Churchill Downs Incorporated — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenue reached a record $696 million, an increase of $13 million (2%) compared to $683 million in the prior year quarter.
• Net income attributable to CDI was $80 million, up $42 million from $38 million in the prior year quarter.
• Excluding a $35 million after-tax impairment charge in the prior year quarter related to Chasers' gaming rights and a one-time insurance recovery, adjusted net income attributable to CDI increased $9 million.
• Diluted EPS attributable to CDI was $1.15, compared to $0.54 in the prior year quarter.
• Adjusted EBITDA was a record $264 million, up $2 million (1%) from $262 million in the prior year quarter.
• Excluding a one-time insurance recovery in the prior year quarter, Adjusted EBITDA increased $6 million (2%).
• Net bank leverage ended the quarter at 3.8x.
• Cash and cash equivalents were $167 million, with restricted cash of $92 million as of September 30, 2026.
• Total assets were $7,467 million, while total liabilities were $6,064 million.
• Shareholders' equity was $1,379 million.

Business Segments and Product Lines:

• Live and Historical Racing: Revenue increased $10 million to $315 million (from $305 million), driven by a $11 million increase in Kentucky HRM venues and a $1 million increase at Churchill Downs Racetrack, partially offset by decreases in Virginia and New Hampshire venues. Adjusted EBITDA decreased $5 million to $111 million (from $116 million), impacted by increased competition in Central Virginia and a $5 million new tax expense on live race days.
• Wagering Services and Solutions: Revenue decreased $1 million to $126 million (from $127 million) due to a decline in the sports betting business. Adjusted EBITDA increased $2 million to $48 million (from $46 million), primarily driven by results in the Horse Racing business.
• Gaming: Revenue increased $7 million to $273 million (from $266 million), primarily due to growth at wholly-owned properties in New York, Pennsylvania, and Maine. Adjusted EBITDA increased $5 million to $128 million (from $123 million), with a $3 million increase from equity investments (Rivers Des Plaines and Miami Valley Gaming) and a $2 million increase from wholly-owned properties.
• All Other: Revenue remained consistent at $2 million, and Adjusted EBITDA was consistent at $(23) million.
• United Tote: Completed the acquisition of 49% of United Tote Company from NYRA and extended NYRA's tote services agreement through 2035.
• Thoroughbred Championship Series: Announced a new series with NYRA beginning with the Kentucky Oaks and Kentucky Derby in 2027.

Capital Management and Financing:

• Entered into a new $500 million Term Loan B due 2033 (2033 TLB) at SOFR plus 175 basis points.
• Amended and extended the Revolver and Term Loan A facility, extending maturities to September 2031 and eliminating a 10 basis points credit spread adjustment.
• Redeemed the 2027 Senior Notes using borrowings from the 2031 Revolver.
• The Board declared a quarterly dividend of $0.469 per share, a 7% increase over the prior year, payable January 5, 2027.
• Approved a new $750 million share repurchase program, which includes the $306 million remaining from the prior authorization.
• Repurchased 570,169 shares for $48 million during the quarter.
• Returned $48 million of capital to shareholders through share repurchases in the quarter.

Other Key Points:

• Received approval to relocate and expand the Rosie's Collinsville historical racing machines (HRM) venue to 150 HRMs in Henry County, Virginia.
• The closure of the temporary Casino Salem venue in New Hampshire during the construction of the Rockingham Grand Casino contributed to revenue and EBITDA decreases in that segment.
• A new tax structure effective July 1, 2026, introduced a $5 million new tax expense on live race days in Virginia, partially offset by a statewide HRM handle tax reduction effective July 1, 2025.
• Nine-month net revenue was $2,339 million, up from $2,260 million in the prior year period.
• Nine-month Adjusted EBITDA was $998 million, up from $958 million in the prior year period.
• Nine-month capital project expenditures were $178 million, including $57 million in capital maintenance and $119 million in capital projects.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $660 million.