PENN Entertainment (NASDAQ:PENN) announced record second-quarter retail revenue of $1.5 billion, a 4% increase year-over-year. The segment's adjusted EBITDA climbed to $517.2 million, up 6% from the previous year.
CEO Jay Snowden said the company's interactive division is showing reduced losses. Reduced marketing costs, better efficiency, and rising online casino activity are helping drive this progress and supporting the company's broader growth strategy.
PENN raised its 2026 retail revenue and adjusted EBITDA outlook. The new revenue guidance is $5.87 billion, with adjusted EBITDA now expected at $1.963 billion. This update suggests mid-single-digit EBITDA growth and about 50 basis points of margin gain by the year's end. Management forecasts second-half retail revenue growth of about 4% and adjusted EBITDA growth of approximately 6%, matching the second-quarter's results.
CFO Felicia Kantor Hendrix credited the strong performance to effective cost management in labor, marketing, and administrative expenses. Nine of PENN’s locations hit revenue and EBITDA records in the quarter. Snowden said the company still anticipates year-over-year growth across all 2026 quarters, even as the fourth quarter typically sees weaker results.
PENN's financial performance is being supported by gains in both rated and unrated revenue. Rising spending among high- and mid-worth customers is fueling rated revenue, while unrated revenue has increased for five of the past seven quarters.
Snowden noted PENN is on course to deliver more than 20% year-over-year adjusted EBITDA growth in 2026. Strong retail outcomes, improved interactive profits, and corporate cost efficiencies are boosting cash flow and allowing the company to cut leverage more quickly than anticipated.
The revised forecast shows second-half retail revenue growth of about 4% and adjusted EBITDA growth of approximately 6%. These figures align with the second-quarter performance. Cost controls and a stronger online casino platform are central to the interactive segment's development and long-term financial health.
Even though the fourth quarter is a traditionally slower period, PENN remains optimistic about maintaining year-over-year revenue and EBITDA growth. The strong first-half results and solid second-half outlook position the company to reach or surpass its 2026 financial goals.
Snowden confirmed PENN is moving toward its adjusted EBITDA growth targets. The combination of retail success, interactive business progress, and corporate cost savings is helping the company achieve better financial results faster.
Total Q2 revenue for PENN rose 5.2% from $1.77 billion to $1.86 billion, while six-month revenue climbed 5.8% to $3.6 billion. Interactive revenue, including theScore Bet and the Hollywood Casino platform, rose 10.5% to $349 million in Q2. Interactive revenue for the first half of the year climbed 16.7% to $707.7 million.
PENN’s overall adjusted EBITDAR rose to $312.6 million for Q2 and increased to $578.4 million for the first six months of the year. The Interactive adjusted EBITDAR loss for Q2 narrowed to $9.5 million from $35.5 million, and for the first half, the loss reduced to $63.2 million from $74.3 million.
In June 2026, PENN opened both the new hotel tower at Hollywood Columbus and the new Hollywood Casino Aurora, with early trends at both properties showing encouraging results, including strong visitation from VIP players. TheScore Bet, as well as theScore Casino and Hollywood icasino standalone apps, were successfully launched in Alberta on July 13.