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PENN Entertainment (NASDAQ:PENN) presented its second quarter 2025 earnings results on August 7, showing improved performance in its Interactive segment and stability in its retail operations despite competitive pressures in several markets. The company’s stock was up 1.88% in premarket trading after closing at $17.02 on August 6.
Quarterly Performance Highlights
PENN reported that its diverse portfolio of retail properties delivered another solid quarter, with total retail revenue growing 1% year-over-year. Markets not impacted by new competition performed even better, showing 4% revenue growth compared to the same period last year.
The company’s Interactive segment demonstrated significant progress toward profitability, generating record gaming revenue while substantially reducing losses. For Q2 2025, the segment reported Adjusted Revenue of $178 million, up from $151 million in Q2 2024, while Adjusted EBITDA improved to -$62 million from -$103 million in the prior year.
As shown in the following chart of the Interactive segment’s financial improvement:
"Our Interactive segment continues to make substantial progress toward profitability," the company stated in its presentation. First-half results for 2025 showed even more dramatic improvement, with Adjusted Revenue increasing by $99 million to $340 million and Adjusted EBITDA losses narrowing by $148 million to -$151 million compared to the first half of 2024.
The company also highlighted its ongoing capital return program, noting it has repurchased $115 million in shares year-to-date and remains committed to repurchasing at least $350 million in 2025.
Retail Business and Development Projects
PENN’s retail business remained stable throughout Q2 and into July, with the company noting that its geographic diversity helped offset impacts from new competition in certain markets.
As illustrated in this map of PENN’s retail operations:
The company is actively addressing competitive pressures through strategic relocations and property enhancements. Most notably, Hollywood Casino (EPA:CASP) Joliet is set to open its new location on August 11, 2025. The relocated casino will feature approximately 1,000 slots, 43 live table games, an ESPN BET retail sportsbook, and a partnership with celebrity chef Giada De Laurentiis for a restaurant called "Sorellina by Giada."
The following image shows the new Hollywood Casino Joliet:
Other development projects remain on schedule and on budget, including the M Resort Hotel Tower, Hollywood Columbus (WA:CLC) Hotel Tower, and Hollywood Aurora Relocation (all targeted for first half of 2026), as well as the Hollywood Council Bluffs Relocation (planned for late 2027 to early 2028).
Interactive Segment Progress
PENN’s Interactive segment showed notable improvement as it moves toward profitability. The company highlighted the strength of its omni-channel strategy, which appears to be driving significant cross-platform engagement.
The following chart demonstrates the benefits of PENN’s omni-channel approach in key markets:
In Pennsylvania, players who engaged with both retail and online offerings increased their retail theoretical win by 19% year-over-year, while their online theoretical win surged by 133%. Michigan showed even stronger results, with 28% growth in retail theoretical win and a remarkable 242% increase in online theoretical win.
The company’s iCasino performance was particularly strong, with record cross-sell percentages in June 2025, 73% standalone incrementality, 49% growth in monthly active users, and 29% growth in net gaming revenue compared to Q2 2024.
As shown in this chart of iCasino market share:
Strategic Initiatives and Product Enhancements
PENN highlighted several product enhancements designed to improve user experience and engagement. These include UI/UX improvements, account linking updates, and new iCasino content.
The company also announced the upcoming launch of FanCenter before the football season, which will seamlessly connect the ESPN ecosystem to enable players to bet on their favorite teams, players, and fantasy lineups through ESPN BET.
The following image previews the FanCenter interface:
"FanCenter will create a seamless connection between the ESPN ecosystem and ESPN BET, allowing users to easily place wagers based on their favorite teams, players, and fantasy lineups," the company explained.
Forward-Looking Statements
While PENN’s presentation painted an optimistic picture of its progress, it’s worth noting that the company missed earnings expectations in Q1 2025, reporting an EPS of -$0.25 against a forecast of -$0.19. The Interactive segment, while improving, continues to operate at a loss.
The company faces ongoing challenges from new competition in several markets, including Chicagoland, Council Bluffs, Bossier City, and Downtown Detroit. However, PENN appears to be taking proactive measures through strategic relocations and property enhancements to address these competitive pressures.
Looking ahead, PENN’s focus remains on bringing its Interactive segment to profitability while maintaining the stability of its retail operations. The company’s strategic partnership with ESPN and its omni-channel approach appear to be key elements of its long-term strategy as it navigates a competitive and evolving gaming landscape.
For investors, the significant improvement in the Interactive segment’s financial metrics may signal a turning point, though the segment has yet to achieve profitability. The company’s continued share repurchases suggest management confidence in its strategic direction despite recent stock price volatility.
Full presentation:
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