Canterbury Park Holding Corporation Reports Third Quarter Results
Joint ventures currently generate approximately $87,000 in quarterly cash flow, while the Doran ventures are expected to turn cash-flow positive in 2027.
Sentiment and the balance of points
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Rhea-AI Summary
Canterbury Park (Nasdaq: CPHC) reported third-quarter net income of $959,000, with casino growth driving higher revenue and profitability. For the quarter ended September 30, 2026, revenue rose 4.2% to $19.1 million. Diluted earnings increased to $0.18 per share from $0.10 a year earlier. Casino revenue rose 13.8%, while pari-mutuel and other revenues declined 9.5% and 9.8%, respectively.
Adjusted EBITDA, a non-GAAP earnings measure, increased 27.8% to $3.8 million, with its margin reaching 20.1% versus 16.3%. Nine-month net income was $981,000, compared with a $139,000 loss a year earlier. Canterbury expects lower capital requirements and improved cash flow in 2027 as development spending winds down. Remaining tax increment financing spending totaled $930,000 at September 30; a final equity contribution to Doran Canterbury I is expected before year-end in connection with its expected refinancing.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointThird-quarter revenue increased 4.2% year over year to $19.1 million.
- Moderate pointThird-quarter net income rose 96.8% to $959,000; diluted EPS increased to $0.18 from $0.10.
- Moderate pointThird-quarter operating income improved to $1.7 million from $1.1 million a year earlier.
- Moderate pointThird-quarter adjusted EBITDA increased 27.8% to $3.8 million; its margin rose to 20.1% from 16.3%.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Tax increment financing reimbursements included $320,000 received in July 2026; approximately $900,000 more is expected in late 2026 or early 2027. 1.1% of market cap
- Moderate point. Forward-looking: it has not happened yet and may not happen.2027 capital requirements are expected to fall, with Canterbury anticipating improved cash flow and more capital-return flexibility.
12 minor points
- Minor pointThird-quarter casino revenue increased 13.8% to $10.2 million, supported by 17% higher table games drop.
- Minor pointThird-quarter food and beverage revenue increased 2.9% year over year.
- Minor pointThird-quarter equity investment losses narrowed to $852,000 from $936,000, but remained losses.
- Minor pointNine-month revenue increased 3.5% to $48.8 million, including casino growth of 5.2% and food and beverage growth of 10.1%.
- Minor pointNine-month net income reached $981,000 versus a $139,000 loss; diluted EPS improved to $0.19 from negative $0.03.
- Minor pointNine-month operating income increased to $3,042,718 from $2,132,534.
- Minor pointNine-month adjusted EBITDA increased 30.1% to $9.3 million; its margin improved to 19.0% from 15.1%.
- Minor pointNine-month equity investment losses narrowed to $3.1 million from $3.9 million, but remained losses.
- Minor pointThird-quarter professional services and marketing expenses fell $136,000 and $61,000, respectively, year over year.
- Minor pointNine-month advertising and salaries expenses fell $255,000 and $178,000, respectively, year over year.
- Minor pointJoint ventures currently generate approximately $87,000 per quarter in cash flow to Canterbury.
- Minor point. Forward-looking: it has not happened yet and may not happen.Doran Canterbury I and II are expected to be cash-flow positive in 2027 on a combined basis.
Negative
- Moderate pointNine-month purse expense increased $478,000, including a $419,000 impairment for prior-period purse overpayments.
- Moderate pointNine-month other operating expenses increased $450,000 year over year.
- Moderate pointNine-month income taxes shifted to a $527,996 expense from a $176,000 benefit.
- Moderate pointRemaining tax increment financing spending totaled $930,000 at September 30, 2026. 1.1% of market cap
- Moderate point. Forward-looking: it has not happened yet and may not happen.Doran Canterbury I requires an expected final equity contribution before year-end related to its expected refinancing.
8 minor points
- Minor pointThird-quarter pari-mutuel revenue fell 9.5%, primarily reflecting lower out-of-state wagering and smaller average race fields.
- Minor pointThird-quarter other revenue declined 9.8%, primarily reflecting lower non-racing admission revenue from fewer concerts.
- Minor pointNine-month pari-mutuel revenue declined to $6,269,609 from $6,577,878.
- Minor pointNine-month other revenue declined to $5,532,167 from $5,738,892.
- Minor pointThird-quarter other operating expenses rose $152,000, largely due to higher real estate taxes.
- Minor pointThird-quarter food, beverage and other sales costs increased $78,000 year over year.
- Minor pointThird-quarter income tax expense increased to $420,000 from $156,000.
- Minor pointNine-month food, beverage and other sales costs increased $260,000 year over year.
News Explained
About $87,000 per quarter is current joint-venture cash flow; roughly $900,000 in TIF receipts is expected, not yet reported.
