Churchill Downs Incorporated Reports 2026 Second Quarter Results

LOUISVILLE, Ky., July 29, 2026 (GLOBE NEWSWIRE) -- Churchill Downs Incorporated (Nasdaq: CHDN) (the "Company," "CDI," "we") today reported business results for the quarter ended June 30, 2026.

Company Highlights

• Second quarter 2026 financial results, as compared to the prior year quarter:
  • All-time record net revenue of $980 million, up $46 million or 5%
  • Net income attributable to CDI of $241 million, up $24 million or 11%
  • All-time record Adjusted EBITDA of $477 million, up $26 million or 6%
• Churchill Downs Racetrack ran the 152^nd Kentucky Derby with all-time record Derby Week contribution to Adjusted EBITDA.
  • All-time record all-sources wagering for Kentucky Derby Week
  • Highest peak viewership of 24.4 million, up 12% vs. prior year and highest average viewership of 19.6 million, up 11% vs. prior year
  • 152^nd Kentucky Oaks in primetime for the first time with 2.4 million viewers and record all sources wagering for the Kentucky Oaks race day card
• We ended second quarter of 2026 with net bank leverage of 3.7x.
  
  

CONSOLIDATED RESULTS
	Second Quarter
(in millions, except per share data)	2026			2025
Net revenue	$	980		$	934
Net income attributable to CDI	$	241		$	217
Diluted EPS attributable to CDI	$	3.42		$	2.99
Adjusted net income attributable to CDI(a)	$	242		$	224
Adjusted Diluted EPS(a)	$	3.45		$	3.10
Adjusted EBITDA(a)	$	477		$	451
(a) This is a non-GAAP measure. See explanation of non-GAAP measures below.

SEGMENT RESULTS

The summaries below present revenue from external customers and intercompany revenue from each of our reportable segments. All comparisons are against the applicable prior year period unless otherwise noted.

Live and Historical Racing

	Second Quarter
(in millions)	2026			2025
Revenue	$	575		$	541
Adjusted EBITDA		318			297

Second quarter 2026 revenue increased $34 million due to a $21 million increase from Churchill Downs Racetrack, a $12 million increase from our Kentucky HRM venues, and a $1 million increase from our Virginia HRM venues. The Churchill Downs Racetrack increase was primarily due to a record-breaking Derby Week, including increased NBC broadcast revenue, increased ticketing revenue, increased sponsorship and licensing revenue, and increased wagering revenue. The Kentucky HRM increase was due to a $5 million increase from our Southwestern Kentucky venues, a $3 million increase from our Northern Kentucky venues, a $3 million increase from our Western Kentucky venues, and a $1 million increase from our Louisville venues. The Virginia HRM increase was due to a $5 million net increase primarily from our Northern Virginia venues, partially offset by a $4 million net decrease from our Central Virginia venues primarily from increased competition.

Second quarter 2026 Adjusted EBITDA increased $21 million due to a $16 million increase from Churchill Downs Racetrack, a $6 million increase from our Kentucky HRM venues, and a $1 million increase from our Virginia HRM venues, partially offset by a $2 million decrease at our New Hampshire venues primarily due to the planned closure of our temporary Casino Salem venue during the construction of the Rockingham Grand Casino venue. The Churchill Downs Racetrack increase was primarily due to a record-breaking Derby Week, including increased NBC broadcast revenue, increased ticketing revenue, increased sponsorship and licensing revenue, and increased wagering revenue, partially offset by higher operating expenses. The Kentucky HRM increase was due to a $2 million increase from our Northern Kentucky venues, a $2 million increase from our Southwestern Kentucky venues, and a $2 million increase from our Western Kentucky venues. The Virginia HRM increase was primarily due to a $4 million net increase from our Northern Virginia venues, a $1 million increase from our Western Virginia venue, and a $1 million increase from our Southern Virginia venues, partially offset by a $5 million net decrease from our Central Virginia venues primarily from increased competition.

