Churchill Downs Reports Record Quarterly Revenue of $980 Million

Churchill Downs Incorporated posted all-time record net revenue of $980 million for the second quarter of 2026, a year-over-year increase of $46 million, or 5%, the company announced. Net income attributable to CDI climbed to $241 million, up $24 million or 11% from a year earlier, while Adjusted EBITDA also set a company record at $477 million, up $26 million or 6%.

The Louisville, Kentucky-based gaming and racing operator credited much of the growth to a record-breaking Kentucky Derby Week, along with continued strength across its historical racing machine (HRM) venues in Kentucky and Virginia. The results underscore how central live racing and HRM gaming remain to Churchill Downs’ overall business, even as its broader gaming and wagering-technology segments face a more mixed environment.

Derby Week Drives the Live Racing Business

Churchill Downs Racetrack hosted the 152nd Kentucky Derby on May 2, and the race delivered an all-time record Derby Week contribution to Adjusted EBITDA. Peak viewership reached 24.4 million, up 12% from the prior year, while average viewership hit 19.6 million, an 11% year-over-year increase. The 152nd Kentucky Oaks, televised in primetime for the first time on May 1, drew 2.4 million viewers and set a record for all-sources wagering on the Oaks race day card.

Those numbers translated directly into the balance sheet. Second-quarter revenue rose $34 million, with $21 million of that increase coming from Churchill Downs Racetrack itself, driven by higher NBC broadcast revenue, increased ticketing revenue, greater sponsorship and licensing income, and stronger wagering handle. The live and historical racing segment overall generated $575 million in revenue for the quarter, up from $541 million a year earlier.

HRM Venues in Kentucky and Virginia Add Momentum

Beyond the racetrack itself, Churchill Downs’ network of historical racing machine venues continued to contribute meaningfully to results. Kentucky HRM venues added $12 million in revenue growth, broken down across a $5 million increase from southwestern Kentucky locations, $3 million from northern Kentucky, $3 million from western Kentucky, and $1 million from Louisville-area venues. Virginia HRM venues added another $1 million net, reflecting a $5 million increase from northern Virginia locations that was partially offset by a $4 million decline in central Virginia due to increased competition.

On the Adjusted EBITDA side, HRM venues in both states combined for a $7 million increase, though that was partially offset by a $2 million decline at New Hampshire properties tied to the planned closure of the temporary Casino Salem venue during construction of the new Rockingham Grand Casino. Churchill Downs’ gaming properties overall saw a modest $4 million revenue increase, led by strong performance at its New York venue, though that gain was partly offset by the cessation of historical racing machine operations in Louisiana back in May 2025.

What It Means for the Broader Market

The quarter reinforces Churchill Downs’ position as one of the more resilient operators in the racing and gaming space, with the Kentucky Derby serving as an increasingly powerful revenue engine each spring. As more states weigh HRM legislation and horse racing operators look for ways to diversify beyond traditional wagering, Churchill Downs’ expansion strategy in Kentucky and Virginia offers a useful case study in how live racing and machine gaming can reinforce each other. For bettors following the horse racing calendar, the continued growth in Derby Week wagering also points to deepening interest in horse racing betting apps built around marquee racing events.

Shares of Churchill Downs (Nasdaq: CHDN) closed at $88.53 following the earnings release, down $0.69, or 0.8%, on the day. The company ended the second quarter with net bank leverage of 3.7x.