($ in thousands, except per share data and percentages)
Three Months Ended December 31,
Twelve Months Ended December 31,
2025
2024
Change
2025
2024
Change
Net revenues
$12,446
$11,978
3.9%
$59,568
$61,562
(3.2%)
Net income (loss) (1)
($390)
($1,245)
(68.7%)
($529)
$2,113
(125.1%)
Adjusted EBITDA (2)
$2,288
$1,497
52.8%
$9,410
$10,805
(12.9%)
Basic EPS
($0.08)
($0.25)
(68.0%)
($0.10)
$0.42
(123.8%)
Diluted EPS
($0.08)
($0.25)
(68.0%)
($0.10)
$0.42
(123.8%)
(1)
Net income and basic and diluted EPS for the twelve months ended December 31, 2024, benefited from a $1.7 million gain related to the transfer of land to a new joint venture.
(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 the release. Adjusted EBITDA margin is Adjusted EBITDA as a percentage of net revenues.
Management CommentaryRandy Sampson, President and Chief Executive Officer of Canterbury Park, commented, "Fourth quarter results are consistent with historical seasonality and conclude a year of transformation and diversification. Fourth quarter revenue increased 3.9% to $12.4 million, driven largely by 5.4% growth in Casino revenue. Visitation rose in the fourth quarter, and we remain focused on increasing casino traffic through our expanded VIP programs as well as enhanced advertising and marketing initiatives. Food and Beverage revenue grew slightly in the quarter, while Pari-Mutuel revenues declined slightly because of fewer races compared to last year. Adjusted EBITDA of $2.3 million rose 53% year-over-year with an adjusted EBITDA margin of 18.4%, reflecting the quarter's higher revenue and flat operating expense compared to last year. We continue to take measures to improve operating efficiencies, particularly labor, our largest expense, while pursuing opportunities to grow our entertainment and hospitality businesses and further develop our valuable real estate.
"2025 marked a pivotal year of our growth and diversification strategy, as the process of creating a unique regional destination to live, stay, work and play is now well underway. Portfolio-wide, residential occupancy has reached 84% as we approach the strongest part of the year for residential leasing of the remaining living and housing units. The Omry Senior Apartments and Pulte Townhomes have a couple of units left between them - a significant and positive signal to the market potential for additional residential development in future phases. Greystone completed a 28,000 square-foot commercial office building in October which is currently 66% leased and there is strong interest for the remaining space. Last summer, Canterbury's real estate joint venture partner, Trackside Holdings, LLC, completed construction of the Boardwalk Kitchen & Bar. Boardwalk is a 6,000-square-foot upscale restaurant and bar with live entertainment featuring an 18,000-square-foot patio with trackside views. During our live meet last summer, Boardwalk generated a strong response from consumers, and the success of this venue, particularly the large outdoor patio located adjacent to the racetrack, further validates the development opportunity of the unique experience and views of horses and the track's greenspace.
"Our real estate development is exceeding expectations - both with respect to the diversity of new development projects that have been built as well as the quality of the projects. This is all occurring in one of the fastest growing markets in the Twin Cities which gives us confidence about the future real estate development prospects at Canterbury Park. Throughout 2026, we will be exploring additional entertainment and hospitality opportunities for the remaining trackside parcels that would add to the nearly 1,000 residential units, four restaurants, brewery, two music and entertainment venues, 57,000 square-feet of office space, and other amenities already open or under construction. We are excited about the prospects for the new 19,000-capacity amphitheater, operated by Live Nation, the Twin Cities' first large-scale outdoor concert venue which is on schedule to open in June. The 2026 schedule of approximately 40 concerts is in the process of being announced with headliners including Chris Stapleton, Dave Matthews Band, John Mellencamp and Guns N' Roses, and initial ticket sales are strong. We are also working in partnership with the City of Shakopee on a market analysis study to identify the highest and best use for our prime, 25 acres of land near the amphitheater that could include hotel, office, retail, hospitality, entertainment venues or other opportunities. The success of our growth and diversification strategy continues to validate our development as a unique regional destination while unlocking the value of our real estate for shareholders.
"While our growth and efficiency initiatives are focused on maximizing cash flows from our existing gaming, F&B and expanding entertainment operations, we continue to believe that Canterbury's record of consistent cash flow, return of capital through quarterly cash dividends and strong balance sheet are not reflected in our current valuation. Canterbury has no debt and our cash, tax increment financing (TIF) receivables and real estate joint ventures are valued at over $10 per share. In terms of liquidity, we had just over $17 million, or approximately $3.33 per share, in cash and short-term investments at the end of the 2025 fourth quarter. In total, we had nearly $20 million, or approximately $3.90 per share, in TIF receivables on our balance sheet at quarter's end, and we received initial payments of approximately $580,000 against this balance in the 2025 fourth quarter. In addition, we've contributed a total of approximately $17 million, or approximately $3.27 per share, in land and cash to our real estate joint venture development projects for which we share in the economics. This estimated $10.50 per share value does not include approximately 50 acres of land held for future development, the current value of which is not fully reflected on our balance sheet due to it being recorded on a cost basis. With the proven successes of our development and diversification initiatives, our strong balance sheet and a pipeline of exciting growth opportunities, we remain committed to delighting our guests, serving our residents and delivering long-term value to shareholders."
Canterbury Commons Development UpdateThe Company's barn relocation and redevelopment plan is complete with over 300 new stalls and new backside roads and infrastructure completed and in operation. Swervo Development Corporation continues to make progress on the construction of its state-of-the-art 19,000-capacity amphitheater, which will be operated by Live Nation Entertainment, and is scheduled to open for a full season in June of 2026. Canterbury also completed an additional new road adjacent to the amphitheater which will unlock the high-value development potential of approximately 25 acres of prime land in that portion of the site.
Residential and commercial construction updates related to joint ventures include:
Phase II of The Doran Group's upscale Triple Crown Residences at Canterbury Park are approximately 94% leased, which allowed for the refinance of this property in January 2026.
In addition, Phase I of the Triple Crown Residences is now 67% leased.
99% of the 147 units of senior market rate apartments at The Omry at Canterbury are leased.
The pizza restaurant, fitness center and BBQ restaurant in the 10,000 square-foot commercial building within the Winners Circle development, all of which opened in 2025, finished their first year of business with positive patronage.
Construction of an additional 28,000 square-foot commercial office building within the Winners Circle development is now complete.
Danny's Construction occupies the entire second floor, and Edward Jones is putting the finishing touches on their build out of the first floor.
The building is 66% leased and marketing is underway for the remainder of the available space with strong initial interest. We are nearing a lease execution with a tenant in one of the first floor suites which would bring leasing to approximately 80%.
Canterbury's joint venture partner, Trackside Holdings, LLC, completed construction and transferred the building to the operating entity, Boardwalk Kitchen & Bar.
The food and beverage and entertainment space of the facility opened in late June and is experiencing a strong and positive reception from the public.
The restaurant and event space continue to create buzz with a strong social media presence, programming and entertainment.
Residential and commercial construction updates related to prior land sales include:
Pulte Homes of Minnesota has completed development of the 110-unit Canterbury Crossing townhome project, and all the units have been sold with the exception of the model/sales unit which is being readied for sale.
Summary of 2025 Fourth Quarter Operating Results Net revenues for the three months ended December 31, 2025 increased 3.9% to $12.4 million, compared to $12.0 million for the same period in 2024. The year-over-year comparison reflects an increase of 5.4% and 0.7%, respectively, in our Casino and Food and Beverage business, and declines of 1.5% and 1.0% of our Pari-mutuel and Other revenues, respectively. ...