Wagering Services and Solutions

	Second Quarter
(in millions)	2026			2025
Revenue	$	178		$	168
Adjusted EBITDA		52			48

Second quarter 2026 revenue increased $10 million due to $9 million growth in our Horse Racing business from record-breaking Derby Week wagering and a $1 million increase from our Exacta business.

Second quarter 2026 Adjusted EBITDA increased $4 million due to a $3 million increase from our Horse Racing business and a $1 million increase from our Exacta business.

Gaming

	Second Quarter
(in millions)	2026			2025
Revenue	$	270		$	266
Adjusted EBITDA		133			127

Second quarter 2026 revenue increased $4 million primarily due to an $8 million increase primarily from our New York, Indiana, and Maryland properties, partially offset by a $4 million decrease primarily from the cessation of HRM operations in Louisiana in May 2025.

Second quarter 2026 Adjusted EBITDA increased $6 million. Our equity investments increased $4 million from strong performance at Rivers Des Plaines in Illinois and Miami Valley Gaming in Ohio. Our wholly-owned gaming properties increased $4 million primarily from strong performance at our New York venue, partially offset by a $2 million decrease primarily from the cessation of HRM operations in Louisiana in May 2025.

All Other

	Second Quarter
(in millions)		2026				2025
Revenue	$	2			$	2
Adjusted EBITDA		(26	)			(21	)

Second quarter 2026 revenue is consistent with the prior year. All intercompany captive revenue is eliminated in consolidation.

Second quarter 2026 Adjusted EBITDA decreased $5 million primarily due to a reduction of corporate legal-related fees in the prior year quarter and claim development within our captive insurance company.

NET INCOME ATTRIBUTABLE TO CDI

The Company's second quarter 2026 net income attributable to CDI was $241 million compared to $217 million in the prior year quarter.

The following factors impacted the comparability of the Company's second quarter 2026 net income to the prior year quarter:

• a $4 million after-tax decrease in transaction, pre-opening, and other expenses; and
• a $2 million after-tax impairment charge in the prior year quarter related to a write-off of obsolete HRMs in Virginia.

Excluding the items above, second quarter 2026 adjusted net income attributable to CDI increased $18 million primarily due to the following:

• a $10 million after-tax increase primarily driven by the results of our operations;
• a $4 million after-tax decrease in interest expense; and
• a $4 million after-tax increase in equity income from our unconsolidated affiliates.
  

Conference Call

A conference call regarding this news release is scheduled for Thursday, July 30, 2026 at 9 a.m. ET. Investors and other interested parties may listen to the teleconference by accessing the online, real-time webcast and broadcast of the call at http://ir.churchilldownsincorporated.com/events.cfm, or by registering in advance via teleconference here. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are encouraged to dial-in 15 minutes prior to the start time. An online replay will be available by noon ET on Thursday, July 30, 2026. A copy of the Company’s news release announcing quarterly results and relevant financial and statistical information about the period will be accessible at www.churchilldownsincorporated.com.

Use of Non-GAAP Measures

In addition to the results provided in accordance with GAAP, the Company also uses non-GAAP measures, including adjusted net income, adjusted diluted EPS, EBITDA (earnings before interest, taxes, depreciation and amortization), and Adjusted EBITDA.

The Company uses non-GAAP measures as key performance measures of the results of operations for purposes of evaluating performance internally. These measures facilitate comparison of operating performance between periods and help investors to better understand the operating results of the Company by excluding certain items that may not be indicative of the Company's core business or operating results. The Company believes the use of these measures enables management and investors to evaluate and compare, from period to period, the Company’s operating performance in a meaningful and consistent manner. The non-GAAP measures are supplemental measures of our performance that is not required by, or presented in accordance with, GAAP, and should not be considered as an alternative to, or more meaningful than, net income or diluted EPS (as determined in accordance with GAAP) as a measure of our operating results.

We use Adjusted EBITDA to evaluate segment performance, develop strategy, and allocate resources. We utilize the Adjusted EBITDA metric to provide a more accurate measure of our core operating results and enable management and investors to evaluate and compare from period to period our operating performance in a meaningful and consistent manner. Adjusted EBITDA should not be considered as an alternative to operating income as an indicator of performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure provided in accordance with GAAP. Our calculation of Adjusted EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited.

