Canterbury Park Holding 2025 Q3 Earnings Net Income Plummets 75.9% Amid Revenue Decline

Canterbury Park Holding reported a 5% revenue decline to $18.3 million and a 75.9% drop in net income to $487,283, aligning with ongoing challenges in the casino segment. Management emphasized strategic initiatives to boost traffic and improve operating efficiencies, including labor cost reductions and real estate development opportunities.

Revenue

The casino segment saw a 9.7% decline to $8.9 million, while pari-mutuel revenue remained stable at $3.2 million. Food and beverage operations grew by 13.1% to $3.5 million, partially offsetting the casino's downturn. Other revenue, including events and hospitality, fell 11.1% to $2.6 million.

Earnings/Net Income

Earnings per share (EPS) plummeted 75% to $0.10, with net income dropping to $487,283. The sharp EPS decline underscores the impact of reduced casino revenues and lower per-patron wagering, highlighting operational challenges.

Price Action

The stock price edged up 0.48% during the latest trading day and 0.78% for the week but fell 7.22% month-to-date.

Post-Earnings Price Action Review

Historical data indicates that purchasing shares post-earnings has been unprofitable, with a -25.5% cumulative return over three years. This underperformance suggests market skepticism towards the strategy, as the stock has also dropped 7.22% month-to-date despite recent short-term gains

CEO Commentary

CEO Randy Sampson highlighted stable casino traffic but declining per-patron wagering. Strategic priorities include labor cost optimization, growth in food and beverage, and real estate development. The Boardwalk Kitchen & Bar’s success validates the company’s entertainment-focused model, with plans to expand hospitality offerings and unlock value from 25 acres of prime land near the amphitheater.

Guidance

The company remains focused on improving operating efficiencies and diversifying revenue streams. While no explicit guidance was provided, leadership emphasized confidence in long-term value creation through real estate partnerships, event-driven traffic, and cash flow stability, supported by $17 million in liquidity and $20 million in TIF receivables.

Additional News

Canterbury Park’s joint venture partner, Trackside Holdings, completed the Boardwalk Kitchen & Bar, achieving 66% leasing in a new 28,000-square-foot commercial building. Phase II of Triple Crown Residences reached 93% occupancy, and Pulte Homes advanced its third-phase row home development. The company also progressed on its $19,000-seat amphitheater, slated to open in 2026, and a market analysis for 25 acres of land near the venue.