Recent News
On November 6, 2025 PENN and ESPN agreed to an early termination of their U.S. online sports betting agreement, effective December 1, 2025, and announced plans to rebrand the U.S. sportsbook to theScore Bet; the company disclosed an $825 million impairment tied to its Interactive segment and said all ESPN payments will cease in Q4 2025. Additional corporate items announced alongside the termination include a transition plan for customer data and a new $750 million share repurchase authorization beginning January 1, 2026.
Technical Analysis
Directional indicators show a mixed battle: ADX at 28.26 signals a strong trend environment, with DI+ at 19.32 trending higher (bullish) while DI- at 29.88 shows a peak-and-reversal (bearish); the interplay indicates bullish momentum facing persistent downside pressure, moderating conviction for a sustained breakout and aligning with a potential near-term tug-of-war versus valuation-driven flows.
MACD sits at -0.67 with the signal at -0.79 and a dip-and-reversal pattern; the MACD has crossed above its signal line, which registers as a bullish momentum shift that supports short-term upside potential in the context of the rebrand and sentiment-driven flows.
MRO reads -29.85 and shows a peak-and-reversal; the negative MRO indicates price below internal target levels and implies meaningful upside potential toward that target, adding weight to the MACD’s bullish momentum signal rather than contradicting it.
RSI at 40.88 with a dip-and-reversal character indicates the stock sits below neutral momentum but has started turning higher; that condition aligns with a bounce from recent selling rather than an overbought move, consistent with a tactical recovery attempt rather than trend exhaustion.
Price sits at $14.84, above the 20‑day average of $14.41 and just below the 12‑day EMA of $14.59 (12‑day EMA trending from a dip & reversal), while the 50‑day ($16.67) and 200‑day ($17.26) averages remain higher; this configuration shows short-term constructive price action inside a longer-term downtrend, with the SuperTrend upper at $15.24 acting as near-term resistance.
Bollinger bands range roughly $13.01–$15.82 for the 2x band and $13.71–$15.11 for the 1x band, positioning the current price inside the upper half of the short-term volatility band and consistent with the MACD/RSI recovery signals; 42‑day beta at 1.88 and 52‑week beta at 1.55 imply above-index volatility that may amplify short-term moves. Volume at ~2.64M trails 10‑, 50‑ and 200‑day averages, suggesting recent moves lack volume conviction so far.
Fundamental Analysis
Profitability shows severe stress: EBIT of -$762.6M produces an EBIT margin of -44.41%, which sits below the industry peer range low of -24.82%, signaling the company operates well under typical peer profitability levels. EBITDA also negative at -$648.4M, and net income at -$864.6M confirms material operating and non‑operating drains tied in part to the $825M Interactive impairment reported with Q3 results.
Earnings per share delivered an actual EPS of -$6.03 versus an estimate of -$0.05, producing an EPS surprise of -119.6%, a severe miss that materially alters near-term earnings comparability and explains large moves in leverage and valuation multiples on reported results.
Leverage measures remain elevated: total debt stands at $11.1728B with net debt of $2.1744B and debt-to-assets of 78.07%, below the industry peer range high of 83.29% but substantially above typical peer means; debt-to-equity at 570.39% exceeds the industry peer mean of 412.32%, reflecting a capital structure that will magnify both earnings recoveries and further stress if cash generation lags.
Operating cash flow registered $180.9M while free cash flow appears effectively neutral at -$1.0M, and cash on hand equals $660.1M; the current ratio reads 0.75, below the industry peer mean of 1.27, highlighting near-term liquidity tightness even as operating cash flow provides a partial buffer.
Revenue trends show a YoY increase of 88.89% while trailing revenue growth sits slightly negative at -2.70% sequentially; gross margin at 33.82% and operating margin at 2.83% indicate the company generates healthy top-line margins but suffers large impairment and interest impacts that erode operating and net profitability. Interest coverage reads negative, consistent with large interest expense pressure versus operating income.
