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…
Earnings analysis · 10-Q
CHDN earnings analysis
Filed April 22, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.16
- Operating margin
- 21.562780269058297%
What stood out
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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.
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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).
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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%).
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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.
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Positive free cash flow
Free cash flow (operating cash flow less capex of $59 million) was $236 million ($295M - $59M) in Q1 2026.
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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.
What to watch
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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."
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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.
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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.
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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."
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.