.
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The balance sheet has also shifted materially. Traditional net leverage stood at 2.3x, compared to 4.5x at year-end 2025, following a refinancing that retired the 2.75% convertible notes due 2026 and established new term loans due 2031 and 2033. That deleveraging gives Penn more financial flexibility as the Interactive segment works toward sustained profitability.
One detail worth tracking is management's comment that healthy operating trends across both retail and interactive carried into October. That forward-looking note, while not a formal guidance revision, suggests the momentum extended beyond the quarter itself. The Interactive segment still runs at a loss, and Penn carries $2.8 billion in total traditional debt alongside significant lease obligations, so the turnaround thesis remains a work in progress.
Mentioned: PENN