WMDST values the stock as under-valued based on the combination of current market capitalization ($2.468B), enterprise metrics, and the market’s reaction to the Interactive impairment and strategic rebrand; that valuation reflects expectations that headline-driven digital repositioning and any operational gains in iCasino can justify a valuation discount to peers while leverage remains high.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-06 |
| NEXT REPORT DATE: | 2026-02-05 |
| CASH FLOW | Begin Period Cash Flow | $ 700.5 M |
| Operating Cash Flow | $ 180.9 M | |
| Capital Expenditures | $ -181.90 M | |
| Change In Working Capital | $ -62.80 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -8.40 M | |
| End Period Cash Flow | $ 692.1 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.7 B | |
| Forward Revenue | $ -13.37 M | |
| COSTS | ||
| Cost Of Revenue | $ 1.1 B | |
| Depreciation | $ 114.2 M | |
| Depreciation and Amortization | $ 114.2 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 1.7 B | |
| PROFITABILITY | ||
| Gross Profit | $ 580.7 M | |
| EBITDA | $ -648.40 M | |
| EBIT | $ -762.60 M | |
| Operating Income | $ 48.6 M | |
| Interest Income | $ 2.3 M | |
| Interest Expense | $ 97.2 M | |
| Net Interest Income | $ -94.90 M | |
| Income Before Tax | $ -859.80 M | |
| Tax Provision | $ 5.3 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ -864.60 M | |
| Net Income From Continuing Operations | $ -865.10 M | |
| EARNINGS | ||
| EPS Estimate | $ -0.05 | |
| EPS Actual | $ -6.03 | |
| EPS Difference | $ -5.98 | |
| EPS Surprise | -11960.0 % | |
| Forward EPS | $ 0.20 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 14.3 B | |
| Intangible Assets | $ 3.3 B | |
| Net Tangible Assets | $ -1.33 B | |
| Total Current Assets | $ 1.1 B | |
| Cash and Short-Term Investments | $ 660.1 M | |
| Cash | $ 660.1 M | |
| Net Receivables | $ 231.0 M | |
| Inventory | — | |
| Long-Term Investments | $ 227.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 69.7 M | |
| Short-Term Debt | $ 38.2 M | |
| Total Current Liabilities | $ 1.4 B | |
| Net Debt | $ 2.2 B | |
| Total Debt | $ 11.2 B | |
| Total Liabilities | $ 12.4 B | |
| EQUITY | ||
| Total Equity | $ 2.0 B | |
| Retained Earnings | $ -1.42 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 14.18 | |
| Shares Outstanding | 138.099 M | |
| Revenue Per-Share | $ 12.44 | |
| VALUATION | Market Capitalization | $ 2.5 B |
| Enterprise Value | $ 13.0 B | |
| Enterprise Multiple | -20.02 | |
| Enterprise Multiple QoQ | -129.589 % | |
| Enterprise Multiple YoY | -283.277 % | |
| Enterprise Multiple IPRWA | high: 77.99 mean: 45.789 median: 37.712 low: -13.322 PENN: -20.02 |
|
| EV/R | 7.559 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 7.306 | |
| Asset To Liability | 1.158 | |
| Debt To Capital | 0.851 | |
| Debt To Assets | 0.781 | |
| Debt To Assets QoQ | 7.008 % | |
| Debt To Assets YoY | 31637.398 % | |
| Debt To Assets IPRWA | high: 0.833 PENN: 0.781 mean: 0.495 median: 0.412 low: 0.001 |
|
| Debt To Equity | 5.704 | |
| Debt To Equity QoQ | 53.618 % | |
| Debt To Equity YoY | 45677.689 % | |
| Debt To Equity IPRWA | high: 15.535 PENN: 5.704 mean: 4.123 median: 2.604 low: 0.001 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.26 | |
| Price To Book QoQ | 37.583 % | |
| Price To Book YoY | 33.27 % | |
| Price To Book IPRWA | high: 25.341 mean: 14.708 median: 9.476 PENN: 1.26 low: 0.86 |
|
| Price To Earnings (P/E) | -2.964 | |
| Price To Earnings QoQ | -97.96 % | |
| Price To Earnings YoY | -96.253 % | |
| Price To Earnings IPRWA | high: 212.406 median: 61.598 PENN: -2.964 mean: -8.135 low: -143.753 |
|
| PE/G Ratio | 0.0 | |
| Price To Sales (P/S) | 1.437 | |
| Price To Sales QoQ | -7.304 % | |
| Price To Sales YoY | -18.694 % | |
| Price To Sales IPRWA | high: 18.152 mean: 11.914 median: 10.952 PENN: 1.437 low: 1.04 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 96.088 | |
| Forward PE/G | -0.016 | |
| Forward P/S | -184.566 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 372.928 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.116 | |
| Asset Turnover Ratio QoQ | -0.129 % | |
