Churchill Downs Reports Record Q3 Revenue Of $696M
Churchill Downs Incorporated reported record third-quarter net revenue of $696m on October 28, 2026, up 2% from $683m a year earlier, driven by gains at its Kentucky historical racing venues and wholly owned casinos.
The company also lifted its dividend and approved a new share repurchase programme. For wider context on the US gaming market, see our news hub.
According to the company's results release, net income attributable to CDI was $80m, up from $38m. Diluted earnings per share were $1.15 against $0.54. Adjusted EBITDA reached a record $264m, up $2m.
Why Net Income Jumped
The prior-year quarter included a $35m after-tax impairment charge on the Chasers gaming rights. Excluding that and an insurance recovery, net income attributable to CDI rose $10m or 26%, and adjusted EBITDA was up $6m or 2%.
Adjusted net income rose $9m, helped by a $4m increase in equity income from unconsolidated affiliates and $3m from operations.
Segment Results
Live and Historical Racing revenue rose to $315m from $305m, but adjusted EBITDA slipped to $111m from $116m. Kentucky historical racing machine venues added $11m of revenue, including $7m from Southwestern Kentucky. Virginia venues fell $1m in revenue and $6m in adjusted EBITDA, with Central Virginia hit by increased competition.
Gaming revenue increased to $273m from $266m and adjusted EBITDA to $128m from $123m, with growth at the wholly owned New York, Pennsylvania and Maine properties. Equity investments added $3m of EBITDA, led by Rivers Des Plaines in Illinois and Miami Valley Gaming in Ohio.
The All Other segment recorded $2m of revenue and an unchanged $23m adjusted EBITDA loss, in line with the prior year.
Wagering Services and Solutions revenue edged down to $126m from $127m because of a decrease in sports betting, while adjusted EBITDA rose to $48m from $46m on stronger horse racing.
Deals, Debt And Capital Returns
CDI announced the Thoroughbred Championship Series with the New York Racing Association, beginning with the Kentucky Oaks and Kentucky Derby in 2027. It received approval to relocate and expand its Rosie's Collinsville historical racing venue to 150 machines within Henry County, Virginia, and completed its purchase of 49% of United Tote from NYRA on August 3. NYRA extended its tote services agreement with United Tote through 2035.
On the balance sheet, the company entered a new $500m Term Loan B due 2033 and extended its revolver and Term Loan A maturity from July 2029 to September 2031. It ended the quarter with net bank leverage of 3.8x.
The board declared an annual dividend of $0.469 per share, up 7% and the sixteenth consecutive annual increase, payable on January 5, 2027 to shareholders of record on December 4. It also approved a new repurchase programme of up to $750m, which includes the $306m left under the previous authorisation. The company repurchased 570,169 shares for $48m during the quarter.
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