Revenue growth is stable at 5.2% YoY in 2026Q2, but gross margin compression to 7.1% from 34.7% in 2024Q3 reflects promotional intensity and digital hold volatility, with operating income swinging from a -$776.4M loss in 2025Q3 to a $131.7M profit in 2026Q2.
PENN Entertainment, Inc. (PENN) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 7.16B | 6.96B | 6.58B | 6.36B | 6.4B | 5.91B | 3.58B | 5.3B | 3.59B | 3.15B | 3.03B | 2.84B | 2.59B | 2.92B | 2.9B | 2.74B | 2.46B | 2.37B | 2.42B | 2.44B | 2.35B | 1.41B | 1.14B | 1.16B | 657.55M | 519.39M | 294.12M | 171.5M | 154.1M | 111.5M | 62.8M |
| Revenue Growth % | 6.14% | 5.82% | 3.38% | -0.61% | 8.41% | 65% | -32.5% | 47.76% | 13.98% | 3.74% | 6.91% | 9.57% | -11.25% | 0.67% | 5.73% | 11.51% | 3.79% | -2.22% | -0.56% | 3.63% | 66.48% | 23.83% | -1.92% | 76.87% | 26.6% | 76.59% | 71.5% | 11.29% | 38.21% | 77.55% | 8.84% |
| Cost of Goods Sold | 5.43B | 5.06B | 4.41B | 4B | 3.63B | 3.15B | 1.87B | 2.95B | 2.05B | 1.81B | 1.76B | 1.62B | 1.47B | 1.66B | 1.69B | 1.62B | 1.46B | 1.43B | 1.43B | 1.4B | 1.31B | 855.13M | 681.46M | 708.33M | 405M | 314.56M | 189.93M | 91.7M | 85.7M | 67.7M | 38.2M |
| COGS % of Revenue | - | 72.63% | 67.11% | 62.88% | 56.73% | 53.31% | 52.2% | 55.73% | 57.08% | 57.59% | 57.93% | 57.13% | 56.7% | 57.01% | 58.17% | 59.1% | 59.57% | 60.27% | 58.91% | 57.56% | 55.57% | 60.54% | 59.74% | 60.91% | 61.59% | 60.56% | 64.57% | 53.47% | 55.61% | 60.72% | 60.83% |
| Gross Profit | 1.73B | 1.91B | 2.16B | 2.36B | 2.77B | 2.76B | 1.71B | 2.35B | 1.54B | 1.34B | 1.28B | 1.22B | 1.12B | 1.25B | 1.21B | 1.12B | 994.21M | 941.41M | 995.58M | 1.03B | 1.04B | 557.33M | 459.23M | 454.66M | 252.54M | 204.83M | 104.2M | 79.8M | 68.4M | 43.8M | 24.6M |
| Gross Margin % | 24.13% | 27.37% | 32.89% | 37.12% | 43.27% | 46.69% | 47.8% | 44.27% | 42.92% | 42.41% | 42.07% | 42.87% | 43.3% | 42.99% | 41.83% | 40.9% | 40.43% | 39.73% | 41.09% | 42.44% | 44.43% | 39.46% | 40.26% | 39.09% | 38.41% | 39.44% | 35.43% | 46.53% | 44.39% | 39.28% | 39.17% |
| Gross Profit Growth % | - | -11.93% | -8.4% | -14.73% | 0.48% | 61.16% | -27.11% | 52.4% | 15.35% | 4.59% | 4.91% | 8.47% | -10.61% | 3.46% | 8.15% | 12.8% | 5.61% | -5.44% | -3.73% | -1.01% | 87.45% | 21.36% | 1.01% | 80.03% | 23.29% | 96.58% | 30.57% | 16.67% | 56.16% | 78.05% | 12.84% |
| Operating Expenses | 2.19B | 1.63B | 2.09B | 3.05B | 1.8B | 1.7B | 2.12B | 1.77B | 905.86M | 781.84M | 734.24M | 708.89M | 1.05B | 894.31M | 777.59M | 621.94M | 616.28M | 603.63M | 1.08B | 536.35M | 466.85M | 313.78M | 245.45M | 271.48M | 150.42M | 127.12M | 58.31M | 58.6M | 48.8M | 31.6M | 15.4M |
| OpEx % of Revenue | - | 23.46% | 31.79% | 47.97% | 28.06% | 28.75% | 59.26% | 33.48% | 25.25% | 24.84% | 24.2% | 24.98% | 40.41% | 30.64% | 26.82% | 22.68% | 25.06% | 25.48% | 44.66% | 22.01% | 19.85% | 22.22% | 21.52% | 23.34% | 22.88% | 24.47% | 19.82% | 34.17% | 31.67% | 28.34% | 24.52% |
