CHURCHILL DOWNS INCORPORATED REPORTS 2026 THIRD QUARTER RESULTS
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 THIRD QUARTER RESULTS LOUISVILLE, Ky. (October 28, 2026) - Churchill Downs Incorporated (Nasdaq: CHDN) (the "Company," "CDI," "we") today reported business
How this was made
The 30-second read
Why it matters
Earnings beat, dividend increase, and share buyback signal strong cash flow and confidence.
Market read
Strong quarterly results and shareholder returns likely support CHDN price.
What to watch
Potential regulatory or competition risks in HRM venues may affect future performance.
Churchill Downs Incorporated reports record third-quarter net revenue of $696 million, net income attributable to CDI of $80 million, and Adjusted EBITDA of $264 million.
Revenue, net income attributable to CDI, diluted EPS, and Adjusted EBITDA were all higher than the prior-year quarter, led by Kentucky HRM venues and gaming properties. However, Adjusted EBITDA growth was limited to $2 million, Live and Historical Racing Adjusted EBITDA declined, and Central Virginia faced increased competition and a new live-race-day tax expense.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third Quarter total net revenueGAAP | $696M | – | up $13 million or 2% |
| Nine Months total net revenueGAAP | $2.34B | – | – |
| Third Quarter total operating expenseGAAP | $553M | – | – |
| Nine Months total operating expenseGAAP | $1.70B | – | – |
| Third Quarter operating incomeGAAP | $143M | – | – |
| Nine Months operating incomeGAAP | $643M | – | – |
| Third Quarter net incomeGAAP | $80M | – | – |
| Nine Months net incomeGAAP | $405M | – | – |
| Third Quarter net income attributable to Churchill Downs IncorporatedGAAP | $80M | – | up $42 million |
| Nine Months net income attributable to Churchill Downs IncorporatedGAAP | $404M | – | – |
| Third Quarter basic net income per common shareGAAP | $1.15 | – | – |
| Third Quarter diluted net income per common shareGAAP | $1.15 | – | – |
| Nine Months basic net income per common shareGAAP | $5.75 | – | – |
| Nine Months diluted net income per common shareGAAP | $5.73 | – | – |
| Third Quarter adjusted net income attributable to CDInon-GAAP | $86M | – | increased $9 million |
| Nine Months adjusted net income attributable to CDInon-GAAP | $413M | – | – |
| Third Quarter adjusted diluted EPSnon-GAAP | $1.23 | – | – |
| Nine Months adjusted diluted EPSnon-GAAP | $5.89 | – | – |
| Third Quarter Adjusted EBITDAnon-GAAP | $264M | – | up $2 million or 1% |
| Nine Months Adjusted EBITDAnon-GAAP | $998M | – | – |
| Third Quarter equity in income of unconsolidated affiliatesGAAP | $38M | – | – |
| Nine Months equity in income of unconsolidated affiliatesGAAP | $115M | – | – |
| Third Quarter interest expense, netGAAP | −$69M | – | – |
| Nine Months interest expense, netGAAP | −$211M | – | – |
| Third Quarter income tax provisionGAAP | −$31M | – | – |
| Nine Months income tax provisionGAAP | −$147M | – | – |
| Third Quarter Total Wagering TwinSpires Horse Racingother | $485M | – | – |
| Nine Months Total Wagering TwinSpires Horse Racingother | $1.49B | – | – |
| Nine Months net cash provided by operating activitiesGAAP | $660M | – | – |
| Nine Months capital maintenance expendituresGAAP | −$57M | – | – |
| Nine Months capital project expendituresGAAP | −$119M | – | – |
| Nine Months net cash used in investing activitiesGAAP | −$178M | – | – |
| Nine Months repurchase of common stockGAAP | −$44M | – | – |
| Cash and cash equivalents as of September 30, 2026GAAP | $167M | – | – |
| Long-term debt, net of current maturities and loan origination fees as of September 30, 2026GAAP | $1.58B | – | – |
| Notes payable, net of current maturities and debt issuance costs as of September 30, 2026GAAP | $2.48B | – | – |
| Net bank leverageother | 3.8x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Live and Historical RacingRevenue growth reflected an $11 million increase from Kentucky HRM venues and a $1 million increase from Churchill Downs Racetrack, partly offset by declines of $1 million each at Virginia HRM and New Hampshire venues. Adjusted EBITDA was $111 million versus $116 million. | $315M | – | increased $10 million |
| Wagering Services and SolutionsThe revenue decline was due to the sports betting business. Adjusted EBITDA increased to $48 million from $46 million, primarily due to Horse Racing. | $126M | – | decreased $1 million |
| GamingGrowth was primarily from wholly owned New York, Pennsylvania, and Maine properties. Adjusted EBITDA rose to $128 million from $123 million, including a $3 million increase in equity investments from Rivers Des Plaines and Miami Valley Gaming. | $273M | – | increased $7 million |
| All OtherRevenue and Adjusted EBITDA were consistent with the prior year. Adjusted EBITDA was $(23) million in both periods. | $2M | – | – |
2026 capital projects outlook
- NoteChurchill Downs Racetrack Victory Run: target completion April 2028; 2026 Planned Spend $40-45 million.
