PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The company's unaudited Q1 2025 financial statements show a swing to net income driven by a one-time gain [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) PENN Entertainment reported a 4.1% revenue increase to $1.67 billion and a net income of $111.5 million for Q1 2025 Consolidated Statements of Operations Highlights (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$1,672.5** | **$1,606.9** | **+4.1%** | | Operating Income (Loss) | $42.8 | $(21.4) | N/A | | Gain on financing arrangement | $215.1 | $— | N/A | | **Net Income (Loss)** | **$111.5** | **$(114.9)** | **N/A** | | Diluted EPS | $0.68 | $(0.76) | N/A | Consolidated Balance Sheet Highlights | Metric | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | Cash and cash equivalents | $591.6 | $706.6 | | Total Assets | $15,090.0 | $15,261.7 | | Total Liabilities | $12,120.6 | $12,403.3 | | Total Stockholders' Equity | $2,969.4 | $2,858.4 | Consolidated Statements of Cash Flows Highlights (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $41.9 | $(68.7) | | Net cash used in investing activities | $(135.9) | $(47.3) | | Net cash used in financing activities | $(16.2) | $(50.1) | [Notes to the Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail segment performance, highlighting strong Interactive segment growth and significant commitments like the ESPN agreement - The company operates through five reportable segments: Northeast, South, West, Midwest, and Interactive, with the latter including all online operations[32](index=32&type=chunk)[34](index=34&type=chunk) Revenue by Segment (Q1 2025 vs Q1 2024) | Segment (in millions) | Q1 2025 Revenue | Q1 2024 Revenue | Change (%) | | :--- | :--- | :--- | :--- | | Northeast | $680.9 | $684.7 | -0.6% | | South | $288.3 | $298.5 | -3.4% | | West | $129.7 | $128.8 | +0.7% | | Midwest | $282.9 | $291.2 | -2.9% | | **Interactive** | **$290.1** | **$207.7** | **+39.7%** | - Under the Sportsbook Agreement, PENN pays ESPN **$150.0 million annually** and has issued warrants, with related Q1 2025 expenses totaling **$51.7 million**[105](index=105&type=chunk)[109](index=109&type=chunk) - During Q1 2025, the company repurchased **1,413,882 shares** of its common stock for **$25.0 million** under its authorized share repurchase program[114](index=114&type=chunk) Adjusted EBITDAR by Segment (Q1 2025 vs Q1 2024) | Segment (in millions) | Q1 2025 Adj. EBITDAR | Q1 2024 Adj. EBITDAR | Change ($) | | :--- | :--- | :--- | :--- | | Northeast | $194.2 | $202.6 | $(8.4) | | South | $103.3 | $113.5 | $(10.2) | | West | $45.7 | $45.9 | $(0.2) | | Midwest | $113.8 | $117.0 | $(3.2) | | **Interactive** | **$(89.0)** | **$(196.0)** | **$107.0** | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 4.1% revenue increase driven by the Interactive segment, a return to profitability, and ongoing development projects [Executive Overview](index=34&type=section&id=Executive%20Overview) The company's strategy focuses on leveraging its digital assets and retail casinos, supported by major development projects - The company's strategy is centered on leveraging its partnership with ESPN and ownership of theScore to expand its digital footprint and create cross-sell opportunities[156](index=156&type=chunk) - Major development projects are in progress, including casino relocations and hotel additions, with **GLPI committing up to $575 million in funding**[158](index=158&type=chunk) - A new development project was announced to relocate the Ameristar Council Bluffs casino to a land-based property with an estimated cost of **$180-$200 million**[159](index=159&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Q1 2025 revenue grew 4.1% to $1.67 billion, with a $215.1 million non-cash gain driving net income to $111.5 million Consolidated Revenue and Net Income (Q1 2025 vs Q1 2024) | Metric (in millions) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $1,672.5 | $1,606.9 | +$65.6 | +4.1% | | Net Income (Loss) | $111.5 | $(114.9) | +$226.4 | N/A | - The increase in gaming revenue was primarily driven by the **Interactive segment**, which benefited from iCasino growth and reduced promotional expenses for ESPN BET[178](index=178&type=chunk) - A **non-cash gain of $215.1 million** was recognized related to a 2021 financing arrangement for COVID-19 business interruption claims[188](index=188&type=chunk) - General and administrative expenses increased by $14.1 million, primarily due to **$7.7 million of legal and advisory costs** related to a proxy campaign[184](index=184&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity through operating cash flow and credit facilities, funding capital expenditures and share repurchases Cash Flow Summary (Q1 2025 vs Q1 2024) | Cash Flow Activity (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from (used in) Operating Activities | $41.9 | $(68.7) | | Net cash used in Investing Activities | $(135.9) | $(47.3) | | Net cash used in Financing Activities | $(16.2) | $(50.1) | - For fiscal year 2025, the company anticipates total capital expenditures of approximately **$730 million**[223](index=223&type=chunk) - In Q1 2025, the company repurchased **$25.0 million** of its common stock, with an additional **$10.0 million** repurchased post-quarter[231](index=231&type=chunk) - As of May 9, 2025, the company had **$874.6 million in available borrowing capacity** under its Amended Revolving Credit Facility[66](index=66&type=chunk)[226](index=226&type=chunk) [Quantitative and Qualitative Disclosure About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) The company's primary market risks stem from interest rate fluctuations on its variable-rate debt and foreign currency translation - The company is exposed to interest rate risk on its **$1.5 billion of variable-rate debt** outstanding as of March 31, 2025[249](index=249&type=chunk) - PENN is exposed to foreign currency translation risk from its Canadian subsidiary, theScore, resulting in an unrealized loss of **$0.3 million in Q1 2025**[252](index=252&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - Management concluded that the Company's **disclosure controls and procedures were effective** as of March 31, 2025[253](index=253&type=chunk) - **No material changes** were made during Q1 2025 that affected the company's internal control over financial reporting[254](index=254&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company faces a lawsuit from HG Vora Capital Management concerning board reduction and proxy statements, which it deems without merit - On May 7, 2025, **HG Vora Capital Management filed a lawsuit** against PENN and its board, alleging improper board reduction and misleading proxy statements[257](index=257&type=chunk) - The lawsuit seeks to invalidate the board reduction and requests injunctive relief and damages; the company believes the **claims are without merit**[257](index=257&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) Key risks include sensitivity to consumer spending, shareholder activism from the HG Vora proxy contest, and associated legal challenges - The company's business is sensitive to reductions in **discretionary consumer spending**, which can be affected by economic downturns and inflation[259](index=259&type=chunk) - **Shareholder activism**, such as the current proxy solicitation by HG Vora, poses a risk of increased costs and business disruption[261](index=261&type=chunk)[262](index=262&type=chunk) - The company is subject to **litigation from HG Vora** related to the 2025 annual meeting, which could result in substantial costs and adverse regulatory implications[263](index=263&type=chunk)[264](index=264&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 1.4 million shares for approximately $26.4 million in Q1 2025 under its authorized program Share Repurchases in Q1 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | Value (in millions) | | :--- | :--- | :--- | :--- | | Jan 2025 | — | $— | $— | | Feb 2025 | — | $— | $— | | Mar 2025 | 1,497,039 | $17.63 | ~$26.4 | - Of the shares purchased in March, 1,413,882 were part of the publicly announced program, leaving **$724.6 million available** under the repurchase authorization[265](index=265&type=chunk)[266](index=266&type=chunk) [Other Information](index=54&type=section&id=Item%205.%20Other%20Information) No new executive 10b5-1 trading plans were adopted in Q1 2025, and a new employment agreement was executed for the Chief Strategy Officer - No directors or executive officers adopted, modified, or terminated a **Rule 10b5-1 trading plan** during the first quarter of 2025[267](index=267&type=chunk) - A new three-year employment agreement was executed with EVP Christopher Rogers, with an annual base salary of **$824,000** and a target bonus of **125% of base salary**[268](index=268&type=chunk) [Exhibits](index=54&type=section&id=Item%206.%20Exhibits) Filed exhibits include a key executive employment agreement, master lease amendments, and required Sarbanes-Oxley certifications - Key exhibits filed include the Executive Agreement for Christopher Rogers, amendments to the 2023 Master Lease, and **CEO/CFO certifications** (Sections 302 and 906)[271](index=271&type=chunk)

