Financial Data and Key Metrics Changes - For Q2 2025, the company reported retail revenue of $1.4 billion and adjusted EBITDAR of $490 million, with adjusted EBITDAR margins of nearly 34% [5][6] - Year-over-year revenue growth of 4% was noted in markets not impacted by new supply [5][6] - The interactive segment generated adjusted revenues of $178 million, with an adjusted EBITDA loss of $62 million [15][18] Business Line Data and Key Metrics Changes - The interactive segment achieved record quarterly gaming revenue in both OSB and iCasino, driven by higher holds and continued momentum on standalone iCasino [10][15] - Year-to-date increases in retail theoretical play were 19% in Pennsylvania and 28% in Michigan, while online theoretical play saw increases of 133% in Pennsylvania and 242% in Michigan [10][15] - The average monthly active users (MAUs) in the interactive segment stabilized and increased year-over-year in Q2 2025 [12][15] Market Data and Key Metrics Changes - The company is responding to new supply impacts in key markets, including relocations of Hollywood casinos in Aurora and Joliet to better locations [6][7] - The ongoing construction in Detroit is expected to boost visitation and spending at the Hollywood Greektown Casino [8] - The company anticipates a U.S. OSB handle market share of 3.4% in Q3 and 4% in Q4, with iCasino GGR share expected at 3% in Q3 and 3.2% in Q4 [19][21] Company Strategy and Development Direction - The company plans to enhance guest experiences through property improvements and new non-gaming amenities [7][8] - The opening of the Hollywood Casino Joliet is expected to enhance the portfolio and grow free cash flow [9][25] - The company is focused on operational execution and transforming strategic investments into long-term returns and value creation for shareholders [27][28] Management Comments on Operating Environment and Future Outlook - Management noted that strong employment levels and low gas prices are beneficial tailwinds for the business [36][37] - The company expects to see sequential quarter-over-quarter adjusted EBITDA improvement in the interactive segment for Q3 and Q4 [17][18] - Management remains optimistic about the upcoming football season and the integration of new product features with ESPN [26][70] Other Important Information - The company ended Q2 with total liquidity of $1.2 billion, including $672 million in cash and cash equivalents [16] - Share repurchases totaled $90 million in Q2, with a target of at least $350 million for the year [16][17] - The company does not expect to be a cash taxpayer in 2025, benefiting free cash flow before project CapEx by 40% [23][24] Q&A Session Summary Question: Thoughts on ESPN's potential upside with new DTC products and NFL deal - Management believes these developments will solidify ESPN's position and enhance the ESPN Bet ecosystem [30][32] Question: Retail top-line trends and sustainability - Management attributes strong trends to less new supply and stable employment, which correlates with consumer spending [34][36] Question: Hold percentage in the second quarter - Management reported a hold percentage of 9.8%, indicating improvement and a focus on increasing top-of-funnel engagement [46][48] Question: Interactive segment guidance and promotional plans - Management aims for a realistic approach to guidance, incorporating new launches and tax increases while focusing on market share growth [53][55] Question: Expectations for ESPN Bet in 2026 - Management is focused on achieving profitability in 2026, contingent on meeting targets and improving market share [59][62] Question: Retail project returns and excitement - Management expressed confidence in all four projects, highlighting their strategic locations and expected returns [85][88] Question: Changes in strategy for the upcoming NFL season - Management emphasized eliminating friction in user experience and enhancing product offerings as key strategies for improvement [91][93]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported retail revenue of $1.4 billion and adjusted EBITDAR of $490 million, with adjusted EBITDAR margins of nearly 34% [4][17] - Year-over-year revenue growth of 4% was noted in markets not impacted by new supply [4][5] - The interactive segment generated adjusted revenues of $178 million, with an adjusted EBITDA loss of $62 million [17][19] Business Line Data and Key Metrics Changes - The online to retail player count grew by 8% year over year, and online to retail theoretical revenue increased by 28% year over year [9][10] - In Pennsylvania, retail theoretical play increased by 19% year to date, while online theoretical play surged by 133% [10] - In Michigan, retail theoretical play rose by 28% year to date, and online theoretical play skyrocketed by 242% [10] Market Data and Key Metrics Changes - The company is experiencing challenges in markets like Bossier City, Louisiana, due to new supply impacting visitation and revenue [6][7] - The ongoing construction in Detroit is expected to boost visitation and spending at the Hollywood Greektown Casino [7] - The company anticipates a U.S. OSB handle market share of 3.4% in Q3 and 4% in Q4, with iCasino GGR share expected at 3% in Q3 and 3.2% in Q4 [21][20] Company Strategy and Development Direction - The company is focusing on enhancing guest experiences through property improvements and new amenities [6][7] - The opening of the Hollywood Casino Joliet is expected to enhance the portfolio and grow free cash flow [27][28] - The integration with ESPN and the launch of Fan Center are seen as strategic advantages for the interactive segment [28][72] Management's Comments on Operating Environment and Future Outlook - Management noted that strong employment and low gas prices are positive macroeconomic factors benefiting the business [38][39] - The company expects to see sequential quarter-over-quarter adjusted EBITDA improvement in the interactive segment for Q3 and Q4 [19][20] - Management remains optimistic about the potential for profitability in the interactive division by 2026 [66][29] Other Important Information - The company repurchased $90 million of shares in Q2 at an average price of $15.47 per share, with a target of at least $350 million in share repurchases for 2025 [18][19] - The company ended Q2 with total liquidity of $1.2 billion, including $672 million in cash and cash equivalents [17][18] Q&A Session Summary Question: How should we think about potential upside for ESPN with the upcoming DTC products and NFL deal? - Management believes these developments will solidify ESPN's position and enhance the ESPN Bet ecosystem [34][35] Question: What is driving the strong top-line trends outside of new supply markets? - Management attributes the trends to less new supply, strong employment, and consumer confidence, along with property improvements [38][42] Question: Why didn't the company see better flow-through in Q2 despite strong KPIs? - The impact of new supply in competitive markets and elevated promotional spending affected margins [106][107]