- NoteNew Hampshire Rockingham Grand Casino (HRM Venue): target completion Mid-2027; 2026 Planned Spend $45-50 million.
- NoteAll Other Projects: target completion TBD; 2026 Planned Spend $15-20 million.
- NoteCompleted Projects: target completion Completed; 2026 Planned Spend $60-65 million.
- NoteTotal 2026 Planned Spend: $160-180 million.
Capital returns
- The Company repurchased 570,169 shares of common stock at a total cost of $48 million in the third quarter of 2026.
- The Board declared an annual cash dividend of $0.469 per outstanding share, a seven percent increase over the prior year, payable on January 5, 2027 to shareholders of record as of December 4, 2026.
- The Board approved a new common stock repurchase program of up to $750 million. The authorization includes, and is not in addition to, the $306 million remaining under the July 2025 program as of the close of trading on October 27, 2026.
- The Company had approximately $382 million of repurchase authority remaining under the July 2025 Stock Repurchase Program as of September 30, 2026.
What drove it
- Kentucky HRM revenue rose $11 million, led by Southwestern Kentucky, Northern Kentucky, Western Kentucky, and Louisville venues.
- Gaming revenue increased primarily at wholly owned New York, Pennsylvania, and Maine properties.
- Equity investments contributed a $3 million Adjusted EBITDA increase from strong performance at Rivers Des Plaines and Miami Valley Gaming.
- Third-quarter adjusted net income attributable to CDI increased $9 million, including a $4 million after-tax increase in equity income from unconsolidated affiliates, a $3 million after-tax increase primarily driven by operating results, a $1 million after-tax decrease in interest expense, and a $1 million after-tax decrease in income recognized as attributable to noncontrolling interests.
- The Company closed its acquisition of 49% of United Tote Company from NYRA on August 3, 2026, and NYRA agreed to extend its tote services agreement with United Tote through 2035.
Concerns
- Live and Historical Racing Adjusted EBITDA declined to $111 million from $116 million despite revenue growth.
- Virginia HRM Adjusted EBITDA declined $6 million, including a $10 million decrease from Central Virginia venues, primarily due to increased competition.
- Central Virginia incurred a $5 million new tax expense related to live race days under the racing and HRM tax structure effective July 1, 2026.
- New Hampshire results declined as the temporary Casino Salem venue was closed during construction of Rockingham Grand Casino.
- Wagering Services and Solutions revenue decreased $1 million due to the sports betting business.
- Prior-year comparability included a $35 million after-tax impairment charge related to Chasers' gaming rights and a one-time business interruption insurance recovery for the Northern Virginia venue.
What to watch
- Performance at Central Virginia venues amid increased competition and the new live-race-day tax expense.
- The revenue and EBITDA contribution from Kentucky HRM venues.
- Development progress and planned spend for Victory Run and Rockingham Grand Casino.
- Integration and economic contribution from the United Tote investment and the NYRA tote services agreement through 2035.
