Penn Entertainment has swung back into profit for Q2 2026, posting a net income of $32.6m after a challenging stretch of quarterly losses.
The turnaround marks a significant improvement from Q2 last year, when the operator recorded losses of $18.3m across the same period.
Penn had already been moving in the right direction in Q1 2026, narrowing its losses to just $2.8m before returning fully to profitability this quarter.
A 5% uptick in revenue helped push the company back into the black, with total revenue for the quarter reaching $1.86bn.
Despite the return to profit, earning power remains below the last time Penn turned a quarterly profit, which was Q1 2025, when net income hit $111.5m.
Consolidated adjusted EBITDA rose 32% year-on-year, climbing from $236.1m to $312.6m, signalling a steady recovery in underlying profitability across the business.
The company’s diluted earnings per common share also returned to positive territory for the quarter, landing at $0.24.
Jay Snowden pointed to several strategic priorities executed during Q2, including delivering segment adjusted EBITDAR growth, optimising corporate overheads, growing cash flow, and deleveraging the balance sheet.
Every segment of the business contributed positively to the recovery, with northeast, south, west, midwest, and interactive divisions all improving their EBITDA figures compared to 2025.
Southern segment revenues did decrease marginally during the period, and the interactive division continues to operate at a loss, though both situations are showing signs of gradual improvement.
The Q2 reporting period also encompassed significant layoffs within the interactive division, with at least 75 employees dismissed across multiple levels of the theScore Bet brand in May.
Long-term challenges in the interactive space have lingered since the ESPN Bet branding deal was retired prematurely in 2025, representing a costly chapter for the company.
Penn has since refocused its interactive strategy on the Canadian market, and that pivot appears to be bearing fruit with interactive division losses narrowing sharply to $9.5m in Q2 2026, compared to $62m in 2025.
Snowden says that growth in US iCasino and Canada is keeping the interactive segment “on track to deliver upon our previously stated goals.”
He added that those encouraging growth signs have continued into Q3 so far, offering further optimism for the remainder of the year.
