WYOMISSING, Pa.--(BUSINESS WIRE)--PENN Entertainment, Inc. ("PENN†or the "Company†) (Nasdaq: PENN) today reported financial results for the three and nine months ended September 30, 2025, and announced a realignment of its digital focus following the mutual decision for an early termination (the "Termination Agreement†) of its U.S. online sports betting ("OSB†) agreement with ESPN, Inc. ("ESPN†). Pursuant to the agreed termination, the Company's OSB marketing exclusivity with ESPN will end on. ...

Exhibit 99.1 WYOMISSING, PA (November 6, 2025) - PENN Entertainment, Inc. ("PENN" or the "Company") (Nasdaq: PENN) today reported financial results for the three and nine months ended September 30, 2025, and announced a realignment of its digital focus following the mutual decision for an early termination (the "Termination Agreement") of its U.S. online sports betting ("OSB") agreement with ESPN, Inc. ("ESPN"). PENN Entertainment, Inc. Reports Third Quarter Results and Announces Realignment of Digital Focu ...

Core Insights - The article compares PENN Entertainment (PENN) and Red Rock Resorts (RRR) to determine which stock offers better value for investors [1] Valuation Metrics - PENN has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to RRR, which has a Zacks Rank of 4 (Sell) [3] - PENN's forward P/E ratio is 25.22, while RRR's forward P/E is 32.09, suggesting PENN is more attractively priced [5] - PENN's PEG ratio is 0.60, indicating better value relative to expected earnings growth compared to RRR's PEG ratio of 2.29 [5] - PENN's P/B ratio is 0.87, significantly lower than RRR's P/B of 20.73, further supporting PENN's valuation advantage [6] - Based on these metrics, PENN earns a Value grade of B, while RRR receives a Value grade of C [6] Conclusion - Overall, PENN is positioned as the superior value option due to its solid earnings outlook and favorable valuation metrics compared to RRR [7]

Core Viewpoint - PENN Entertainment (PENN) has experienced a significant downtrend, with an 11.1% decline in stock price over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 indicating that a stock may be oversold [2]. - PENN's current RSI reading is 29.58, indicating that the heavy selling pressure may be exhausting itself, and a price reversal could be imminent [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts regarding PENN's earnings estimates, with a 14.1% increase in the consensus EPS estimate over the last 30 days, suggesting potential price appreciation [7]. - PENN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which further supports the likelihood of a near-term turnaround [8].

We recently published 10 Stocks Taking a Nosedive. PENN Entertainment Inc. (NASDAQ:PENN) is one of the worst performers on Wednesday. PENN Entertainment dropped for a 4th consecutive day on Wednesday, slashing 5.74 percent to close at $16.90 apiece as investors sold off positions in gaming stocks amid threats posed by the surging prediction markets. PENN Entertainment Inc. (NASDAQ:PENN) dropped alongside its counterparts, including Caesars Entertainment Inc. (NASDAQ:CZR), with the overall sector facing p ...

Core Insights - The sale of Barstool Sports by Dave Portnoy to Penn Entertainment for approximately $551 million highlights the potential of entrepreneurship as a significant wealth-building strategy in the U.S. [1][5] - Portnoy's subsequent repurchase of Barstool for just $1 illustrates unique circumstances that allowed him to regain control of the company [5] - The sale was influenced by Penn's strategic partnership with ESPN, which necessitated a rebranding of its sports betting service, leading to operational challenges for Barstool under Penn's ownership [2][3] Company Overview - Barstool Sports was sold to Penn Entertainment for $551 million, but Portnoy later repurchased it for $1, indicating a remarkable turnaround [5] - Penn Entertainment's CEO, Jay Snowden, acknowledged the difficulties faced by Barstool Sports in the heavily regulated gambling industry, which conflicted with Portnoy's controversial public persona [3][4] Industry Context - The gambling industry is characterized by strict regulations and licensing requirements, which can complicate ownership dynamics, as highlighted by Penn's challenges in maintaining licenses due to Portnoy's image [3] - The article emphasizes that while entrepreneurship can lead to significant wealth, it also carries risks, with a notable 65% failure rate for new businesses within the first decade [6][7]

