PENN Entertainment Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.90%.
Did PENN Beat Earnings? Q3 2025 Results
Penn Entertainment delivered a deeply disappointing third quarter, posting an adjusted EPS loss of $0.22 against a consensus estimate of just $0.03, a miss of 633.33%, while revenue of $1.72 billion came in fractionally below the $1.73 billion estimate despite growing 4.8% year over year. The headline numbers were overwhelmed by an $825 million goodwill impairment charge in the Interactive segment, which drove a GAAP net loss of $865.10 million and prompted the company to mutually terminate its high-profile ESPN online sports betting alliance, effective December 1, 2025. The move, which eliminates $150 million in annual ESPN payments after Q4, frees Penn to rebrand its U.S. sportsbook to theScore Bet while pivoting toward iCasino, where quarterly gaming revenue surged nearly 40% year over year. Retail casino operations remained a steady anchor, generating $465.80 million in Segment Adjusted EBITDAR at 32.8% margins. Penn also authorized a new $750 million buyback program beginning January 1, 2026, signaling confidence in its repositioned strategy even as investors in <a href="https://247wallst.com/investing/2025/11/06/amc-entertainment-pops-then-drops-after-reporting-q3-earnings/">entertainment-adjacent consumer names</a> continue scrutinizing sector volatility heading into year-end.
- Strong results at West segment properties, Ohio, St. Louis, and Illinois
- North America iCasino business achieved highest quarterly gaming revenue to date, up nearly 40% year-over-year
- Record cross-sell rate from OSB to iCasino of 62%
- Increases in theoretical revenue across all rated worth segments of retail portfolio
- Overall growth in visitation and spend per visit
- Third consecutive quarter of year-over-year and quarter-over-quarter increases in average MAUs for iCasino
“When we first announced our partnership with ESPN, both sides made it clear that we expected to compete for a podium position in the space. Although we made significant progress in improving our product offering and building a cohesive ecosystem with ESPN, we have mutually and amicably agreed to wind down our collaboration.”
Penn Entertainment CEO, on the earnings call
Forward Guidance & Outlook
PENN stated the fourth quarter is off to a solid start and management is encouraged by early trends at the new Hollywood Casino in Joliet. The second hotel tower at M Resort Spa Casino Las Vegas is scheduled to open December 1, 2025, and the new Hollywood Casino in Aurora and new hotel tower at Hollywood Columbus are expected to open late in Q2 2026. The ESPN termination will eliminate $150 million per year in cash payments after Q4 2025, and the company plans to operate with a more efficient cost structure by replacing fixed media spending with performance-based and regionally targeted marketing. The realignment is expected to free up resources for strategically investing in North American markets with strong return potential to drive enhanced unit economics and profitability. PENN plans to rebrand its U.S. OSB to theScore Bet by December 1, 2025, to coincide with the expected launch of sports betting in Missouri.
PENN YoY Financials
PENN Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.