| Selling, General & Admin | 1.69B | 1.63B | 1.57B | 1.56B | 1.11B | 1.35B | 1.13B | 1.19B | 618.95M | 514.78M | 463.03M | 449.43M | 867.79M | 595.98M | 532.24M | 410.46M | 403.89M | 409.2M | 427.15M | 388.43M | 436.63M | 191.93M | 179.67M | 203.99M | 113.96M | 95.03M | 44.72M | 19.5M | 19.1M | 16.2M | 14M |
| SG&A % of Revenue | - | 23.47% | 23.84% | 24.57% | 17.35% | 22.91% | 31.6% | 22.4% | 17.25% | 16.35% | 15.26% | 15.83% | 33.5% | 20.42% | 18.36% | 14.97% | 16.42% | 17.27% | 17.63% | 15.94% | 18.57% | 13.59% | 15.75% | 17.54% | 17.33% | 18.3% | 15.2% | 11.37% | 12.39% | 14.53% | 22.29% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | -400K | 522.7M | 1.49B | 685.7M | 344.5M | 990.1M | 587.3M | -7.12M | -2.26M | -1.68M | 5.87M | 2.94M | 3.8M | -1.38M | 211.48M | 197.34M | 194.44M | 173.54M | 147.91M | 30.22M | 121.85M | 65.78M | 67.49M | 36.46M | 32.09M | 13.59M | 39.1M | 29.7M | 15.4M | 1.4M |
| Operating Income | -458.2M | 272.1M | 72.5M | -690.2M | 974M | 1.06B | -410.2M | 571.9M | 634.09M | 475.11M | 543.02M | 467.85M | -240.42M | -771.97M | 442.59M | 499.58M | 153.23M | -194.6M | -86.44M | 497.81M | 577.84M | 243.55M | 213.78M | 183.18M | 102.12M | 77.71M | 45.89M | 21.2M | 19.6M | 12.2M | 9.2M |
| Operating Margin % | -6.4% | 3.91% | 1.1% | -10.85% | 15.21% | 17.94% | -11.46% | 10.79% | 17.67% | 15.09% | 17.9% | 16.48% | -9.28% | -26.45% | 15.26% | 18.22% | 6.23% | -8.21% | -3.57% | 20.43% | 24.57% | 17.24% | 18.74% | 15.75% | 15.53% | 14.96% | 15.6% | 12.36% | 12.72% | 10.94% | 14.65% |
| Operating Income Growth % | - | 275.31% | 110.5% | -170.86% | -8.08% | 358.31% | -171.73% | -9.81% | 33.46% | -12.51% | 16.07% | 294.59% | 68.86% | -274.42% | -11.41% | 226.04% | 178.74% | -125.12% | -117.36% | -13.85% | 137.26% | 13.92% | 16.7% | 79.37% | 31.41% | 69.36% | 116.45% | 8.16% | 60.66% | 32.61% | 12.2% |
| EBITDA | 5M | 719M | 506.1M | -255.1M | 1.54B | 1.4B | -43.5M | 986.1M | 903.08M | 742.17M | 814.23M | 727.31M | -61.44M | -473.65M | 687.94M | 711.06M | 365.61M | -162K | 87.1M | 658.74M | 713.15M | 321.77M | 285.09M | 256.43M | 141.87M | 112.25M | 59.48M | 29.9M | 25.3M | 16.2M | 10.6M |
| EBITDA Margin % | 0.07% | 10.33% | 7.69% | -4.01% | 24.08% | 23.78% | -1.22% | 18.6% | 25.17% | 23.58% | 26.83% | 25.62% | -2.37% | -16.23% | 23.73% | 25.93% | 14.87% | -0.01% | 3.59% | 27.03% | 30.33% | 22.78% | 24.99% | 22.05% | 21.58% | 21.61% | 20.22% | 17.43% | 16.42% | 14.53% | 16.88% |
| EBITDA Growth % | -99.15% | 42.07% | 298.39% | -116.55% | 9.79% | 3327.82% | -104.41% | 9.19% | 21.68% | -8.85% | 11.95% | 1283.75% | 87.03% | -168.85% | -3.25% | 94.48% | 225787.04% | -100.19% | -86.78% | -7.63% | 121.63% | 12.87% | 11.17% | 80.75% | 26.39% | 88.71% | 98.93% | 18.18% | 56.17% | 52.83% | 16.48% |
| D&A (Non-Cash Add-back) | 463.2M | 446.9M | 433.6M | 435.1M | 567.5M | 344.5M | 366.7M | 414.2M | 268.99M | 267.06M | 271.21M | 259.46M | 178.98M | 298.33M | 245.35M | 211.48M | 212.39M | 194.44M | 173.54M | 160.93M | 135.31M | 78.22M | 71.31M | 73.25M | 39.75M | 34.54M | 13.59M | 8.7M | 5.7M | 4M | 1.4M |
