Churchill Downs Posts Record Quarter, Unveils $750 Million Buyback and Dividend Hike

Churchill Downs posted record third-quarter revenue and profit on Wednesday and paired the results with a new $750 million share repurchase program, a 7% dividend increase and a new independent director.

Net income attributable to the Kentucky Derby operator more than doubled to $80 million, or $1.15 a diluted share, from $38 million, or 54 cents, a year earlier, according to the earnings release it filed with an 8-K on Wednesday. Net revenue rose 2% to a record $696 million, and adjusted EBITDA edged up 1% to a record $264 million.

Records, with a caveat

The year-ago quarter carried a $35 million after-tax impairment charge on the Chasers' gaming rights. Excluding that charge and a prior-year insurance recovery, the company said net income attributable to it rose $10 million, or 26%, and adjusted EBITDA rose $6 million, or 2%.

Kentucky up, Virginia down

The Live and Historical Racing segment grew revenue $10 million to $315 million, driven by an $11 million gain at its Kentucky historical racing machine venues. But segment adjusted EBITDA fell $5 million to $111 million.

The company pointed to Central Virginia, where adjusted EBITDA fell $10 million because of increased competition and a $5 million new tax expense on live race days under a racing and historical racing tax structure that took effect July 1. New Hampshire results also dipped while the temporary Casino Salem venue is closed during construction of the Rockingham Grand Casino.

The Gaming segment increased revenue $7 million to $273 million and adjusted EBITDA $5 million to $128 million, helped by stronger equity income from Rivers Des Plaines in Illinois and Miami Valley Gaming in Ohio. Wagering Services and Solutions revenue was roughly flat at $126 million, while its adjusted EBITDA rose $2 million to $48 million.

Bigger buyback, higher dividend

The board approved the new $750 million repurchase program on Oct. 27, according to a separate 8-K filed Wednesday. It replaces the $500 million program authorized in July 2025 and includes the $306 million that remained under that plan as of the close of trading on Oct. 27. The program has no time limit.

Churchill Downs bought back 570,169 shares for $48 million in the third quarter. The board also declared an annual dividend of 46.9 cents a share, up 7%, payable Jan. 5, 2027, to holders of record on Dec. 4. The company said it will be the 16th straight year of dividend increases.

The company ended the quarter with net bank leverage of 3.8 times. In September it took out a new $500 million term loan due 2033 and extended its revolver and Term Loan A to September 2031.

New board member

The board also appointed Michael Tucker, founder and managing partner of Orvieto Partners, as an independent Class II director, effective Oct. 27, according to another 8-K. His appointment expands the board to eight members, and his term runs to the 2028 annual meeting.

Chairman Alex Rankin said Tucker's "extensive knowledge of market dynamics and strategic capital allocation will be invaluable as CDI continues to evolve and grow."

Sources

1. Churchill Downs Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0000020212-26-000082)
2. Churchill Downs Form 8-K announcing a new $750 million share repurchase program, filed Oct. 28, 2026 (accession 0000020212-26-000088)
3. Churchill Downs Form 8-K reporting the appointment of Michael Tucker to the board of directors, filed Oct. 28, 2026 (accession 0000020212-26-000086)

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