Churchill Downs Inc. Posts Modest Q1 Growth, Expands Portfolio with Preakness Stakes Acquisition
Event summary
- Churchill Downs Inc. reported Q1 2026 revenue of $663M, up 3% YoY, with net income rising 8% to $83M.
- Adjusted EBITDA reached a record $257M, a 5% increase from the prior year.
- The company acquired the Preakness Stakes intellectual property for $85M.
- Plans to invest $180-$200M in Rockingham Grand Casino in New Hampshire by mid-2027.
- Opened Marshall Yards Racing & Gaming in Southwestern Kentucky in February 2026.
The big picture
Churchill Downs Inc. is doubling down on its strategy of expanding beyond its core horse racing assets into gaming and sports betting. The acquisition of the Preakness Stakes intellectual property and investments in new casinos reflect a broader industry trend of consolidation and diversification. With a focus on regional expansion, CDI aims to capitalize on growing demand for entertainment and gaming experiences, though it faces challenges in integrating new assets and maintaining profitability in a competitive market.
What we're watching
- Integration Challenges
- How the Preakness Stakes acquisition will integrate into CDI's existing portfolio and whether it can drive incremental revenue.
- Regional Expansion
- The pace at which new venues like Rockingham Grand Casino and Marshall Yards can contribute to overall profitability.
- Competitive Dynamics
- Whether CDI can sustain its growth amid increasing competition in the gaming and sports betting sectors.
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