Adjusted net income and adjusted diluted EPS exclude discontinued operations net income or loss; net income or loss attributable to noncontrolling interests; transaction expense, which includes acquisition and disposition related charges, as well as legal, accounting, and other deal-related expense; pre-opening expense; and certain other gains, charges, recoveries, and expenses.

Adjusted EBITDA includes our portion of EBITDA from our equity investments and the portion of EBITDA attributable to noncontrolling interests.

Adjusted EBITDA excludes:

• Transaction expense, net, which includes:
  • Acquisition, disposition, and property sale related charges; and
  • Other transaction expense, including legal, accounting, and other deal-related expense;
• Stock-based compensation expense;
• Rivers Des Plaines' impact on our investments in unconsolidated affiliates from legal reserves and transaction costs;
• Asset impairments, net;
• Gain on property sales;
• Legal reserves;
• Pre-opening expense; and
• Other charges, recoveries, and expenses

For segment reporting, Adjusted EBITDA includes intercompany revenue and expense totals that are eliminated in the Consolidated Statements of Comprehensive Income. See the Reconciliation of Net Income to Adjusted EBITDA included herewith for additional information.

About Churchill Downs Incorporated

Churchill Downs Incorporated ("CDI") (Nasdaq: CHDN) has created extraordinary entertainment experiences for over 150 years, beginning with the Company’s most iconic and enduring asset, the Kentucky Derby. Headquartered in Louisville, Kentucky, CDI has expanded through the acquisition, development, and operation of live and historical racing entertainment venues, the growth of the online wagering businesses, and the acquisition, development, and operation of regional casino gaming properties. https://www.churchilldownsincorporated.com/

This news release contains various "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the use of terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "predict," "project," "seek," "should," "will," "scheduled," and similar words or similar expressions (or negative versions of such words or expressions), although some forward-looking statements are expressed differently.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from expectations include the following: the occurrence of extraordinary events, such as terrorist attacks, public health threats, civil unrest, and inclement weather, including as a result of climate change; the effect of economic conditions on our consumers' confidence and discretionary spending or our access to credit, including the impact of inflation; changes in, or new interpretations of, applicable tax laws or rulings that could result in additional tax liabilities; the impact of any pandemics, epidemics, or outbreaks of infectious diseases, and related economic matters on our results of operations, financial conditions, and prospects; lack of confidence in the integrity of our core businesses or any deterioration in our reputation; negative shifts in public opinion regarding gambling that could result in increased regulation of, or new restrictions on, the gaming industry; loss of key or highly skilled personnel, as well as general disruptions in the general labor market; the impact of significant competition, and the expectation that competition levels will increase; changes in consumer preferences, attendance, wagering, and sponsorships; risks associated with equity investments, strategic alliances and other third-party agreements; inability to respond to rapid technological changes in a timely manner; concentration and evolution of slot machine and historical racing machine ("HRM") manufacturing and other technology conditions that could impose additional costs; failure to enter into or maintain agreements with industry constituents, including horsemen and other racetracks; cybersecurity risk, including cybersecurity breaches, loss or misuse of our confidential information as a result of a breach including customers’ personal information, or IT system operational disruptions, could lead to government enforcement actions or other litigation; costs of compliance with increasingly complex laws and regulations regarding data privacy and protection of personal information; reliance on our technology services and catastrophic events, system failures, errors or defects disrupting our operations; inability to identify, complete, or fully realize the benefits of our proposed acquisitions, divestitures, development of new venues or the expansion of existing facilities on time, on budget, or as planned; difficulty in integrating recent or future acquisitions into our operations; cost overruns and other uncertainties associated with the development of new venues and the expansion of existing facilities; general risks related to real estate ownership and significant expenditures, including risks related to environmental liabilities; personal injury litigation related to injuries occurring at our racetracks; compliance with the Foreign Corrupt Practices Act or other similar laws and regulations, or applicable anti-money laundering regulations; payment-related risks, such as risk associated with fraudulent credit card or debit card use; work stoppages and labor problems; risks related to pending or future legal proceedings and other actions; highly regulated operations and changes in the regulatory environment could adversely affect our business; restrictions in our debt facilities limiting our flexibility to operate our business; failure to comply with the financial ratios and other covenants in our debt facilities and other indebtedness; increases to interest rates, disruption in the credit markets or changes to our credit ratings may adversely affect our business; increase in our insurance costs, or inability to obtain similar insurance coverage in the future, and any inability to recover under our insurance policies for damages sustained at our properties in the event of inclement weather and casualty events; whether the objective of a strategic alternative review process will be achieved; the terms, structure, benefits and costs of any strategic transaction; the timing of any strategic transaction and whether any strategic transaction will be consummated on the terms proposed or at all; the risk that the announcement or exploration of strategic alternatives could have an adverse effect on our ability to retain key personnel and maintain relationships with partners, suppliers, employees, shareholders and other business relationships; the risk of any unexpected costs or expenses resulting from the exploration of strategic alternatives; the risk of any litigation relating to the exploration of strategic alternatives or any strategic transaction; and other factors described under the heading "Risk Factors" in our most recent Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission.