In its third-quarter results release, Canterbury says its joint ventures are currently generating about
Separately, Canterbury expects to receive approximately
Key Figures
- Third-quarter net revenues
- $19,082,445 vs. $18,314,701; up 4.2%
- Three months ended September 30, 2026 vs. 2025
- Third-quarter net income
- $959,165 vs. $487,283; up 96.8%
- Three months ended September 30, 2026 vs. 2025
- Third-quarter Adjusted EBITDA
- $3,827,747 vs. $2,994,411; up 27.8%
- Three months ended September 30, 2026 vs. 2025
- Diluted EPS
- $0.18 vs. $0.10
- Three months ended September 30, 2026 vs. 2025
- Adjusted EBITDA margin
- 20.1% vs. 16.3%
- Third quarter 2026 vs. third quarter 2025
- Casino revenue
- Up 13.8% to $10.2 million
- Third quarter 2026 year over year
Previous Earnings Reports
-
Revenue rose 3.2% and Adjusted EBITDA rose 29.3%, though a quarterly net loss remained.
-
Revenue rose 2.8%, net income was positive, and Adjusted EBITDA increased 35.6%.
-
Q3 revenue fell 5.0% year over year and Adjusted EBITDA declined 14.2%.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
non-gaap financial
impairment charge financial
tax increment financing financial
pari-mutuel technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Strong Operating Margins and Lower Future Capital Expenditures Position the Company for Meaningful Cash Flow Growth in 2027
SHAKOPEE, Minn., Nov. 10, 2026 (GLOBE NEWSWIRE) -- Canterbury Park Holding Corporation (“Canterbury” or the “Company”) (Nasdaq: CPHC), today reported financial results for the third quarter ended September 30, 2026.
| ($ in thousands, except per share data and percentages) | ||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||
| Net revenues | ||||||||||||
| Net income (loss) (1) | ( | NM(3) | ||||||||||
| Adjusted EBITDA (2) | ||||||||||||
| Basic EPS | ( | NM(3) | ||||||||||
| Diluted EPS | ( | NM(3) | ||||||||||
| (1) | Net income in the nine-month period ended September 30, 2026 includes the impact of an impairment charge of |
| (2) | Adjusted EBITDA, a non-GAAP measure, excludes certain items from net income, a GAAP measure. Non-GAAP financial measures are not intended to be considered in isolation from, a substitute for, or superior to GAAP results. Definitions, disclosures, and reconciliations of non-GAAP financial information are included later in this release. Please see the reconciliation of Net income (loss) to Adjusted EBITDA on page 6. |
| (3) | Not meaningful as results changed from a net loss to net income. |
Management Commentary
Randy Sampson, President and Chief Executive Officer of Canterbury Park, commented, “Our third-quarter results demonstrate the operating leverage in our business, with revenue growth driving higher profitability and cash flow. Net income nearly doubled and Adjusted EBITDA increased
“The higher level of cash flow from operations we are generating is noteworthy as we are also in the final stages of a multi-year period of elevated capital expenditures that were primarily associated with strategic investments to enhance Canterbury’s long-term real estate opportunities rather than being undertaken for short-term return-focused projects. In addition, we expect the current quarter will be the last quarter of other significant development infrastructure expenditures, including for our final payment related to the tax increment financing (“TIF”) note receivable. Also, we expect to make our final equity contribution to the Doran Canterbury I joint venture prior to year-end related to its expected refinancing. As a result, we will enter 2027 with significantly lower capital requirements, while we expect positive cash flow from our joint ventures as well as opportunities to actively invest to grow interest income. This will allow the Company to transition into ‘cash-harvesting mode’ next year as we expect to generate a meaningful improvement in cash flow. This will provide us with additional and meaningful optionality for returning capital to shareholders.
“In addition, we continue to believe there is significant unrecognized value on our balance sheet including the more than
Tax Increment Financing
As of September 30, 2026, Canterbury has just
Joint Ventures
The Company’s joint ventures are currently generating approximately
- Canterbury Development DBSV, LLC (“Winners Circle”): Currently generating approximately
$38,000 per quarter in cash flow to the Company - Trackside Investments, LLC (“Boardwalk Kitchen & Bar”): Currently generating approximately
$49,000 per quarter in cash flow to the Company - Doran Canterbury I & II, LLC (“Triple Crown Residences at Canterbury Park”): Expected to be cash flow positive in 2027 on a combined basis
Summary of 2026 Third Quarter Operating Results
Net revenues for the three months ended September 30, 2026 increased
Operating expenses for the three months ended September 30, 2026 were
The Company recorded a net loss from equity investments of
The Company recorded income tax expense of
The Company recorded net income of
Adjusted EBITDA, a non-GAAP measure, increased
Summary of 2026 Year-to-Date Operating Results
Net revenues for the nine months ended September 30, 2026 were
Operating expenses for the nine months ended September 30, 2026 were
The net loss from equity investments improved to
Adjusted EBITDA, a non-GAAP measure, increased
Additional Financial Information
Further financial information for the third quarter ended September 30, 2026, is presented in the accompanying tables at the end of this press release. Additional information will be provided in the Company’s Quarterly Report on Form 10-Q that will be filed with the Securities and Exchange Commission on or about November 12, 2026.
