$1.84bn Revenue, $284.0M EBITDA: PENN Entertainment Reports Q3 2026 Under Jay Snowden and Felicia Hendrix 

PENN Entertainment has swung back to profitability in its third quarter, reporting net income of $32.6 million for the three months ended 30 September 2026, compared with a net loss of $865.1 million in the same period a year earlier.

The Nasdaq-listed operator published the results on 5 November 2026, with total revenues of $1,840.0 million against $1,717.3 million a year ago.

Beneath the headline swing, the quarter carried two threads operators will care about: a retail business that set a third quarter revenue record, and a digital arm whose losses are shrinking fast enough to keep the company’s full-year profitability target in play.

How PENN’s $32.6 million net income reversed an $865.1 million loss

The year-over-year comparison is stark. A $865.1 million net loss became $32.6 million of net income, and diluted earnings per share moved from a loss of $6.03 to a gain of $0.24. On an adjusted basis, the company reported Adjusted EPS of $0.32 versus a loss of $0.22 a year ago.

Consolidated Adjusted EBITDA rose to $284.0 million from $194.9 million, and operating income came in at $127.3 million against an operating loss of $776.4 million in the prior-year quarter.

Across the first nine months of 2026, revenues reached $5,476.4 million and net income was $62.4 million, against a $771.9 million loss over the same span last year.

Why PENN’s $1.5 billion retail revenue hit a third quarter record

The Retail Segment produced revenues of $1.5 billion, Segment Adjusted EBITDAR of $501.8 million, and margins of 33.7%, which the company described as a record third quarter revenue result.

CEO Jay Snowden attributed the strength to same-store growth and completed development projects.

“Our Retail segment delivered better than expected revenue and Adjusted EBITDAR results, driven by same-store growth and contributions from our completed development projects,” said Mr Snowden.

He added that property-level performance was supported by increases in rated revenue and spend per visit across all age segments, and that Segment Adjusted EBITDAR margins improved year-over-year for the third consecutive quarter.

How PENN’s Interactive loss narrowed to $18.3 million from $76.6 million

This is where the quarter earns its interest. The Interactive Segment, which houses online sports betting, iCasino and social gaming, posted revenues of $348.4 million, a figure that includes a tax gross-up of $191.4 million.

The segment’s Adjusted EBITDA loss narrowed to $18.3 million from $76.6 million in the prior-year quarter. A loss shrinking by more than three quarters year-over-year is the number that matters more than the top line.

Snowden tied the improvement to standalone Hollywood iCasino in the US and to growth across both iCasino and online sports betting in Ontario, alongside early performance from its Alberta iCasino and OSB operations, which the company says further expand its Canadian presence.

“Adjusted EBITDA in our Interactive segment improved meaningfully year-over-year, reflecting continued execution against our plan to achieve profitability,” said Mr Snowden.

How PENN cut net debt to $1.8 billion and lowered leverage to 2.3x

The quarter also moved the balance sheet. Total liquidity stood at $2.0 billion as of 30 September 2026, including $1.0 billion of cash and cash equivalents. Traditional net debt fell to $1.8 billion, down from $2.2 billion at year-end 2025.

On the company’s own trailing-twelve-month measures, lease-adjusted net leverage improved to 5.6x from 6.8x, and traditional net leverage to 2.3x from 4.5x.

For a business carrying the rent weight of triple net leases with its REIT landlords, lower leverage changes how much room there is to fund the development pipeline the company keeps pointing to.

What PENN’s Q3 2026 results signal for iGaming operators

PENN describes itself as operating in 28 jurisdictions across North America, with a PENN Play loyalty program it says has over 34 million members.

Against that spread, the quarter speaks to the long argument over whether US omni-channel gambling can pair profitable retail with a digital business that stops bleeding cash. This quarter it did both at once, with retail margins holding and the Interactive loss narrowing toward break-even.

Snowden noted that the healthy operating trends across both segments continued through October, which the company reads as momentum into the fourth quarter. Whether the digital side crosses into profit on the full-year view is the question the next set of results will answer.

Source: PENN Entertainment, Inc.