Penn National Gaming Stock Earnings Reports

PENN delivered a strong start to 2026 driven by retail strength and marked improvement in Interactive results. Retail: companywide visitation and spend per visit rose, led by West and Midwest properties (notably M Resort and Ameristar Blackhawk), and momentum at new openings (Hollywood Joliet). Management raised the midpoint of 2026 Retail guidance (revenue +$20M, adjusted EBITDAR +$12M) and expects mid-single-digit adjusted EBITDA growth for Retail in 2026. Interactive: Q1 showed a roughly $78M year-over-year adjusted EBITDA improvement driven by ~15% iCasino growth and ~5% online sports growth, reduced marketing, and a tighter cost structure after refocusing on U.S. iCasino states and Canada. PENN plans an Alberta launch on July 13 (theScore Bet approved for iGaming), which management expects will cost ~$20M in 2026 and is the sole driver of the revised Interactive adjusted EBITDA loss guidance. Liquidity, capital allocation and balance sheet: PENN ended Q1 with ~$1.7B total liquidity, issued $600M of 2031 notes to repay revolver borrowings, refinanced its revolver and part of Term Loan A, and expects GLPI and the City of Aurora contributions tied to the Aurora project. Total 2026 CapEx is trimmed to $420M (project CapEx $200M, maintenance $220M) and Council Bluffs project timing shifted to 2028 (no scope/budget change). Management expects to delever meaningfully in 2026 (lease-adjusted net leverage down ~1 turn, traditional net leverage down ~2 turns) and to generate strong free cash flow: management expects $3+ free cash flow per share in 2026 (implying a very high yield at current prices) and anticipates further improvement in 2027. Other items: the Company reiterated optimism about cashless adoption and omnichannel cross-sell (60% of iGaming net revenue comes from OSB initiation in hybrid states), said Canada will be a high-margin market, and maintained openness to M&A if attractive assets become available as leverage improves.