Churchill Downs Inc (CHDN): Results of Operations and Financial Condition
Churchill Downs Inc (CHDN) filed an SEC Form 8-K — Results of Operations and Financial Condition. FOR IMMEDIATE RELEASE Contact: Sam Ullrich (502) 638-3906 Sam.Ullrich@kyderby.com CHURCHILL DOWNS INCORPORATED REPORTS 2026 SECOND QUARTER RESULTS LOUISVILLE, Ky. (July 29, 2026) - Churchill Downs Incorporated (Nasdaq: CHDN) (the "Company," "CDI," "we") today reported business re
How this was made
The 30-second read
Why it matters
The company reports broad-based growth across revenue and profitability metrics, with segment commentary attributing gains to Derby Week performance, wagering, and improvements in certain gaming properties, while also flagging specific venue closures/cessations affecting comparability.
Market read
Traders can update near-term expectations for CHDN based on the disclosed record revenue and Adjusted EBITDA, segment drivers, and ending net bank leverage of 3.7x.
What to watch
The release notes a planned closure of a temporary Casino Salem venue during Rockingham Grand Casino construction and cessation of HRM operations in Louisiana in May 2025, which could affect comparability and forward segment mix.
Churchill Downs Incorporated reports all-time record net revenue and Adjusted EBITDA for the second quarter of 2026, supported by a record-breaking Derby Week.
Net revenue, net income attributable to CDI, and Adjusted EBITDA all increased from the prior-year quarter, with record Derby Week results supporting Live and Historical Racing and Wagering Services and Solutions.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenueGAAP | $980 million | – | up $46 million or 5% |
| Net income attributable to CDIGAAP | $241 million | – | up $24 million or 11% |
| Diluted EPS attributable to CDIGAAP | $3.42 | – | – |
| Adjusted net income attributable to CDInon-GAAP | $242 million | – | increased $18 million |
| Adjusted Diluted EPSnon-GAAP | $3.45 | – | – |
| Adjusted EBITDAnon-GAAP | $477 million | – | up $26 million or 6% |
| Live and Historical Racing Adjusted EBITDAnon-GAAP | 318 million | – | increased $21 million |
| Wagering Services and Solutions Adjusted EBITDAnon-GAAP | 52 million | – | increased $4 million |
| Gaming Adjusted EBITDAnon-GAAP | 133 million | – | increased $6 million |
| All Other Adjusted EBITDAnon-GAAP | (26) million | – | decreased $5 million |
| Net bank leverageother | 3.7x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Live and Historical RacingRevenue increased due to a $21 million increase from Churchill Downs Racetrack, a $12 million increase from Kentucky HRM venues, and a $1 million increase from Virginia HRM venues. Churchill Downs Racetrack benefited from a record-breaking Derby Week, including increased NBC broadcast, ticketing, sponsorship and licensing, and wagering revenue. | $575 million | – | increased $34 million |
| Wagering Services and SolutionsGrowth reflected $9 million in the Horse Racing business from record-breaking Derby Week wagering and a $1 million increase from the Exacta business. | $178 million | – | increased $10 million |
| GamingRevenue increased primarily due to an $8 million increase from New York, Indiana, and Maryland properties, partially offset by a $4 million decrease primarily from the cessation of HRM operations in Louisiana in May 2025. | $270 million | – | increased $4 million |
| All OtherAll intercompany captive revenue is eliminated in consolidation. | $2 million | – | consistent with the prior year |
What drove it
- Churchill Downs Racetrack delivered a record-breaking Derby Week with increased NBC broadcast revenue, ticketing revenue, sponsorship and licensing revenue, and wagering revenue.
- Kentucky HRM revenue increased at Southwestern Kentucky, Northern Kentucky, Western Kentucky, and Louisville venues.
- Horse Racing business revenue increased from record-breaking Derby Week wagering.
- Gaming equity investments increased $4 million from strong performance at Rivers Des Plaines in Illinois and Miami Valley Gaming in Ohio.
- Adjusted net income attributable to CDI benefited from a $4 million after-tax decrease in interest expense and a $4 million after-tax increase in equity income from unconsolidated affiliates.
Concerns
- Virginia HRM revenue included a $4 million net decrease from Central Virginia venues primarily from increased competition.
- New Hampshire venues experienced a $2 million Adjusted EBITDA decrease primarily due to the planned closure of temporary Casino Salem during construction of Rockingham Grand Casino.
