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SEC filingRevenue grew 6.4% to $1.78B, driven by Interactive and property openings, but net loss of $2.8M vs $111.5M prior year due to absence of $215.1M gain.
For the three months ended March 31, 2026, PENN Entertainment reported total revenues of $1,779.1 million, a 6.4% increase compared to $1,672.5 million in the prior-year period. The growth was driven by a 23.5% surge in Interactive segment revenues, property openings in the West and Midwest, and higher food, beverage, and other revenues, which included $57.6 million in gaming tax reimbursement amounts. Gaming revenues rose 2.8% to $1,334.4 million, while non-gaming revenues jumped 18.8% to $444.7 million.
Net loss was $2.8 million compared to net income of $111.5 million in Q1 2025, primarily due to the absence of a $215.1 million gain on financing arrangement recorded in the prior year. Operating income improved to $97.1 million from $42.8 million, reflecting an operating margin expansion of 290 bps to 5.5%. Consolidated Adjusted EBITDA increased 53.4% to $265.8 million, driven by Interactive's dramatic improvement from -$89.0 million to -$10.8 million.
Management highlighted a realigned digital strategy prioritizing U.S. iCasino and Canadian operations, with OSB serving as a top-of-funnel acquisition channel. Development projects remain underway: the Columbus hotel is expected to open June 12, 2026, and the Aurora land-based casino is targeted for June 24, 2026. GLPI is committed to fund up to $225M for the Aurora project. The company also announced a relocation of Ameristar Council Bluffs (cost $180-$200M, opening 2028). Capital expenditures for 2026 are anticipated at $220M maintenance and $200M project. The share repurchase program authorized $750M starting January 2026. Management expressed confidence in liquidity from operations and credit facilities to meet obligations, but cautioned about economic and competitive uncertainties.
As of March 31, 2026, PENN held $708.0 million in cash and cash equivalents, up from $686.6 million at year-end 2025. Total assets were $14.12 billion, with total liabilities of $12.30 billion. Stockholders' equity stood at $1.82 billion, slightly down from $1.83 billion. The company had $951.1 million of available borrowing capacity under its $1.0 billion Amended Revolving Credit Facility, after $25.0 million drawn and $23.9 million in outstanding letters of credit. Total debt, net of discounts and issuance costs, was $2.89 billion, compared to $2.85 billion at December 31, 2025.
Future minimum repayments of long-term debt as of March 31, 2026 total $2.95 billion, with $134.8 million due in the remainder of 2026, $862.0 million in 2027, $10.8 million in 2028, $1.34 billion in 2029, $0.8 million in 2030, and $604.7 million thereafter. The company also has significant lease obligations: operating lease payments of $5.35 billion (present value $3.89 billion), finance lease payments of $3.68 billion (present value $2.05 billion), and financing obligation payments of $4.29 billion (present value $2.33 billion). Total payments under triple net leases were $247.7 million in Q1 2026.
No share repurchases occurred in Q1 2026, but a new $750.0 million authorization was approved on October 30, 2025, effective January 1, 2026 through December 31, 2028. No dividends were declared. The company issued $600.0 million of 6.75% senior unsecured notes due 2031, using proceeds to repay borrowings under the revolving credit facility. Net debt increased by $44.8 million. Capital expenditures totaled $94.6 million, with the largest spend in the Midwest segment ($57.5 million) and Northeast ($20.1 million).
PENN reports five segments: Northeast, South, West, Midwest, and Interactive. Total revenues were $1.78 billion. The Northeast segment contributed $687.1 million (38.6% of total), followed by Interactive at $358.3 million (20.1%), Midwest at $305.9 million (17.2%), South at $281.3 million (15.8%), and West at $145.8 million (8.2%). Segment Adjusted EBITDAR was $460.6 million, with the Northeast leading at $194.6 million, followed by Midwest ($118.7 million), South ($104.2 million), West ($53.9 million), and Interactive (-$10.8 million). The Interactive segment's revenue grew 23.5% YoY, driven by a $57.6 million increase in gaming tax reimbursements.
Operating cash flow (OCF) of $122.4M significantly outpaced the net loss of ($2.8M), indicating strong non-cash add-backs and working capital management. Depreciation and amortization of $117.0M was the primary non-cash adjustment, along with stock-based compensation ($14.1M) and deferred taxes ($6.5M). However, OCF benefited from a $19.0M income tax receivable and a $12.7M decrease in accounts receivable, while a $58.6M increase in accrued expenses and $92.9M operating lease payments were headwinds. The prior-year OCF of $41.9M was depressed by a $215.1M gain on financing arrangement, which was a non-cash item.
Capital expenditures (capex) of $94.6M (76% of OCF) were lower than Q1 2025's $125.2M (299% of OCF), improving free cash flow generation. No share repurchases were made, while the prior year had $25.0M of buybacks. Net debt increased slightly due to $125.0M revolver borrowings and $600.0M debt issuance, offset by $670.0M revolver repayments.
Anomalies: The $215.1M gain on financing arrangement in Q1 2025 was a non-cash item that inflated net income relative to cash flow. Working capital swings, particularly operating lease liabilities and accrued expenses, impacted both periods.