Churchill Downs (CHDN) investor relations material

Executive summary

• Q3 record net revenue was $696 million, up 2% YoY; record Adjusted EBITDA was $264 million, up 1% (2% excluding the prior-year insurance recovery).

• Q3 net income attributable to shareholders was $80 million versus $38 million; adjusted net income was $86 million versus $77 million.

• Portfolio focus remains on Churchill Downs Racetrack and the Kentucky Derby, HRM venues, and TwinSpires, with regional gaming property sales expected to sharpen the portfolio.

Financial highlights

• 9M net revenue was $2.339 billion versus $2.260 billion; Adjusted EBITDA was $998 million versus $958 million, and adjusted net income was $413 million versus $382 million.

• Q3 diluted EPS was $1.15 versus $0.54; adjusted diluted EPS was $1.23 versus $1.09.

• 9M operating cash flow was $660 million versus $674 million; free cash flow was $603 million, or $8.59 per share.

• Q3 operating income was $143 million versus $98 million; the comparison included a $46 million benefit from non-recurrence of the prior-year Chasers impairment.

Outlook and guidance

• Nine regional gaming properties representing $280–$300 million of annual Adjusted EBITDA are under review for sale; transactions are expected by year-end, with smaller deals anticipated.

• Planned 2026 maintenance capital is $90–$100 million and project capital is $160–$180 million; 2027 project capital is $200–$250 million.

• Rockingham Grand is on track and on budget for mid-2027, with 800–850 HRMs and slots, 32 table games, and an event center; Victory Run targets April 2028 completion.

• Bank leverage was 3.8x at quarter-end and is expected at ~3.8–3.9x through year-end, falling below 3.0x after regional asset sales.