We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

CHURCHILL DOWNS INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
(in millions, except per common share data)		2026				2025				2026				2025
Net revenue:
Live and Historical Racing	$	543			$	510			$	840			$	783
Wagering Services and Solutions		167				158				276				265
Gaming		270				266				527				529
All Other		—				—				—				—
Total net revenue		980				934				1,643				1,577
Operating expense:
Live and Historical Racing		268				256				467				446
Wagering Services and Solutions		96				91				164				158
Gaming		192				191				380				383
All Other		5				4				10				8
Selling, general and administrative expense		61				61				120				116
Asset impairments, net		—				2				—				2
Transaction expense, net		1				2				2				2
Total operating expense		623				607				1,143				1,115
Operating income		357				327				500				462
Other (expense) income:
Interest expense, net		(70	)			(75	)			(142	)			(147	)
Equity in income of unconsolidated affiliates		41				37				77				70
Miscellaneous, net		—				3				6				3
Total other (expense) income		(29	)			(35	)			(59	)			(74	)
Income from operations before provision for income taxes		328				292				441				388
Income tax provision		(86	)			(74	)			(116	)			(93	)
Net income		242				218				325				295
Net income attributable to noncontrolling interests		1				1				1				1
Net income attributable to Churchill Downs Incorporated	$	241			$	217			$	324			$	294
Net income attributable to Churchill Downs Incorporated per common share data:
Basic net income	$	3.43			$	3.02			$	4.59			$	4.02
Diluted net income	$	3.42			$	2.99			$	4.58			$	3.98
Weighted average shares outstanding:
Basic		70				72				70				73
Diluted		70				72				70				73

CHURCHILL DOWNS INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions)	June 30, 2026				December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	196			$	201
Restricted cash		99				88
Accounts receivable, net		129				93
Income taxes receivable		—				17
Other current assets		60				44
Total current assets		484				443
Property and equipment, net		2,911				2,919
Investment in and advances to unconsolidated affiliates		690				685
Goodwill		900				900
Other intangible assets, net		2,513				2,515
Other assets		23				23
Total assets	$	7,521			$	7,485
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	261			$	184
Accrued expenses and other current liabilities		370				400
Income taxes payable		38				—
Current deferred revenue		27				55
Current maturities of long-term debt and notes payable		663				63
Dividends payable		—				31
Total current liabilities		1,359				733
Long-term debt, net of current maturities and loan origination fees		1,627				1,986
Notes payable, net of current maturities and debt issuance costs		2,483				3,081
Non-current deferred revenue		12				15
Deferred income taxes		562				520
Other liabilities		87				94
Total liabilities		6,130				6,429
Commitments and contingencies
Redeemable noncontrolling interest		50				46
Shareholders' equity:
Preferred stock		—				—
Common stock		7				—
Retained earnings		1,335				1,011
Accumulated other comprehensive loss		(1	)			(1	)
Total Churchill Downs Incorporated shareholders' equity		1,341				1,010
Total liabilities and shareholders' equity	$	7,521			$	7,485