| EBIT | -521.2M | -414.9M | 129.2M | -34.9M | 933.5M | 1.1B | -290.1M | 621.7M | 629.3M | 441.72M | 579.86M | 499.74M | 271.81M | -466.48M | 407.15M | 488.8M | 134.73M | -222.9M | 122.24M | 490.3M | 577.84M | 243.55M | 213.35M | 176.53M | 98.24M | 77.71M | 45.12M | 17.66M | 19.66M | 12.2M | 9.2M |
| Net Interest Income | -392.8M | -396.1M | -446.9M | -424.4M | -739.9M | -561.7M | -543.2M | -534.2M | -538.4M | -463.2M | -435.06M | -431.6M | -421.38M | -158.51M | -81.18M | -99.14M | -128.64M | -128.46M | -161.47M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 8.3M | 9.7M | 23.6M | 40.3M | 18.3M | 1.1M | 0 | 0 | 1M | 3.55M | 24.19M | 11.53M | 3.73M | 1.39M | 948K | 423K | 1.58M | 6.52M | 8.36M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 401.1M | 405.8M | 470.5M | 464.7M | 758.2M | 562.8M | 543.2M | 534.2M | 539.42M | 466.76M | 459.24M | 443.13M | 425.11M | 159.9M | 81.44M | 99.56M | 130.22M | 134.98M | 169.83M | 0 | 0 | 0 | 0 | 42.1M | 42.1M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -464.1M | -1.09B | -413.8M | 190.6M | -798.7M | -520.5M | -424M | -485.8M | -544.17M | -482.65M | -422.4M | -447.8M | -565.39M | -431.78M | -71.6M | -110.35M | -148.71M | -665.66M | -442.48M | -205.57M | -207.91M | -101.78M | -76.15M | -76.88M | -52.38M | -41.35M | -16.41M | -7.16M | -7.67M | -6.1M | 100K |
| Pretax Income | -922.3M | -820.7M | -341.3M | -499.6M | 175.3M | 539.1M | -834.2M | 86.1M | 89.92M | 4.35M | 120.62M | 56.61M | -271.78M | -915.88M | 364.53M | 389.23M | 4.52M | -327.88M | -47.59M | 292.24M | 369.93M | 141.77M | 137.63M | 83.16M | 57.72M | 36.37M | 28.71M | 10.5M | 12M | 6.1M | 9.3M |
| Pretax Margin % | -12.88% | -11.79% | -5.19% | -7.85% | 2.74% | 9.13% | -23.31% | 1.62% | 2.51% | 0.14% | 3.98% | 1.99% | -10.49% | -31.38% | 12.57% | 14.19% | 0.18% | -13.84% | -1.96% | 11.99% | 15.73% | 10.04% | 12.07% | 7.15% | 8.78% | 7% | 9.76% | 6.12% | 7.79% | 5.47% | 14.81% |
| Income Tax | -13.6M | 24.6M | -28M | -8.2M | -46.4M | 118.6M | -165.1M | 43M | -3.59M | -498.51M | 11.31M | 55.92M | -38.59M | -121.54M | 152.56M | 146.88M | 66.18M | -60.47M | 105.74M | 132.19M | 156.85M | 54.59M | 50.29M | 31.69M | 21.7M | 12.61M | 10.14M | 3.8M | 4.5M | 2.3M | 3.8M |
| Effective Tax Rate % | 1.47% | -3% | 8.2% | 1.64% | -26.47% | 22% | 19.79% | 49.94% | -4% | -11462.57% | 9.37% | 98.79% | 14.2% | 13.27% | 41.85% | 37.74% | 1464.76% | 18.44% | -222.21% | 45.23% | 42.4% | 38.51% | 36.54% | 38.11% | 37.6% | 34.67% | 35.31% | 36.19% | 37.5% | 37.7% | 40.86% |
| Net Income | -906.8M | -843.1M | -311.5M | -490M | 222.1M | 420.8M | -669.5M | 43.9M | 93.51M | 502.86M | 109.31M | 686K | -233.19M | -794.34M | 211.97M | 242.35M | -59.47M | -264.95M | -153.32M | 160.05M | 327.09M | 120.93M | 71.48M | 51.47M | 30.86M | 23.76M | 11.99M | 6.7M | 7.5M | 2.3M | 5.5M |
