Penn Entertainment narrows Q4 losses as bets reshape strategy after costly partnerships
Penn Entertainment closed out 2025 with a noticeably smaller loss, buoyed by stronger showings at its brick-and-mortar casinos and a long-awaited breakthrough in its online division.
For the quarter ending December 31, revenue climbed to $1.81 billion, up from $1.67 billion a year earlier. The company still posted a net loss, but it shrank to $73.4 million compared with $133.8 million in the same quarter last year. Adjusted EBITDA across the business rose to roughly $225.8 million from $165.2 million, while diluted loss per share improved to $0.55.
Jay Snowden, Penn’s chief executive officer and president, pointed to steadier performance across the portfolio, especially in its traditional casinos.
“PENN’s diversified retail portfolio delivered a solid quarter during which retail adjusted EBITDAR grew year-over-year, after adjusting for poor weather in December,” Snowden said in the company’s announcement.
Penn Entertainment’s digital pivot faces scrutiny amid Q4 losses
The company’s interactive arm, which includes online sports betting and iCasino, hit a milestone in December by generating positive adjusted EBITDA for the month. Executives attributed the improvement to rising iCasino activity, tighter expense management, and better sportsbook results after rebranding its U.S. platform to theScore Bet.
Interactive revenue, including tax gross-ups, reached $398.7 million in the quarter, fueled by double-digit growth in both online casino and sportsbook operations.
At the property level, Penn’s casinos produced $456.4 million in segment adjusted EBITDAR on margins of 32.3 percent, spanning its Northeast, South, West, and Midwest regions. Those properties brought in about $1.4 billion in revenue. Severe December snow trimmed roughly $7 million from earnings, tempering what might otherwise have been a stronger finish.
Even so, the quarterly improvement lands against a backdrop of strategic missteps. Penn recently confirmed it is terminating its high-profile partnership with ESPN, a deal that was intended to anchor its sports betting ambitions but failed to gain meaningful traction. The costly arrangement followed earlier unsuccessful partnerships, reinforcing concerns about the company’s ability to convert branding splash into sustainable market share.
In response, Penn has rolled out a new corporate organizational structure, reshuffling leadership roles and centralizing certain functions in an effort to streamline decision-making and cut overhead. Management says the changes should lower corporate expenses and support improved cash flow.
Snowden said during the earnings call that ending the partnership meant the company was “spending less on its sports betting arm, but making more revenue in return since rebranding ESPN Bet to theScore Bet.” As a result, he added that the company was steering clear of prediction markets for now, calling them a “major threat.”
Liquidity remains solid, with $686.6 million in cash and equivalents at year-end and total liquidity of about $1.1 billion. Traditional net debt stood at $2.2 billion.
Looking to 2026, Penn expects segment adjusted EBITDAR to rise 20% year over year. New projects, including Hollywood Casino Joliet and the expanded hotel tower at M Resort in Las Vegas, are already adding to results, with additional developments slated through mid-year.
Featured image: Penn Entertainment
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