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PENN Entertainment, Inc., together with its subsidiaries ( PENN, the Company, we, our, or us ), operates in 28 jurisdictions throughout North America, with a broadly diversified portfolio of casinos, racetracks, and online sports betting ( OSB ) and iCasino offerings. PENN s focus is on organic cross-sell opportunities, reinforced by its market-leading retail casinos, sports media asse…
The business is unprofitable at the operating level (-9.68% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue grew 5.8%, steady but not accelerating. Margins contracted 10.8pp, which offsets some of the top-line progress.
ROIC dropped from 0.48% to -4.73%, capital efficiency is deteriorating. Negative free cash flow of -$140M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$7.07B
▲ +5.8% YoY
Net Income (TTM)
-$957M
▼ -170.7% YoY
Op. Margin
-8.76%
▼ -10.8pp YoY
ROIC
-4.45%
▼ -5.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$28M
▼ -13.0% YoY
Op. Cash Flow (TTM)
$589M
▲ +41.4% YoY
Net Debt
$8.15B
Cash & Equiv.
$708M
5Y CAGR: +14.2%
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