- Execution of the new $750 million common stock repurchase program and the Company's net bank leverage of 3.8x.
Balance sheet and cash flow
- Cash and cash equivalents were $167 million as of September 30, 2026, compared with $201 million as of December 31, 2025.
- Restricted cash was $92 million as of September 30, 2026, compared with $88 million as of December 31, 2025.
- Current maturities of long-term debt and notes payable were $659 million as of September 30, 2026, compared with $63 million as of December 31, 2025.
- Net cash provided by operating activities was $660 million for the nine months ended September 30, 2026, compared with $674 million in the prior-year period.
- Net cash used in financing activities was $(512) million for the nine months ended September 30, 2026, compared with $(237) million in the prior-year period.
- Cash, cash equivalents and restricted cash were $259 million at September 30, 2026, compared with $268 million at September 30, 2025.
- On September 25, 2026, the Company entered into a $500 million Term Loan B due 2033. The 2033 TLB was issued at 99.875% of principal, bears interest at SOFR plus 175 basis points, and matures September 25, 2033.
Analysis
Churchill Downs reported record third-quarter net revenue of $696 million, up $13 million or 2%, and record Adjusted EBITDA of $264 million, up $2 million or 1%. GAAP operating income rose to $143 million from $98 million, while net income attributable to CDI increased to $80 million from $38 million. The profit comparison was materially affected by a $35 million after-tax Chasers' gaming-rights impairment in the prior-year quarter. Excluding identified comparability items, adjusted net income attributable to CDI increased $9 million to $86 million.
Live and Historical Racing produced $315 million of segment revenue, up $10 million, but Adjusted EBITDA declined to $111 million from $116 million. Kentucky HRM venues were the principal revenue contributor, with an $11 million increase, while Central Virginia was the principal pressure point. The company cited increased competition and a $5 million new tax expense on live race days under the tax structure effective July 1, 2026. New Hampshire also declined following the closure of temporary Casino Salem during construction of Rockingham Grand Casino.
Gaming supplied $273 million of revenue, up $7 million, and $128 million of Adjusted EBITDA, up $5 million. Wholly owned New York, Pennsylvania, and Maine properties drove revenue growth, while equity investments added $3 million of EBITDA from Rivers Des Plaines and Miami Valley Gaming. Wagering Services and Solutions revenue declined $1 million to $126 million because of sports betting, although Adjusted EBITDA increased $2 million to $48 million, primarily from Horse Racing.
For the nine months ended September 30, 2026, net cash provided by operating activities was $660 million and capital project expenditures were $(119) million. The company repurchased 570,169 shares for $48 million during the quarter, declared a $0.469 per-share annual dividend, and authorized a new repurchase program of up to $750 million. It also refinanced its credit structure with a $500 million 2033 Term Loan B and extended Revolver and Term Loan A maturities to September 2031. Management reported net bank leverage of 3.8x and outlined total 2026 planned capital-project spend of $160-180 million.
Not in the filing
stated, not guessed- Gross margin was not reported.
- Free cash flow was not reported.
- Quarterly operating cash flow was not reported.
- Quarterly capital expenditures were not reported.
- Formal financial outlook for revenue, Adjusted EBITDA, earnings, operating expenses, or tax rate was not reported.
- Prior-quarter comparisons were not reported.
- Named executive quotes were not included in the filing.
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
SEC Form 8‑K filing provides official Q3 2026 results and capital actions.
Ticker impact
Churchill Downs reported record Q3 2026 revenue of $696M, net income $80M, raised dividend and announced a $750M share repurchase.
likely upside as market prices in strong earnings and higher dividend
Record financials and shareholder returns typically drive buying interest.
Market effects
Positive earnings may lift broader gaming and racing entertainment sector.
U.S. market may see modest gains in consumer discretionary stocks.
Limited to U.S. investors; minimal global impact.
Counterpoint
Higher leverage (3.8x) and modest EBITDA growth could limit upside.
Key entities
- companyChurchill Downs Inc.
Operator of horse racing and gaming venues.
- partnerNYRA
New York Racing Association, partner in United Tote acquisition.