CHURCHILL DOWNS INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	Six Months Ended June 30,
(in millions)		2026				2025
Cash flows from operating activities:
Net income	$	325			$	295
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		115				117
Distributions from unconsolidated affiliates		72				63
Equity in income of unconsolidated affiliates		(77	)			(70	)
Stock-based compensation		13				11
Deferred income taxes		42				4
Asset impairments		—				2
Amortization of operating lease assets		3				3
Other		5				4
Changes in operating assets and liabilities:
Income taxes		55				81
Deferred revenue		(31	)			(37	)
Other assets and liabilities		(10	)			14
Net cash provided by operating activities		512				487
Cash flows from investing activities:
Capital maintenance expenditures		(38	)			(32	)
Capital project expenditures		(79	)			(133	)
Other		(2	)			(1	)
Net cash used in investing activities		(119	)			(166	)
Cash flows from financing activities:
Proceeds from borrowings under long-term debt obligations		646				642
Repayments of borrowings under long-term debt obligations		(1,006	)			(547	)
Payment of dividends		(31	)			(30	)
Repurchase of common stock		—				(341	)
Taxes paid related to net share settlement of stock awards		(3	)			(4	)
Change in bank overdraft		8				(5	)
Other		(1	)			(2	)
Net cash used in financing activities		(387	)			(287	)
Net increase in cash, cash equivalents and restricted cash		6				34
Cash, cash equivalents and restricted cash, beginning of period		289				252
Cash, cash equivalents and restricted cash, end of period	$	295			$	286

CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
(in millions, except per common share data)		2026				2025				2026				2025
GAAP net income attributable to CDI	$	241			$	217			$	324			$	294
Adjustments, continuing operations:
Transaction, pre-opening, and other expense		3				9				9				13
Other charges and recoveries, net		(1	)			(1	)			(5	)			(1	)
Asset impairments, net		—				2				—				2
Income tax impact on net income adjustments(a)		(1	)			(3	)			(1	)			(4	)
Total adjustments		1				7				3				10
Adjusted net income attributable to CDI	$	242			$	224			$	327			$	304
Adjusted diluted EPS	$	3.45			$	3.10			$	4.66			$	4.15
Weighted average shares outstanding - Diluted		70				72				70				73
(a) The income tax impact for each adjustment is derived by applying the effective tax rate, including current and deferred income tax expense, based upon the jurisdiction and the nature of the adjustment.

	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2026			2025			2026			2025
Total Wagering
TwinSpires Horse Racing(a)	$	634		$	609		$	1,009		$	993
(a) TwinSpires Horse Racing wagering does not include wagering generated by Velocity and national affiliates.

CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
(in millions)		2026				2025				2026				2025
Net revenue from external customers:
Live and Historical Racing:
Churchill Downs Racetrack	$	247			$	228			$	250			$	232
Louisville		59				57				114				109
Northern Kentucky		29				27				65				58
Southwestern Kentucky		49				43				93				84
Western Kentucky		18				16				37				28
Virginia		138				136				271				266
New Hampshire		3				3				10				6
Total Live and Historical Racing	$	543			$	510			$	840			$	783
Wagering Services and Solutions:	$	167			$	158			$	276			$	265
Gaming:
Florida	$	24			$	26			$	48			$	51
Iowa		24				23				48				47
Indiana		35				32				68				64
Louisiana		29				32				65				77
Maine		26				28				51				52
Maryland		28				25				49				46
Mississippi		24				24				48				49
New York		51				48				97				91
Pennsylvania		29				28				53				52
Total Gaming	$	270			$	266			$	527			$	529
All Other		—				—				—				—
Net revenue from external customers	$	980			$	934			$	1,643			$	1,577
Intercompany net revenues:
Live and Historical Racing	$	32			$	31			$	36			$	35
Wagering Services and Solutions		11				10				20				19
Gaming		—				—				5				4
All Other		2				2				4				4
Eliminations		(45	)			(43	)			(65	)			(62	)
Intercompany net revenue	$	—			$	—			$	—			$	—

CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited)
	Three Months Ended June 30, 2026
(in millions)	Live and Historical Racing			Wagering Services and Solutions			Gaming			Total Segments			All Other			Total
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing	$	53		$	133		$	4		$	190		$	—		$	190
Historical racing(a)		265			—			—			265			—			265
Racing event-related services		192			—			—			192			—			192
Gaming(a)		3			4			232			239			—			239
Other(a)		30			30			34			94			—			94
Total	$	543		$	167		$	270		$	980		$	—		$	980

	Three Months Ended June 30, 2025
(in millions)	Live and Historical Racing			Wagering Services and Solutions			Gaming			Total Segments			All Other			Total
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing	$	54		$	125		$	4		$	183		$	—		$	183
Historical racing(a)		252			—			5			257			—			257
Racing event-related services		173			—			—			173			—			173
Gaming(a)		3			4			225			232			—			232
Other(a)		28			29			32			89			—			89
Total	$	510		$	158		$	266		$	934		$	—		$	934
(a) Food and beverage, hotel, and other services furnished to customers for free as an inducement to wager or through the redemption of our customers' loyalty points are recorded at the estimated standalone selling prices in other revenue with a corresponding offset recorded as a reduction in historical racing pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were $16 million in each of the three months ended June 30, 2026 and 2025.

	Six Months Ended June 30, 2026
(in millions)	Live and Historical Racing			Wagering Services and Solutions			Gaming			Total Segments			All Other			Total
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing	$	64		$	214		$	14		$	292		$	—		$	292
Historical racing(a)		522			—			—			522			—			522
Racing event-related services		193			—			1			194			—			194
Gaming(a)		7			10			450			467			—			467
Other(a)		54			52			62			168			—			168
Total	$	840		$	276		$	527		$	1,643		$	—		$	1,643

	Six Months Ended June 30, 2025
(in millions)	Live and Historical Racing			Wagering Services and Solutions			Gaming			Total Segments			All Other			Total
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing	$	65		$	205		$	15		$	285		$	—		$	285
Historical racing(a)		489			—			14			503			—			503
Racing event-related services		174			—			1			175			—			175
Gaming(a)		6			8			439			453			—			453
Other(a)		49			52			60			161			—			161
Total	$	783		$	265		$	529		$	1,577		$	—		$	1,577
(a) Food and beverage, hotel, and other services furnished to customers for free as an inducement to wager or through the redemption of our customers' loyalty points are recorded at the estimated standalone selling prices in other revenue with a corresponding offset recorded as a reduction in historical racing pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were $32 million for the six months ended June 30, 2026 and $30 million for the six months ended June 30, 2025.

CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited)
Adjusted EBITDA by segment is comprised of the following:
	Three Months Ended June 30, 2026
(in millions)	Live and Historical Racing				Wagering Services and Solutions				Gaming				Total Segments				All Other				Eliminations				Total
Revenue	$	575			$	178			$	270			$	1,023			$	2			$	(45	)		$	980
Pari-mutuel taxes and purses		(119	)			(8	)			(7	)			(134	)			—				—				(134	)
Gaming taxes		(2	)			(1	)			(81	)			(84	)			—				—				(84	)
Marketing and advertising		(16	)			(6	)			(8	)			(30	)			—				—				(30	)
Salaries and benefits		(38	)			(9	)			(41	)			(88	)			—				—				(88	)
Content expense		(1	)			(78	)			(2	)			(81	)			—				35				(46	)
Selling, general and administrative expense		(14	)			(4	)			(12	)			(30	)			(24	)			—				(54	)
Maintenance, insurance and utilities		(13	)			(3	)			(9	)			(25	)			(3	)			2				(26	)
Gaming equipment rental and technology costs		(13	)			(2	)			(5	)			(20	)			—				8				(12	)
Food and beverage costs		(4	)			—				(4	)			(8	)			—				—				(8	)
Other operating expense(a)		(37	)			(15	)			(18	)			(70	)			(1	)			—				(71	)
Equity in income of unconsolidated affiliates		—				—				50				50				—				—				50
Other income		—				—				—				—				—				—				—
Adjusted EBITDA	$	318			$	52			$	133			$	503			$	(26	)		$	—			$	477

