Monitor the impact of the new Virginia racing and HRM tax structure on Live and Historical Racing margins, and watch for updates on the Rockingham Grand Casino opening (mid-2027) and the Victory Run project (2028). The $750M buyback authorization signals management's view of undervaluation but execution pace will be key.
Price Chart
Executive Summary
Churchill Downs reported Q3 2026 record net revenue of $696M (+2% YoY) and record Adjusted EBITDA of $264M (+1% YoY). GAAP diluted EPS was $1.15, above the $1.10 consensus, while adjusted diluted EPS was $1.23. The board approved a new $750M share repurchase program and a 7% higher dividend, offsetting headwinds from increased competition and a new tax expense in Virginia HRM venues.
Key Financial Metrics
Key Facts
- Record Q3 2026 net revenue of $696 million, up $13 million or 2% YoY
- Record net income attributable to CDI of $80 million, up $42 million YoY (includes $35M prior-year impairment)
- Record Adjusted EBITDA of $264 million, up $2 million or 1% YoY
- GAAP diluted EPS of $1.15, consensus $1.10 (beat by 4.5%)
- Adjusted diluted EPS of $1.23
- Board approved new $750 million share repurchase program (includes $306M remaining from prior authorization)
- Dividend increased 7% to $0.469 per share, 16th consecutive annual increase
- Live and Historical Racing segment Adjusted EBITDA decreased $5M due to Virginia competition and a new $5M tax expense
- Gaming segment Adjusted EBITDA increased $5M, driven by equity investments and New York property
- Net bank leverage of 3.8x at quarter end
- Repurchased 570,169 shares for $48 million in Q3
Financial Impact
Q3 2026 net revenue $696M, net income $80M, Adjusted EBITDA $264M; EPS $1.15 vs consensus $1.10
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Live and Historical Racing | $315.0M | +3.3% |
| Wagering Services and Solutions | $126.0M | -0.8% |
| Gaming | $273.0M | +2.6% |
Risk Factors
- Increased competition in Virginia HRM venues, particularly Central Virginia
- New $5 million tax expense related to live race days under the Virginia racing and HRM tax structure effective July 1, 2026
- Closure of temporary Casino Salem venue during construction of Rockingham Grand Casino impacting New Hampshire revenue
- High net bank leverage of 3.8x limits financial flexibility
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000020212-26-000082 |
| Document: chdn-20261028.htm | 0000020212-26-000082 |
| Document: 0000020212-26-000082-index-headers.html | 0000020212-26-000082 |
| Document: 0000020212-26-000082-index.html | 0000020212-26-000082 |
| Document: 0000020212-26-000082.txt | 0000020212-26-000082 |
| 8-K Data (Synthetic) | 0000020212-26-000082 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 1d ago | 8-K | $81.52 | awaiting T+60 | awaiting T+60 | $91.16 (+11.83%) |
Oct 28, 2026 1d ago | 8-K | $81.52 | awaiting T+60 | awaiting T+60 | $91.16 (+11.83%) |
Oct 28, 2026 1d ago | 8-K | No price | awaiting T+60 | awaiting T+60 | No price |
Oct 28, 2026 1d ago | Press Release | $83.99 | awaiting T+60 | awaiting T+60 | $91.16 (+8.54%) |
Oct 28, 2026 1d ago | Press Release | $81.95 | awaiting T+60 | awaiting T+60 | $91.16 (+11.24%) |
Oct 28, 2026 1d ago | Institutional Cluster | $81.95 | awaiting T+60 | awaiting T+60 | $91.16 (+11.24%) |
Sep 28, 2026 4w ago | 8-K | $75.72 | awaiting T+60 | awaiting T+60 | $91.16 (+20.39%) |
Sep 21, 2026 5w ago | Press Release | $81.92 | awaiting T+60 | awaiting T+60 | $91.16 (+11.28%) |
Apr 22, 2026 27w ago | 8-K | No price | awaiting T+60 | awaiting T+60 | No price |
Apr 22, 2026 27w ago | Press Release | $97.91 $83.71 | ▼ −14.50% | ▼ −19.52% | $91.16 (−6.89%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers