Financial Analysis

Note 12Commitments and Contingencies ESPN Sportsbook and Investment Agreements On August 8, 2023, PENN entered into the Sportsbook Agreement (the Sportsbook Agreement) with ESPN relating to OSB in the U.S. Pursuant to the Sportsbook Agreement, PENN received the exclusive right to use the ESPN BET trademark for OSB in the U.S. The Sportsbook Agreement had an initial 10-year term, with the right for either party to terminate the agreement after the third year if specific market share performance thresholds were not met. In consideration for the media marketing services and brand and other rights provided by ESPN, PENN agreed to pay $150.0 million per year in cash pursuant to the Sportsbook Agreement. In connection with the Sportsbook Agreement, PENN and ESPN also entered into an Investment Agreement (the Investment Agreement) on August 8, 2023. The Investment Agreement provided for the issuance to ESPN of certain warrants to purchase shares of PENN common stock, par value $0.01 per share, and set forth certain other governance rights of ESPN. Pursuant to the Investment Agreement PENN issued to ESPN warrants to purchase approximately 31.8 million shares of PENN common stock, subject to vesting (Initial Warrants). The warrants were classified as equity and contained three separate tranches. At the grant date, the $550.4 million fair value of the Initial Warrants was determined using the Black-Scholes option-pricing model with contractual terms ranging from 9.5 to 11.5 years, and …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Our revenue is disaggregated by type of revenue and geographic location (with no single foreign countrys revenue representing more than 10% of total consolidated revenues) of the related properties, which is consistent with our reportable segments, as follows: For the year ended December 31, 2025 (in millions) Northeast South West Midwest Interactive (1) Other Intersegment Eliminations (2) Total Revenues: Gaming $ 2,473.6 $ 877.2 $ 383.5 $ 1,051.6 $ 564.1 $ $ $ 5,350.0 Food and beverage 153.1 148.0 75.7 65.5 3.6 445.9 Hotel 53.0 100.0 65.2 35.1 253.3 Other 89.5 41.9 18.8 29.2 738.5 14.9 (21.0) 911.8 Total revenues $ 2,769.2 $ 1,167.1 $ 543.2 $ 1,181.4 $ 1,302.6 $ 18.5 $ (21.0) $ 6,961.0 For the year ended December 31, 2024 (in millions) Northeast South West Midwest Interactive (1) Other Intersegment Eliminations (2) Total Revenues: Gaming $ 2,465.0 $ 904.1 $ 366.6 $ 1,043.6 $ 390.2 $ $ $ 5,169.5 Food and beverage 147.8 132.7 73.9 62.3 3.5 420.2 Hotel 54.3 91.6 66.2 37.9 250.0 Other 88.6 40.6 18.6 28.4 569.7 16.1 (23.6) 738.4 Total revenues $ 2,755.7 $ 1,169.0 $ 525.3 $ 1,172.2 $ 959.9 $ 19.6 $ (23.6) $ 6,578.1 For the year ended December 31, 2023 (in millions) Northeast South West Midwest Interactive (1) Other Intersegment Eliminations (2) Total Revenues: Gaming $ 2,451.4 $ 950.3 $ 376.5 $ 1,046.5 $ 81.1 $ $ $ 4,905.8 Food and beverage 144.0 132.1 71.8 59.9 3.1 410.9 Hotel 55.3 93.7 61.0 37.3 247.3 Other 87.7 40.3 19.2 28.9 637.7 17.1 (32.0) 798.9 Total revenues $ 2,738.4 $ 1 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Note 15Stock-Based Compensation 2022 Long Term Incentive Compensation Plan On June 7, 2022, the Companys shareholders, upon the recommendation of the Board, approved the Companys 2022 Long Term Incentive Compensation Plan (the 2022 Plan). The 2022 Plan authorizes the Company to issue stock options (incentive and/or non-qualified), stock appreciation rights (SARs), restricted stock (shares and/or units), performance awards (shares and/or units), and cash awards to executive officers, non-employee directors, other employees, consultants, and advisors of the Company and its subsidiaries. Non-employee directors and consultants are eligible to receive all such awards, other than incentive stock options. Pursuant to the 2022 Plan, an initial 6,870,000 shares of the Companys common stock were reserved for issuance, plus any shares of common stock subject to outstanding awards under both the previous 2018 Long Term Incentive Compensation Plan, as amended (2018 Plan) and Score Media and Gaming Inc. Second Amended and Restated Stock Option and Restricted Stock Unit Plan (the theScore Plan) as of June 7, 2022, and outstanding awards that are forfeited or settled for cash under each of the prior plans. In connection with the approval of the 2022 Plan, the 2018 Plan and theScore Plan remain in place until all the awards previously granted thereunder have been paid, forfeited, or expired. However, no shares are available for issuance and all future equity awards will be granted pursuant to …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Note 18Fair Value Measurements ASC Topic 820, Fair Value Measurements and Disclosures, establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach, and cost approach). The