Churchill Downs (CHDN) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 net revenues of $663 million, up $20 million or 3% year-over-year, with strong growth in Live and Historical Racing and Wagering Services, partially offset by a decline in Gaming due to the cessation of HRM operations in Louisiana.

• Net income attributable to shareholders rose $6 million to $83 million, with diluted EPS up to $1.16 and adjusted EBITDA reaching $257 million, up $12 million or 5% year-over-year.

• Opened the Marshall Yards HRM venue in Kentucky and completed the acquisition of 90% of Casino Salem, while announcing the acquisition of Preakness Stakes and Black-Eyed Susan Stakes IP rights for $85 million.

• Significant investments in enhancing the Kentucky Derby experience, hospitality upgrades, and expansion of Derby Week events and partnerships.

• Announced $180–$220 million in project capital investments for 2026, including the Rockingham Grand Casino project targeting a mid-2027 opening.

Financial highlights

• Net revenue: $663 million (up $20 million year-over-year); adjusted EBITDA: $257 million (up $12 million); net income: $83 million (up $6 million); basic and diluted EPS: $1.16 (up from $1.02); cash flows from operations: $295 million (up $48 million).

• Live and Historical Racing segment adjusted EBITDA increased by $11 million (11%) year-over-year; Kentucky HRMs up $9 million (17%) and Virginia up $3 million (6%).

• Wagering Services and Solutions segment adjusted EBITDA rose 8%, driven by retail and online sports betting and Exacta platform expansion.

• Project capital expenditures were $40 million; maintenance capex $19 million for the quarter.

• Ended the quarter with net bank leverage of 3.8x and bank covenant net leverage of 3.9x.

Outlook and guidance

• Confident in delivering $15–$20 million of incremental Derby EBITDA growth over last year, with expectations to significantly outpace Derby 150 in 2024.

• Full-year 2026 project capital spend expected at $180–$220 million; maintenance capital at $90–$110 million.

• Rockingham Grand Casino project in New Hampshire remains on track for mid-2027 opening.

• Management expects operating cash flows and credit facility availability to be sufficient for business operations and capital expenditures over the next twelve months.