Century Casinos Q2 2026 earnings: North America offsets Poland weakness

Century Casinos (Nasdaq: CNTY) reported Q2 2026 net operating revenue of $152.0 million, up 1% from $150.8 million a year earlier, while diluted loss per share narrowed to $0.39 from $0.40. Adjusted EBITDAR increased 5% to a second-quarter record of $31.7 million as gains in the US Midwest and US West outweighed a sharp deterioration in Poland.

Core financial results

Revenue increased by $1.2 million, while operating costs rose by a smaller $0.6 million, allowing earnings from operations to grow 4%. The shareholder-attributable net loss narrowed by $1.4 million, although the company remained unprofitable after non-operating expenses.

Adjusted EBITDAR is a non-GAAP valuation measure that excludes interest, taxes, depreciation, amortization, non-controlling interests and other adjustments. Diluted weighted-average shares declined to 28.2 million from 30.6 million, limiting the per-share benefit from the narrower net loss.

Business and segment performance

US Midwest and US West generated a combined $6.5 million of additional revenue, largely offsetting Poland’s $4.8 million decline and a $1.0 million decrease in US East. US West, which includes the Nugget Casino Resort, was the fastest-growing segment and moved to operating earnings of $1.1 million from a $1.0 million operating loss.

Total North American Adjusted EBITDAR rose to $35.1 million from $31.3 million. Poland contributed almost no Adjusted EBITDAR, while the Other category recorded a $3.5 million Adjusted EBITDAR loss compared with $2.9 million a year earlier, reducing the benefit at the consolidated level.

Operating gains remained insufficient against financing costs

Century Casinos generated $17.2 million in operating earnings, but net non-operating expense reached $25.9 million, resulting in an $8.7 million pretax loss. Interest expense alone was $25.9 million, only slightly below $26.2 million in the prior-year quarter and substantially above operating earnings.

Interest related to the Master Lease financing obligation increased to $16.9 million from $16.5 million, while credit-agreement interest declined to $8.2 million from $8.9 million. This financing structure helps explain why record second-quarter Adjusted EBITDAR did not translate into GAAP profitability.

Liquidity and balance-sheet obligations

Cash and cash equivalents declined to $60.2 million at June 30, 2026, from $68.9 million at December 31, 2025. Outstanding debt decreased only modestly, to $336.5 million from $337.7 million, while the company also carried a $708.0 million long-term financing obligation under its Master Lease.

Cash payments associated with the Master Lease rose to $17.4 million in the quarter from $14.4 million. Nugget Lease payments were $2.0 million, compared with $1.9 million a year earlier. Combined payments were therefore approximately $19.4 million, up from $16.3 million.

Century Casinos’ consolidated first-lien net leverage ratio exceeded 5.50 times at quarter-end. However, the related maintenance requirement applies only if revolving loans, swingline loans and letters of credit exceed $10.5 million, and the company had none outstanding under its Goldman credit agreement at June 30.

Management’s view

Co-CEOs Erwin Haitzmann and Peter Hoetzinger attributed the North American improvement primarily to the Nugget and the US Midwest properties in Missouri and Colorado. The Nugget’s Adjusted EBITDAR increased 93% for a second consecutive quarter, and management said it would continue working to sustain the property’s improvement.

Management said Poland continued to underperform partly because of low table hold in June 2026. The executives reported seeing early signs of improvement and expect better results over the next several quarters, although no quantitative guidance was provided.

Risks investors should monitor

• Continued weakness in Poland: The segment’s revenue fell 19%, and Adjusted EBITDAR dropped 97% to nearly break-even. Continued volatility in table hold or operating performance could offset further North American gains.
• High financing and lease-related costs: Quarterly interest expense exceeded operating earnings, while combined Master Lease and Nugget Lease cash payments increased year over year. These obligations remain a substantial barrier between operating performance and net profitability.
• Liquidity and leverage constraints: Cash declined by $8.7 million during the first half while debt fell by only $1.2 million. The leverage ratio was already above 5.50 times, meaning heavier use of revolving credit could make the maintenance test relevant.
• Dependence on Midwest and West growth: Consolidated revenue rose only 1% because gains in these two regions had to offset declines in Poland and US East. Sustaining the Nugget’s improvement is therefore important to overall growth.

Summary

Century Casinos’ Q2 2026 results showed better North American operations, led by US West and US Midwest, and produced record second-quarter revenue and Adjusted EBITDAR. Poland’s deterioration and the company’s substantial financing burden continued to prevent that operating progress from producing a profit. The main items to monitor are whether the Nugget can sustain its gains, whether Poland recovers as management expects, and how cash and leverage develop alongside lease and interest obligations.