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Churchill Downs (CHDN) Q3 2026 Earnings Report
CHDN Q3 2026 EPS Results
- Actual EPS
- $1.23
- Consensus EPS
- $1.13
- Beat/Miss
- Beat by +$0.10
- One Year Ago EPS
- $1.09
CHDN Q3 2026 Revenue Results
- Actual Revenue
- $696.00M
- Expected Revenue
- $695.16M
- Beat/Miss
- Beat by +$843.00K
- YoY Revenue Growth
- +1.90%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- After Close
- Conference Call
- Wednesday, October 28, 2026
Churchill Downs's next earnings date is estimated for February 24, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
The call was strongly positive overall. The company reported record revenue and adjusted EBITDA, strong Kentucky and Gaming segment performance, robust free cash flow, increasing Derby demand, progress on regional asset sales, and multiple growth initiatives across the Derby, HRM and TwinSpires platforms. The main challenges were competitive pressure and a new tax affecting Central Virginia, a $6 million year-over-year decline in Virginia adjusted EBITDA excluding a prior-year insurance recovery, and the fact that the TCS and certain HRM product initiatives still require execution and ramp-up.
Management expects to announce executed transactions for 9 regional gaming properties by year-end and expects bank leverage to remain around 3.8x to 3.9x through year-end and decline below 3.0x following completion of the regional gaming asset sales; 2026 maintenance capital is expected to be $90 million to $100 million, 2026 project capital $160 million to $180 million, and 2027 project capital between $200 million and $250 million. Derby 153 ticket sales are up about 25% so far compared to last year, with about 40% of the ticket inventory allocated for sale sold; Victory Run is on schedule and on budget for Derby 2028, with an interim upgraded seating experience for Derby 2027. The Thoroughbred Championship Series begins in 2027 with a 6-race Derby Division and 4-race Oaks Division, an incremental $5 million in prize money, a $1 million prize pool for the Oaks Division and up to an additional $1 million bonus; craps ETGs are planned around the end of the year and blackjack ETGs in 2027. Rockingham Grand Casino is expected to open on time and on budget in mid-2027 with around 800 to 850 HRMs and slots, 32 table games and a large event center; the Collinsville venue is expected to be a 150-unit HRM venue approximately 45 to 60 minutes from Winston-Salem and Greensboro, while 2 referendums could enable 2 facilities, each with 150 machines, representing 415 incremental HRMs against approximately 4,700 currently deployed and a right to deploy 5,000 HRMs across 10 sites. The company repurchased more than $48 million of shares during the third quarter and an additional $76 million from October 1 through October 27, authorized a new $750 million share repurchase program, and approved a 7% dividend increase payable on January 5, 2027.
- Record Third-Quarter Revenue and Adjusted EBITDAChurchill Downs delivered record third-quarter net revenue of $696 million and record adjusted EBITDA of $264 million. Wagering Services and Solutions and Gaming also delivered record adjusted EBITDA.
- Strong Kentucky HRM PerformanceKentucky HRM properties delivered record revenue, with adjusted EBITDA increasing 10% year-over-year. Southwestern and Northern Kentucky venues produced double-digit adjusted EBITDA growth, while Louisville also had a strong quarter. Management attributed the growth to strong top-line performance and disciplined cost management.
- Gaming Segment GrowthGaming segment adjusted EBITDA increased 4% compared with the prior-year quarter. Nearly all wholly owned regional gaming properties grew year-over-year, while same-store margins were consistent with the prior-year quarter.
- Improving Consumer TrendsManagement reported notable improvement in consumer trends compared with both the prior-year quarter and the sequential quarter. Higher-value rated play contributed to growth, while lower-value unrated segments remained resilient and generally consistent with the prior quarter.
- Regional Gaming Asset Sale Process ProgressingThe company said the sale process for nine wholly owned regional gaming properties is going very well and that it expects to announce executed transactions by year-end. The properties are being marketed individually, potentially resulting in a series of smaller transactions or multiple properties being sold to the same buyer.
- Planned Use of Asset Sale Proceeds and Share Repurchase AuthorizationChurchill Downs intends to use regional gaming sale proceeds to significantly reduce leverage, repurchase shares and selectively invest in Churchill Downs Racetrack and other high-return growth opportunities. The Board authorized a new $750 million share repurchase program, reflecting management's confidence in the asset sale process.
- Strong Free Cash Flow GenerationThe company generated $603 million of free cash flow, or $8.59 per share, during the first nine months of 2026. Management said the cash flow provides flexibility to pay down debt, invest in high-return growth opportunities and return capital to shareholders.
- Share Repurchases and Dividend IncreaseChurchill Downs repurchased more than $48 million of shares during the third quarter and an additional $76 million from October 1 through October 27. The Board also approved a 7% dividend increase, marking the 16th consecutive year of increased dividends per share.
- Leverage Reduction PlanBank leverage ended the quarter at 3.8x. Based on current capital plans, management expects leverage to remain around 3.8x to 3.9x through year-end and decline below 3.0x after completion of the regional gaming asset sales.
- Strong Kentucky Derby 153 DemandTicket sales for the 153rd Kentucky Derby were approximately 25% ahead of the comparable pace for Derby 152. The company had sold approximately 40% of the ticket inventory allocated for sale, and management said all key metrics were ahead of the comparable point for the prior Derby.
- Continued Derby Week Engagement and Media StrengthManagement said 2026 Derby media and fan engagement were very strong and that the 2027 programming will continue to build around Oaks, Derby, Thurby, Winsday, 502'sDay and Opening Day. The Kentucky Derby reached 24 million viewers at its peak last year, with average viewership of approximately 19 million to 20 million, while social media impressions and related engagement metrics were described as growing at a strong rate.
