Churchill Downs Reports Record Q1 Revenue and Earnings Growth
Strong Financial Performance in Early 2026
Churchill Downs Incorporated (CDI) has announced its financial results for the first quarter ending March 31, 2026, revealing modest but consistent growth across key metrics. The company achieved a new quarterly record with total net revenue reaching $663 million, representing a 3% increase compared to the same period last year.
Net income attributable to CDI rose 8% year-over-year to $83 million. This increase reflects a $3 million reduction in after-tax charges and recoveries, partially offset by a $2 million increase in after-tax transaction, pre-opening, and other expenses.
Adjusted EBITDA also set a quarterly high at $257 million, up 5% from Q1 2025, underscoring the company’s improving operational efficiency and profitability.
Segment Performance Highlights
The Live and Historical Racing division led the growth, generating $301 million in revenue and $113 million in adjusted EBITDA for the quarter, compared to $277 million and $102 million respectively in the prior year period.
The Wagering Services and Solutions segment saw modest gains as well, with revenue of $118 million and adjusted EBITDA of $45 million, up from $116 million and $41 million in Q1 2025.
Conversely, the Gaming division experienced a slight decline, with revenue dropping to $262 million and adjusted EBITDA decreasing to $123 million, compared to $267 million and $124 million in the first quarter of 2025.
The All Other segment maintained steady revenue at $2 million; however, adjusted EBITDA showed a slight decrease with a loss of $24 million.
Ongoing Growth and Strategic Investments
CDI continued its tradition of rewarding shareholders with a $0.438 per share dividend at the start of 2026, marking the fifteenth consecutive year of dividend increases.
Key investment activities in the quarter included plans to invest between $180 million and $200 million in the development of Rockingham Grand Casino located in Salem, New Hampshire, which is expected to open next year. Additionally, the company launched Marshall Yards Racing & Gaming in Southwestern Kentucky in February.
At the close of Q1 2026, CDI reported a net bank leverage ratio of 3.8 times and returned $31 million to shareholders through dividends.
Following the quarter’s end, CDI announced an $85 million deal to acquire the intellectual property rights to the prestigious Preakness Stakes and Black-Eyed Susan Stakes racing events, further expanding its portfolio.
