Churchill Downs Extends Buyback and Raises Dividend

The Tip Desk · November 2, 2026 · 3 min read

Net income attributable to CDI was a record $80 million, or $1.15 a share, as the company posted record net revenue of $696 million.

Churchill Downs Incorporated (CHDN) reported record net income attributable to CDI of $80 million, or $1.15 a share, for the quarter ended September 30, 2026, as net revenue reached a record $696 million, up $13 million or 2% from a year earlier.

The year-ago quarter included a $35 million after-tax impairment of Chasers’ gaming rights and a one-time Northern Virginia insurance recovery. Excluding those items, the company said net income attributable to CDI was up $10 million, or 26%. Adjusted EBITDA was a record $264 million, up $2 million, or 1%; excluding the prior-year insurance recovery, Adjusted EBITDA was up $6 million, or 2%.

Year-over-year growth slowed from the Derby-week second quarter, when net revenue was $980 million, up 5%, and Adjusted EBITDA was $477 million, up 6%.

Live and Historical Racing revenue was $315 million, up $10 million from $305 million. Kentucky HRM venues contributed an $11 million increase and Churchill Downs Racetrack a $1 million increase, partly offset by $1 million decreases at Virginia HRM and New Hampshire venues. Segment Adjusted EBITDA fell to $111 million from $116 million, including a $6 million decrease from Virginia HRM, a $4 million decrease from the prior-year Northern Virginia insurance recovery, and a $1 million decrease at New Hampshire, partly offset by a $6 million increase from Kentucky HRM.

Virginia HRM Adjusted EBITDA included a $10 million decrease from Central Virginia venues, partly offset by a $3 million increase from Northern Virginia and a $1 million net increase from Western and Southern Virginia. The company said Central Virginia was hit by increased competition and a $5 million new tax expense on live race days under a structure effective July 1, 2026. New Hampshire revenue declined because of the closure of temporary Casino Salem during construction of Rockingham Grand Casino.

Wagering Services and Solutions revenue was $126 million, down $1 million, due to a decrease in the sports betting business. Segment Adjusted EBITDA rose to $48 million from $46 million, primarily from Horse Racing. Gaming revenue increased to $273 million from $266 million, primarily from wholly-owned New York, Pennsylvania, and Maine properties. Gaming Adjusted EBITDA rose to $128 million from $123 million, with equity investments up $3 million from Rivers Des Plaines and Miami Valley Gaming and wholly-owned properties up $2 million, primarily from New York. All Other revenue and Adjusted EBITDA were unchanged at $2 million and a $23 million loss.

On August 3, 2026, the company closed the acquisition of 49% of United Tote Company from NYRA and extended NYRA’s tote services agreement with United Tote through 2035. It announced the Thoroughbred Championship Series with NYRA beginning with the 2027 Kentucky Oaks and Kentucky Derby and received approval to relocate and expand Rosie’s Collinsville HRM venue to 150 machines in Henry County, Virginia.

On September 25, 2026, Churchill Downs closed an amendment extending the Revolver and Term Loan A to September 2031 and eliminating a 10 basis point credit spread adjustment, and entered a $500 million Term Loan B due 2033 at SOFR plus 175 basis points. On October 19, it redeemed the 2027 Senior Notes. Net bank leverage ended the quarter at 3.8x.

The company repurchased 570,169 shares for $48 million in the third quarter. On October 27, the board approved a new $750 million share repurchase program that includes the $306 million remaining under the prior authorization. The board also declared a $0.469 per share dividend, a 7% increase and the sixteenth consecutive year of a dividend increase.