PENN Entertainment, Inc. (PENN) reported a narrower-than-expected loss in first-quarter 2025 results. Meanwhile, the top line missed the Zacks Consensus Estimate but increased on a year-over-year basis.Following the results, the company’s shares declined 2.7% during yesterday’s trading hours.Despite severe weather earlier in the year, the company showed resilience during the first quarter. Gaming volumes improved in March and remained stable through April and early May. PENN’s Interactive segment achieved r ...

Core Insights - PENN Entertainment reported $1.67 billion in revenue for Q1 2025, a 4.1% year-over-year increase, with an EPS of -$0.25 compared to -$0.79 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $1.7 billion by 1.74%, while the EPS exceeded the consensus estimate of -$0.29 by 13.79% [1] Revenue Performance by Segment - Northeast segment revenue was $680.90 million, slightly below the estimated $683.75 million, reflecting a year-over-year decrease of 0.6% [4] - South segment revenue reached $288.30 million, exceeding the estimated $287.13 million, but showing a year-over-year decline of 3.4% [4] - West segment revenue was $129.70 million, surpassing the estimated $127.21 million, with a year-over-year increase of 0.7% [4] - Midwest segment revenue was $282.90 million, below the estimated $286.12 million, indicating a year-over-year decrease of 2.9% [4] - Interactive segment revenue was $290.10 million, significantly higher than the estimated $312.88 million, marking a year-over-year increase of 39.7% [4] - Other segment revenue was $5.30 million, below the estimated $6.15 million, reflecting a year-over-year decline of 11.7% [4] - Intersegment eliminations reported a revenue of -$4.70 million, better than the estimated -$7.50 million, with a year-over-year change of -53% [4] Stock Performance - PENN Entertainment's shares have returned -3.5% over the past month, contrasting with the Zacks S&P 500 composite's increase of 11.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

PENN Entertainment (PENN) Q1 2025 Earnings Call May 08, 2025 09:00 AM ET Company Participants Joseph Jaffoni - Founder & PresidentJay Snowden - President & CEOTodd George - EVP - OperationsFelicia Hendrix - EVP & CFOAaron LaBerge - Chief Technology OfficerBarry Jonas - Managing DirectorJohn Decree - Director - Equity ResearchJeffrey Stantial - Managing Director - Gaming & Leisure Conference Call Participants Brandt Montour - Director, Equity Research AnalystCarlo Santarelli - AnalystShaun Kelley - Senior Re ...

