Canterbury Park Q2 Loss Narrows Y/Y on Revenue & EBITDA Growth

Shares of Canterbury Park Holding Corporation CPHC have gained 0.9% since reporting second-quarter 2026 earnings, outperforming the S&P 500 index’s decline of 0.4%. Over the past month, however, the stock has fallen 1.4%, while the index has advanced 3.5%, leaving CPHC behind the broader market monthly despite its positive post-release performance.

Revenue & Earnings Performance

For the three months ended June 30, net revenues rose 3.2% to $16.17 million from $15.67 million. The loss narrowed to 3 cents per share from 6 cents in the prior-year quarter, while the net loss fell 54.8% to $0.15 million from $0.33 million in the prior-year quarter. Adjusted EBITDA increased 29.3% to $2.63 million from $2.04 million, and the adjusted EBITDA margin expanded to 16.3% from 13%. Operating income, however, declined to $0.29 million from $0.43 million as operating expenses grew faster than revenues.

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Operating & Balance-Sheet Metrics

Casino revenues increased 1.5% year over year to $9.63 million. Within that business, table-games revenues rose to $7.27 million from $6.96 million, more than offsetting a decline in poker revenues to $2.36 million from $2.53 million. Pari-mutuel revenues advanced 2.6% to $2.32 million, while food-and-beverage revenues climbed 19.6% to $2.47 million. Other revenues decreased 5.6% to $1.74 million.

As of June 30, cash, cash equivalents and restricted cash totaled $19.45 million, up from $15.82 million as of Dec. 31, 2025. Canterbury had no borrowings under its $5-million revolving credit line and remained compliant with its financial covenants. Its six-month operating cash flow was $7.49 million compared with $7.76 million a year earlier.

Management’s View

CEO Randy Sampson credited operating initiatives and expense discipline for the quarter’s revenues and adjusted EBITDA growth. He said that Casino performance reflected a significant improvement in table-games drop, while food-and-beverage gains benefited from more live-racing days. Management also highlighted more than $11 per share of value represented by cash, tax-increment-financing receivables and real estate joint ventures.

With 5.2 million shares outstanding, Canterbury reported a $20.56-million TIF receivable and said that it had contributed more than $18 million to land and cash to joint-venture developments. Sampson also pointed to approximately 50 acres of development land carried below what management considers current market value. He expects stabilizing joint ventures to generate more consistent cash contributions and reduce the need for member-loan support.

Here’s What Shaped the Quarter

Higher table-game drop reflected increased visitation and spending per visit, although a lower average collection-revenue rate limited Casino growth. More live-racing days lifted live-racing, concession and overall food-and-beverage revenues, while a new point-of-sale system increased transaction speed. Lower simulcast revenues and fewer concert events were offsets, with the latter reducing admission and other revenues.

Operating expenses rose 4.3% year over year to $15.88 million. Purse expenses increased $0.46 million, or 23.6%, largely because Canterbury recorded a $0.42-million impairment of receivables tied to more than $2 million of 2024 and 2025 purse overpayments. The company cited two consecutive legislative sessions without qualifying sports-betting or purse-enhancement legislation and a shorter recovery period. Advertising and marketing expenses fell 26.6%, while other operating expenses rose 13.7% on higher real estate taxes and special-event promoter fees. Equity-investment losses decreased to $1.05 million from $1.39 million, mainly because of higher leasing rates at the Doran Canterbury ventures.

Outlook

Canterbury expects to receive $1.2 million of TIF reimbursements in 2026 and spend the remaining $1.2 million of eligible improvements over the next nine months. Management expects the two Triple Crown Residences ventures to be cash-flow positive on a combined basis in 2027. It also said available cash, investments, credit capacity, operating funds and potential land-sale proceeds should cover regular operations and planned development spending for at least 12 months.

Other Developments

The notable investment development was a $1.47-million equity contribution to the Doran Canterbury II joint venture during the first half, supporting a refinancing that Canterbury expects will reduce the venture’s future interest expenses. Separately, the recently opened 19,000-capacity amphitheater at the broader property is increasing activity and management is seeking to convert that traffic into demand for gaming, food, beverage and entertainment offerings.

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