Use of Non-GAAP Financial Measures
To supplement our financial statements, we also provide investors with information about our EBITDA and Adjusted EBITDA, both of which are non-GAAP measures that exclude certain items from net income, a GAAP measure. We define EBITDA as earnings before interest, taxes, depreciation, and amortization. We define Adjusted EBITDA as earnings before interest income (net of interest expense), income tax expense or benefit, depreciation, and amortization, as well as excluding stock-based compensation (which includes our 401(k)-match expense as this match occurs in Company stock), gain on disposal of assets, depreciation and amortization and interest expense related to equity investments, including amounts attributable to underlying joint ventures reflected in equity investment earnings, and impairment of other receivables related to prior-period purse overpayments. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net revenues. Neither EBITDA, Adjusted EBITDA, nor Adjusted EBITDA margin are measures of performance calculated in accordance with generally accepted accounting principles ("GAAP"), and should not be considered an alternative to, or more meaningful than, net income as an indicator of our operating performance. See the table below, which presents reconciliations of these measures to the GAAP equivalent financial measure, which is net income. We have presented EBITDA as a supplemental disclosure because we believe that, when considered with measures calculated in accordance with GAAP, EBITDA gives investors a more complete understanding of our operating results before the impact of investing and financing transactions and income taxes, and it is a widely used measure of performance and basis for valuation of companies in our industry. Other companies that provide EBITDA information may calculate EBITDA or Adjusted EBITDA differently than we do, so caution should be taken in comparing the Company’s EBITDA and Adjusted EBITDA results to those of other companies. We have presented Adjusted EBITDA as a supplemental disclosure because we believe it enables investors to understand and assess our core operating results excluding the effect of these items and is useful to investors in allowing greater transparency related to a significant measure used by management in its financial and operational decision-making. Adjusted EBITDA and Adjusted EBITDA margin have economic substance because they are used by management as performance measures to analyze the performance of our business and provide a perspective on the current effects of operating decisions. We have presented Adjusted EBITDA margin as a supplemental disclosure because we believe it provides investors with a useful measure of our operating profitability relative to our net revenues and facilitates period-to-period comparisons of our operating performance, and management uses it to evaluate the efficiency of our operations and the effectiveness of our cost management.
About Canterbury Park
Canterbury Park Holding Corporation (Nasdaq: CPHC) owns and operates Canterbury Park Racetrack and Casino in Shakopee, Minnesota, the only thoroughbred and quarter horse racing facility in the State. The Company generally offers live racing from May to September. The Casino hosts card games 24 hours a day, seven days a week, dealing both poker and table games. The Company also conducts year-round wagering on simulcast horse racing and hosts a variety of other entertainment and special events at its Shakopee facility. The Company is also pursuing a strategy to enhance shareholder value by the ongoing development of approximately 140 acres of underutilized land surrounding the Racetrack that was originally designated for a project known as Canterbury Commons™. The Company is pursuing several mixed-use development opportunities for the remaining underutilized land, directly and through joint ventures. For more information about the Company, please visit www.canterburypark.com.
Cautionary Statement
From time to time, in reports filed with the Securities and Exchange Commission, in press releases, and in other communications to shareholders or the investing public, we may make forward-looking statements concerning possible or anticipated future financial performance, business activities, or plans. These statements are typically preceded by the words “believes,” “expects,” “anticipates,” “intends,” “will,” “plan,” “may,” “position,” “expect,” or similar expressions. For these forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in federal securities laws. Shareholders and the investing public should understand that these forward-looking statements are subject to risks and uncertainties which could affect our actual results and cause actual results to differ materially from those indicated in the forward-looking statements. We report these risks and uncertainties in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These risks and uncertainties include, but are not limited to: we may not be successful in implementing our growth strategy; sensitivity to reductions in discretionary spending as a result of downturns in the economy and other factors; we have experienced a decrease in revenue and profitability from live racing; challenges in attracting a sufficient number of horses and trainers; a lack of confidence in core operations resulting in decreasing customer retention and engagement; personal injury litigation due to the inherently dangerous nature of horse racing; material fluctuations in attendance at the Racetrack; material changes in the level of wagering by patrons; any decline in interest in horse racing or the unbanked card games offered in the Casino; competition from other venues offering racing, unbanked card games, or other forms of wagering; competition from other sports and entertainment options; increases in compensation and employee benefit costs; the impact of wagering products and technologies introduced by competitors; the general health of the gaming sector; legislative and regulatory decisions and changes; our ability to successfully develop our real estate, including the effect of competition on our real estate development operations and our reliance on our current and future development partners; our obligation to make improvements in the TIF district that will only be reimbursed to the extent of future tax revenue; temporary disruptions or changes in access to our facilities caused by ongoing infrastructure improvements; inclement weather and other conditions affecting the ability to conduct live racing; technology and/or key system failures; cybersecurity incidents; the general effects of inflation; our ability to attract and retain qualified personnel; dividends that may or may not be issued at the discretion of our Board of Directors; and other factors that are beyond our ability to control or predict.
