Churchill Downs Incorporated posted all-time record net revenue of $980 million for the second quarter of 2026, a $46 million or 5% year-on-year increase, with a record-breaking 152nd Kentucky Derby Week delivering strong contributions across the company’s Live and Historical Racing and Wagering Services segments.
Net income attributable to CDI reached $241 million, up $24 million or 11% versus the prior year quarter. Adjusted EBITDA also set a quarterly record at $477 million, up $26 million or 6%, with diluted EPS of $3.42 against $2.99 in Q2 2025 and adjusted diluted EPS of $3.45 against $3.10.
The company ended the quarter with net bank leverage of 3.7x.
Derby Week Carries the Quarter
The Live and Historical Racing segment generated $575 million in revenue, up $34 million on the prior year period. Churchill Downs Racetrack contributed $21 million of that increase, driven by higher NBC broadcast revenue, ticketing, sponsorship and licensing, and wagering revenue during Derby Week.
Peak viewership for the 152nd Kentucky Derby reached 24.4 million, up 12% year-on-year, while average viewership climbed 11% to 19.6 million. The Kentucky Oaks, televised in primetime for the first time, drew 2.4 million viewers and posted record all-sources wagering for its race day card. Adjusted EBITDA for the segment rose $21 million, with Churchill Downs Racetrack alone accounting for $16 million of that improvement.
Kentucky HRM venues added $12 million in revenue, with gains spread across Southwestern, Northern, and Western Kentucky locations. Virginia HRM venues contributed a further $1 million, though Central Virginia saw a $4 million net decline attributed to increased competition in the region.
Gaming and Wagering Services
The Wagering Services and Solutions segment reported $178 million in revenue, up $10 million, with the Horse Racing business accounting for $9 million of that growth on the back of Derby Week handle. Adjusted EBITDA for the segment rose $4 million to $52 million.
Gaming revenue reached $270 million, up $4 million, as strong performances at New York, Indiana, and Maryland properties offset the $2 million drag from the cessation of HRM operations in Louisiana in May 2025. Segment Adjusted EBITDA improved $6 million to $133 million, supported by equity investment income from Rivers Des Plaines in Illinois and Miami Valley Gaming in Ohio.
CDI’s broader strategic positioning continues to attract industry attention alongside other major operators reporting their quarterly numbers. Caesars Entertainment’s Q2 2026 performance and its pending Fertitta acquisition represent another significant data point in a quarter that has underscored the diverging fortunes of racing-centric and casino-focused operators.
A conference call to discuss the results was scheduled for July 30, 2026, at 9 a.m. ET.
Source: Churchill Downs Incorporated Q2 2026 Earnings Release via Yahoo Finance
Petra Vanhoof has spent the better part of a decade following the shifting tides of gambling regulation across Europe and beyond. She came up through the compliance side of the industry before pivoting to writing, which gives her a grounded, no-nonsense perspective on the rules, loopholes, and political maneuvering that shape how operators actually do business. She is particularly drawn to the gap between what regulators say and what the market ends up doing in response.