Churchill Downs generates $980m net revenue for Q2, H1 net income rises 10.2%

Churchill Downs Incorporated has reported its financial results for the second quarter and first half of 2026, as net revenue during both periods increased 4.9% and 4.2%, respectively, for totals of $980m and just over $1.6bn. 

The operator recently watched on as the State of Maryland chose to exercise its right to acquire the intellectual property of the Preakness Stakes and Black-Eyed Susan Stakes races by matching Churchill Downs’ $85m proposal in April. 

Churchill Downs reports all-time high Kentucky Derby results in Q2

During the second quarter of 2025, Churchill Downs generated $241m of net income and increased the total by 11.1%, while the operator’s adjusted EBITDA rose 5.8% to $477m. The positive year-over-year changes were primarily due to all-time record in Kentucky Derby week contributions and a new high for the race’s all-sources wagering. 

Live and historical racing accounted for the most revenue of any segment after producing $543m for Q2 2026, equating to a rise of 6.5%. Wagering services & solutions and gaming generated net revenues of $167m and $270m, respectively, representing increases of 5.7% and 1.5%. 

In addition to the growth seen for net income and adjusted EBITDA, Churchill Downs’ operating income for Q2 increased 9.2% to $357m. Churchill Downs racetrack accounted for $247m of the operator’s live and historical racing revenue, while New York led all states in gaming revenue with $51m for Q2. 

Live and historical racing adjusted EBITDA also managed to rise by 7.1% to $318m, while gaming produced $133m of adjusted EBITDA and increased 4.7%. Wagering services & solutions generated a Q2 adjusted EBITDA of $52m and rose 8.3%. 

The increases for Q2 were also reported despite growth in Churchill Downs’ operating expenses during the quarterly period, which rose 2.6% to $623m. 

Did H1 2026 results align with Churchill Downs’ success during Q2?

For H1 2026, the operator’s net income totaled $324m and increased 10.2%, even while Churchill Downs’ operating expenses for the half-year period grew 2.5% to just over $1.1bn. 

While operating income rose 8.2% to approximately $500m, Churchill Downs’ adjusted EBITDA during Q2 increased 5.5% to $734m. Live and historical racing once again led all sectors in net revenue, having grown 7.3% to $840m. 

Wagering services & solutions also managed to report an increase in H1 2026 net revenue after producing $276m and rising 4.2%, although gaming revenue for Churchill Downs fell 0.4% year-over-year to $527m. 

Live and historical racing generated an adjusted EBITDA of $431m for H1 2026 and increased 8%, followed by the operator’s gaming sector which still managed to grow 2% for a total of $256m. Wagering services & solutions adjusted EBITDA reached $97m and increased 9%. 

Virginia operations managed to outpace Churchill Downs Racetrack in net revenue for H1 2026, generating $271m as compared to the Kentucky venue’s $250m revenue for the half-year period. 

New York led the way for Churchill Downs in total gaming revenue with $97m for H1 2026, while Indiana and Louisiana trailed the Empire State despite generating gaming revenues of $68m and $65m, respectively. 

What’s next on the agenda for Churchill Downs?

As part of the operator’s Q2 and H1 2026 financial report, it confirmed anticipated launch dates for its upcoming Victory Run initiative at Churchill Downs Racetrack, as well as the Rockingham Grand Casino venue in New Hampshire. 

Victory Run is expected to complete construction by April 2028 and features a planned spend of between $25-30m for Churchill Downs, while Rockingham Grand Casino is set to finish development in mid-2027 and cost between $70-80m. 

The operator failed to provide timelines for other projects currently being worked on, but confirmed planned spends of $30-50m for the developments and $55-60m for those completed during Q2 and H1 2026.