| Net Margin % | -12.66% | -12.11% | -4.74% | -7.7% | 3.47% | 7.13% | -18.71% | 0.83% | 2.61% | 15.97% | 3.6% | 0.02% | -9% | -27.21% | 7.31% | 8.84% | -2.42% | -11.18% | -6.33% | 6.57% | 13.91% | 8.56% | 6.27% | 4.43% | 4.69% | 4.57% | 4.08% | 3.91% | 4.87% | 2.06% | 8.76% |
| Net Income Growth % | -1099.47% | -170.66% | 36.43% | -320.62% | -47.22% | 162.85% | -1625.06% | -53.06% | -81.4% | 360.03% | 15834.4% | 100.29% | 70.64% | -474.74% | -12.54% | 507.54% | 77.56% | -72.8% | -195.8% | -51.07% | 170.48% | 69.17% | 38.88% | 66.77% | 29.91% | 98.12% | 78.99% | -10.67% | 226.09% | -58.18% | 10% |
| Net Income (Continuing) | -908.7M | -845.3M | -313.3M | -491.4M | 221.7M | 420.5M | -669.1M | 43.1M | 93.51M | 473.4M | 109.31M | 686K | -183.82M | -592.8M | 187.58M | 242.35M | -61.66M | -267.41M | -153.32M | 160.05M | 213.08M | 87.18M | 87.34M | 62.19M | 28.33M | 23.76M | 18.57M | 6.73M | 7.5M | 3.8M | 5.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -7.5M | -6.5M | -4.3M | -2.5M | -1.1M | -700K | -400K | -800K | -5K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -565K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -6.61 | -5.83 | -2.05 | -3.22 | 1.29 | 2.48 | -4.99 | 0.37 | 0.93 | 5.39 | 1.19 | 0.01 | -2.97 | -10.17 | 2.04 | 2.26 | -0.76 | -3.39 | -1.81 | 1.81 | 3.78 | 1.41 | 0.86 | 0.63 | 0.39 | 0.37 | 0.19 | 0.11 | 0.12 | 0.02 | 0.10 |
| EPS Growth % | -1015.3% | -184.39% | 36.34% | -349.61% | -47.98% | 149.7% | -1448.65% | -60.22% | -82.75% | 352.94% | 11800% | 100.34% | 70.8% | -598.53% | -9.73% | 397.37% | 77.58% | -87.29% | -200% | -52.12% | 168.09% | 63.95% | 36.51% | 61.54% | 5.41% | 94.74% | 72.73% | -8.33% | 700% | -84.62% | 0% |
| EPS (Basic) | - | -5.83 | -2.05 | -3.22 | 1.37 | 2.65 | -4.99 | 0.38 | 0.96 | 5.53 | 1.21 | 0.01 | -2.97 | -10.17 | 2.24 | 2.52 | -0.76 | -3.39 | -1.81 | 1.87 | 3.88 | 1.46 | 0.89 | 0.65 | 0.41 | 0.39 | 0.20 | 0.12 | 0.13 | 0.04 | 0.10 |
| Diluted Shares Outstanding | 137.1M | 144.6M | 152.1M | 152.1M | 176.6M | 175.5M | 134M | 117.8M | 100.34M | 93.38M | 91.41M | 90.9M | 78.42M | 78.11M | 103.8M | 107.05M | 78.08M | 78.12M | 84.54M | 88.43M | 86.53M | 85.77M | 83.12M | 81.7M | 79.14M | 63.67M | 63.12M | 61.21M | 61.5M | 61.54M | 56.08M |
| Basic Shares Outstanding | 133.7M | 144.6M | 152.1M | 152.1M | 161.2M | 158.7M | 134M | 115.7M | 97.11M | 90.85M | 82.93M | 80M | 78.42M | 78.1M | 76.34M | 77.99M | 78.08M | 78.12M | 84.54M | 85.59M | 84.3M | 82.83M | 80.32M | 79.19M | 75.28M | 61.31M | 59.96M | 58.55M | 60.06M | 61.33M | 56.08M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying PENN stock.
For fiscal year 2025, PENN Entertainment, Inc. (PENN) reported total revenue of $6.96B. This represents a 10984.4% increase compared to $62.8M in 1996.
PENN Entertainment, Inc. (PENN) reported a net loss of $843.1M for the fiscal year ending 2025.
PENN Entertainment, Inc. (PENN) reported an operating income of $272.1M, resulting in an operating profit margin of 3.9%. This margin reflects the operational efficiency of the business before interest and taxes.