levels of the hierarchy are described below: Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3: Unobservable inputs that reflect the reporting entitys own assumptions, as there is little, if any, related market activity. The Companys assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of assets and liabilities and their placement within the fair value hierarchy. The following methods and assumptions are used to estimate the fair value of each class of financial instruments for which it is practicable to estimate. The fair value of the Companys trade accounts receivable and payable approximates the carrying amounts. Available-for-Sale Debt Securities The Company acquired 12.0% secured convertible notes in a technology provider on April 7, 2023 for $20.0 million, due on the thir …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 8Goodwill and Other Intangible Assets A reconciliation of goodwill and accumulated goodwill impairment losses, by reportable segment, is as follows: (in millions) Northeast South West Midwest Interactive Other Total Balance as of January 1, 2024 Goodwill, gross $ 923.5 $ 236.6 $ 216.8 $ 1,116.7 $ 1,664.0 $ 87.7 $ 4,245.3 Accumulated goodwill impairment losses (828.8) (61.0) (16.6) (556.1) (87.7) (1,550.2) Goodwill, net $ 94.7 $ 175.6 $ 200.2 $ 560.6 $ 1,664.0 $ $ 2,695.1 Effect of foreign currency exchange rates (119.7) (119.7) Impairment losses during year (6.1) (6.2) (12.3) Balance as of December 31, 2024 Goodwill, gross $ 923.5 $ 236.6 $ 216.8 $ 1,116.7 $ 1,544.3 $ 87.7 $ 4,125.6 Accumulated goodwill impairment losses (828.8) (67.1) (16.6) (562.3) (87.7) (1,562.5) Goodwill, net $ 94.7 $ 169.5 $ 200.2 $ 554.4 $ 1,544.3 $ $ 2,563.1 Effect of foreign currency exchange rates 55.5 55.5 Impairment losses during year (7.0) (825.0) (832.0) Balance as of December 31, 2025 Goodwill, gross $ 923.5 $ 236.6 $ 216.8 $ 1,116.7 $ 1,599.8 $ 87.7 $ 4,181.1 Accumulated goodwill impairment losses (828.8) (74.1) (16.6) (562.3) (825.0) (87.7) (2,394.5) Goodwill, net $ 94.7 $ 162.5 $ 200.2 $ 554.4 $ 774.8 $ $ 1,786.6 Summary of Impairment Charges by Reportable Segment For the year ended December 31, 2025 2024 2023 (in millions) Goodwill Gaming Licenses Trademarks Goodwill Gaming Licenses Trademarks Goodwill Gaming Licenses Segment Northeast $ $ 23.5 $ $ $ 66.0 $ 1.0 $ 30.0 $ 100.6 South 7.0 …

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Note 13Income Taxes The following table summarizes the tax effects of temporary differences between the Consolidated Financial Statements carrying amount of assets and liabilities and their respective tax basis, which are recorded at the prevailing enacted tax rate that will be in effect when these differences are settled or realized. These temporary differences result in taxable or deductible amounts in future years. The Company assessed all available positive and negative evidence to estimate whether sufficient future taxable income will be generated to realize our existing net deferred tax assets. The components of the Companys deferred tax assets and liabilities were as follows: December 31, (in millions) 2025 2024 Deferred tax assets: Stock-based compensation expense $ 8.6 $ 6.7 Accrued expenses 121.8 156.5 Financing and operating leasing obligations 2,150.9 2,185.6 Unrecognized tax benefits 8.5 9.5 Investments in and advances to unconsolidated affiliates 12.2 15.5 Discount on convertible notes 0.2 Net operating losses and tax credit carryforwards 217.8 171.8 Capital loss carryforwards 129.0 127.2 Interest limitation carryforwards 13.3 26.7 Gross deferred tax assets 2,662.1 2,699.7 Less: Valuation allowance (290.7) (268.0) Net deferred tax assets 2,371.4 2,431.7 Deferred tax liabilities: Property and equipment, not subject to the Master Leases (143.2) (73.6) Property and equipment, subject to the Master Leases (564.4) (593.4) Intangible assets (257.1) (298.4) Lease right …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 11Leases Master Leases The components contained within the Master Leases are accounted for as either (i) operating leases, (ii) finance leases, or (iii) financing obligations. Changes to future lease payments that are not fixed within the Master Leases (i.e., when future escalators become known or future variable rent resets occur), which are discussed below, require the Company to either (i) increase both the ROU assets and corresponding lease liabilities with respect to operating and finance leases or (ii) record the incremental variable payment associated with the financing obligation to interest expense. AR PENN Master Lease On February 21, 2023, the Company and GLPI entered into an agreement to amend and restate the triple net master lease dated November 1, 2013 (the AR PENN Master Lease), effective January 1, 2023, to (i) remove the land and buildings for Hollywood Casino Aurora (Aurora), Hollywood Casino Joliet (Joliet), Hollywood Casino Columbus (Columbus), Hollywood Casino Toledo (Toledo), and the M Resort Spa Casino (M Resort), and (ii) make associated adjustments to the rent after which the initial rent in the AR PENN Master Lease was reset to $284.1 million, consisting of $208.2 million of building base rent, $43.0 million of land base rent, and $32.9 million of percentage rent (as such terms are defined in the AR PENN Master Lease). Subsequent to the execution of the AR PENN Master Lease, the lease contains real estate assets associated with 14 of the Compan …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Note 10Long-Term Debt The table below presents long-term debt, net of current maturities, debt discounts, and issuance costs: December 31, (in millions) 2025 2024 Amended Credit Facilities: Amended Revolving Credit Facility due 2027 $ 570.0 $ Amended Term Loan A Facility due 2027 453.8 481.3 Amended Term Loan B Facility due 2029 965.0 975.0 5.625% Notes due 2027 400.0 400.0 4.125% Notes due 2029 400.0 400.0 2.75% Convertible Notes due 2026 106.7 330.5 Other long-term obligations 8.6 210.5 2,904.1 2,797.3 Less: Current maturities of long-term debt (38.2) (38.2) Less: Debt discounts and debt issuance costs (17.0) (26.6) $ 2,848.9 $ 2,732.5 The following is a schedule of future minimum repayments of long-term debt as of December 31, 2025: (in millions) Years ending December 31: 2026 $ 145.0 2027 1,407.0 2028 10.8 2029 1,335.8 2030 0.8 Thereafter 4.7 Total minimum payments $ 2,904.1 Amended Credit Facilities On May 3, 2022, the Company entered into an agreement with its various lenders to amend and restate its previous credit agreement (the Second Amended and Restated Credit Agreement). The Second Amended and Restated Credit Agreement provides for a $1.0 billion revolving credit facility, (the Amended Revolving Credit Facility), a five-year $550.0 million term loan A facility (the Amended Term Loan A Facility) and a seven-year $1.0 billion term loan B facility (the Amended Term Loan B Facility) (together, the Amended Credit Facilities). The proceeds from the Amended Credit Facili …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Accounting Pronouncements Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 updates the requirements for a public entity to enhance income tax disclosures to provide a better assessment on how an entitys operations, related tax risks, tax planning, and operational opportunities affect its tax rate and prospects for future cash flows. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, and was adopted on a prospective basis. The adoption of ASU 2023-09 resulted in additional disclosures in the notes to the Consolidated Financial Statements. See Note 13 , Income Taxes. Accounting Pronouncements to be Implemented In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03). ASU 2024-03 updates the requirements for a public entity to disclose additional information about specific income statement expense categories in the notes to financial statements. ASU 2024-03 does not change or remove current expense disclosure requirements, however, it affects where this information appears in the notes to financial statements. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, on a prospective or retrospective basis, with early a …

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Note 19Related Party Transactions The Company leases two executive office buildings in Wyomissing, Pennsylvania from affiliates of its chairman emeritus of the Board. Rent expense was $1.1 million for each of the three years ended December 31, 2025, 2024, and 2023. One lease was renewed in December 2025 and will expire in December 2030, and the other lease expires in August 2026. As of December 31, 2025, the future minimum lease commitments relating to the leases were $2.3 million. …

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Note 4Revenue Disaggregation Our revenues are generated primarily by providing the following types of services: (i) gaming, inclusive of retail sports betting, iCasino, and OSB; (ii) food and beverage; (iii) hotel; and (iv) other. Other revenues are primarily comprised of PENN Interactives revenues generated from third-party iCasino and OSB, in addition to the related gross-up for taxes, racing operations, advertising, retail, and commissions received on ATM transactions. Our revenue is disaggregated by type of revenue and geographic location (with no single foreign countrys revenue representing more than 10% of total consolidated revenues) of the related properties, which is consistent with our reportable segments, as follows: For the year ended December 31, 2025 (in millions) Northeast South West Midwest Interactive (1) Other Intersegment Eliminations (2) Total Revenues: Gaming $ 2,473.6 $ 877.2 $ 383.5 $ 1,051.6 $ 564.1 $ $ $ 5,350.0 Food and beverage 153.1 148.0 75.7 65.5 3.6 445.9 Hotel 53.0 100.0 65.2 35.1 253.3 Other 89.5 41.9 18.8 29.2 738.5 14.9 (21.0) 911.8 Total revenues $ 2,769.2 $ 1,167.1 $ 543.2 $ 1,181.4 $ 1,302.6 $ 18.5 $ (21.0) $ 6,961.0 For the year ended December 31, 2024 (in millions) Northeast South West Midwest Interactive (1) Other Intersegment Eliminations (2) Total Revenues: Gaming $ 2,465.0 $ 904.1 $ 366.6 $ 1,043.6 $ 390.2 $ $ $ 5,169.5 Food and beverage 147.8 132.7 73.9 62.3 3.5 420.2 Hotel 54.3 91.6 66.2 37.9 250.0 Other 88.6 40.6 18.6 28.4 569.7 …

