PENN Entertainment Q2 2025 Earnings: Revenues Exceed Expectations, EPS Falls Short

PENN Entertainment reported Q2 2025 revenues of $1.77 billion, up 6.1% YoY, beating expectations. However, net loss narrowed by 35% to $17.4 million, and EPS improved to $0.12, missing analyst estimates. The company's shares are down 1.7% from a week ago. PENN Entertainment's revenue is forecast to grow 5.3% p.a. over the next three years.

PENN Entertainment, Inc. (Nasdaq: PENN) reported its fiscal 2025 Q2 earnings on August 7, 2025, showcasing a 6.1% year-over-year (YoY) revenue growth to $1.76 billion, exceeding market expectations. The company's net loss narrowed by 35% to $17.4 million, and earnings per share (EPS) improved to $0.12, though it missed analyst estimates. Despite the positive financial performance, the company's shares fell 1.7% from a week ago.

Revenue
PENN Entertainment's total revenue for 2025 Q2 grew by 6.1% YoY to $1.76 billion, driven by strong performance across its core segments. Gaming operations, the largest contributor, generated $1.37 billion, reflecting the company’s robust retail presence and successful online gaming integration. Complementing this, the food, beverage, hotel, and other ancillary services segment contributed $397.30 million, rounding out the total revenue [1].

Earnings/Net Income
The company improved its financial performance in 2025 Q2, narrowing its loss per share to $0.12 from $0.18 in the prior-year period, a 33.3% improvement. The company also reduced its net loss to $-18.30 million, down from $-27.10 million in 2024 Q2, marking a 32.5% reduction in losses. This reflects progress in cost management and operational efficiency [1].

Price Action
The stock of PENN Entertainment has experienced downward pressure in recent sessions, with a 1.86% drop on the latest trading day. Over the past week, it has fallen 6.31%, and 7.59% month-to-date, indicating investor caution ahead of and following the earnings release [1].

Post Earnings Price Action Review
The post-earnings price action following PENN’s 2025 Q2 report showed a significantly negative performance. A strategy of buying shares after the company’s positive revenue quarter and holding for 30 days returned -43.76%, sharply underperforming the 50.66% benchmark return. Over a three-year period, the strategy yielded an excess return of -94.42%, a CAGR of -17.80%, and a Sharpe ratio of -0.35, suggesting high risk with no positive risk-adjusted returns. Despite a reported maximum drawdown of 0.00%, the overall performance was highly disappointing for investors [1].

CEO Commentary
Jay Snowden, Chief Executive Officer and President, highlighted strong performance from PENN’s retail properties, with $1.4 billion in revenues and 33.8% Adjusted EBITDAR margins. He noted record online gaming revenue driven by product enhancements and omnichannel integration, with 8% and 28% year-over-year growth in online-to-retail player count and theoretical revenue, respectively. Snowden emphasized strategic workforce adjustments for efficiency and scalability and mentioned the upcoming opening of the Hollywood Casino in Joliet on August 11, 2025. The tone was optimistic, reflecting confidence in performance and development progress [1].

Guidance
PENN did not issue specific revenue or earnings guidance for the remainder of 2025. However, management reiterated its commitment to operational efficiency, product innovation, and execution on development projects.

Additional News
On the corporate finance front, PENN reaffirmed its share repurchase commitment for 2025, with at least $350 million set for repurchases. As of June 30, the company had spent $115.3 million to repurchase 7.25 million shares. Additionally, PENN executed a $233.5 million note repurchase transaction to reduce potential dilution, with $634.4 million remaining under its current authorization. These moves signal a strong focus on capital return and shareholder value enhancement [1].

References:
[1] https://www.ainvest.com/news/penn-entertainment-2025-q2-earnings-narrowed-losses-revenue-growth-2508/
[2] https://www.businesswire.com/news/home/20250807655083/en/PENN-Entertainment-Inc.-Reports-Second-Quarter-Results