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# Churchill Downs Posts Record $80 Million Profit, But Racing Unit Earnings Slip On Virginia Pressure
- URL: https://www.bullished.co/churchill-downs-posts-record-80-million-profit-but-racing-unit-earnings-slip-on-virginia-35eabcc1/
- Published: 2026-10-28T20:21:17.000Z
- Updated: 2026-10-28T20:21:17.000Z
- Description: The Kentucky Derby operator also approved a $750 million buyback and a 7% dividend increase alongside its third-quarter results.
- Author: Matteo Parrino
- Tags: Earnings, CHDN, Industry: Consumer Discretionary

Churchill Downs, the Kentucky Derby operator that also runs historical racing and casino businesses, reported record third-quarter net income of [$80 million, or $1.15 a diluted share](https://www.sec.gov/Archives/edgar/data/0000020212/000002021226000082/ex991pressrelease10-28x26.htm?ref=bullished.co), against $38 million and $0.54 a year earlier. Most of the jump is a comparison effect: the prior-year quarter carried a one-time, non-cash impairment, and its Live and Historical Racing unit earned less on Virginia competition and a new tax.

## A jump that is mostly comparison

The company said that excluding the one-time, non-cash impairment and an insurance recovery from the third quarter of 2025, net income attributable to Churchill Downs rose $10 million, or 26%. The prior-year impairment was a $35 million after-tax charge tied to the Chasers gaming rights.

Net revenue hit a record $696 million, up $13 million, or 2%. Record Adjusted EBITDA, the company's adjusted earnings measure before interest, taxes, depreciation and amortization, was $264 million, up $2 million, or 1%. Excluding the prior-year insurance recovery, it rose $6 million, or 2%.

Gaming Adjusted EBITDA rose to $128 million from $123 million, helped by equity stakes in Rivers Des Plaines in Illinois and Miami Valley Gaming in Ohio. Wagering Services and Solutions edged up to $48 million from $46 million.

## Virginia drags on racing earnings

Live and Historical Racing, the company's largest segment by revenue, saw Adjusted EBITDA fall to $111 million from $116 million even as revenue rose to $315 million from $305 million. Kentucky historical racing venues added $6 million of EBITDA.

That was outweighed by a $6 million decline at Virginia venues, driven by a $10 million drop in Central Virginia. The company blamed increased competition there and a $5 million new tax expense on live race days under a racing and historical racing tax structure that took effect July 1, 2026\. A $4 million one-time insurance recovery in the prior-year quarter for a Northern Virginia venue also made the comparison harder, and New Hampshire fell $1 million after a temporary casino closed during construction of a new venue.

The company said it received approval to relocate and expand its Rosie's Collinsville venue to 150 machines within Henry County, Virginia.

## Buyback, dividend and new debt

The board approved a new repurchase program of up to $750 million, which includes the $306 million left under the prior authorization as of October 27\. The company bought back 570,169 shares for $48 million in the quarter.

The board also declared an annual dividend of $0.469 a share, up 7% and the sixteenth consecutive annual increase, payable January 5, 2027 to holders of record December 4, 2026.

Net bank leverage, a measure of debt against earnings, ended the quarter at 3.8x. The company took on a new $500 million term loan due September 2033 at SOFR plus 175 basis points, and extended its revolver and Term Loan A maturity to September 2031 from July 2029\. It also closed its purchase of 49% of United Tote from NYRA on August 3 and extended NYRA's tote services agreement through 2035.

Management hosts a conference call Thursday at 9 a.m. ET to discuss the results.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — Churchill Downs Inc (CHDN)](https://www.sec.gov/Archives/edgar/data/0000020212/000002021226000082/chdn-20261028.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit ex991pressrelease10-28x26.htm — Churchill Downs Inc 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000020212/000002021226000082/ex991pressrelease10-28x26.htm?ref=bullished.co) — SEC EDGAR
- [Churchill Downs Incorporated Reports 2026 Third Quarter](https://www.globenewswire.com/news-release/2026/10/28/3390745/12388/en/churchill-downs-incorporated-reports-2026-third-quarter-results.html?ref=bullished.co) — globenewswire.com
- [Churchill Downs Incorporated Announces New $750 Million](https://www.globenewswire.com/news-release/2026/10/28/3390725/12388/en/churchill-downs-incorporated-announces-new-750-million-share-repurchase-program.html?ref=bullished.co) — globenewswire.com