GET DAILY SIGNALSPENN Entertainment (PENN) Shows Retail Strength and Narrowing Digital Losses in Q3 2026
Key Takeaways
- Third-quarter 2026 revenue of $1.84 billion was in line with consensus and up from $1.72 billion a year earlier.
- Adjusted earnings per share (EPS) of $0.32 beat the $0.17 consensus estimate; GAAP diluted EPS was $0.24.
- Net income of $32.6 million reversed a net loss of $865.1 million in the prior-year quarter.
- The retail segment posted record quarterly revenue, with Adjusted EBITDAR rising 7.7% year over year and margins of 33.7%.
- The Interactive segment's Adjusted EBITDA loss narrowed sharply to $18.3 million from $76.6 million a year ago.
- Management raised its full-year 2026 retail revenue and Adjusted EBITDAR guidance.
Earnings Context and Why It Matters
PENN Entertainment's third-quarter 2026 report, released on November 5, 2026, stands out because it highlights the company's dual-track progress. The retail casino operations continue to deliver reliable cash flow, while the digital segment edges closer to breakeven. I have been following how the Interactive division narrows losses as U.S. iCasino and Canadian operations expand. Last year's large impairment charge created a steep net loss, so the return to net income shows meaningful stabilization in the earnings base. With leverage remaining a focus and development projects advancing, this quarter gives a useful snapshot of execution and the route to sustainable free cash flow.
Reported Results
PENN Entertainment posted third-quarter 2026 total revenue of $1.84 billion, matching the consensus estimate and rising from $1.72 billion in the year-ago period. Adjusted EPS reached $0.32, ahead of the $0.17 analyst consensus, while GAAP diluted EPS was $0.24. Net income attributable to PENN totaled $32.6 million versus a net loss of $865.1 million a year earlier. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Consolidated Adjusted EBITDA came in at $284 million, up from $194.9 million a year ago. The retail segment delivered $1.5 billion in revenue and Segment Adjusted EBITDAR of roughly $502 million, with revenue up 5% and Adjusted EBITDAR up 7.7% year over year. Margins expanded 84 basis points to 33.7%. The Interactive segment reported revenue of $348.4 million, including a $191.4 million skins tax gross-up, and an Adjusted EBITDA loss of $18.3 million, improved from the $76.6 million loss in the prior-year quarter.
Management lifted full-year 2026 retail revenue guidance by $16 million to $5.89 billion and Adjusted EBITDAR guidance by $10 million to $1.973 billion. Fourth-quarter Interactive revenue guidance was set at $445 million, with an expected Adjusted EBITDA loss of $18.7 million.
Market Reaction and Investor Sentiment
PENN shares closed at $17.44 after the release, gaining about 2.2% that day. The stock had fallen roughly 13.6% over the prior three months but rose about 19% over the past twelve months. Investors welcomed the adjusted EPS beat and the narrower Interactive loss. Record retail revenue and margin gains supported confidence in the core business, while the in-line top line kept enthusiasm measured on the digital side. The raised full-year retail guidance added a positive note, though focus stays on whether Interactive can achieve sustained profitability.
Forward Outlook and Key Factors to Monitor
Looking ahead, the path for the Interactive segment toward profitability remains central. Management guided to a fourth-quarter Interactive Adjusted EBITDA loss of $18.7 million, pointing to a full-year loss of about $20 million that includes a $20 million investment for the Alberta launch. Progress in U.S. standalone iCasino and Canadian operations will drive growth, while U.S. online sports betting and integrated iCasino adjust to normalized levels following the theScore Bet rebrand.
On the retail side, the company raised guidance and noted healthy trends extending into October, including a strong Halloween weekend. Longer-term projects such as Hollywood Council Bluffs (relocation expected in 2028) and Hollywood New Orleans (expected in 2029) offer future catalysts. Same-store growth and property-level flow-through will serve as near-term indicators of operating discipline.
Balance-sheet metrics also warrant attention. PENN ended the quarter with $2 billion in total liquidity and $1 billion in cash. Lease-adjusted net leverage stood at 5.6 times and traditional net leverage at 2.3 times. The company expects meaningful deleveraging by year-end and has flexibility around $400 million in notes maturing in January 2027. Cost trends, digital promotional strategy, and capital expenditure pace will influence the speed of free cash flow improvement.
Using Tickeron’s AI Tools in My Research
When reviewing earnings like these, I frequently use Tickeron’s AI Screener to scan for comparable stocks and filter by technical patterns and fundamentals. It helps me quickly identify peers and confirm signals without manual effort, giving a broader context to the quarter’s results in just a few minutes.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
PENN in upward trend: price rose above 50-day moving average on November 02, 2026
PENN moved above its 50-day moving average on November 02, 2026 date and that indicates a change from a downward trend to an upward trend. In 32 of 39 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 82%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 28, 2026. You may want to consider a long position or call options on PENN as a result. In 69 of 90 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 77%.
The Moving Average Convergence Divergence (MACD) for PENN just turned positive on October 06, 2026. Looking at past instances where PENN's MACD turned positive, the stock continued to rise in 34 of 46 cases over the following month. The odds of a continued upward trend are 74%.
Following a +2.47% 3-day Advance, the price is estimated to grow further. Considering data from situations where PENN advanced for three days, in 172 of 257 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
The Aroon Indicator entered an Uptrend today. In 121 of 162 cases where PENN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 75%.
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for PENN moved below the 200-day moving average on October 19, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PENN declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 81%.
PENN broke above its upper Bollinger Band on October 30, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 25 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 31 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.249) is normal, around the industry mean (14.889). P/E Ratio (-2.783) is within average values for comparable stocks, (53.682). Projected Growth (PEG Ratio) (1.008) is also within normal values, averaging (0.784). Dividend Yield (0.000) settles around the average of (0.021) among similar stocks. P/S Ratio (0.336) is also within normal values, averaging (1.049).
The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating steady price growth. PENN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 97 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PENN’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
an operator of gaming and pari-mutuel properties
Industry HotelsResortsCruiselines
Advertisement