Churchill Downs Incorporated reported record revenue and EBITDA for the second quarter of 2026. The same day, the company disclosed plans to sell nine regional casinos across eight states — a potential restructuring that would shift focus toward racing and historical racing machines.
Revenue for the three months ended 30 June reached $980m, up 5% year-on-year. Adjusted EBITDA rose 6% to a record $477m. Net income hit $241m, up 11%, with diluted earnings per share of $3.42 against $2.99 a year earlier. Results matched analyst consensus.
The quarter was anchored by Kentucky Derby Week. NBC's broadcast drew a peak audience of 24.4m viewers, up 12% year-on-year, with an average of 19.6m, also a record and up 11%. The Kentucky Oaks moved to prime time for the first time, pulling 2.4m viewers and record handle.
The Live and Historical Racing segment posted revenue of $575m, up $34m, and EBITDA of $318m, up $21m. Segment margin stood at 55%. Historical racing machine facilities in Kentucky added $12m in revenue. Virginia showed early signs of competition: Northern Virginia gained $5m, Central Virginia lost $4m.
The Gaming segment delivered $270m in revenue and $133m in EBITDA, but $50m of that came from equity stakes in Rivers Des Plaines (Illinois) and Miami Valley Gaming (Ohio), neither of which is being sold. Owned casinos ran at roughly 31% margin against 55% for HRM properties — a key argument for the sale.
Properties on the block include Ocean Downs (Maryland), Harlow's and Riverwalk (Mississippi), Presque Isle Downs (Pennsylvania) and five others. The company gave no timeline and does not guarantee the transaction will close. Net debt stands at 3.7x EBITDA. Shares closed at $88.53, down roughly 25% over the past year, against a consensus analyst target of $135.58.