分组1 - PENN Entertainment reported quarterly earnings of $0.1 per share, exceeding the Zacks Consensus Estimate of a loss of $0.04 per share, and showing improvement from a loss of $0.18 per share a year ago, resulting in an earnings surprise of +350.00% [1] - The company posted revenues of $1.77 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.73%, compared to revenues of $1.66 billion in the same quarter last year [2] - Over the last four quarters, PENN Entertainment has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2] 分组2 - PENN Entertainment shares have declined approximately 14.1% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $1.73 billion, and for the current fiscal year, it is $0.73 on revenues of $6.94 billion [7] 分组3 - The Zacks Industry Rank indicates that the Gaming industry is currently in the bottom 42% of over 250 Zacks industries, suggesting that the industry's outlook can significantly impact stock performance [8] - Another company in the same industry, GDEV Inc., is expected to report quarterly earnings of $0.26 per share, reflecting a year-over-year decline of -67.9%, with revenues projected at $89.35 million, down 15.6% from the previous year [9]

Financial Performance - The Interactive segment achieved record quarterly gaming revenue, leading to strong year-over-year improvements in Adjusted Revenue and Adjusted EBITDA[7, 32] - Q2 2025 Adjusted Revenue for the Interactive segment was $178 million, a $28 million increase year-over-year[33] - Q2 2025 Adjusted EBITDA for the Interactive segment improved by $41 million year-over-year[33] - For the first half of 2025, Adjusted Revenue for the Interactive segment was $340 million, a $99 million increase year-over-year[33] - For the first half of 2025, Adjusted EBITDA for the Interactive segment improved by $148 million year-over-year[33] - The company repurchased $115 million of shares year-to-date and aims to repurchase at least $350 million of shares this year[7] Retail Business - The total retail portfolio experienced a 1% revenue growth year-over-year in Q2[9] - Excluding new supply markets, the retail portfolio saw a 4% revenue growth year-over-year in Q2[9] Interactive Segment - Standalone iCasino incrementality is at 73%[39] - Q2 North America iCasino saw a 29% NGR growth year-over-year[39] - Q2 North America iCasino saw a 49% MAU growth year-over-year[39]

