Churchill Downs reported record third-quarter revenue and net income, while adjusted EBITDA rose modestly from a year earlier. The company also announced changes to its racing and gaming operations, completed a partial acquisition of United Tote, refinanced debt, and increased its capital-return plans.
Third-quarter results
- Revenue reached a record $696 million, up $13 million, or 2%, from the third quarter of 2025.
- Net income attributable to Churchill Downs rose to $80 million, from $38 million a year earlier. The prior-year quarter included a one-time non-cash impairment and an insurance recovery; excluding those items, the company said net income increased $10 million, or 26%.
- Diluted earnings per share were $1.15, compared with $0.54.
- Adjusted EBITDA, a measure of operating performance, set a record at $264 million, up $2 million, or 1%. Excluding the prior-year insurance recovery, it increased $6 million, or 2%.
Operations and strategic moves
- Churchill Downs and the New York Racing Association announced a Thoroughbred Championship Series beginning in 2027, starting with the Kentucky Oaks and Kentucky Derby.
- The company received approval to relocate and expand its Rosie’s Collinsville historical racing venue in Henry County, Virginia, to 150 machines.
- Churchill Downs completed its purchase of a 49% stake in United Tote from NYRA. NYRA also extended its tote-services agreement with United Tote through 2035.
Financing and shareholder returns
- Churchill Downs entered into a $500 million Term Loan B due in 2033 and amended and extended its revolving credit and Term Loan A facilities. The company described the rates as favorable but did not provide specific pricing in the announcement.
- The board declared a quarterly dividend of $0.469 per share, a 7% increase. Shareholders of record on December 4, 2026 are scheduled to be paid on January 5, 2027.
- The board approved a $750 million share-repurchase authorization. That amount includes the $306 million remaining under the previous program as of October 27; it is not an additional $750 million on top of that balance.
- The company repurchased $48 million of shares during the quarter and ended September with net bank leverage of 3.8 times.
The quarter’s results show modest growth in revenue and adjusted EBITDA, with net income also benefiting from the comparison with unusual items in the year-ago period. The new repurchase authorization and higher dividend expand planned shareholder returns, while the debt transactions extend or refresh parts of the company’s financing.