- Gaming revenue was partially offset by a $4 million decrease primarily from the cessation of HRM operations in Louisiana in May 2025.
- All Other Adjusted EBITDA decreased $5 million, primarily due to a reduction of corporate legal-related fees in the prior-year quarter and claim development within the captive insurance company.
- Churchill Downs Racetrack Adjusted EBITDA growth was partially offset by higher operating expenses.
What to watch
- Performance of Central Virginia venues amid increased competition.
- The construction of the Rockingham Grand Casino venue and the planned closure of temporary Casino Salem.
- Sustainability of Churchill Downs Racetrack revenue drivers, including NBC broadcast, ticketing, sponsorship and licensing, and wagering revenue.
- Performance at New York, Indiana, and Maryland gaming properties, as well as equity investments in Rivers Des Plaines and Miami Valley Gaming.
Balance sheet and cash flow
- The Company ended second quarter of 2026 with net bank leverage of 3.7x.
Analysis
Churchill Downs Incorporated reported all-time record net revenue of $980 million, up $46 million or 5%, and all-time record Adjusted EBITDA of $477 million, up $26 million or 6%. Net income attributable to CDI was $241 million, up $24 million or 11%, while diluted EPS attributable to CDI was $3.42 compared to $2.99 in the prior-year quarter. Adjusted net income attributable to CDI was $242 million compared to $224 million, and Adjusted Diluted EPS was $3.45 compared to $3.10.
Live and Historical Racing was the largest reported revenue contributor at $575 million, compared to $541 million, and its Adjusted EBITDA was 318 million compared to 297 million. Churchill Downs Racetrack drove the segment through a record-breaking Derby Week, supported by higher NBC broadcast, ticketing, sponsorship and licensing, and wagering revenue. Kentucky HRM venues also contributed growth, while the Virginia result included stronger Northern Virginia performance offset by a Central Virginia decline tied primarily to increased competition.
Wagering Services and Solutions generated $178 million of revenue compared to $168 million, with growth led by record-breaking Derby Week wagering in Horse Racing. Gaming revenue was $270 million compared to $266 million, while Adjusted EBITDA increased to 133 million from 127 million. Gaming results included stronger New York, Indiana, and Maryland properties and higher equity-investment performance at Rivers Des Plaines and Miami Valley Gaming, partly offset by the cessation of HRM operations in Louisiana in May 2025.
Adjusted net income attributable to CDI increased $18 million after excluding identified comparability items. The release cited a $10 million after-tax increase primarily driven by operating results, a $4 million after-tax decrease in interest expense, and a $4 million after-tax increase in equity income from unconsolidated affiliates. The Company ended the quarter with net bank leverage of 3.7x. No forward financial guidance, capital-return activity, cash-flow data, cash balance, or debt balance was provided in the supplied filing text.
Not in the filing
stated, not guessed- Forward financial guidance
- Prior outlook for comparison
- Gross profit and gross margin
- Operating income
- Operating expenses
- Income tax expense and tax rate
- Cash flow from operating activities
- Free cash flow
- Capital expenditures
- Cash and cash equivalents
- Total debt
- Share repurchases
- Dividends
- Prior-quarter comparisons for reported metrics
- Named executive quotes
- Segment operating income or segment margins
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is an SEC Form 8-K with Item 2.02, reporting Churchill Downs Incorporated’s second quarter 2026 results for the quarter ended June 30, 2026.
Ticker impact
Churchill Downs reported Q2 2026 results, including record net revenue of $980M and Adjusted EBITDA of $477M, plus net bank leverage of 3.7x.
Likely positive near-term bias as the print confirms operating strength and record wagering/viewership metrics.
The filing discloses multiple hard financial datapoints (revenue, net income, EPS, Adjusted EBITDA, leverage) and segment drivers (Derby Week, HRM venues, gaming performance), which can move earnings expectations and valuation multiples.
Market effects
Provides a read-through for US racing and gaming operators on demand strength during major event weeks and on wagering monetization.
Highlights performance across Kentucky HRM and select gaming properties, which may influence sentiment toward regional leisure and gaming demand.
Limited, as the drivers are primarily US event-driven racing and state-level gaming operations.
Counterpoint
Record Derby Week metrics may be partially event-driven and could normalize in subsequent quarters, so the market may discount sustainability of the run-rate.
Key entities
- companyChurchill Downs Incorporated
Nasdaq-listed operator of racing, wagering services, and gaming properties, reporting Q2 2026 financial and operating results.
