Churchill Downs Posts $83M Profit as Q1 Revenue Climbs 3% to $663M
The Kentucky-based horse racing and gaming operator reported net income of $83 million for the quarter ending March 31, 2026, up from $77 million in the prior-year period.
Churchill Downs Inc (NASDAQ: CHDN), a horse racing and gaming company, reported net income of $83 million for the three months ending March 31, 2026, up 8% from $77 million in the same quarter of 2025. Read more earnings reports.
Revenue rose 3% to $663 million from $643 million in the year-ago quarter. Operating income climbed to $143 million from $135 million, a 6% increase.
Operating expenses totaled $520 million, up from $508 million in the prior-year period. The company's cost of goods sold increased to $199 million from $190 million.
Strong Cash Generation
Cash from operations surged 19% to $295 million for the quarter, compared to $247 million in Q1 2025. The company used $61 million in investing activities, down from $80 million in the year-ago period.
Cash from financing activities showed a net outflow of $232 million, compared to $148 million in the prior-year quarter. The company ended the period with $200 million in cash and cash equivalents, essentially flat from $201 million at year-end 2025.
Balance Sheet Deleveraging
Long-term debt declined to $4.87 billion as of March 31, 2026, from $5.07 billion at the end of 2025, a reduction of $202 million. Total liabilities fell to $6.34 billion from $6.43 billion over the same period.
Stockholders' equity rose to $1.10 billion from $1.01 billion at year-end 2025, an increase of $86 million. Retained earnings climbed to $1.09 billion from $1.01 billion.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Total Revenue | $663M | $643M | +3% |
| Operating Income | $143M | $135M | +6% |
| Net Income | $83M | $77M | +8% |
| Cash from Operations | $295M | $247M | +19% |
| Long-Term Debt | $4.87B | $5.07B | -4% |
Interest expense for the quarter totaled $10 million, down from $11 million in Q1 2025. Income tax expense rose to $30 million from $19 million in the year-ago period.
The company's depreciation and amortization expense declined to $56 million from $59 million in the prior-year quarter. Total assets remained flat at $7.49 billion as of March 31, 2026, compared to year-end 2025.
Accounts receivable increased to $99 million from $93 million at the end of 2025, while accounts payable rose to $218 million from $184 million. The company had 69.7 million shares outstanding at quarter-end.