Interactive division of Penn Entertainment smashes Q2 records, contributing to the company's impressive financial performance
In the second quarter of 2025, Penn Entertainment, a leading name in the gaming industry, reported a series of notable financial results. The company repurchased a significant number of shares, bolstered its retail segment, and experienced growth in its digital operations, despite facing challenges in achieving profitability in the interactive business.
Penn Entertainment repurchased a total of 13,084,816 shares of its common stock for $205.6 million in the first half of 2025 and Q2 2025 alone. The shares were acquired in open market transactions at an average price of $15.68 per share. Notably, the company's overall liquidity stood at $1.2 billion as of June 30, 2025.
The retail segment of Penn Entertainment saw an increase of approximately 4% in demand year-on-year in Q2 2025. This growth was further underscored by property-level performance, which highlighted theoretical revenue growth across all rated age and worth segments.
Penn's total GAAP revenue for Q2 2025 was $1.765 billion, marking a 6.1% year-over-year increase. The Interactive segment, while reporting a record-breaking revenue of $316.1 million, also posted a $62 million EBITDA loss. This reflects ongoing challenges in achieving profitability in the Interactive business despite higher revenues.
However, the Interactive segment showed strong top-line growth, with 70% of the gaming revenue coming from users that are newly acquired, retail native, or reactivated. The segment also expanded with the continued growth of the Hollywood iCasino app and the enhancement of the ESPN BET app through the introduction of new engagement features such as the FanCenter.
On the financial front, the retail property segment's adjusted EBITDAR margin was 33.8% in Q2 2025, while the company's adjusted EBITDAR increased to $240 million. Retail property revenues for Q2 2025 were $1.4 billion.
Penn Entertainment's net loss narrowed from $27.1 million in Q2 2024 to $18.3 million in Q2 2025. The diluted loss per share for Q2 2025 also narrowed from $0.18 in Q2 2024 to $0.12 in Q2 2025.
CEO Jay Snowden praised the continued share buyback initiatives, stating that the team remains committed to its previously stated goal to repurchase at least $350 million of shares. The company is also set to open its new Hollywood Casino in Joliet on August 11.
[1] Source: Penn Entertainment Q2 2025 Earnings Release [2] Source: Penn Entertainment Q2 2025 Earnings Call Transcript [3] Source: Seeking Alpha Transcript of Penn Entertainment Q2 2025 Earnings Call
- In an effort to strengthen its financial position, Penn Entertainment, a leading casino company, has decided to invest in technology, announcing plans to develop an advanced digital platform for its Interactive business.
- As technology continues to transform the gaming industry, Penn Entertainment, a leading name in both the casino and finance sectors, aims to leverage technology to enhance its Interactive segment's profitability and competitiveness.