PENN Entertainment, Inc. (PENN) generated $1.91B in gross profit for the year, representing a gross profit margin of 27.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
High leverage and negative margins
Metrics are mathematically derived from official filings.
Stable Revenue, Uneven Growth
PENN's revenue has grown modestly, from $1.6B in 2024Q1 to $1.9B in 2026Q2, a 5.2% year-over-year increase in the latest quarter, according to recent financial statements.
Revenue growth has been steady but unspectacular, hovering in the low single digits to mid-single digits over the past ten quarters. The 5.2% growth in 2026Q2 is slightly above the trailing average, suggesting a stable demand environment for regional gaming. However, the growth is not accelerating, and the company's reliance on discretionary consumer spending may limit upside in a softening economy.
Gross Margin Volatility and Structural Pressures
Gross margin swung from 34.7% in 2024Q3 to 7.1% in 2026Q2, reflecting promotional intensity and hold volatility, as reported in quarterly filings.
The dramatic drop in gross margin in 2026Q2 to 7.1% from 29.5% in the prior quarter is a red flag, likely driven by higher promotional costs in the Interactive segment and possibly unfavorable hold. This volatility underscores the structural pressure from state gaming taxes and the high cost of customer acquisition in digital sports betting. Compared to peers like Boyd Gaming (42.1% gross margin), PENN's margin profile is significantly weaker, indicating a competitive disadvantage in cost structure.
Operating Leverage Elusive Amidst Digital Spend
Operating income swung from a loss of $776.4M in 2025Q3 to a profit of $131.7M in 2026Q2, but SG&A has risen 13% over the period, as per income statement data.
The operating income recovery in 2026Q2 is encouraging, but it is not yet translating into consistent operating leverage. SG&A expenses have grown from $388.7M in 2024Q2 to $441.0M in 2026Q2, outpacing revenue growth, which suggests that the company is still investing heavily in its digital platform and marketing. The negative operating margin in several quarters indicates that fixed costs are not being adequately covered, and the path to sustainable profitability remains uncertain.
Earnings Volatility Masks Underlying Trends
Net income swung from a loss of $864.6M in 2025Q3 to a profit of $33.1M in 2026Q2, with EPS growth of 3.0% in the latest quarter, based on reported figures.
The earnings series is highly volatile, with large losses in 2025Q3 and 2024Q4, likely due to impairment charges and one-time items. The recent EPS beat in 2026Q2 ($0.44 actual vs. $0.08 estimate) may indicate improving operations, but the quality of earnings is questionable given the presence of non-recurring items. Stock-based compensation has been modest, averaging around $15M per quarter, which is not a major drag, but the tax rate and other adjustments warrant scrutiny.
SG&A and COGS Drive Margin Compression
COGS as a percentage of revenue has risen from 65% in 2024Q1 to 93% in 2026Q2, while SG&A has grown 13% over the same period, as per income statement data.
The cost structure is under pressure, with COGS consuming an increasing share of revenue, likely due to higher gaming taxes and promotional costs. SG&A has also grown steadily, reflecting investments in technology and marketing for the ESPN Bet platform. Management's focus on overhead optimization may help, but the current trajectory suggests that cost discipline is not yet yielding results, and margins are likely to remain strained until digital losses are curtailed.
2025Q3: A Turning Point?
The $864.6M net loss in 2025Q3, with a -50.3% net margin, marked a significant inflection, likely due to the Barstool divestiture and ESPN transition, as reported in financial statements.
The massive loss in 2025Q3 appears to be a one-time event, possibly related to the write-down of the Barstool brand and transition costs to ESPN Bet. This quarter represents a low point from which the company has begun to recover, with subsequent quarters showing improving operating income. However, the lasting impact is a weakened balance sheet and a need to rebuild investor confidence. The recovery in 2026Q2 suggests that the worst may be over, but the sustainability of this improvement is not yet proven.
Digital Losses and Leverage Risks
Despite the recent EPS beat, PENN's negative net margin of -12.1% and Debt/Equity of 4.58 highlight the risk that digital losses persist and leverage becomes unsustainable, based on reported figures.
Short-sellers would focus on the persistent negative net margins, which indicate that the Interactive segment is still burning cash. The high leverage, with a Debt/Equity ratio of 4.58, leaves little room for error if consumer spending weakens or digital losses continue. The recent EPS beat may be driven by one-time items or cost cuts that are not repeatable. Investors should monitor the Interactive segment's path to profitability and the company's ability to deleverage, as failure to do so could lead to financial distress.