PENN Entertainment reported Q3 2025 revenue of $1.717 billion, a 4.1% year‑over‑year increase that fell short of the $1.73 billion consensus estimate. The miss reflects lower than expected online sports‑betting (OSB) volumes and a $825 million impairment charge related to the ESPN partnership, which weighed heavily on the interactive segment’s profitability. Net loss for the quarter was $865.1 million, while adjusted EBITDA reached $194.9 million, a modest improvement over the prior year’s $194.4 million. Adjusted earnings per share were $‑0.22, missing the consensus estimate of $‑0.10 by $0.12.
Segment analysis shows retail properties generated $1.4 billion in revenue, up 4.8% from $1.339 billion a year earlier, driven by steady performance at PENN’s regional casinos. The interactive segment, however, posted $297.7 million in revenue but recorded a $76.6 million loss, largely due to the impairment charge and lower OSB revenue. The loss highlights the challenges the company faces in its digital betting business.
In a strategic pivot, PENN announced that it and ESPN have mutually agreed to terminate their U.S. online sports‑betting agreement effective December 1, 2025. The company will rebrand its OSB platform to theScore Bet, aligning the product with its existing theScore media brand and focusing on its growing iCasino business. ESPN will retain vested warrants to purchase 7,957,210 shares at a weighted strike price of $28.95.
CEO Jay Snowden said the decision to wind down the ESPN partnership was driven by the need to strengthen PENN’s omnichannel strategy and reduce promotional costs. He added that the rebrand to theScore Bet will allow the company to leverage its media assets and accelerate cross‑sell opportunities between its retail casinos and iCasino platform.
The announcement was met with a positive market reaction, with PENN’s shares rising 9–11% in pre‑market trading. Investors cited the strategic shift away from the underperforming ESPN Bet partnership and the launch of a $750 million share‑repurchase program as key drivers of the enthusiasm. The company remains focused on improving the interactive segment’s profitability, expanding iCasino growth, and investing in retail development projects expected to boost free cash flow in late 2025 and 2026.
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