CHDN earnings analysis
What we found in CHDN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Churchill Downs reported Q1 2026 revenue of $663 million, up $20 million year-over-year, and diluted EPS of $1.16, up $0.14 from $1.02 in Q1 2025. Operating income rose to $143 million and operating cash flow strengthened to $295 million, while total debt declined to $4,951 million but a $600 million senior note matures in 2027. Management highlighted deferred revenue related to the 152nd Kentucky Derby (contract liabilities $185 million) and outlined remaining performance obligations of $270 million with $80 million expected to be recognized in the remainder of 2026.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth vs prior year
- Net revenue increased to $663 million in Q1 2026 from $643 million in Q1 2025, a $20 million (≈3.1%) increase.
- EPS improvement and beat
- Diluted net income per share rose to $1.16 from $1.02 in Q1 2025 (an increase of $0.14); the company also reported net income of $83 million (vs $77 million).
- Operating income expansion
- Operating income increased to $143 million in Q1 2026 from $135 million in Q1 2025, a $8 million improvement (operating margin ≈21.6%).
- Strong operating cash flow
- Net cash provided by operating activities was $295 million in the quarter, up $48 million from $247 million in Q1 2025.
- Positive free cash flow
- Free cash flow (operating cash flow less capex of $59 million) was $236 million ($295M - $59M) in Q1 2026.
- Liquidity and buyback capacity
- Available borrowing capacity under the Revolver was $722 million and repurchase authority remaining under the July 2025 program was approximately $430 million as of March 31, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Near-term debt maturity / refinancing risk
- The company has $600 million of 5.500% senior notes maturing on April 1, 2027 and total reported debt of $4,951 million as of March 31, 2026; management is "exploring options to fund upcoming senior note maturities."
- Increase in current liabilities and deferred revenue
- Current deferred revenue rose to $158 million at March 31, 2026 from $55 million at December 31, 2025 (increase of $103 million); total current liabilities increased to $836 million from $733 million.
- Working capital deterioration
- Working capital (current assets $452 million less current liabilities $836 million) moved to a deficit of $384 million at March 31, 2026 vs a deficit of $290 million at December 31, 2025, a deterioration of $94 million.
- Potential impairment risk at Presque Isle
- The company noted it is "continuing to monitor" Presque Isle due to historical impairments and cautioned that future conditions "could increase the risk of a future impairment of assets at Presque Isle."
- High interest burden
- Interest expense, net was $(72) million for the three months ended March 31, 2026 and cash paid for interest was $43 million during the quarter.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.16
- Operating margin
- 21.562780269058297%
- Segment
- Live and Historical Racing: $297 million (Q1 2026) vs $273 million (Q1 2025)
- Segment
- Wagering Services and Solutions: $109 million (Q1 2026) vs $107 million (Q1 2025)
- Segment
- Gaming: $257 million (Q1 2026) vs $263 million (Q1 2025)
What they said about what is next.
Management provided a quantitative schedule for remaining performance obligations: aggregate transaction price of $270 million with $80 million expected to be recognized for the remainder of 2026, $62 million in 2027, and $38 million in 2028. Management also disclosed liquidity-related targets: $722 million available Revolver capacity and approximately $430 million of remaining repurchase authority. No companywide revenue or EPS guidance was provided.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 25, 2026
- Churchill Downs positions itself as a diversified live-racing, historical-racing (HRM) and regional gaming operator with an expanding digital wagering footprint (TwinSpires) and continued venue growth. Management is…
- 10-Q · October 22, 2025
- Revenue rose to $683.0M in Q3 2025 (up $54.5M vs. Q3 2024) while operating income declined to $98.0M and diluted EPS fell to $0.54. Results were weighed down by asset impairment activity (net $45.1M in the quarter,…
- 10-Q · July 23, 2025
- Churchill Downs reported Q2 net revenue of $934.4 million (up $43.7 million vs. Q2 2024) and diluted EPS of $2.99, reflecting a modest year-over-year EPS improvement and a sequential surge driven by Live Racing event…
- 10-Q · April 23, 2025
- Churchill Downs reported Q1 net revenue of $642.6M, up from $590.9M a year ago (+$51.7M, +8.8%), with operating income of $134.6M (operating margin ~21.0%). Diluted EPS was $1.02 for the quarter versus $1.08 in Q1 2024,…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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