- Victory Run Construction on Schedule and BudgetConstruction is underway on Victory Run, located past the finish line between Skye Terrace and the first turn. The project is on schedule and on budget for completion in time for Derby 2028. For Derby 2027, the area will have covered stadium seating and enhanced amenities as an interim upgrade.
- Expanded Sponsorship PlatformChurchill Downs announced a multiyear partnership with Visa as the preferred payment partner of Churchill Downs and the Kentucky Derby. Visa will also provide clients and cardholders with access to exclusive Derby Week offers and experiences. Visa joins Woodford Reserve, Longines, Ford and SAP as signature partners, and management said the sponsorship pipeline remains strong.
- Launch of the Thoroughbred Championship SeriesThe Thoroughbred Championship Series will launch in 2027 with Derby and Oaks divisions. The Derby Division will include six races over five months across Churchill Downs, Belmont Park and Saratoga Race Course, while the Oaks Division will include four races for fillies. The Derby Division includes an incremental $5 million prize-money pool, and the Oaks Division includes a $1 million prize pool plus an opportunity for the winner to compete against the colts for an additional bonus of up to $1 million.
- TCS Industry Buy-In and Economic IncentivesManagement said support from owners and trainers for the Thoroughbred Championship Series has been exceptional and that the industry wants leadership, a league structure and more meaningful races. Each race on the colts' side will have at least a $1 million purse, while the overall purse structure across both divisions includes approximately $22 million.
- TCS Monetization OpportunitiesManagement expects the Thoroughbred Championship Series to generate wagering and admissions contributions quickly, with sponsorship, licensing and media-rights opportunities developing as the series proves itself. The company described the series as a strategic and capital-efficient platform to expand horse racing engagement and create additional media, hospitality, sponsorship, licensing and wagering opportunities.
- HRM Product Expansion and Electronic Table GamesChurchill Downs continues to pursue additional gaming content, selective expansion and electronic table games. Roulette ETGs in Kentucky are attracting new customers and reactivating inactive HRM customers. Craps ETGs are planned around year-end, and the company is working to finalize blackjack ETGs in 2027, with an initial focus on Kentucky and potential deployment in Virginia.
- Rose in Northern Virginia Showing GrowthThe Rose in Northern Virginia delivered strong growth in rated and unrated play both quarter-over-quarter and sequentially. Since opening, it has delivered sequential quarterly growth in gross gaming revenue per machine per day, supported by expanding guest awareness, effective marketing and higher spend per visit.
- Virginia HRM Expansion OpportunitiesThe company received final county approval to relocate and expand its Collinsville HRM venue to a new Henry County location closer to the North Carolina border. Churchill Downs expects to acquire land for a new 150-unit HRM venue and believes the site can capture a portion of the North Carolina market. Two additional referendums in Pulaski and Amherst County could support two more 150-machine facilities. The three opportunities would represent 415 incremental HRMs, compared with approximately 4,700 currently deployed across Virginia and a permitted total of 5,000.
- Rockingham Grand Development ProgressRockingham Grand Casino in Salem, New Hampshire remains on track to open on time and on budget in mid-2027. The planned facility will include approximately 800 to 850 HRMs and slots, 32 table games and a large event center. Management said performance at other venues in the New Hampshire-Massachusetts border market has exceeded original expectations.
- TwinSpires Growth and Product InnovationTwinSpires continues to report wagering growth, EBITDA growth and opportunities to expand distribution through business-to-business partners. New products include Jackpot 8 and Easy Bets, while AI-based enhancements such as Paddock Pro AI and AI Race Preview are being used to increase bettor engagement, particularly among VIP customers.
- Planned Capital InvestmentThe company spent $57 million on maintenance capital and $119 million on project capital during the first nine months of 2026. Full-year 2026 maintenance capital is now expected to be $90 million to $100 million, project capital is expected to be $160 million to $180 million, and 2027 project capital is expected to be between $200 million and $250 million.
- High-Margin Churchill Downs Racetrack OpportunityManagement described Churchill Downs Racetrack and the Kentucky Derby as the company's crown jewel and said the business has generally outperformed expectations. The company said its admissions-based model supports very high margins and that investments in the racetrack have historically produced strong performance, although management is willing to accept somewhat longer payback periods for certain projects.
- Board Strengthened With Michael TuckerMichael Tucker joined the Board of Directors. Management highlighted his more than 30 years of experience investing successfully in sports, entertainment and leisure companies, as well as his financial expertise and knowledge of market dynamics and strategic capital allocation.
CHDN Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 24, 2027 | 2026 (Q4) | 1.05- | 0.97 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 1.131.23 | 1.09 | 12.84% (+0.14) | |
| Jul 29, 2026 | 2026 (Q2) | 3.453.45 | 3.1 | 11.29% (+0.35) | |
| Apr 22, 2026 | 2026 (Q1) | 1.011.21 | 1.07 | 13.08% (+0.14) | |
| Feb 25, 2026 | 2025 (Q4) | 0.970.97 | 0.92 | 5.43% (+0.05) | |
| Oct 22, 2025 | 2025 (Q3) | 0.971.09 | 0.97 | 12.37% (+0.12) | |
| Jul 23, 2025 | 2025 (Q2) | 3.003.10 | 2.89 | 7.27% (+0.21) | |
| Apr 23, 2025 | 2025 (Q1) | 1.051.07 | 1.13 | -5.31% (-0.06) | |
| Feb 19, 2025 | 2024 (Q4) | 0.910.92 | 0.86 | 6.98% (+0.06) | |
| Oct 23, 2024 | 2024 (Q3) | 0.960.97 | 0.87 | 11.49% (+0.10) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