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Note 17Segment Information We have five reportable segments: Northeast, South, West, Midwest, and Interactive. Our gaming and racing properties are grouped by geographic location, and each is viewed as an operating segment with the exception of our two properties in Jackpot, Nevada, which are viewed as one operating segment. We consider our combined VGT operations, by state, to be separate operating segments. The retail segments primarily generate revenue from gaming operations (such as slot machines and table games), food and beverage offerings, and hotel visitation. The accounting policies of our retail segments are the same as those described in our significant accounting policies. See Note 2, Significant Accounting Policies and Basis of Presentation for further information. The Interactive segment includes all of our online gaming operations, management of retail sports betting, and media operations. The accounting policies of our Interactive segment are the same as those described in our significant accounting policies. See Note 2, Significant Accounting Policies and Basis of Presentation for further information. Additionally, the Interactive segment included the operating results of Barstool subsequent to the Barstool Acquisition on February 17, 2023 and prior to the Barstool divestiture on August 8, 2023 (as discussed in Note 5, Acquisitions and Dispositions ) as well as our 36% proportionate share of Barstools net loss during the period January 1, 2023 through Februar …

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Note 2Significant Accounting Policies and Basis of Presentation Basis of Presentation: The Consolidated Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and with the rules and regulations of the United States (U.S.) Securities and Exchange Commission. Principles of Consolidation: The Consolidated Financial Statements include the accounts of PENN Entertainment, Inc. and its subsidiaries. Investments in and advances to unconsolidated affiliates that do not meet the consolidation criteria of the authoritative guidance for voting interest entities (VOEs) or variable interest entities (VIEs) are accounted for under the equity method. All intercompany accounts and transactions have been eliminated in consolidation. Reclassifications: Certain reclassifications have been made to conform the prior period presentation with current year presentation. Use of Estimates: The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements, and (iii) the reported amounts of revenues and expenses during the reporting period. Estimates used by us may include, among other things, the useful lives for depreciable and amortizable assets, the provision for credit losses, i …

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Note 14Stockholders' Equity Common and Preferred Stock In connection with the acquisition of Score Media and Gaming, Inc. (theScore) in October 2021, the Company issued 12,319,340 shares of PENN common stock with a par value of $0.01, and 697,539 par value $0.01 of exchangeable shares through the capital of an indirect wholly-owned subsidiary of PENN (Exchangeable Shares), in addition to cash consideration. Each Exchangeable Share is exchangeable into one share of PENN common stock at the option of the holder, subject to certain adjustments. Upon the acquisition of theScore, certain employees of theScore elected to have their outstanding equity awards, which were assumed under theScore plan (as defined below), issued as Exchangeable Shares, once the shares vest or are exercised. In addition, the Company may redeem all outstanding Exchangeable Shares in exchange for shares of PENN common stock at any time following the fifth anniversary of the closing, or earlier under certain circumstances. During the year ended December 31, 2025, we did not issue Exchangeable Shares. During the years ended 2024, and 2023, we issued 68,048, and 2,854 Exchangeable Shares, respectively. As of both periods ended December 31, 2025 and 2024, there were 768,441 Exchangeable Shares authorized, of which 379,821 shares and 466,534 shares were outstanding, respectively. In conjunction with the February 2020 stock purchase agreement between PENN and Barstool, the Company issued 883 shares of non-voting …

