Churchill Downs Incorporated Reports $663 Million Net Revenue for Q1 2026

Churchill Downs Incorporated (CDI) reported a net revenue of $663 million for the first quarter of 2026, marking a $20 million increase from $643 million in the same period of 2025. The growth was primarily driven by a $24 million increase in the Live and Historical Racing segment, which benefited from continued expansion in historical racing machine (HRM) venues. However, this was partially offset by a $6 million decline in the Gaming segment, attributed to the cessation of HRM operations in Louisiana. Operating income also rose to $143 million, up from $135 million year-over-year, while net income attributable to CDI increased to $83 million from $77 million, resulting in a basic and diluted net income per share of $1.16, compared to $1.02 in the prior year.

In terms of operational metrics, CDI's Live and Historical Racing segment generated $297 million in revenue, up from $273 million, with notable contributions from Kentucky and Virginia HRM venues. The Wagering Services and Solutions segment saw a modest increase in revenue to $109 million from $107 million, primarily due to growth in retail sports betting. Conversely, the Gaming segment's revenue decreased to $257 million from $263 million, reflecting challenges in Louisiana. The company’s total operating expenses rose to $520 million from $508 million, driven by increased costs associated with the opening of new facilities and higher selling, general, and administrative expenses.

Strategically, CDI completed the acquisition of 90% of Casino Salem in New Hampshire in August 2025, which is expected to enhance its gaming portfolio. The company is also in the process of redeveloping Casino Salem into Rockingham Grand Casino, with projected capital expenditures for 2026 estimated between $180 million and $220 million. Additionally, CDI announced plans to acquire the intellectual property rights for the Preakness Stakes and Black-Eyed Susan Stakes for $85 million, further expanding its racing portfolio.

As of March 31, 2026, CDI's total assets remained stable at $7.485 billion, while total liabilities decreased to $6.341 billion from $6.429 billion, primarily due to paydowns on the revolving credit facility. The company reported a total equity of $1.096 billion, up from $1.010 billion, reflecting the increase in net income. CDI's cash flows from operating activities improved to $295 million, up from $247 million, indicating stronger operational performance. Looking ahead, CDI anticipates that cash flows from operations and available borrowings will be sufficient to fund its business operations and capital expenditures, despite the ongoing challenges in the gaming sector.