Q2 2025 Earnings Release Overview [Management Commentary & Business Highlights](index=1&type=section&id=Management%20Commentary%20%26%20Business%20Highlights) PENN Entertainment's Q2 2025 highlights include solid retail property performance, record Interactive segment gaming revenue driven by product enhancements, and ongoing share repurchases - The Interactive segment generated record gaming revenue, benefiting from product enhancements and the company's omnichannel ecosystem[3](index=3&type=chunk) - Customer demand in the core retail business was stable, with properties not impacted by new supply growing revenue by **nearly 4% year-over-year**[4](index=4&type=chunk) - Omnichannel engagement continues to grow, with online-to-retail player count and theoretical revenue increasing by **8%** and **28% year-over-year**, respectively[4](index=4&type=chunk) - The company is committed to its goal of repurchasing at least **$350 million** of shares in 2025, having already repurchased **$115.3 million** through August 6, 2025[3](index=3&type=chunk) Segment Highlights Q2 2025 | Segment | Metric | Value (in millions) | | :--- | :--- | :--- | | Retail Property Level | Revenues | $1,400.0 | | | Adjusted EBITDAR | $489.6 | | | Adjusted EBITDAR margins | 33.8% | | Interactive | Revenues (incl. tax gross up) | $316.1 | | | Adjusted EBITDA loss | $(62.0) | [Financial Performance Summary](index=4&type=section&id=Financial%20Performance%20Summary) Consolidated revenues grew **6.1%** to **$1.765 billion** in Q2 2025, primarily driven by a **35.9%** increase in the Interactive segment, with net loss improving to **$18.3 million** [Capital Management & Financial Position](index=3&type=section&id=Capital%20Management%20%26%20Financial%20Position) PENN Entertainment maintained a strong liquidity position of **$1.2 billion**, actively managed its capital structure through **$90.3 million** in stock repurchases, and improved its lease-adjusted net leverage ratio to **7.1x** [Detailed Financial Statements](index=7&type=section&id=Detailed%20Financial%20Statements) The unaudited consolidated financial statements detail a net loss of **$18.3 million**, with **$671.6 million** in cash, **$2.8 billion** in total traditional debt, and capital expenditures increasing to **$159.4 million** [Non-GAAP Financial Measures & Reconciliations](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This section defines and reconciles non-GAAP financial measures, including Adjusted EBITDA and Adjusted EBITDAR, to provide insights into operational performance by adjusting for various non-cash and financing-related items Reconciliation of Net Loss to Adjusted EBITDAR (Q2 2025, in millions) | Description | Amount | | :--- | :--- | | Net loss | $(18.3) | | Add back: Income tax expense | $6.4 | | Add back: Interest expense, net | $95.9 | | Other adjustments (D&A, stock comp, etc.) | $152.1 | | **Adjusted EBITDA** | **$236.1** | | Add back: Rent expense associated with triple net operating leases | $156.0 | | **Adjusted EBITDAR** | **$392.1** | - The company defines Adjusted EBITDA as earnings adjusted for interest, taxes, D&A, stock-based compensation, and other specific items, used by management to analyze business performance[30](index=30&type=chunk)[31](index=31&type=chunk) - Adjusted EBITDAR is defined as Adjusted EBITDA plus rent expense from triple-net operating leases, considered a key valuation metric by analysts for gaming companies with such lease structures[32](index=32&type=chunk)[33](index=33&type=chunk) [Appendix](index=11&type=section&id=Appendix) The appendix includes investor conference call logistics, a corporate overview of PENN Entertainment's operations across 28 jurisdictions, and a standard forward-looking statements disclaimer outlining potential future risks

Core Viewpoint - Rush Street Interactive Inc. has demonstrated significant growth in its second-quarter earnings, leading to a notable increase in its stock price, suggesting a positive outlook for the online gaming industry as a whole [1][4][13]. Company Performance - Rush Street's revenue grew by 22% year-over-year, reaching record levels, while EBITDA increased by 88% during the same period [4]. - The growth was driven by a 25% increase in revenue from the online casino segment and a 15% increase from sports betting [4]. - The company reported a year-over-year surge in monthly active users of 30% in North America and 40% in Latin America [6]. - Rush Street remains debt-free with cash reserves of $241 million and has raised its full-year revenue and EBITDA growth guidance to 16% and 51%, respectively [7]. Industry Context - The strong performance of Rush Street may indicate a broader trend of growth within the online gaming sector, particularly as competitors like PENN Entertainment prepare to report their earnings [2][3]. - Advances in AI, user experience, and data-driven personalization are contributing to a favorable environment for online gaming companies [2]. - The recent earnings miss by DraftKings raises questions about whether Rush Street's success is indicative of a broader industry trend or specific to the company itself [15]. Analyst Sentiment - Analysts are generally bullish on Rush Street, with eight out of ten rating it a Buy, despite the stock price exceeding the consensus price target of around $18 per share [7]. - The stock forecast suggests a potential downside of 8.61% from the current price of $19.58, with a 12-month price target of $17.89 [5][6].

