PENN Entertainment reported Q2 2026 revenue of $1.86 billion, up 5.2% from $1.77 billion a year earlier, while GAAP diluted EPS improved to $0.24 from a loss of $0.12.

Net income turned positive and consolidated adjusted EBITDA rose 32.4%, with most of the increase coming from a narrower Interactive loss alongside higher retail earnings.

Revenue increased by $92.4 million year over year, while operating expenses rose by a more modest $38.2 million. This widened operating income and moved PENN from a net loss to a quarterly profit despite higher interest expense and increased pre-opening and transaction-related costs.

PENN’s four retail regions generated combined revenue of approximately $1.51 billion, up about 3.9%, and Segment Adjusted EBITDAR of $517.2 million, up 5.6%. The resulting Retail margin increased to 34.4% from approximately 33.8% a year earlier.

Interactive revenue grew on a reported basis, while its adjusted EBITDA loss narrowed substantially. Performance varied across the retail regions, with West recording the fastest revenue growth but more limited EBITDAR growth.

The Interactive segment benefited from record quarterly revenue at the standalone Hollywood iCasino and growth in Ontario sports betting and iCasino activity. However, its reported revenue included a $185.5 million tax gross-up, up from $137.9 million a year earlier. The $47.6 million increase in that gross-up exceeded the segment’s total reported revenue increase of $33.3 million, so reported revenue growth should not be viewed as a direct measure of underlying customer gaming growth.

CEO Jay Snowden said retail demand remained broad-based and that the company continued to focus on Segment Adjusted EBITDAR growth, lower corporate overhead, cash flow and balance-sheet deleveraging. Management also said favorable Retail and Interactive trends continued through July, although it did not quantify those trends.