Core Points - PENN Entertainment, Inc. will release its 2025 third quarter financial results on November 6, 2025, at 7:00 a.m. ET [1] - A conference call and webcast will follow at 9:00 a.m. ET, which is open to the general public [1] - The conference call can be accessed by calling 203-518-9765 with the conference ID: PENN, and participants are advised to call five minutes in advance [1]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] - Each stock receives a rating from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales to find attractive investment opportunities [3] Growth Score - The Growth Score assesses a company's future prospects by analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth potential [4] Momentum Score - The Momentum Score helps investors capitalize on price trends by evaluating recent price changes and earnings estimate revisions to identify favorable buying opportunities [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores to identify stocks with the best overall characteristics, serving as a strong indicator alongside the Zacks Rank [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.75% since 1988 [7][10] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for maximizing return potential [9] Company Spotlight: PENN Entertainment - PENN Entertainment, established in 1982, is a prominent owner and manager of gaming and racing facilities, focusing on slot machine entertainment [11] - Currently rated 3 (Hold) by Zacks, PENN has a VGM Score of A and a Momentum Style Score of B, with shares increasing by 1.4% over the past month [12] - Recent upward revisions in earnings estimates for fiscal 2025 have led to a consensus estimate increase of $0.32 to $0.72 per share, with an average earnings surprise of +92.7% [12][13]