	Three Months Ended June 30, 2025
(in millions)	Live and Historical Racing						Wagering Services and Solutions								Gaming								Total Segments								All Other								Eliminations								Total
Revenue	$	541					$	168							$	266							$	975							$	2							$	(43			)				$	934
Pari-mutuel taxes and purses		(116			)			(8			)					(7			)					(131			)					—								—								(131			)
Gaming taxes		(1			)			(1			)					(80			)					(82			)					—								—								(82			)
Marketing and advertising		(16			)			(6			)					(9			)					(31			)					—								—								(31			)
Salaries and benefits		(38			)			(9			)					(43			)					(90			)					—								—								(90			)
Content expense		(2			)			(76			)					(2			)					(80			)					—								32								(48			)
Selling, general and administrative expense		(10			)			(5			)					(11			)					(26			)					(22			)					1								(47			)
Maintenance, insurance and utilities		(12			)			(1			)					(10			)					(23			)					(1			)					2								(22			)
Gaming equipment rental and technology costs		(12			)			(1			)					(5			)					(18			)					—								8								(10			)
Food and beverage costs		(4			)			—								(4			)					(8			)					—								—								(8			)
Other operating expense(a)		(33			)			(13			)					(16			)					(62			)					—								—								(62			)
Equity in income of unconsolidated affiliates		—						—								47								47								—								—								47
Other income		—						—								1								1								—								—								1
Adjusted EBITDA	$	297					$	48							$	127							$	472							$	(21			)				$	—							$	451

      

			Six Months Ended June 30, 2026
(in millions)			Live and Historical Racing				Wagering Services and Solutions						Gaming								Total Segments								All Other								Eliminations								Total
Revenue			$	876			$	296					$	532							$	1,704							$	4							$	(65			)				$	1,643
Pari-mutuel taxes and purses				(195	)			(12	)					(18			)					(225			)					—								—								(225			)
Gaming taxes				(4	)			(1	)					(156			)					(161			)					—								—								(161			)
Marketing and advertising				(28	)			(8	)					(16			)					(52			)					—								—								(52			)
Salaries and benefits				(74	)			(17	)					(84			)					(175			)					—								—								(175			)
Content expense				(2	)			(121	)					(3			)					(126			)					—								44								(82			)
Selling, general and administrative expense				(25	)			(8	)					(24			)					(57			)					(46			)					—								(103			)
Maintenance, insurance and utilities				(25	)			(5	)					(19			)					(49			)					(7			)					4								(52			)
Gaming equipment rental and technology costs				(27	)			(3	)					(9			)					(39			)					—								17								(22			)
Food and beverage costs				(8	)			—						(9			)					(17			)					—								—								(17			)
Other operating expense(a)				(57	)			(24	)					(35			)					(116			)					(1			)					—								(117			)
Equity in income of unconsolidated affiliates				—				—						96								96								—								—								96
Other income				—				—						1								1								—								—								1
Adjusted EBITDA			$	431			$	97					$	256							$	784							$	(50			)				$	—							$	734

