PENN(PENN) - 2025 Q2 - Quarterly Results

Q2 2025 Earnings Release Overview Management Commentary & Business Highlights 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] - 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] - Omnichannel engagement continues to grow, with online-to-retail player count and theoretical revenue increasing by 8% and 28% year-over-year, respectively[4] - 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] 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 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 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 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 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][31] - 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][33] 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