PENN Entertainment (PENN) Q1 2025 Earnings Call May 08, 2025 09:00 AM ET Speaker0 Greetings, and welcome to Penn Entertainment First Quarter twenty twenty five Earnings Call. I would now like to turn the conference over to Joe Jaffoni, Investor Relations. Please go ahead. Speaker1 Thanks, Emma. Good morning, everyone, and thank you for joining Pan Entertainment's twenty twenty five First Quarter Conference Call. We'll get to management's presentation and comments momentarily as well as your question and ans ...

FIRST QUARTER 2025 EARNINGS PRESENTATION May 8, 2025 FORWARD-LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward- looking terminology such as "expects," "believes," "estimates," "projects," "intends," "plans," "goal," "seeks," "may," "will," "should," or "anticipates" or the negative or other variations of these or similar words, or by discussions of fut ...

Exhibit 99.1 PENN Entertainment, Inc. Reports First Quarter Results WYOMISSING, PA (May 8, 2025) - PENN Entertainment, Inc. ("PENN" or the "Company") (Nasdaq: PENN) today reported financial results for the quarter ended March 31, 2025. Jay Snowden, Chief Executive Officer and President, said: "PENN's properties demonstrated strong resilience in the quarter following severe weather challenges earlier in the year, as gaming volumes rebounded in March and remained consistent through April and early May. In our ...

Industry Overview - The Consumer Discretionary sector has experienced mixed performance in 2025 due to elevated inflation, high interest rates, and uncertainty in trade and fiscal policies, leading to cautious consumer behavior in discretionary spending categories [1] - Despite a relatively stable job market, inflationary pressures and rising living costs have constrained consumer spending ability [1] - Businesses in the sector face planning challenges due to unpredictable tariff developments affecting sourcing, pricing strategies, and inventory management [1] Earnings Performance - As of April 30, 43.3% of companies in the Zacks Consumer Discretionary sector, representing 60.9% of the sector's market capitalization, reported earnings, with 53.8% beating earnings estimates and 46.2% surpassing revenue estimates [2] - Year-over-year earnings increased by 4% on a 0.7% rise in revenues, influenced by inflationary pressures and fluctuating consumer sentiment, particularly among lower-income households [2] - First-quarter 2025 earnings for the sector are expected to increase by 0.8% year-over-year, a significant decline from the 19% growth in the previous quarter [4] Segment Performance - The leisure and recreation services segment has performed relatively well despite headwinds, driven by a shift in consumer preference towards experience-based spending in fitness, gaming, and entertainment [3] - However, the industry is facing challenges such as rising labor and supply costs, tightening pricing flexibility, and increased competition [3] Company-Specific Insights - Planet Fitness is set to report first-quarter 2025 results, with an Earnings ESP of +0.71% and a Zacks Rank of 3, indicating a potential earnings beat [5][6] - The Zacks Consensus Estimate for Planet Fitness's first-quarter 2025 revenues is $280.7 million, reflecting a 13.2% increase year-over-year, with EPS expected to be 62 cents, up 17% from the previous year [7] - Peloton Interactive is expected to report a revenue decrease of 13.7% year-over-year, with a consensus estimate of $619.7 million and a projected loss per share of 6 cents, an improvement from a loss of 45 cents in the prior year [9] - Xponential Fitness is anticipated to report a revenue decline of 4.3% year-over-year, with revenues pegged at $76.1 million and EPS expected to decline by 6.3% [11] - PENN Entertainment is projected to report first-quarter revenues of $1.7 billion, indicating a 5.9% growth year-over-year, with a consensus loss per share of 29 cents, improving from a loss of 79 cents in the previous year [13]

In its upcoming report, PENN Entertainment (PENN) is predicted by Wall Street analysts to post quarterly loss of $0.29 per share, reflecting an increase of 63.3% compared to the same period last year. Revenues are forecasted to be $1.7 billion, representing a year-over-year increase of 5.9%.The consensus EPS estimate for the quarter has been revised 48.6% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates ...

Cashless Funding Capability Integrated Throughout Gaming Footprint; Represents Everi's First Mobile Wallet Installation in NevadaLAS VEGAS, May 5, 2025 /PRNewswire/ -- Everi Holdings Inc. (NYSE: EVRI) ("Everi" or the "Company"), a premier provider of land-based and digital casino gaming content and products, financial technology, player loyalty solutions, and bingo, today announced the Company's digital CashClub Wallet® technology is powering Penn Entertainment, Inc.'s ("PENN") "PENN Wallet" at M Resort Spa ...