Churchill Downs Incorporated on July 29 reported its strongest second quarter yet, with net revenue reaching $980 million, a 5% rise from $934 million a year earlier. The company also said Kentucky Derby Week produced record all-sources wagering and record television audiences for the race. The results, detailed in the company's earnings release, show the weight of the Louisville racetrack and wagering services businesses.
Profit and adjusted earnings
Net income attributable to CDI was $241 million for the quarter ended June 30, 2026, an 11% increase from $217 million in the second quarter of 2025. Diluted earnings per share rose to $3.42 from $2.99 a year earlier. The company also reported adjusted EBITDA of $477 million, up 6% from $451 million, and described that figure as an all-time record. Adjusted net income attributable to CDI was $242 million, compared with $224 million in the prior-year period, and adjusted diluted EPS was $3.45, up from $3.10. CDI ended the quarter with net bank leverage of 3.7x, according to the Churchill Downs earnings release.
Derby Week wagering and audiences
Churchill Downs said the 152nd Kentucky Derby delivered the highest Derby Week contribution to Adjusted EBITDA in company history. Wagering across all sources during Derby Week also set a new high mark, and the Kentucky Oaks race day card generated record all-sources wagering when the race moved to primetime for the first time and drew 2.4 million viewers. For the Derby itself, peak television viewership reached 24.4 million, 12% above the prior year, while the average audience hit a record 19.6 million, an 11% gain, according to the Courier Journal report. The company said the racetrack's higher revenue was driven by a stronger Derby Week, including gains in NBC broadcast revenue, ticketing, sponsorship and licensing, and wagering. CEO Bill Carstanjen, speaking on a July 30 earnings call, said he was pleased with the initial primetime broadcast of the Kentucky Oaks.
Segment performance
Revenue in the Live and Historical Racing segment climbed to $575 million from $541 million, an increase of $34 million. About $21 million of that gain came from Churchill Downs Racetrack, with additional increases from Kentucky and Virginia historical racing machine venues. Segment Adjusted EBITDA rose to $318 million from $297 million. In Wagering Services and Solutions, revenue rose $10 million to $178 million, led by a $9 million increase in the Horse Racing business tied to record Derby Week wagering; Adjusted EBITDA increased to $52 million from $48 million. The Gaming segment posted revenue of $270 million, up $4 million from $266 million, helped by its New York, Indiana, and Maryland properties but partly offset by the end of historical racing machine operations in Louisiana in May 2025. Gaming Adjusted EBITDA rose $6 million to $133 million from $127 million. Its equity investments contributed $4 million of that gain, helped by stronger results at Rivers Des Plaines in Illinois and at Miami Valley Gaming in Ohio.
CEO comments on international interest and property sales
Carstanjen also said the Kentucky Derby draws strong interest from outside the United States and that attendance and sponsorship from international markets are two areas of focus. He named the Middle East, Europe, Japan, and China as places where interest in the sport runs deep. Separately, Carstanjen said the company is evaluating possible sales of some wholly-owned regional gaming properties because its recent share price performance has not matched what he described as the strength, durability, and ability of those assets to generate cash. Properties under consideration include Calder Casino in Florida, Terre Haute Casino Resort in Indiana, Hard Rock Hotel & Casino in Iowa, Oxford Casino Hotel in Maine, Ocean Downs Casino and Racetrack in Maryland, Harlow's Casino Resort and Spa and Riverwalk Casino in Mississippi, del Lago Resort and Casino in New York, and Presque Isle Downs and Casino in Pennsylvania, according to the Courier Journal report.
Infield plans for 2027
For Kentucky Derby 153 in 2027, the company announced an infield seating upgrade that will add 1,400 temporary seats near the winners' pagoda and 500 covered reserved seats along the turf course in an infield cabana. Churchill Downs said it will test the cabana for Derby 2027 and will remove existing tote boards to make room. The project also includes underground infrastructure work near the first turn. The company said it will keep evaluating long-term entertainment experiences for the infield.
