Key Highlights

  • Net revenue reached USD 696 million, up 2% from USD 683 million, and was in line with the consensus estimate.
  • GAAP diluted EPS of USD 1.15 more than doubled from USD 0.54 and topped the USD 1.13 consensus estimate.
  • Operating income rose 46% to USD 143 million as a USD 46 million prior-year impairment did not recur.
  • Adjusted EBITDA edged up to USD 264 million, while the board authorized buybacks of up to USD 750 million.

Churchill Downs Incorporated (NASDAQ:CHDN) reported third-quarter 2026 net revenue of USD 696 million, up from USD 683 million a year earlier and essentially level with a consensus estimate of USD 695.16 million. GAAP diluted earnings per share were USD 1.15 against USD 0.54 in the prior-year quarter, above a consensus estimate of USD 1.13.

Net income attributable to the company was USD 80 million versus USD 38 million. Much of the jump reflects the absence of a USD 46 million non-cash impairment of the Chasers gaming rights recorded in the year-ago period. Excluding that and other items, the filing says net income rose USD 9 million, helped by higher equity income from unconsolidated affiliates.

Segment Results and Cost Structure

Live and Historical Racing revenue rose USD 8 million to USD 308 million, led by Kentucky historical racing venues, while Wagering Services and Solutions slipped to USD 116 million from USD 118 million on a softer sports betting business. Gaming revenue increased to USD 272 million from USD 265 million, supported by its New York, Pennsylvania and Maine properties.

Adjusted EBITDA totaled USD 264 million versus USD 262 million. Gaming added USD 5 million and Wagering Services and Solutions added USD 2 million, but Live and Historical Racing fell USD 5 million to USD 111 million. Central Virginia venues weighed on that segment through competition and a USD 5 million new tax on live race days under a structure effective July 1, 2026. A one-time USD 4 million business interruption recovery in the prior year also made the comparison harder. Interest expense, net, fell to USD 69 million from USD 75 million.

Portfolio Review, Capital Spending and Financing

On July 29, 2026, the company announced it is exploring a sale of nine wholly owned regional gaming properties, assets that represent USD 280 million to USD 300 million of annual Adjusted EBITDA. The review forms part of a broader look at the operating portfolio and long-term capital allocation priorities, and the filing notes there is no assurance that any transaction is completed.

Project capital is projected at USD 160 million to USD 180 million for 2026, tied to Rockingham Grand Casino in New Hampshire and Victory Run at Churchill Downs Racetrack. Nine-month operating cash flow was USD 660 million, and total debt stood at USD 4,748 million after a new USD 500 million Term Loan B due 2033. On October 19, 2026, the company redeemed its 2027 senior notes with borrowings from its revolver.

Benchmarks to Follow

Four items frame the coming period. The first is the regional gaming sale review, covering assets tied to USD 280 million to USD 300 million of Adjusted EBITDA. The second is the new USD 750 million repurchase program, which includes the USD 306 million left under the prior authorization as of October 27, 2026. The third is the annual dividend of USD 0.469 per share, payable January 5, 2027 to holders of record on December 4, 2026. The fourth is Live and Historical Racing, where Adjusted EBITDA of USD 111 million compares with USD 116 million a year ago.