Churchill Downs Soars on Record EBITDA, Boosts Shareholder Returns

Churchill Downs Incorporated achieved record third-quarter results, with net revenue reaching $696 million and Non-GAAP Adjusted EBITDA hitting a record $264 million. This strong financial performance, bolstered by significant free cash flow, has enabled the company to increase its annual dividend by 7% and authorize a new $750 million share repurchase program.

The company is actively pursuing a strategic shift, planning to divest nine regional gaming properties by the end of 2026. This move aims to concentrate resources on its high-growth racing and digital wagering platforms, specifically Churchill Downs Racetrack, historical racing machine (HRM) operations, and the TwinSpires digital business.

Key initiatives include the upcoming Thoroughbred Championship Series in 2027, designed to create a season-long narrative for horse racing. Churchill Downs is also expanding its HRM footprint in Virginia and enhancing its gaming content with new electronic table games.

Looking ahead, the company expects continued growth from its core assets and anticipates reduced leverage below 3.0x following the completion of its regional asset sales.