The forward-looking statements in this press release speak only as of the date of this press release. Except as required by law, Canterbury assumes no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.
# # #
Investor Contact
Randy Dehmer
Senior Vice President and Chief Financial Officer
Canterbury Park Holding Corporation
952-233-4828 or investorrelations@canterburypark.com
– financial tables follow –
| CANTERBURY PARK HOLDING CORPORATION'S SUMMARY OF OPERATING RESULTS (UNAUDITED) | |||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| OPERATING REVENUES: | |||||||||||||||
| Casino | |||||||||||||||
| Pari-mutuel | 2,928,616 | 3,236,032 | 6,269,609 | 6,577,878 | |||||||||||
| Food and beverage | 3,608,614 | 3,507,789 | 7,929,772 | 7,199,300 | |||||||||||
| Other | 2,386,775 | 2,645,764 | 5,532,167 | 5,738,892 | |||||||||||
| Total Net Revenues | |||||||||||||||
| OPERATING EXPENSES | (17,380,916 | ) | (17,263,655 | ) | (45,718,831 | ) | (44,989,533 | ) | |||||||
| INCOME FROM OPERATIONS | 1,701,529 | 1,051,046 | 3,042,718 | 2,132,534 | |||||||||||
| Other loss, net | (322,009 | ) | (407,763 | ) | (1,533,755 | ) | (2,447,867 | ) | |||||||
| INCOME TAX (EXPENSE) BENEFIT | (420,355 | ) | (156,000 | ) | (527,996 | ) | 176,000 | ||||||||
| NET INCOME (LOSS) | ( | ) | |||||||||||||
| Basic Earnings (Loss) Per Share | ( | ) | |||||||||||||
| Diluted Earnings (Loss) Per Share | ( | ) | |||||||||||||
| RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA (UNAUDITED) | |||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| NET INCOME (LOSS) | ( | ) | |||||||||||||
| Interest income, net | (530,417 | ) | (528,501 | ) | (1,584,272 | ) | (1,451,162 | ) | |||||||
| Income tax expense (benefit) | 420,355 | 156,000 | 527,996 | (176,000 | ) | ||||||||||
| Depreciation and amortization | 1,024,778 | 1,026,994 | 3,093,032 | 2,944,900 | |||||||||||
| EBITDA | 1,873,881 | 1,141,776 | 3,017,723 | 1,178,405 | |||||||||||
| Stock-based compensation | 407,660 | 392,994 | 1,245,499 | 1,201,749 | |||||||||||
| Gain on disposal of assets | - | - | (56,000 | ) | - | ||||||||||
| Other receivables impairment | - | - | 419,493 | - | |||||||||||
| Depreciation and amortization related to equity investments | 727,143 | 619,336 | 2,178,942 | 2,269,948 | |||||||||||
| Interest expense related to equity investments | 819,063 | 840,305 | 2,475,037 | 2,481,499 | |||||||||||
| ADJUSTED EBITDA | |||||||||||||||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Canterbury Park's third-quarter 2026 earnings?
Canterbury Park earned $959,000, or $0.18 per diluted share, in the quarter ended September 30, 2026. That compares with $487,000, or $0.10 per diluted share, a year earlier. Revenue increased 4.2% to $19.1 million.
Why does Canterbury Park expect better cash flow in 2027?
Canterbury expects lower capital requirements as its multi-year development spending winds down. The company expects the current quarter to be its last quarter of substantial development infrastructure expenditures and anticipates positive joint-venture cash flow in 2027, alongside opportunities to invest to grow interest income.
What caused Canterbury Park's 2026 purse-overpayment impairment?
Canterbury recognized a $419,000 impairment in the second quarter of 2026 against horse racing purse overpayments made in 2024 and 2025. Those overpayments exceeded $2.0 million. No legislative action had legalized sports betting or provided purse enhancements, and the company will continue evaluating recoverability.
Which Canterbury Park joint ventures currently generate cash flow?
Winners Circle and Boardwalk Kitchen & Bar currently generate approximately $38,000 and $49,000 per quarter, respectively, in cash flow to Canterbury. The Doran Canterbury I and II ventures, associated with Triple Crown Residences, are expected to be cash-flow positive in 2027 on a combined basis.