Churchill Downs Incorporated Reports Record Q2 2026 Results: Key Investor Details

LOUISVILLE, Ky. — July 29, 2026: Churchill Downs Incorporated (Nasdaq: CHDN) has announced its financial results for the second quarter ended June 30, 2026, with multiple all-time records set across its core businesses. The company’s performance, driven by the iconic Kentucky Derby and robust segment growth, is likely to attract significant investor attention and could impact share values.

Key Financial Highlights

• All-Time Record Net Revenue: \$980 million, up \$46 million or 5% YoY.
• Net Income Attributable to CDI: \$241 million, up \$24 million or 11% YoY.
• All-Time Record Adjusted EBITDA: \$477 million, up \$26 million or 6% YoY.
• Diluted EPS: \$3.42, up from \$2.99 in Q2 2025.
• Net Leverage: Ended the quarter at 3.7x.

Operational & Segment Highlights

• Record Kentucky Derby Week:
  • Highest-ever Derby Week contribution to Adjusted EBITDA.
  • All-time record all-sources wagering for Kentucky Derby Week.
  • Peak viewership reached 24.4 million (up 12%) and average viewership 19.6 million (up 11%).
  • First primetime Kentucky Oaks with 2.4 million viewers and record wagering.
• Live and Historical Racing Segment:
  • Revenue: \$575 million (up \$34 million YoY).
  • Adjusted EBITDA: \$318 million (up \$21 million YoY).
  • Growth driven by Churchill Downs Racetrack (+\$16 million), Kentucky HRM venues (+\$6 million), and Virginia HRM venues (+\$1 million).
  • Virginia HRM saw \$5 million net increase from Northern Virginia, partly offset by a \$4 million decrease in Central Virginia due to competition.
  • New Hampshire venues saw a \$2 million decrease due to temporary closure for construction.
• Wagering Services and Solutions:
  • Revenue: \$178 million (up \$10 million YoY).
  • Adjusted EBITDA: \$52 million (up \$4 million YoY).
  • Growth from record Derby Week wagering and Exacta business.
• Gaming Segment:
  • Revenue: \$270 million (up \$4 million YoY).
  • Adjusted EBITDA: \$133 million (up \$6 million YoY).
  • Strong performance at New York, Indiana, and Maryland properties (+\$8 million); offset by cessation of HRM operations in Louisiana (-\$4 million).
  • Equity investments grew \$4 million, driven by Rivers Des Plaines (IL) and Miami Valley Gaming (OH).
• All Other Segment:
  • Revenue: \$2 million (flat YoY).
  • Adjusted EBITDA: -\$26 million (down \$5 million YoY), due to reduced legal fees and insurance claims.

Consolidated and Shareholder-Sensitive Details

• Adjusted Net Income: \$242 million, up from \$224 million.
• Adjusted Diluted EPS: \$3.45, up from \$3.10.
• Cash Flow:
  • Operating cash flow: \$512 million (up from \$487 million).
  • Capital project expenditures: \$79 million (down from \$133 million).
  • Repurchase of common stock: NIL (compared to \$341 million in Q2 2025).
• Balance Sheet:
  • Total assets: \$7.52 billion.
  • Total liabilities: \$6.13 billion.
  • Shareholders’ equity: \$1.34 billion (up from \$1.01 billion at YE 2025).
  • Notable increase in current liabilities due to higher short-term debt and accounts payable.

Price-Sensitive Items & Risks

• Record Performance: Multiple all-time highs in revenue, EBITDA, and Derby Week metrics will likely be viewed positively by investors, potentially driving share price higher.
• Segment Growth: Notable expansion in Live and Historical Racing, Wagering, and Gaming segments; equity investments continue to deliver returns.
• Competition & Closures: Virginia HRM venues face increased competition, New Hampshire venue closed for construction, and cessation of Louisiana HRM operations—could affect future revenues.
• Debt Position: Net leverage at 3.7x; higher short-term debt and repayments may be scrutinized by investors.
• Forward-Looking Risks: The company notes various risks including competition, economic conditions, regulatory changes, technology disruption, cybersecurity, climate events, and legal proceedings. These could materially affect future results.
• Strategic Alternatives: CDI is exploring strategic alternatives; the outcome, timing, and structure of any transaction could impact share value and stakeholder relationships.
• Non-GAAP Measures: Investors should note CDI’s reliance on non-GAAP metrics for internal performance evaluation; these measures may differ from other companies and are not substitutes for GAAP results.

Capital Projects & Outlook

• Planned Spend: 2026 capital projects total \$180–220 million, including:
  • Victory Run at Churchill Downs Racetrack (completion April 2028, \$25–30 million).
  • Rockingham Grand Casino (HRM Venue) in New Hampshire (completion mid-2027, \$70–80 million).
  • Other projects TBD (\$30–50 million).
  • Completed projects (\$55–60 million).
• Investors should monitor: Progress of new venue development, integration risks, cost overruns, and expectations on returns from capital deployment.

Conference Call & Further Information

A conference call discussing Q2 results is scheduled for July 30, 2026 at 9 a.m. ET, with a webcast and replay available. Full financial details and statistical information are accessible at Churchill Downs Incorporated’s investor site.

Conclusion

Churchill Downs Incorporated’s Q2 2026 results are materially positive and contain multiple record-breaking metrics that are likely to be price sensitive. Investors should closely monitor segment performance, debt position, competitive landscape, and the outcome of strategic alternatives. Risks remain, but continued growth in core segments, strong cash flow, and capital project investments position CDI for further expansion.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review official filings and consult financial advisors before making any investment decisions. Forward-looking statements are subject to risks and uncertainties as outlined by Churchill Downs Incorporated in its official reports.