Group 1: Industry Performance - The gaming industry showed significant divergence in the latest Q2 results, with 8 companies exceeding expectations, 2 meeting expectations, and 2 falling short [1] - Strong performance from Wynn Resorts highlighted its strength in the high-end market despite overall weakness in the Las Vegas Strip [1] - Local consumer performance in Las Vegas was notably strong, and changes in the "Big Beautiful Act" positively impacted free cash flow [1] Group 2: Company-Specific Insights - Bank of America reiterated a "Buy" rating for Wynn Resorts with a target price of $125, expecting Q3 EBITDA in Macau to be $272 million, slightly above market expectations [1] - Penn Entertainment's full-year EBITDA guidance was lowered from $400 million to $200 million, reflecting a cautious outlook for market share in the second half [2] - Sportradar reported Q2 revenues/EBITDA of €318 million/€64 million, slightly above Bank of America's expectations, and raised its full-year guidance [2]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) PENN Entertainment's unaudited Q2 2025 financials report $1.765 billion revenue, an $18.3 million net loss, and H1 net income of $93.2 million, boosted by a one-time gain [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) PENN Entertainment's balance sheet as of June 30, 2025, reports total assets of **$15.21 billion**, liabilities of **$12.22 billion**, and stockholders' equity of **$2.98 billion**, reflecting an increase in equity | (in millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $1,095.6 | $1,154.4 | | **Total assets** | **$15,206.7** | **$15,261.7** | | **Total current liabilities** | $1,392.9 | $1,415.1 | | **Total liabilities** | **$12,224.1** | **$12,403.3** | | **Total stockholders' equity** | **$2,982.6** | **$2,858.4** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 revenues were **$1.765 billion** with an **$18.3 million** net loss, while H1 2025 achieved **$93.2 million** net income, a turnaround driven by a one-time gain | (in millions, except per share data) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | $1,765.0 | $1,663.0 | $3,437.5 | $3,269.9 | | **Operating income** | $77.5 | $74.5 | $120.3 | $53.1 | | **Net income (loss)** | $(18.3) | $(27.1) | $93.2 | $(142.0) | | **Diluted earnings (loss) per share** | $(0.12) | $(0.18) | $0.59 | $(0.93) | - A one-time gain on a financing arrangement of **$215.1 million** significantly contributed to the net income for the six months ended June 30, 2025[12](index=12&type=chunk) [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Q2 2025 total comprehensive income was **$74.0 million**, a substantial improvement from Q2 2024, primarily due to a **$92.3 million** positive foreign currency translation adjustment | (in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net income (loss)** | $(18.3) | $(27.1) | $93.2 | $(142.0) | | **Foreign currency translation adjustment** | $92.3 | $(19.5) | $92.0 | $(55.5) | | **Total comprehensive income (loss)** | **$74.0** | **$(46.6)** | **$185.2** | **$(197.5)** | [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity increased from **$2.86 billion** to **$2.98 billion** by Q2 2025, driven by net income and currency adjustments, partially offset by **$115.3 million** in share repurchases - During the six months ended June 30, 2025, the company repurchased **7,249,349 shares** for a total cost of **$115.3 million**[19](index=19&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 net cash from operating activities significantly increased to **$220.1 million**, with investing activities using **$272.5 million** due to higher capital expenditures, and financing providing **$28.3 million** | (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $220.1 | $81.7 | | **Net cash used in investing activities** | $(272.5) | $(146.1) | | **Net cash provided by (used in) financing activities** | $28.3 | $(128.6) | | **Change in cash, cash equivalents, and restricted cash** | $(23.3) | $(193.9) | - Capital expenditures increased to **$284.6 million** in H1 2025 from **$129.6 million** in H1 2024[22](index=22&type=chunk) - Financing activities in H1 2025 included **$567.5 million** in proceeds from the revolving credit facility, offset by **$223.8 million** in convertible debt repurchases and **$115.3 million** in common stock repurchases[24](index=24&type=chunk) [Notes to the Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section details accounting policies, segment performance, long-term debt, lease agreements, and ESPN partnership commitments, providing further context to the financial statements - The company operates under five reportable segments: Northeast, South, West, Midwest, and Interactive[33](index=33&type=chunk) - In Q2 2025, the company repurchased **$223.8 million** of its 2.75% Convertible Notes, resulting in an **$11.8 million** loss on early extinguishment of debt[69](index=69&type=chunk) - The strategic agreement with ESPN involves annual cash payments of **$150.0 million** and warrant issuance; H1 2025 recognized **$75.0 million** expense for the Sportsbook Agreement and **$28.5 million** for the Investment Agreement[112](index=112&type=chunk)[116](index=116&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, strategic initiatives, and liquidity, highlighting strong Interactive segment growth, mixed retail results, ongoing development projects, and solid liquidity despite increased capital expenditures [Executive Overview](index=38&type=section&id=Executive%20Overview) This overview details PENN's integrated entertainment and gaming business, emphasizing its ESPN partnership, theScore ownership, major development projects, and omni-channel growth strategy leveraging retail casinos and media assets - The company is executing a highly differentiated strategy centered on its partnership with ESPN and ownership of theScore to expand its customer ecosystem through organic cross-sell opportunities[181](index=181&type=chunk) - Four major development projects are underway: the relocation of Hollywood Casino Joliet (opening Aug 2025) and Hollywood Casino Aurora (opening H1 2026), and hotel additions at M Resort and Hollywood Casino Columbus (both opening H1 