Penn Entertainment fourth quarter 2025 earnings present mixed results for investors

Penn Entertainment, which operates brick-and-mortar casinos across the United States in addition to offering multiple online gaming products in North America, shared its final earnings report for 2025 on Feb. 26. The company reported higher-than-expected revenue to close out the year, which powered earnings but that positive news was tempered by growing expenses and costs associated with previous iGaming strategies.

Penn's presentation to shareholders on Feb. 26 highlighted multiple aspects of the final quarter of 2025. The best news for the company was a revenue total surpassing $1.8 billion for the term, which topped a consensus estimate of $1.7 billion.

As a result, earnings per share came in at $0.07, besting the projection of -$0.16 by a significant margin. Among the factors that Penn CEO Jay Snowden credited for those results was "iCasino momentum."

However, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) came in at $225 million for the quarter. Penn's interactive division contributed to that disappointing result, as the segment produced an EBITDA loss of $39.9 million during Q4.

Penn operates multiple platforms offering some of the best online roulette games in Michigan, New Jersey, Ontario, Pennsylvania, and West Virginia. Those include the Hollywood online casino and theScoreBet iGaming app.

Penn rebranded its online sportsbook to theScoreBet during the final quarter of 2025 as well, which is part of why costs and expenses drug down EBITDA. Those costs are part of why Snowden shared an optimistic appraisal of the company's short-term future. 

Snowden added that Penn expects "break-even EBITDA" in the interactive department in 2026. A discontinuation of payments to ESPN for licensing is a factor in that expectation, as he added that "a more streamlined cost structure" will contribute to improvements in that margin.

ESPN and Penn executed an exit from their relationship in December 2025. Penn had been paying ESPN $150 million per year for the brand licensing and promotional opportunities but those payments have ceased.

Snowden claimed that revenue from players trying their luck at online casino live dealer and other games at Hollywood and theScoreBet was up 40% for Q4 2025 compared to the same term in 2024. At the same time, much of that growth is due to general increases in spending by players in the markets that Penn operates in as opposed to Penn's platforms grabbing a larger share of those markets.

To continue that momentum, Snowden asserted that Penn would focus on regional marketing and appealing to sports bettors who may be interested in iGaming. Marketing spend for the interactive division could continue to be a significant cost for Penn in the near term, especially in competition with offers like the PlayStar Casino promo code for people in New Jersey.

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Penn could realize a cost savings from its realignment of its online gaming strategy, but revenue growth in that segment is dependent on increased customer spending and could be offset by marketing costs. The company's brick-and-mortar casinos will continue to champion any improved bottom-line performance in 2026.

Derek Helling