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Commitments and Contingencies The Company is subject to various legal and administrative proceedings relating to personal injuries, employment matters, commercial transactions, development agreements and other matters arising in the ordinary course of business. Although the Company maintains what it believes to be adequate insurance coverage to mitigate the risk of loss pertaining to covered matters, legal and administrative proceedings can be costly, time-consuming, and unpredictable. The Company does not believe that the final outcome of these matters will have a material adverse effect on its financial position, results of operations, or cash flows. Indemnification Liability On August 8, 2023, we entered into a stock purchase agreement with David Portnoy (the Barstool SPA) and we sold 100% of the outstanding shares of Barstool Sports, Inc. (Barstool or Barstool Sports) common stock. Pursuant to the Barstool SPA, the Company agreed to indemnify Barstool and its subsidiaries and David Portnoy for certain tax matters. The indemnity provisions generally provide for the Companys control of defense and settlement of claims, as well as certain other costs associated with potential tax matters related to Barstool and its subsidiaries and David Portnoy. Claims under the indemnification are paid upon demand. Provisions in the Barstool SPA limit the time within which an indemnification claim can be made to the later of the resolution of the indemnification claim or the relevant statu …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Our revenue is disaggregated by type of revenue and geographic location (with no single foreign countrys revenue representing more than 10% of total consolidated revenues) of the related properties, which is consistent with our reportable segments, as follows: For the three months ended March 31, 2026 (in millions) Northeast South West Midwest Interactive (1) Other Intersegment Eliminations (2) Total Revenues: Gaming $ 615.4 $ 212.2 $ 98.1 $ 272.6 $ 136.1 $ $ $ 1,334.4 Food and beverage 38.8 35.7 22.2 17.9 1.3 115.9 Hotel 11.3 23.0 20.6 7.8 62.7 Other 21.6 10.4 4.9 7.6 222.2 3.9 (4.5) 266.1 Total revenues $ 687.1 $ 281.3 $ 145.8 $ 305.9 $ 358.3 $ 5.2 $ (4.5) $ 1,779.1 For the three months ended March 31, 2025 (in millions) Northeast South West Midwest Interactive (1) Other Intersegment Eliminations (2) Total Revenues: Gaming $ 610.6 $ 220.7 $ 91.0 $ 252.3 $ 123.7 $ $ $ 1,298.3 Food and beverage 37.8 33.9 17.6 15.7 1.1 106.1 Hotel 11.9 24.1 16.8 8.1 60.9 Other 20.6 9.6 4.3 6.8 166.4 4.2 (4.7) 207.2 Total revenues $ 680.9 $ 288.3 $ 129.7 $ 282.9 $ 290.1 $ 5.3 $ (4.7) $ 1,672.5 (1) Other revenues within the Interactive segment are inclusive of gaming tax reimbursement amounts related to third-party OSB and/or iCasino partners for OSB and iCasino market access of $185.8 million and $128.2 million for the three months ended March 31, 2026 and 2025, respectively. (2) Primarily represents the elimination of intersegment revenues associated with our retail sportsbooks, which are oper …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Fair Value Measurements ASC Topic 820, Fair Value Measurements and Disclosures, establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach, and cost approach). The levels of the hierarchy are described below: Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3: Unobservable inputs that reflect the reporting entitys own assumptions, as there is little, if any, related market activity. The Companys assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of assets and liabilities and their placement within the fair value hierarchy. The following methods and assumptions are used to estimate the fair value of each class of financial instruments for which it is practicable to estimate. The fair value of the Companys trade accounts receivable and payable approximates the carrying amounts. Long-Term Debt On March 16, 2026, the Company issued $600.0 million of unsecured notes due 2031 at an interest rate of 6.75%. See Note 5, Long-Term Debt for more informati …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes The Company calculates its provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate to its year-to-date pre-tax book income or loss. The tax effects of discrete items are recognized in the period in which they occur. The effective tax rate (income taxes as a percentage of income from operations before income taxes) including discrete items was 36.8% and 26.2% for the three months ended March 31, 2026 and 2025, respectively. The change in the effective tax rate for the three months ended March 31, 2026, as compared to the prior-year period, was primarily driven by (i) the exclusion of certain foreign losses for which no tax benefit can be recognized in the Companys worldwide effective tax rate calculation; (ii) non-deductible permanent items; (iii) state income taxes; and (iv) changes in the valuation allowance. The effective tax rate may vary from period to period depending on, among other factors, the geographic and business mix of the Companys earnings, changes in its valuation allowance assessment, and other factors, including the Companys historical and projected pre-tax earnings, which are considered in evaluating the realizability of deferred tax assets. As of each reporting date, the Company evaluates all available positive and negative evidence in assessing the realizability of deferred tax assets, in accordance with ASC Topic 740, Income Taxes (ASC 740). As of March 31, 2026, the Company continu …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases Master Leases The components contained within the Master Leases are accounted for as either (i) operating leases, (ii) finance leases, or (iii) financing obligations. Changes to future lease payments that are not fixed within the Master Leases (i.e., when future escalators become known or future variable rent resets occur), which are discussed below, require the Company to either (i) increase both the right-of-use (ROU) assets and corresponding lease liabilities with respect to operating and finance leases or (ii) record the incremental variable payment associated with the financing obligation to interest expense. AR PENN Master Lease On February 21, 2023, the Company and GLPI entered into an agreement to amend and restate the triple net master lease dated November 1, 2013 (the AR PENN Master Lease), effective January 1, 2023, to (i) remove the land and buildings for Hollywood Casino Aurora (Aurora), Hollywood Casino Joliet (Joliet), Hollywood Casino Columbus (Columbus), Hollywood Casino Toledo (Toledo), and the M Resort Spa Casino (M Resort), and (ii) make associated adjustments to the rent. Subsequent to the execution of the AR PENN Master Lease, the lease contains real estate assets associated with 14 of the Companys gaming facilities used in its operations. The current term of the AR PENN Master Lease expires on October 31, 2033 and thereafter contains three renewal periods of five years each on the same terms and conditions, exercisable at the Companys option. The …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Long-Term Debt The table below presents long-term debt, net of current maturities, debt discounts, and debt issuance costs: (in millions) March 31, 2026 December 31, 2025 Amended Credit Facilities: Amended Revolving Credit Facility due 2027 $ 25.0 $ 570.0 Amended Term Loan A Facility due 2027 446.9 453.8 Amended Term Loan B Facility due 2029 962.5 965.0 5.625% Notes due 2027 400.0 400.0 4.125% Notes due 2029 400.0 400.0 6.75% Notes due 2031 600.0 2.75% Convertible Notes due 2026 106.7 106.7 Other long-term obligations 7.8 8.6 2,948.9 2,904.1 Less: Current maturities of long-term debt (38.3) (38.2) Less: Debt discounts and debt issuance costs (25.0) (17.0) $ 2,885.6 $ 2,848.9 The following is a schedule of future minimum repayments of long-term debt as of March 31, 2026: (in millions) Years ending December 31: 2026 (excluding the three months ended March 31, 2026) $ 134.8 2027 862.0 2028 10.8 2029 1,335.8 2030 0.8 Thereafter 604.7 Total minimum payments $ 2,948.9 Amended Credit Facilities On May 3, 2022, the Company entered into an agreement with its various lenders to amend and restate its previous credit agreement (the Second Amended and Restated Credit Agreement). The Second Amended and Restated Credit Agreement provides for a $1.0 billion revolving credit facility (the Amended Revolving Credit Facility), a five-year $550.0 million term loan A facility (the Amended Term Loan A Facility) and a seven-year $1.0 billion term loan B facility (the Amended Term Loan B Facility) (t …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Accounting Pronouncements Adopted In November 2024, the FASB issued ASU 2024-04, DebtDebt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments (ASU 2024-04). ASU 2024-04 clarifies the determination of accounting treatment required for settlement of convertible debt (particularly, cash convertible instruments) at terms that differ from the original conversion terms. ASU 2024-04 is effective for fiscal years beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, and was adopted on a prospective basis. The adoption of ASU 2024-04 did not have a material impact on our unaudited Consolidated Financial Statements. In July 2025, the FASB issued ASU 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (ASU 2025-05). ASU 2025-05 introduces optional relief for entities estimating expected credit losses on accounts receivable and contract assets arising from revenue transactions under ASC 606, Revenue from Contracts with Customers. The guidance allows entities to apply a practical expedient assuming current conditions persist over the assets life, and for certain non-public entities, to consider post-balance sheet cash collections when estimating credit losses. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, and was …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Revenue Disaggregation Our revenues are generated primarily by providing the following types of services: (i) gaming, inclusive of retail sports betting, iCasino, and OSB; (ii) food and beverage; (iii) hotel; and (iv) other. Other revenues are primarily comprised of PENN Interactives revenues generated from third-party iCasino and OSB, in addition to the related gross-up for taxes, racing operations, media advertising, retail, and commissions received on ATM transactions. Our revenue is disaggregated by type of revenue and geographic location (with no single foreign countrys revenue representing more than 10% of total consolidated revenues) of the related properties, which is consistent with our reportable segments, as follows: For the three months ended March 31, 2026 (in millions) Northeast South West Midwest Interactive (1) Other Intersegment Eliminations (2) Total Revenues: Gaming $ 615.4 $ 212.2 $ 98.1 $ 272.6 $ 136.1 $ $ $ 1,334.4 Food and beverage 38.8 35.7 22.2 17.9 1.3 115.9 Hotel 11.3 23.0 20.6 7.8 62.7 Other 21.6 10.4 4.9 7.6 222.2 3.9 (4.5) 266.1 Total revenues $ 687.1 $ 281.3 $ 145.8 $ 305.9 $ 358.3 $ 5.2 $ (4.5) $ 1,779.1 For the three months ended March 31, 2025 (in millions) Northeast South West Midwest Interactive (1) Other Intersegment Eliminations (2) Total Revenues: Gaming $ 610.6 $ 220.7 $ 91.0 $ 252.3 $ 123.7 $ $ $ 1,298.3 Food and beverage 37.8 33.9 17.6 15.7 1.1 106.1 Hotel 11.9 24.1 16.8 8.1 60.9 Other 20.6 9.6 4.3 6.8 166.4 4.2 (4.7) 207.2 Total reve …

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Segment Information We have five reportable segments: Northeast, South, West, Midwest, and Interactive. Our gaming and racing properties are grouped by geographic location, and each is viewed as an operating segment with the exception of our two properties in Jackpot, Nevada, which are viewed as one operating segment. We consider our combined VGT operations, by state, to be separate operating segments. The retail segments primarily generate revenue from gaming operations (such as slot machines and table games), food and beverage offerings, and hotel visitation. The accounting policies of our retail segments are the same as those described in our significant accounting policies. See Note 2, Significant Accounting Policies and Basis of Presentation for further information. The Interactive segment includes all of our online gaming operations, management of retail sports betting, and media operations. The accounting policies of our Interactive segment are the same as those described in our significant accounting policies. See Note 2, Significant Accounting Policies and Basis of Presentation for further information. The Other category, included in the tables to reconcile the segment information to the consolidated information, consists of our stand-alone racing operations, namely Sanford-Orlando Kennel Club, Sam Houston and Valley Race Park , and our management contract for Retama Park Racetrack. The Other category also includes corporate overhead expenses, which consist of certai …

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Significant Accounting Policies and Basis of Presentation Basis of Presentation: The unaudited Consolidated Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) for interim financial information and with the rules and regulations of the United States (U.S.) Securities and Exchange Commission (the SEC). Accordingly, they do not include all of the information and notes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement have been included. Results of operations and cash flows for the interim periods presented herein are not necessarily indicative of the results that would be achieved during a full year of operations or in future periods. These unaudited Consolidated Financial Statements and notes thereto should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Companys Annual Report on Form 10-K for the year ended December 31, 2025. Principles of Consolidation: The unaudited Consolidated Financial Statements include the accounts of PENN Entertainment, Inc. and its subsidiaries. Investments in and advances to unconsolidated affiliates that do not meet the consolidation criteria of the authoritative guidance for voting interest entities (VOEs) or variable interest entities (VIEs) are accounted for unde …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing