Churchill Downs Posts Record $696M Q3 Revenue and Raises Dividend 7%

Churchill Downs Incorporated (CDI) reported results for the third quarter ended September 30, 2026, on October 28, 2026, with the Louisville-based company posting what it described as record net revenue of $696 million and record net income attributable to CDI of $80 million, alongside a 7% dividend increase and a new $750 million share repurchase program approved by its board.

Net revenue of $696 million was up $13 million, or 2%, from $683 million in the prior-year quarter, the company reported. Net income attributable to CDI rose $42 million from $38 million, and diluted earnings per share attributable to CDI were $1.15 versus $0.54. Adjusted EBITDA, a non-GAAP measure the company uses to evaluate segment performance, reached $264 million, up $2 million or 1% from $262 million, which the company also described as a record.

The company said the prior-year comparison was affected by a $35 million after-tax impairment charge related to the Chasers’ gaming rights, partly offset by a $2 million after-tax increase in other charges and recoveries. Excluding those items, adjusted net income attributable to CDI increased $9 million, which the company attributed to 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 from United Tote and its New Hampshire facility recognized as attributable to a noncontrolling interest.

For the nine months ended September 30, 2026, net revenue was $2,339 million versus $2,260 million a year earlier, and net income attributable to CDI was $404 million versus $332 million. Diluted EPS attributable to CDI was $5.73 versus $4.55, Adjusted EBITDA was $998 million versus $958 million, and adjusted net income attributable to CDI was $413 million versus $382 million.

Segment Performance

Live and Historical Racing revenue was $315 million versus $305 million, while segment Adjusted EBITDA fell to $111 million from $116 million. The company said the $10 million revenue increase reflected an $11 million gain from its Kentucky historical racing machine (HRM) venues, including $7 million from its Southwestern Kentucky venues, and a $1 million increase from Churchill Downs Racetrack, partially offset by a $1 million decrease from its Virginia HRM venues and a $1 million decrease from its New Hampshire venues.

Within Virginia, a $6 million net decrease from Central Virginia venues, attributed primarily to increased competition, was partially offset by a $4 million net increase from Northern Virginia venues and a $1 million increase at the company’s Western Virginia venue. The New Hampshire decrease resulted from the closure of the temporary Casino Salem venue during construction of the new Rockingham Grand Casino venue.

The segment’s $5 million Adjusted EBITDA decline comprised a $6 million decrease from Virginia HRM venues, a $4 million decrease tied to a one-time business interruption insurance recovery received in the prior-year quarter for a Northern Virginia venue, and a $1 million decrease in New Hampshire, partially offset by a $6 million increase from Kentucky HRM venues. The company attributed the Central Virginia decline primarily to increased competition and a $5 million new tax expense related to live race days under the racing and HRM tax structure that became effective July 1, 2026. It said the Virginia venues continue to benefit from a statewide HRM handle tax reduction effective July 1, 2025 under the same structure.

Wagering Services and Solutions revenue was $126 million versus $127 million, a decrease the company attributed to its sports betting business, while segment Adjusted EBITDA rose to $48 million from $46 million, primarily on an increase in its Horse Racing business. TwinSpires Horse Racing wagering totaled $485 million in the quarter versus $472 million a year earlier; the company noted the figure excludes wagering generated by Velocity and national affiliates.

Gaming revenue was $273 million versus $266 million, with the company citing increases from its wholly-owned New York, Pennsylvania, and Maine properties. Segment Adjusted EBITDA rose to $128 million from $123 million. Equity investments contributed a $3 million increase, which the company attributed to strong performance at Rivers Des Plaines in Illinois and Miami Valley Gaming in Ohio, while wholly-owned gaming properties added $2 million, primarily from the New York property. The All Other category posted revenue of $2 million and an Adjusted EBITDA loss of $23 million, both consistent with the prior year.

Capital Management

On August 3, 2026, the company closed its previously announced acquisition of 49% of United Tote Company from NYRA Content Management Solutions, LLC, a subsidiary of the New York Racing Association (NYRA). Concurrent with the transaction, NYRA agreed to extend its tote services agreement with United Tote through 2035.

On September 25, 2026, the company closed the eighth amendment to its senior secured credit facility, extending the maturity of its revolving credit facility and Term Loan A from July 2029 to September 2031 and eliminating a 10 basis point credit spread adjustment. The company also entered into a $500 million Term Loan B due in 2033, issued at 99.875% of principal and bearing interest at SOFR plus 175 basis points, with a maturity date of September 25, 2033. It used a portion of the net proceeds to repay indebtedness outstanding under the 2028 Term Loan B, repay revolver borrowings, fund transaction fees and expenses, and provide working capital and other general corporate purposes. On October 19, 2026, the company redeemed its 2027 Senior Notes with borrowings from the 2031 revolver.

On October 27, 2026, the board declared an annual cash dividend of $0.469 per outstanding share, a 7% increase over the prior year, payable January 5, 2027 to shareholders of record as of the close of business December 4, 2026. The company said this will be the sixteenth consecutive year it has increased its dividend per share.

The company repurchased 570,169 shares of its common stock at a total cost of $48 million during the quarter and reported ending the period with net bank leverage of 3.8x. On October 27, 2026, the board approved a new share repurchase program of up to $750 million. The authorization includes, and is not in addition to, the $306 million remaining under the July 2025 repurchase program as of the close of trading on October 27, 2026.

Venue Projects and Conference Call

Among quarterly highlights, the company announced the Thoroughbred Championship Series with NYRA, beginning with the Kentucky Oaks and Kentucky Derby in 2027, and received approval to relocate and expand its Rosie’s Collinsville HRM venue to 150 machines within Henry County, Virginia.

The company’s 2026 capital projects schedule lists the Churchill Downs Racetrack Victory Run project, targeted for completion in April 2028, with planned 2026 spending of $40–45 million, and the Rockingham Grand Casino HRM venue in New Hampshire, targeted for mid-2027, with planned 2026 spending of $45–50 million. Including other and completed projects, total planned 2026 capital spending is $160–180 million.

A conference call on the results is scheduled for October 29, 2026 at 9 a.m. Eastern Time, accessible by online webcast through the company’s investor relations events page, with an online replay available by noon Eastern the same day.