PENN Entertainment (NASDAQ: PENN) saw its stock price plummet 5.41% in pre-market trading on Thursday following the release of its disappointing first-quarter 2025 financial results. The casino and sports betting company reported earnings that fell short of analyst expectations, citing severe weather challenges earlier in the year as a contributing factor.

According to the earnings report, PENN Entertainment posted revenue of $1.67 billion for the quarter, missing the analyst estimate of $1.70 billion. The company also reported an adjusted loss of $0.25 per share, which was worse than the expected loss of $0.18 per share. The core business contributed $1.4 billion in revenue, while the interactive segment added $290.1 million.

Despite the overall disappointing results, PENN Entertainment's CEO Jay Snowden highlighted some positive aspects. "PENN's properties demonstrated strong resilience in the quarter following severe weather challenges earlier in the year, as gaming volumes rebounded in March and remained consistent through April and early May," Snowden stated. He also noted that the Interactive segment generated record gaming revenue and significant year-over-year improvements in both revenue and Adjusted EBITDA, despite industry-wide unfavorable sports betting hold. The company maintained a strong liquidity position with $1.5 billion available, including $591.6 million in cash and cash equivalents as of March 31.