CNTY

CNTY is a leveraged equity stub, not a quality holding. Stockholders' equity is negative $97.7M with accumulated deficit of $206M, and the company has now booked four consecutive annual net losses (FY2023 -$28.2M, FY2024 -$154M, FY2025 -$61.4M). Revenue has stalled at ~$573M (-0.5% YoY) after the debt-funded 2023-24 expansion, so the growth story that justified the leverage has flattened. The $36.4M market cap against $329M of debt (plus the VICI master lease that finances virtually all its real estate, disclosed in the MD&A) means equity holders sit behind a very large claim — the P/S of 0.1x is optically cheap but meaningless when enterprise value is dominated by debt and rent.

The one genuine bright spot is operating turnaround: operating income swung to $51.3M (+331%) and the net loss narrowed 60%, so the properties themselves generate cash at the property level. But that operating income is almost entirely consumed by interest and the master-lease rent — operating cash flow was just $6.69M and cash fell 30% to $68.9M. With D&A of $50.9M, EBITDA is real (~$100M) but leverage and fixed lease obligations leave little for equity.