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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]

Financial Data and Key Metrics Changes - The company reported retail revenue of $1.4 billion and adjusted EBITDAR of $457 million, with adjusted EBITDAR margins at 33.1% [18] - The interactive segment had adjusted revenues of $162 million, with an adjusted EBITDA loss of $89 million, representing a $107 million year-over-year improvement [19][20] - The company ended the quarter with total liquidity of $1.5 billion, including $592 million in cash and cash equivalents [21] Business Line Data and Key Metrics Changes - The retail business experienced a revenue growth of 2% year-over-year across all properties, and 4% excluding those impacted by new supply [9] - The interactive segment faced a negative $10 million EBITDA impact due to customer-friendly sports betting outcomes during March Madness, but still generated record gaming revenue [14] - The standalone iCasino app saw 70% of its theoretical revenue coming from incremental sources, indicating minimal cannibalization from existing offerings [15][82] Market Data and Key Metrics Changes - The company reported significant year-over-year increases in retail theoretical play in Pennsylvania (21%) and Michigan (27%), with online theoretical play increasing by 165% in Pennsylvania and 242% in Michigan [13] - The company noted that it has been gaining market share in 14 of its 17 markets not impacted by new supply year-over-year in Q1 [10] Company Strategy and Development Direction - The company announced plans for a new land-based Hollywood Casino in Council Bluffs, Iowa, expected to enhance customer experience and competitive position [8] - The company is focused on operational execution to transform strategic investments into consistent long-term results and value for shareholders [29] - The company is committed to generating positive interactive EBITDA in 2026 and beyond, with a focus on cross-selling between retail and digital channels [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the core retail business, noting solid employment numbers and low gas prices as positive indicators for regional gaming [27] - The company is mindful of the uncertain economic environment but remains confident in its ability to navigate potential challenges [18] - Management anticipates that each quarter of 2025 will show lower interactive EBITDA losses, culminating in positive EBITDA in the fourth quarter [23] Other Important Information - The company has made strategic investments in properties to enhance entertainment and hospitality amenities, improving guest experience through technology [10] - The company reported a $15 million pretax gain on a financing arrangement, which was resolved and resulted in cash received in 2021 and noncash interest accreted since then [20] Q&A Session Summary Question: What is the outlook for the digital segment? - Management indicated that assumptions for the year remain unchanged, with optimism for growth in both online sports betting and online gaming [33] Question: How far is the iGaming segment from being contribution positive? - Management expressed satisfaction with the standalone iCasino apps, noting that 70% of new customers are incremental and that there is still significant opportunity for cross-selling [34][35] Question: What are the operating expense pressures faced? - Management noted that labor costs are creeping up but are manageable, with effective procurement strategies in place to mitigate cost increases [66] Question: What is the potential impact of skill-based gaming? - Management views skill-based games as needing regulation and taxation similar to traditional gaming, and ongoing discussions are taking place at the legislative level [76] Question: What is the strategy regarding financing for new projects? - Management emphasized the importance of matching financing to project openings and maintaining optionality in financing structures [53][110]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported retail revenue of $1.4 billion and adjusted EBITDAR of $457 million, with adjusted EBITDAR margins at 33.1% [16][20] - The interactive segment reported adjusted revenues of $162 million, with an adjusted EBITDA loss of $89 million, marking a $107 million year-over-year improvement [18][19] - The company ended the quarter with total liquidity of $1.5 billion, including $592 million in cash and cash equivalents [20] Business Line Data and Key Metrics Changes - The retail business saw a revenue growth of 2% year-over-year in April, with a 4% increase when excluding properties impacted by new supply [7] - The interactive segment experienced a negative $10 million EBITDA impact due to customer-friendly sports betting outcomes during March Madness, but still generated record gaming revenue [13][19] - The standalone iCasino app in Pennsylvania and Michigan saw year-over-year increases of 21% and 27% in retail theoretical play, and 165% and 242% in online theoretical play, respectively [12] Market Data and Key Metrics Changes - The company reported that it gained market share in 14 of its 17 markets not affected by new supply year-over-year in Q1 [9] - The competitive landscape remains challenging, but the company is optimistic about its growth projects and market positioning [11][46] Company Strategy and Development Direction - The company announced plans for a new land-based Hollywood Casino in Council Bluffs, Iowa, expected to enhance customer experience and competitive position [6] - The focus remains on operational execution to transform strategic investments into long-term results and shareholder value [28] - The company is committed to providing competitive gaming offerings and enhancing guest experiences through technology and improved amenities [10][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core retail business, noting solid employment numbers and low gas prices as positive indicators for regional gaming [26] - The company anticipates lower interactive EBITDA losses each quarter, aiming for positive EBITDA in the fourth quarter of 2025 and throughout 2026 [21][27] - Management remains cautious about the uncertain economic environment but believes they can mitigate potential impacts through cost reductions [17][18] Other Important Information - The company has repurchased $35 million of shares year-to-date at an average price of $16.83, with plans to increase repurchase activity in the latter half of the year [20] - The company continues to forecast total CapEx for 2025 at $730 million, with $490 million allocated for project CapEx [22][24] Q&A Session Summary Question: Digital outlook and market share for OSB - Management indicated that assumptions for the year remain unchanged, with optimism for growth in both online sports betting and online gaming [32] Question: Contribution positivity of iGaming - Management expressed satisfaction with the standalone iCasino app's performance, noting that 70% of new customers are incremental [34][82] Question: Seasonal impacts and competitive landscape - Management acknowledged upcoming competitive impacts but expressed confidence in new openings offsetting these challenges [46][50] Question: Financing options for projects - Management discussed the importance of matching financing to project openings and the flexibility of financing options available [53][109] Question: OSB marketplace growth - Management noted that 2025 is expected to have fewer state launches, which may lead to muted handle growth compared to previous years [116] Question: Integration with ESPN - Management highlighted the upcoming ESPN DTC product as a significant opportunity for customer growth and retention [123]

