Churchill Downs (CHDN) Q2 2026 earnings summary

Executive summary

• Achieved all-time record net revenue of $980 million for Q2 2026, up $46 million or 5% year-over-year, marking the sixth consecutive record second quarter.

• Adjusted EBITDA reached a record $477 million, up $26 million or 6% from the prior year, reflecting strong segment performance.

• Net income attributable to shareholders was $241 million for Q2 2026, up $24 million or 11% year-over-year, with diluted EPS of $3.42.

• Kentucky Derby week saw over 386,000 guests, record broadcast revenue, and peak viewership exceeding 24 million, up 12% year-over-year.

• Strategic review and planned sale of nine wholly owned regional gaming properties to focus on core assets, with proceeds to reduce leverage, reinvest in high-return projects, and repurchase shares.

Financial highlights

• Six-month net revenue was $1.64 billion, up $66 million year-over-year.

• Six-month net income attributable to shareholders was $324 million, up $30 million year-over-year.

• Record free cash flow of $474 million in the first half of 2026 ($6.70 per share).

• Diluted EPS for Q2 was $3.42, up from $2.99 in Q2 2025.

• Cash flows from operations for the first half of 2026 were $512 million, up $25 million year-over-year.

Outlook and guidance

• Expect Derby week to contribute $15–$18 million of incremental Adjusted EBITDA in 2026 versus prior year.

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

• Bank covenant net leverage expected to remain in the 3.6x–3.8x range through year-end, with further reduction anticipated post-asset sales.

• Management anticipates sufficient cash flow and credit facility availability to fund operations and capital expenditures over the next twelve months.