The EPS beat was modest and revenue was essentially in line with consensus. The new $750M buyback authorization and dividend increase signal management confidence, but the Virginia HRM segment faces headwinds from competition and new taxes. Monitor the Rockingham Grand Casino opening in mid-2027 and the impact of the Thoroughbred Championship Series on future Derby-related revenue.
Price Chart
Executive Summary
Churchill Downs reported Q3 2026 net revenue of $696M (up 2% YoY) and GAAP diluted EPS of $1.15, beating the consensus estimate of $1.10. Adjusted EBITDA rose 1% to $264M. The company also announced a new $750M share repurchase program and a 7% dividend increase, while completing a $500M Term Loan B refinancing.
Key Financial Metrics
Key Facts
- Q3 2026 net revenue of $696M, up 2% YoY from $683M
- GAAP diluted EPS of $1.15 vs consensus $1.10 (beat)
- Adjusted EBITDA of $264M, up 1% YoY
- Net income attributable to CDI of $80M, up from $38M in prior year (includes $35M after-tax impairment in prior year)
- Board approved new $750M share repurchase program (includes $306M remaining from prior program)
- Declared $0.469 per share dividend, a 7% increase
- Entered into $500M Term Loan B due 2033, used to repay existing debt
- Completed acquisition of 49% of United Tote Company
- Live and Historical Racing segment revenue up $10M to $315M, but Adjusted EBITDA down $5M to $111M
- Gaming segment revenue up $7M to $273M, Adjusted EBITDA up $5M to $128M
- Wagering Services and Solutions revenue down $1M to $126M, Adjusted EBITDA up $2M to $48M
Financial Impact
GAAP EPS beat consensus by $0.05 (4.5%); revenue essentially in line with $695.2M consensus; adjusted net income up $9M YoY
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Live and Historical Racing | $308.0M | +2.7% |
| Wagering Services and Solutions | $116.0M | -1.7% |
| Gaming | $272.0M | +2.6% |
| All Other | $0.00 | Not reported |
Risk Factors
- Virginia HRM venues face increased competition and a new $5M tax expense related to live race days
- New Hampshire revenue down due to temporary casino closure during construction of Rockingham Grand Casino
- Net bank leverage of 3.8x remains elevated
- Wagering Services and Solutions revenue declined slightly
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3390745 |
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
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