Core Viewpoint - Wall Street analysts anticipate PENN Entertainment will report a quarterly loss of -$0.04 per share, reflecting a year-over-year increase of 77.8%, with revenues expected to reach $1.73 billion, up 4.3% from the previous year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been revised downward by 8.6%, indicating a collective reassessment by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are strongly correlated with short-term stock price performance [3]. Revenue Projections - Analysts predict the 'Revenues- West segment' will be $134.80 million, a decrease of -0.4% year-over-year [5]. - The 'Revenues- Interactive segment' is expected to reach $303.10 million, indicating a significant increase of +30.3% year-over-year [5]. - The 'Revenues- Midwest segment' is forecasted at $297.94 million, showing a slight decrease of -0.1% from the previous year [5]. - The 'Revenues- Northeast segment' is estimated to be $707.63 million, reflecting a +1.6% change year-over-year [6]. - The 'Revenues- South segment' is projected at $298.81 million, indicating a +0.2% change from the prior year [6]. - The 'Revenues- Other segment' is expected to be $6.10 million, showing a +3.4% increase year-over-year [6]. Adjusted EBITDAR Estimates - The 'Adjusted EBITDAR- Midwest segment' is estimated at $124.57 million, down from $129.90 million reported in the same quarter last year [7]. - The 'Adjusted EBITDAR- West segment' is forecasted to be $50.17 million, slightly lower than the $50.60 million reported in the previous year [7]. - The 'Adjusted EBITDAR- South segment' is expected to be $109.24 million, down from $111.40 million reported last year [8]. - The 'Adjusted EBITDAR- Northeast segment' is projected at $203.58 million, compared to $204.70 million reported in the same quarter last year [8]. Stock Performance - PENN Entertainment shares have experienced a -5% return over the past month, contrasting with a +0.5% change in the Zacks S&P 500 composite [8].

Group 1 - PENN Entertainment is expected to report a year-over-year increase in earnings, with a projected quarterly loss of $0.04 per share, reflecting a change of +77.8% [3][12] - Revenues for PENN are anticipated to be $1.73 billion, which is a 4.3% increase from the same quarter last year [3] - The consensus EPS estimate has been revised 8.61% lower over the last 30 days, indicating a reassessment by analysts [4] Group 2 - The Zacks Earnings ESP for PENN is +23.32%, suggesting a bullish outlook from analysts regarding the company's earnings prospects [12] - The stock currently holds a Zacks Rank of 3, indicating a hold position [12] - Historically, PENN has beaten consensus EPS estimates three out of the last four quarters, with a recent surprise of +13.79% [13][14] Group 3 - Super Group (SGHC) Limited, another player in the gaming industry, is expected to report earnings per share of $0.13, representing a year-over-year change of +62.5% [18] - Revenues for Super Group are projected to be $503 million, up 12.7% from the previous year [18] - The consensus EPS estimate for Super Group has been revised 16.7% lower over the last 30 days, with an Earnings ESP of 0% [19]

Group 1 - PENN Entertainment is showing a bullish trend as it has crossed above the 20-day moving average, indicating a potential upward movement in stock price [1][2] - The stock has gained 5.2% over the past four weeks, suggesting positive momentum [4] - There have been five upward revisions in earnings estimates for the current fiscal year, with no downward revisions, reinforcing the bullish outlook [4][5] Group 2 - The Zacks Rank for PENN is currently 3 (Hold), indicating that the stock may continue to rise [4] - The combination of positive earnings estimate revisions and technical indicators suggests that investors should monitor PENN for potential gains [5]

Group 1 - PENN Entertainment (PENN) has surpassed resistance at the 200-day moving average, indicating a long-term bullish trend [1] - The stock has moved 5.2% higher over the last four weeks, suggesting potential for further rallies [2] - There have been 5 upward revisions in earnings estimates for the current fiscal year, with no downward revisions, reinforcing the bullish outlook [3] Group 2 - The 200-day simple moving average is a key technical indicator that helps determine long-term market trends and serves as a support or resistance level [2] - PENN is currently rated as a Zacks Rank 3 (Hold), indicating a neutral stance on the stock [2] - The positive movement in earnings estimate revisions adds to the case for investors to consider adding PENN to their watchlist [3]