Canterbury Park Profit Nearly Doubles as Casino Revenue Rises

Canterbury Park Holding Corporation released third-quarter results on November 10, 2026, reporting net income of $959,000, up 96.8% from a year earlier, as 13.8% casino revenue growth and nearly flat operating expenses lifted profitability. The Minnesota racetrack and casino operator also expects significantly lower capital requirements and improved cash flow in 2027.

Net revenue increased 4.2% to $19.1 million. Adjusted EBITDA, a company-defined measure that excludes interest, taxes, depreciation and amortization along with other adjustments, rose 27.8% to $3.8 million. President and CEO Randy Sampson said Adjusted EBITDA margin, which the company calculates as Adjusted EBITDA divided by net revenue, expanded to 20.1% from 16.3%, demonstrating profit growth well beyond the increase in sales.

Casino Growth Offsets Weaker Racing and Events

Casino revenue was the main contributor, reaching $10.2 million. Sampson attributed the gain to a 17% increase in table games drop and a higher hold percentage. That performance helped offset a 9.5% decline in pari-mutuel revenue and weaker event-related revenue.

Smaller average fields per race reduced out-of-state handle, weighing on pari-mutuel results, while fewer concerts reduced admission revenue from non-racing events. Operating expenses nevertheless rose only 0.7%. Higher real estate taxes and food-and-beverage costs were partly offset by lower professional and contracted-services expense and reduced marketing tied to the lighter concert schedule.

Income from operations improved to $1.7 million from $1.1 million. The bottom line also absorbed an $852,000 net loss from equity investments, primarily Canterbury’s share of depreciation, amortization and interest expense from the Doran Canterbury joint ventures. That loss connects the quarter’s operating improvement to the real-estate strategy at the center of management’s outlook.

Management’s 2027 Cash Flow Outlook

Sampson said Canterbury expects the fourth quarter to conclude its remaining significant development infrastructure spending, including the final payment tied to its tax-increment-financing note receivable, and to make its final equity contribution to Doran Canterbury I before year-end in connection with the venture’s anticipated refinancing.

Canterbury said its Winners Circle and Boardwalk Kitchen & Bar ventures currently generate about $87,000 in combined quarterly cash flow, while Doran Canterbury I and II are expected to become cash flow positive on a combined basis in 2027. More broadly, Canterbury is pursuing mixed-use development on approximately 140 acres of underutilized land surrounding the racetrack, directly and through joint ventures.

Sampson described the expected transition as “cash-harvesting mode,” with significantly lower capital requirements, positive joint-venture cash flow and opportunities to grow interest income expected to improve cash flow meaningfully and broaden the company’s options for returning capital to shareholders.

The next test is whether Canterbury can finish the remaining development payments and the anticipated Doran Canterbury I refinancing, then move Doran Canterbury I and II to combined positive cash flow in 2027. Those milestones, alongside sustained casino-led operating gains, will shape how much of management’s projected cash-flow improvement can support future shareholder returns.