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]

Core Viewpoint - PENN Entertainment is expected to report a quarterly loss of $0.29 per share, a 63.3% increase in losses compared to the same period last year, with revenues projected at $1.7 billion, reflecting a year-over-year increase of 5.9% [1] Earnings Estimates - The consensus EPS estimate has been revised down by 48.6% over the last 30 days, indicating a significant reevaluation by analysts [2] - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3] Revenue Projections - Analysts estimate 'Revenues- West segment' to be $127.21 million, a decrease of 1.2% year over year [5] - The 'Revenues- Interactive segment' is projected at $312.88 million, indicating a substantial increase of 50.6% from the prior-year quarter [5] - 'Revenues- Midwest segment' is expected to reach $286.12 million, reflecting a year-over-year decline of 1.8% [5] - 'Revenues- Northeast segment' is projected at $683.75 million, showing a slight decrease of 0.1% from the year-ago quarter [6] - 'Revenues- South segment' is anticipated to be $287.13 million, indicating a year-over-year decline of 3.8% [6] - 'Revenues- Other segment' is expected to reach $6.15 million, reflecting a year-over-year increase of 2.5% [6] Adjusted EBITDAR Estimates - 'Adjusted EBITDAR- Midwest segment' is estimated at $111.47 million, down from $117 million in the previous year [7] - 'Adjusted EBITDAR- West segment' is projected at $45.25 million, slightly lower than the $45.90 million reported in the same quarter last year [7] - 'Adjusted EBITDAR- South segment' is expected to be $104.05 million, down from $113.50 million in the prior year [8] - 'Adjusted EBITDAR- Northeast segment' is projected at $200.12 million, compared to $202.60 million reported in the same quarter last year [8] Stock Performance - Over the past month, shares of PENN Entertainment have returned +12.6%, outperforming the Zacks S&P 500 composite's +11.5% change [8] - Currently, PENN carries a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [8]