	Six Months Ended June 30, 2025
(in millions)	Live and Historical Racing						Wagering Services and Solutions								Gaming								Total Segments								All Other								Eliminations								Total
Revenue	$	818					$	284							$	533							$	1,635							$	4							$	(62			)				$	1,577
Pari-mutuel taxes and purses		(188			)			(12			)					(22			)					(222			)					—								—								(222			)
Gaming taxes		(3			)			(1			)					(152			)					(156			)					—								—								(156			)
Marketing and advertising		(30			)			(7			)					(17			)					(54			)					—								—								(54			)
Salaries and benefits		(70			)			(17			)					(87			)					(174			)					—								—								(174			)
Content expense		(3			)			(120			)					(4			)					(127			)					—								41								(86			)
Selling, general and administrative expense		(21			)			(10			)					(22			)					(53			)					(43			)					1								(95			)
Maintenance, insurance and utilities		(22			)			(2			)					(19			)					(43			)					(4			)					4								(43			)
Gaming equipment rental and technology costs		(24			)			(2			)					(9			)					(35			)					—								16								(19			)
Food and beverage costs		(8			)			—								(8			)					(16			)					—								—								(16			)
Other operating expense(a)		(50			)			(24			)					(33			)					(107			)					—								—								(107			)
Equity in income of unconsolidated affiliates		—						—								90								90								—								—								90
Other income		—						—								1								1								—								—								1
Adjusted EBITDA	$	399					$	89							$	251							$	739							$	(43			)				$	—							$	696
(a)   Other operating expense primarily includes supplies, regulatory licenses and fees, property taxes, and third-party service fees and costs.

      

CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
(in millions)		2026				2025				2026				2025
Reconciliation of Net Income to Adjusted EBITDA:
Net income attributable to Churchill Downs Incorporated	$	241			$	217			$	324			$	294
Net income attributable to noncontrolling interests		1				1				1				1
Net income		242				218				325				295
Adjustments:
Depreciation and amortization		59				58				115				117
Interest expense		70				75				142				147
Income tax provision		86				74				116				93
Stock-based compensation expense		8				7				13				11
Pre-opening expense		2				2				5				6
Other expenses, net		—				4				2				4
Asset impairments, net		—				2				—				2
Transaction expense, net		1				2				2				2
Other income, expense:
Interest, depreciation and amortization expense related to equity investments		10				10				19				20
Other charges and recoveries, net		(1	)			(1	)			(5	)			(1	)
Total adjustments		235				233				409				401
Adjusted EBITDA	$	477			$	451			$	734			$	696
Adjusted EBITDA by segment:
Live and Historical Racing	$	318			$	297			$	431			$	399
Wagering Services and Solutions		52				48				97				89
Gaming		133				127				256				251
Total segment Adjusted EBITDA		503				472				784				739
All Other		(26	)			(21	)			(50	)			(43	)
Total Adjusted EBITDA	$	477			$	451			$	734			$	696

CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL JOINT VENTURE FINANCIAL STATEMENTS (Unaudited)
Summarized financial information for our equity investments is comprised of the following:
	Summarized Income Statement
	Three Months Ended June 30,								Six Months Ended June 30,
(in millions)		2026				2025				2026				2025
Net revenue	$	228			$	216			$	444			$	421
Operating and SG&A expense		142				135				279				265
Depreciation and amortization		6				6				12				12
Operating income		80				75				153				144
Interest and other expense, net		(9	)			(10	)			(19	)			(21	)
Net income	$	71			$	65			$	134			$	123

	Summarized Balance Sheet
(in millions)	June 30, 2026				December 31, 2025
Assets
Current assets	$	97			$	109
Property and equipment, net		309				315
Other assets, net		266				265
Total assets	$	672			$	689
Liabilities and Members' Deficit
Current liabilities	$	102			$	89
Long-term debt		765				803
Other liabilities		1				—
Members' deficit		(196	)			(203	)
Total liabilities and members' deficit	$	672			$	689

CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited)
2026 capital projects for the Company are as follows:
(in millions)	Project	Target Completion	2026 Planned Spend
Live and Historical Racing Segment
Churchill Downs Racetrack	Victory Run	April 2028	$25-30
New Hampshire	Rockingham Grand Casino (HRM Venue)	Mid-2027	$70-80
All Other & Completed Projects
All Other Projects		TBD	$30-50
Completed Projects		Completed	$55-60
		Total:	$180-220

Contact: Sam Ullrich
(502) 638-3906
Sam.Ullrich@kyderby.com

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