| Asset Turnover Ratio YoY | 10.21 % | |
| Asset Turnover Ratio IPRWA | high: 0.489 median: 0.251 mean: 0.223 PENN: 0.116 low: 0.064 |
|
| Receivables Turnover | 7.109 | |
| Receivables Turnover Ratio QoQ | 1.789 % | |
| Receivables Turnover Ratio YoY | 6.608 % | |
| Receivables Turnover Ratio IPRWA | high: 32.291 median: 8.867 mean: 8.466 PENN: 7.109 low: 1.292 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 12.835 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 7.507 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 60.635 median: 10.291 PENN: 7.507 mean: 5.763 low: -29.161 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -4.837 | |
| CapEx To Revenue | -0.106 | |
| CapEx To Depreciation | -1.593 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 4.8 B | |
| Net Invested Capital | $ 4.8 B | |
| Invested Capital | $ 4.8 B | |
| Net Tangible Assets | $ -1.33 B | |
| Net Working Capital | $ -355.00 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.458 | |
| Current Ratio | 0.754 | |
| Current Ratio QoQ | -4.148 % | |
| Current Ratio YoY | -19.881 % | |
| Current Ratio IPRWA | high: 2.572 mean: 1.267 median: 1.095 PENN: 0.754 low: 0.572 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -17.231 | |
| Cost Of Debt | 0.69 % | |
| Interest Coverage Ratio | -7.846 | |
| Interest Coverage Ratio QoQ | -995.718 % | |
| Interest Coverage Ratio YoY | -1209.824 % | |
| Interest Coverage Ratio IPRWA | high: 3.064 mean: 1.909 median: 1.81 low: -0.393 PENN: -7.846 |
|
| Operating Cash Flow Ratio | -0.502 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 5.328 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -5.893 % | |
| Revenue Growth | -2.703 % | |
| Revenue Growth QoQ | -148.87 % | |
| Revenue Growth YoY | 88.889 % | |
| Revenue Growth IPRWA | high: 16.909 % PENN: -2.703 % mean: -13.429 % median: -24.363 % low: -26.905 % |
|
| Earnings Growth | -6130.0 % | |
| Earnings Growth QoQ | 5110.503 % | |
| Earnings Growth YoY | -18490.184 % | |
| Earnings Growth IPRWA | high: 400.0 % median: -64.839 % mean: -91.423 % low: -247.368 % PENN: -6130.0 % |
|
| MARGINS | ||
| Gross Margin | 33.815 % | |
| Gross Margin QoQ | -2.685 % | |
| Gross Margin YoY | -2.534 % | |
| Gross Margin IPRWA | high: 77.998 % mean: 42.416 % PENN: 33.815 % median: 31.463 % low: -0.038 % |
|
| EBIT Margin | -44.407 % | |
| EBIT Margin QoQ | -1033.116 % | |
| EBIT Margin YoY | -969.702 % | |
| EBIT Margin IPRWA | high: 28.173 % median: 7.527 % mean: 2.989 % low: -24.82 % PENN: -44.407 % |
|
| Return On Sales (ROS) | 2.83 % | |
| Return On Sales QoQ | -46.003 % | |
| Return On Sales YoY | -44.575 % | |
| Return On Sales IPRWA | high: 28.16 % median: 13.124 % mean: 3.803 % PENN: 2.83 % low: -27.22 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -1.00 M | |
| Free Cash Flow Yield | -0.041 % | |
| Free Cash Flow Yield QoQ | -14.583 % | |
| Free Cash Flow Yield YoY | -111.421 % | |
| Free Cash Flow Yield IPRWA | high: 3.756 % median: 1.336 % mean: 1.137 % PENN: -0.041 % low: -4.945 % |
|
| Free Cash Growth | -23.077 % | |
| Free Cash Growth QoQ | -76.557 % | |
| Free Cash Growth YoY | -69.987 % | |
| Free Cash Growth IPRWA | high: 384.085 % median: 77.294 % mean: 61.205 % PENN: -23.077 % low: -318.149 % |
|
| Free Cash To Net Income | 0.001 | |
| Cash Flow Margin | -42.182 % | |
| Cash Flow To Earnings | 0.838 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.01 | |
| Return On Assets (ROA) | -5.858 % | |
| Return On Assets QoQ | 4993.913 % | |
| Return On Assets YoY | 2382.203 % | |
| Return On Assets IPRWA | high: 1.754 % median: 1.04 % mean: 0.666 % low: -2.406 % PENN: -5.858 % |
|
| Return On Capital Employed (ROCE) | -5.926 % | |
| Return On Equity (ROE) | -0.441 | |
| Return On Equity QoQ | 7484.021 % | |
| Return On Equity YoY | 3584.391 % | |
| Return On Equity IPRWA | high: 0.211 median: 0.037 mean: -0.077 PENN: -0.441 low: -0.54 |
|
| DuPont ROE | -34.955 % | |
| Return On Invested Capital (ROIC) | -12.569 % | |
| Return On Invested Capital QoQ | -1195.815 % | |
| Return On Invested Capital YoY | 51.27 % | |
| Return On Invested Capital IPRWA | high: 9.86 % mean: 2.459 % median: 2.291 % low: -4.321 % PENN: -12.569 % |
|