PENN Entertainment gains after seeing solid casino visitation trends in Q2

PENN Entertainment (NASDAQ:PENN) swung higher in early trading on Thursday after reporting solid results with its second quarter earnings release.

The company’s retail properties generated $1.4 billion in revenue in Q2 and $490 million in adjusted EBITDAR off stable customer demand in the core business. Omnichannel initiatives continued to pay off during the quarter as the online-to-retail player count and theoretical revenue grew by 8% and 28%, respectively. The Interactive segment reached a record gaming revenue level, reporting $316.1 million, though it posted an adjusted EBITDA loss of $62 million, including $2.9 million in severance costs due to strategic workforce changes.

“Property-level performance was highlighted by theoretical revenue growth across all rated age and worth segments, as well as positive trends in unrated play, visitation, and spend per visit,” highlighted CEO Jay Snowden.

On the capital allocation front, PENN Entertainment (NASDAQ:PENN) repurchased 7.25 million shares for $115.3 million this year through June 40, with a total repurchase target of at least $350 million for the year. As of August 2025, $634.4 million remains available under its current authorization.

PENN (PENN) ended the quarter with $1.2 billion in liquidity, including $671.6 million in cash and a net debt of $2.1 billion. The new Hollywood Casino in Joliet is set to open in August as PENN’s first major development in years, while the rest of its projects remain on time and on budget.

Looking ahead, product enhancements such as ESPN BET’s new features and the introduction of FanCenter are expected to support future engagement. The new Hollywood Casino in Joliet is set to open in August as PENN’s first major development in years, while the rest of its projects remain on time and on budget.

Jefferies analyst David Katz said the slightly better than expected land-based business for PENN Entertainment (PENN), coupled with the wider than expected loss in digital, are generally offsetting and neutral for the stock. “The forthcoming catalyst pattern of new land-based projects coming online and expected progress in digital are reasonable to expect, but not yet enough to move the shares meaningfully higher,” he added.

Shares of PENN Entertainment (PENN) were up 2.4% in premarket trading to $17.43 vs. the 52-week range of $13.25 to $23.08.