2026)[182](index=182&type=chunk)[186](index=186&type=chunk)[187](index=187&type=chunk)[188](index=188&type=chunk) - A new project to relocate the Ameristar Council Bluffs riverboat to a land-based facility, rebranded as Hollywood Casino Council Bluffs, was announced with an anticipated cost of **$180-$200 million**[190](index=190&type=chunk) [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Q2 2025 consolidated revenues grew **6.1%**, driven by a **35.9%** increase in the Interactive segment, with mixed retail performance; H1 net income was aided by a one-time gain | (dollars in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $1,765.0 | $1,663.0 | $3,437.5 | $3,269.9 | | **Net income (loss)** | $(18.3) | $(27.1) | $93.2 | $(142.0) | | **Adjusted EBITDA** | $236.1 | $212.1 | $409.4 | $313.5 | - The Interactive segment's revenues increased by **35.9%** in Q2 2025 YoY, and its Adjusted EBITDA loss improved from **$(102.8) million** to **$(62.0) million**[244](index=244&type=chunk) - General and administrative expenses increased, partly due to **$9.4 million** in Q2 and **$17.1 million** in H1 2025 of legal and advisory costs related to activist shareholder activity[217](index=217&type=chunk) [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) H1 2025 operating cash flow significantly increased to **$220.1 million**, with anticipated 2025 capital expenditures of **$730 million**, total debt of **$2.8 billion**, and **$115.3 million** in H1 share repurchases | (dollars in millions) | Six Months Ended June 30, 2025 | | :--- | :--- | | **Net cash provided by operating activities** | $220.1 | | **Net cash used in investing activities** | $(272.5) | | **Net cash provided by financing activities** | $28.3 | - For 2025, the company anticipates capital expenditures of approximately **$240.0 million** for maintenance and **$490.0 million** for projects, largely related to the PENN Development Projects[265](index=265&type=chunk) - During H1 2025, the company repurchased **7.2 million shares** for **$115.3 million**; as of August 6, 2025, **$634.4 million** remained available under the share repurchase authorization[273](index=273&type=chunk)[274](index=274&type=chunk) [Item 3. Quantitative and Qualitative Disclosure About Market Risk](index=55&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) The company's primary market risks are interest rate fluctuations on **$1.9 billion** variable-rate debt and foreign currency exchange rates from Canadian operations, which generated a **$92.0 million** unrealized gain in H1 2025 - The company is exposed to interest rate risk on its **$1.9 billion** of variable-rate debt outstanding under its Amended Credit Facilities as of June 30, 2025[292](index=292&type=chunk) - Exposure to foreign currency translation risk from Canadian operations (theScore) resulted in an unrealized gain of **$92.0 million** for the six months ended June 30, 2025, compared to a loss of **$55.5 million** in the prior year period[295](index=295&type=chunk) [Item 4. Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during Q2 2025 - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[296](index=296&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[297](index=297&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in a lawsuit filed by HG Vora Capital Management, LLC, alleging breaches of fiduciary duty and securities law violations related to board composition and proxy materials - HG Vora Capital Management, LLC filed a lawsuit against PENN and its board alleging violations of Pennsylvania's Business Corporation Law, breach of fiduciary duties, and federal securities law violations concerning board reduction and misleading proxy statements[300](index=300&type=chunk) - The court has stayed the breach of fiduciary duty claim for 30 days but allowed other claims to proceed; the company has filed a motion to dismiss the non-stayed claims[300](index=300&type=chunk) [Item 1A. Risk Factors](index=57&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, emphasizing sensitivity to discretionary consumer spending, and detailing risks from shareholder activism, including the ongoing HG Vora litigation, which could cause disruption and costs - The company's business is sensitive to economic downturns and inflation that impact discretionary consumer spending[302](index=302&type=chunk) - Shareholder activism, such as recent actions by HG Vora, poses a risk of increased costs, business disruption, diversion of management attention, and potential litigation[304](index=304&type=chunk)[306](index=306&type=chunk) - The ongoing lawsuit filed by HG Vora related to the 2025 annual meeting could result in substantial costs, divert management resources, and have adverse implications for gaming licenses[307](index=307&type=chunk)[308](index=308&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, the company repurchased **5,835,467 shares** at an average price of **$15.47** per share, with **$634.4 million** remaining under the repurchase authorization as of June 30, 2025 | Period | Total Shares Purchased (Program) | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | 511,923 | $14.87 | | May 2025 | 2,450,950 | $15.36 | | June 2025 | 2,872,594 | $15.68 | | **Q2 2025 Total** | **5,835,467** | **$15.47** | [Item 5. Other Information](index=59&type=section&id=Item%205.%20Other%20Information) The company entered a new executive employment agreement with CEO Jay Snowden, effective through January 1, 2029, with an annual base salary of **$1.8 million** and a target annual bonus of **250%** of his base salary - A new Executive Agreement was signed with CEO Jay Snowden on August 5, 2025, with a term extending to January 1, 2029[313](index=313&type=chunk) - The agreement sets Mr. Snowden's annual base salary at **$1.8 million** and his target annual bonus at **250%** of his base salary[313](index=313&type=chunk) [Item 6. Exhibits](index=60&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the 10-Q report, including the new executive agreement for CEO Jay Snowden and the amended 2022 Long Term Incentive Compensation Plan - Key exhibits filed include the Executive Agreement for CEO Jay Snowden and the amended 2022 Long Term Incentive Compensation Plan[320](index=320&type=chunk)