10-Q · April 22, 2026
Churchill Downs reported Q1 2026 revenue of $663 million, up $20 million year-over-year, and diluted EPS of $1.16, up $0.14 from $1.02 in Q1 2025. Operating income rose to $143 million and operating cash flow…
Earnings analysis · 10-Q
CHDN earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
Churchill Downs delivered solid third-quarter growth, with revenue up 1.9% year over year, operating margin expanding to 20.5% from 14.3%, and diluted GAAP EPS rising to $1.15 from $0.54. Gaming and Wagering Services…
Read full summary
Churchill Downs delivered solid third-quarter growth, with revenue up 1.9% year over year, operating margin expanding to 20.5% from 14.3%, and diluted GAAP EPS rising to $1.15 from $0.54. Gaming and Wagering Services and Solutions grew Adjusted EBITDA, although Live and Historical Racing declined because of Virginia competition, a $5 million new tax expense and the New Hampshire venue transition. Balance-sheet leverage improved materially and liquidity remained strong, but near-term note refinancing and $1.6 billion of floating-rate debt remain key risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.15
- Operating margin
- 20.5%
What stood out
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Revenue grew 1.9% year over year
Third-quarter revenue increased to $696 million from $683 million, up $13 million or 1.9% year over year. Revenue declined from $980 million in the prior quarter, reflecting normal seasonality.
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Operating margin expanded sharply
Operating income rose to $143 million from $98 million, while operating margin expanded to 20.5% from 14.3% year over year. The comparison benefited from the absence of $46 million of prior-year asset impairment charges.
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GAAP EPS more than doubled
Diluted GAAP EPS increased to $1.15 from $0.54 year over year, and net income attributable to Churchill Downs rose to $80 million from $38 million.
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Gaming delivered segment growth
Gaming revenue increased $7 million to $272 million and Adjusted EBITDA increased $5 million to $128 million, supported by wholly owned New York operations and stronger Rivers Des Plaines and Miami Valley Gaming results.
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Strong cash generation despite lower OCF
Nine-month operating cash flow was $660 million versus $674 million, while capital expenditures declined to $176 million from $225 million. Implied nine-month free cash flow was approximately $484 million.
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Debt and liquidity improved
Total debt declined to $4.748 billion from $5.155 billion at December 31, 2025, and net debt declined to $4.063 billion from $5.067 billion. The company also had $1.1 billion of available revolver capacity at September 30, 2026.
What to watch
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Virginia competition and tax pressure
Virginia HRM revenue declined $1 million year over year in the quarter, while Virginia HRM Adjusted EBITDA fell $6 million. Management attributed the pressure primarily to increased competition and a new $5 million tax expense related to live race days.
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Near-term refinancing requirement
The company had $600 million of 2027 Senior Notes outstanding at September 30, 2026, and stated that it is exploring cash, operating cash flow, revolver capacity and debt-market financing to fund upcoming maturities. The company subsequently redeemed the notes on October 19, 2026 using revolver borrowings.
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Floating-rate debt exposure
The company had $1.6 billion outstanding under its SOFR-based Credit Agreement; management estimates that a one-percentage-point increase in SOFR would reduce net income and operating cash flow by $12 million.
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New Hampshire venue transition
New Hampshire revenue declined $1 million and Adjusted EBITDA declined $1 million year over year as the temporary Casino Salem venue was closed during construction of Rockingham Grand Casino.
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Cash taxes and project spending
Nine-month operating cash flow decreased $14 million to $660 million, primarily because cash taxes increased, while the company expects 2026 project capital spending of $160 million to $180 million.
Management's outlook
No numeric revenue or EPS guidance was provided. Management expects 2026 project capital expenditures of approximately $160 million to $180 million and is exploring a sale of nine regional gaming properties representing $280 million to $300 million of annual Adjusted EBITDA.
Earlier filings 4
10-K · February 25, 2026
Churchill Downs positions itself as a diversified live-racing, historical-racing (HRM) and regional gaming operator with an expanding digital wagering footprint (TwinSpires) and continued venue growth. Management is…
10-Q · October 22, 2025
Revenue rose to $683.0M in Q3 2025 (up $54.5M vs. Q3 2024) while operating income declined to $98.0M and diluted EPS fell to $0.54. Results were weighed down by asset impairment activity (net $45.1M in the quarter,…
10-Q · July 23, 2025
Churchill Downs reported Q2 net revenue of $934.4 million (up $43.7 million vs. Q2 2024) and diluted EPS of $2.99, reflecting a modest year-over-year EPS improvement and a sequential surge driven by Live Racing event…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.