Churchill Downs Incorporated reported record first-quarter net revenue of $663m for the three months ended March 31, up 3% year-on-year, as gains in live and historical racing more than offset a softer showing in its gaming division.
Net income attributable to the operator rose 8% to $83m, while adjusted EBITDA increased 5% to a first-quarter record of $257m. Diluted earnings per share climbed from $1.02 to $1.16.
Live and historical racing was the strongest contributor to growth. Revenue in that segment rose 9% to $301m and adjusted EBITDA increased 11% to $113m.
Churchill Downs said the improvement was led by its Kentucky historical racing machine venues, which added $17m in revenue and by its Virginia venues, which contributed a further $5m increase.
Churchill Downs Q1 Net Revenue ($m)
Q1 Net Revenue (2022–2026)
New Hampshire venues also grew, while Churchill Downs Racetrack posted a slight decline.
The wagering services and solutions segment recorded more modest growth. Revenue rose 2% to $118m and adjusted EBITDA increased from $41m to $45m, with the operator citing lower legal expenses in horseracing and gains from its retail sports betting business.
Gaming was the only segment to contract. Revenue fell 2% to $262m and adjusted EBITDA edged down to $123m. Churchill Downs linked the drop mainly to the closure of historical racing machine operations in Louisiana in May 2025, alongside weaker performance at properties in Florida and Mississippi.
Those declines were partly offset by stronger results in New York, Indiana and Maryland, as well as improved contributions from Rivers Des Plaines and Miami Valley Gaming.
The first quarter also included several strategic developments. Churchill Downs opened Marshall Yards Racing & Gaming in southwestern Kentucky on February 25 and continued plans for a $180m to $200m development at Rockingham Grand Casino in Salem, New Hampshire, targeting a mid-2027 opening.
After the quarter ended, it also agreed to acquire the intellectual property rights to the Preakness Stakes and Black-Eyed Susan Stakes for $85m.
Churchill Downs ended the quarter with net bank leverage of 3.8x and returned $31m to shareholders through dividends.
Churchill Downs entered the quarter after reporting record Q4 2025 revenue of $665.9m, although net income for that period fell 28%. That earlier update also showed live and historical racing as the group's main growth engine, while gaming remained under pressure, setting the backdrop for a first quarter in which the same segment trends largely continued.
Churchill Downs paid a dividend of $0.438 per share in January, marking the fifteenth straight year in which it increased its dividend per share
