The CNTY (NASDAQ: CNTY) “Restatement Red Flag”: Accounting Mess or Fixable Flub?

Century Casinos just dropped a governance bombshell that demands extreme caution. The Q3 2025 filings disclosed a material error in goodwill impairment testing for its Rocky Gap casino, resulting in a $26.5M non-cash charge. More critically, the company admitted to a "Material Weakness" in internal controls.

This is not a minor flub. It forces restatements of the 2024 10-K and the first two quarters of 2025. All prior financial statements are now unreliable. The error stemmed from a miscalculation of invested capital carrying value—a fundamental oversight.

While Q3 revenue was relatively flat at $154M, the restatement clouds the entire operational picture. The net loss widened to $10.5M.

The bull case: It’s a non-cash, isolated fix. Quick disclosure shows accountability, and core operations might stabilize. If remediated quickly, it's a temporary setback. The bear case: This signals systemic governance rot. Material weaknesses attract Nasdaq scrutiny and short-sellers. With the stock down 78% over three years and carrying $200M+ in debt, investor trust has been shattered at the worst possible time. The amended filings will reveal the full extent of the damage.

The Filing

• Nov 10 8-K/10-Q: $26.5M goodwill impairment at Rocky Gap.

• Restatements: 2024 10-K/A + Q1/Q2 2025 10-Q/A due in 5 days.

• Material weakness: Internal controls ineffective as of 12/31/24, 3/31/25, 6/30/25.

The Context

• Q3 revenue: $154M (-1% YoY).

• Net loss: $10.5M (wider YoY).

• Stock -78% 3Y — 0.5x sales.

The Sharper Take

• Bull: Non-cash; quick fix restores trust.

• Bear: Controls gap = Nasdaq risk, short fuel.

Investor Action

1. (Caution Signal): Do not rely on historical financial data (pre-Q3 2025).

2. Review the amended filings (10-K/A, 10-Q/A) immediately upon release to understand the full impact.

3. Wait for management to certify the remediation of the Material Weakness before considering new positions.