Churchill Downs Okays $750M Buyback After Record $696M Q3
Repurchase replaces prior programme; dividend raised to $0.469 and new Virginia HRM venue planned.
Key Takeaways
- Churchill Downs Incorporated authorised a $750 million share repurchase programme that replaces the prior authorisation.
- The company reported a record third-quarter revenue of $696 million and adjusted EBITDA of $264 million.
- Annual dividend increased 7% to $0.469 per share, payable 5 January 2027 to holders of record on 4 December 2026.
- Churchill Downs secured a special use permit to replace Rosie’s Game Room in Collinsville with a 150-machine historical racing venue.
Churchill Downs Incorporated authorised a $750 million share repurchase programme and raised its annual dividend after reporting a record third-quarter revenue of $696 million. The buyback authorisation includes $306 million remaining under the previous programme and replaces that prior authorisation rather than adding $750 million on top. The company also confirmed plans for a larger Virginia historical racing machine venue and an expanded 2027 Thoroughbred Championship Series.
Capital return and dividend
The board approved the $750 million repurchase authorisation and increased the annual dividend to $0.469 per share, a 7% rise. The dividend will be paid on 5 January 2027 to shareholders of record on 4 December 2026. Churchill Downs Incorporated repurchased $48 million of shares during the third quarter.
Financial results and financing
Quarterly revenue rose by $13 million, or 2%, to $696 million, a third-quarter record. Adjusted EBITDA reached $264 million, up $2 million, or 1%, and net income attributable to Churchill Downs Incorporated climbed to $80 million from $38 million a year earlier, also a third-quarter high. The company entered into a new $500 million Term Loan B due in 2033 and amended and extended its revolving credit facility and Term Loan A at rates it described as favourable.
Virginia venue replacing Collinsville operation
Churchill Downs Incorporated secured a special use permit from the Henry County Board of Zoning Appeals to replace Rosie’s Game Room in Collinsville with a new historical racing machine entertainment venue north of the U.S. 58 Bypass and east of Old Greensboro Road, near Martinsville Speedway. Plans call for 150 historical racing machines, simulcast racing and food and beverage options; the existing Rosie’s Game Room operates 37 machines. The company said design and development plans are still being finalised.
"Each combines strong cash generation, durable competitive advantages, and attractive opportunities for profitable growth," Chief Executive Officer Bill Carstanjen told investors when outlining the three businesses central to future growth: Churchill Downs racetrack and the Kentucky Derby, historical racing operations, and TwinSpires.
Racing series expansion and tote deal with NYRA
Churchill Downs Incorporated and the New York Racing Association will broaden the Thoroughbred Championship Series before its first season in 2027. The partners originally announced a six-race competition for 3-year-old thoroughbreds and then added separate Derby and Oaks divisions, creating a 10-race series with more than $22 million in purses and prizes. NBC or FOX will televise every race nationally.
The companies completed Churchill Downs Incorporated's acquisition of a 49% stake in United Tote Company from NYRA and extended the tote services agreement with NYRA through 2035. Carstanjen described Churchill Downs racetrack and the Kentucky Derby as "the crown jewel of our portfolio."
Frequently Asked Questions
How large is Churchill Downs' new share repurchase programme?
The board authorised a $750 million share repurchase programme that replaces the previous authorisation and includes $306 million remaining under that prior programme.
What were Churchill Downs' third-quarter financial results?
Third-quarter revenue was $696 million, up $13 million or 2%, adjusted EBITDA reached $264 million (up $2 million or 1%), and net income attributable to the company rose to $80 million from $38 million year-over-year.
When will the increased dividend be paid and what is the record date?
The annual dividend was raised to $0.469 per share and will be paid on 5 January 2027 to shareholders of record on 4 December 2026.
What will replace Rosie’s Game Room in Collinsville?
Churchill Downs plans to replace Rosie’s Game Room, which operates 37 machines, with a new venue featuring 150 historical racing machines, simulcast racing and food and beverage options after receiving a special use permit from the Henry County Board of Zoning Appeals.
How did Churchill Downs expand its relationship with NYRA?
Churchill Downs completed the acquisition of a 49% stake in United Tote Company from the New York Racing Association and extended their tote services agreement through 2035; they also expanded the Thoroughbred Championship Series to 10 races with over $22 million in purses.
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Marcus Webb
Industry Deals Correspondent
Marcus Webb covers the deal flow of the gambling industry — operator strategy, M&A, market entries, and product launches from sportsbook rebrands to full platform migrations. The reports name the companies, valuations, and jurisdictions exactly as disclosed and separate the announcement from its market impact. When a group consolidates a brand or a challenger launches into a new state, Marcus Webb explains who gains, who pays, and what closes next quarter.
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