PENN Entertainment’s Q2 2026 earnings mark its strongest quarter since the ESPN Bet partnership ended. The operator paired a record retail casino performance with the smallest digital loss since it entered online sports betting at scale.

PENN posted adjusted earnings of $0.44 a share, beating the Zacks consensus of $0.35. Net income swung to $32.6 million from a loss of $18.3 million a year earlier. Total revenue rose 5.2% to $1.857 billion.

The bigger story sits inside consolidated adjusted EBITDA, which climbed 32.4% to $312.6 million. Most of that gain, $52.5 million, came from one line: the Interactive segment’s loss shrinking to $9.5 million from $62.0 million.

Q2 2026 Results at a Glance

The table below lines up PENN’s headline numbers against last year’s quarter and analyst estimates.

Metric	Q2 2025	Q2 2026	YoY Change	Beat/Miss vs. Estimate
Total revenue	$1.765B	$1.857B	+5.2%	In line
Adjusted EPS	$0.10	$0.44	+340%	Beat
Net income (loss)	-$18.3M	$32.6M	Swung to profit	–
Consolidated adjusted EBITDA	$236.1M	$312.6M	+32.4%	–

Source: PENN Entertainment Q2 2026 earnings release and Form 8-K, filed August 6, 2026; Zacks Investment Research.

Retail Segment Sets Nine Property Records

PENN’s four regional divisions combined for $1.506 billion in revenue this quarter, a segment record. Adjusted EBITDAR rose 5.6% to $517.2 million, lifting the retail margin to 34.4%.

Nine properties set second-quarter records for revenue and adjusted EBITDAR. CEO Jay Snowden credited growth in theoretical revenue and stronger spending from mid and high-value customers.

Operating expenses rose just 2.3% against 5.2% revenue growth. That gap pushed operating income up 69.9% to $131.7 million and lifted the operating margin to 7.1% from 4.4%.

The West grew fastest at 10.0%, helped by the new hotel tower at M Resort near Las Vegas. The Midwest grew 7.9% on strong early results from Hollywood Casino Joliet. The South stayed flat, down 0.1%.

Digital Losses Narrow, but Underlying Revenue Slips

Interactive revenue rose 10.5% to $349.4 million on paper. That figure includes a tax gross-up of $185.5 million tied to payments made on behalf of market-access partners.

Strip that gross-up out, and Interactive revenue actually fell 8.0% to $163.9 million. The segment’s profitability improved sharply. Its underlying scale did not.

Segment	Revenue Q2 2026	Adjusted EBITDAR Q2 2026	Change vs. Q2 2025
Retail (four regions combined)	$1.506B	$517.2M	+3.9% rev / +5.6% EBITDAR
Interactive (as reported)	$349.4M	-$9.5M	Loss narrowed by $52.5M
Interactive (excluding tax gross-up)	$163.9M	–	-8.0% underlying

Source: PENN Entertainment Q2 2026 earnings release, segment detail.

Sportsbook hold added about $3 million to the quarter, per Snowden. Casino cross-sell from the sportsbook app offset some of that gain, and standout results came from the standalone Hollywood iCasino app, which set a quarterly revenue record.

Roughly 70% of PENN’s sportsbook users placed a World Cup wager in June, and about 45% of those were first-time soccer bettors. Casino, not sports betting, drove the segment’s improved economics this quarter.

Guidance for the Rest of 2026

CFO Felicia Hendrix raised the full-year retail outlook to $5.87 billion in revenue and $1.963 billion in adjusted EBITDAR. That implies 50 basis points of margin improvement in the second half.

Interactive guidance moved the other way. PENN cut full-year Interactive revenue guidance to $1.57 billion from $1.60 billion, though the loss guidance held steady at $20 million.

Hendrix said the third quarter should bring the year’s largest Interactive loss because of PENN’s investment in Alberta. She expects the segment to turn adjusted EBITDA positive in the fourth quarter.

Balance Sheet Strength and Debt Reduction

PENN ended the quarter with $887.2 million in cash and $1.9 billion in total liquidity. Traditional net debt fell to $1.928 billion from $2.218 billion at the start of the year.

Lease-adjusted net leverage dropped to 5.9x from 6.8x. Traditional net leverage fell to 2.9x from 4.5x, a meaningful improvement in less than seven months.

PENN refinanced its revolver and term loan A through 2031, extended its term loan B to 2033, and repaid the remaining $106.7 million of its 2.75% convertible notes. That last move removed about 4.6 million potentially dilutive shares.

What This Means for Players and the Wider Market

PENN’s improving digital economics point to where operators are putting their money next: online casino products, not just sportsbooks.

The record quarter for the standalone Hollywood iCasino app, alongside PENN’s comment that casino products carry attractive customer acquisition costs, signals more investment in casino apps and promotions ahead.

For American players, that usually means sharper welcome offers and more frequent app updates as operators compete for casino spend rather than sports betting volume alone.

PENN also flagged a coming marketing push around football season, with prediction-market operators expected to compete harder for US sports bettors. Expect heavier advertising and bonus activity industry-wide as that plays out.

FAQs

How much did PENN Entertainment earn in Q2 2026?

PENN reported adjusted earnings of $0.44 per share in Q2 2026, beating the Zacks consensus of $0.35. Net income reached $32.6 million, reversing an $18.3 million loss from the same quarter last year. Total revenue rose 5.2% to $1.857 billion.

Why did PENN's digital losses narrow so much in Q2 2026?

PENN's Interactive segment loss shrank to $9.5 million from $62.0 million a year earlier. Favorable sportsbook hold added roughly $3 million, and the standalone Hollywood iCasino app set a quarterly revenue record. Cost discipline across labor, technology, and marketing also helped narrow the gap.

Is PENN Entertainment's Interactive segment still losing money?

Yes. PENN still expects a $20 million adjusted EBITDA loss for the full year, with the biggest quarterly loss landing in Q3 2026 due to its Alberta launch. Management expects the segment to turn adjusted EBITDA positive in Q4 2026.