v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information
16. SEGMENT INFORMATION
We manage our operations through three reportable segments: Live and Historical Racing, Wagering Services and Solutions, and Gaming. Our operating segments reflect the internal management reporting used by our chief operating decision maker, our Chief Executive Officer, to evaluate results of operations and to assess performance and allocate resources.
Eliminations include the elimination of intersegment transactions. We utilize non-GAAP measures, including EBITDA (earnings before interest, taxes, depreciation and amortization) and Adjusted EBITDA. Our chief operating decision maker utilizes Adjusted EBITDA to evaluate segment performance, develop strategy, and allocate resources. Adjusted EBITDA includes the following adjustments:
Adjusted EBITDA includes our portion of EBITDA from our equity investments and the portion of EBITDA attributable to noncontrolling interests.
Adjusted EBITDA excludes:
•Transaction expense, net, which includes:
–Acquisition, disposition, and property sale related charges; and
–Other transaction expense, including legal, accounting, and other deal-related expense;
•Stock-based compensation expense;
•Rivers Des Plaines' impact on our investments in unconsolidated affiliates from legal reserves and transaction costs;
•Asset impairments, net;
•Gain on property sales;
•Legal reserves;
•Pre-opening expense; and
•Other charges, recoveries and expenses
We utilize the Adjusted EBITDA metric to provide a more accurate measure of our core operating results and enable management and investors to evaluate and compare from period to period our operating performance in a meaningful and consistent manner. Adjusted EBITDA should not be considered as an alternative to operating income as an indicator of performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure provided in accordance with GAAP. Our calculation of Adjusted EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited. For segment reporting, Adjusted EBITDA includes intercompany revenue and expense totals that are eliminated in the accompanying Condensed Consolidated Statements of Comprehensive Income.
The tables below present net revenue from external customers, Adjusted EBITDA by segment and reconcile net income to Adjusted EBITDA:
Net revenue by segment is comprised of the following:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2026202520262025
Live and Historical Racing$543 $510 $840 $783 
Wagering Services and Solutions167 158 276 265 
Gaming270 266 527 529 
All Other— — — — 
Net Revenue$980 $934 $1,643 $1,577 





Adjusted EBITDA by segment is comprised of the following:
Three Months Ended June 30, 2026
(in millions)Live and Historical RacingWagering Services and SolutionsGaming
Revenues$575 $178 $270 
Pari-mutuel taxes and purses(119)(8)(7)
Gaming taxes(2)(1)(81)
Marketing and advertising(16)(6)(8)
Salaries and benefits(38)(9)(41)
Content expense(1)(78)(2)
Selling, general and administrative expense(14)(4)(12)
Maintenance, insurance and utilities(13)(3)(9)
Gaming equipment rental and technology costs(13)(2)(5)
Food and beverage costs(4)— (4)
Other operating expense(1)
(37)(15)(18)
Equity in income of unconsolidated affiliates— — 50 
Other income — — — 
Adjusted EBITDA$318 $52 $133 
Three Months Ended June 30, 2025
(in millions)Live and Historical RacingWagering Services and SolutionsGaming
Revenues$541 $168 $266 
Pari-mutuel taxes and purses(116)(8)(7)
Gaming taxes(1)(1)(80)
Marketing and advertising(16)(6)(9)
Salaries and benefits(38)(9)(43)
Content expense(2)(76)(2)
Selling, general and administrative expense(10)(5)(11)
Maintenance, insurance and utilities(12)(1)(10)
Gaming equipment rental and technology costs(12)(1)(5)
Food and beverage costs(4)— (4)
Other operating expense(1)
(33)(13)(16)
Equity in income of unconsolidated affiliates— — 47 
Other income — — 1 
Adjusted EBITDA$297 $48 $127 
(1) Other operating expense primarily includes supplies, regulatory licenses and fees, property taxes, and third-party service fees and costs.
Six Months Ended June 30, 2026
(in millions)Live and Historical RacingWagering Services and SolutionsGaming
Revenues$876 $296 $532 
Pari-mutuel taxes and purses(195)(12)(18)
Gaming taxes(4)(1)(156)
Marketing and advertising(28)(8)(16)
Salaries and benefits(74)(17)(84)
Content expense(2)(121)(3)
Selling, general and administrative expense(25)(8)(24)
Maintenance, insurance and utilities(25)(5)(19)
Gaming equipment rental and technology costs(27)(3)(9)
Food and beverage costs(8)— (9)
Other operating expense(1)
(57)(24)(35)
Equity in income of unconsolidated affiliates— — 96 
Other income — — 1 
Adjusted EBITDA$431 $97 $256 
Six Months Ended June 30, 2025
(in millions)Live and Historical RacingWagering Services and SolutionsGaming
Revenues$818 $284 $533 
Pari-mutuel taxes and purses(188)(12)(22)
Gaming taxes(3)(1)(152)
Marketing and advertising(30)(7)(17)
Salaries and benefits(70)(17)(87)
Content expense(3)(120)(4)
Selling, general and administrative expense(21)(10)(22)
Maintenance, insurance and utilities(22)(2)(19)
Gaming equipment rental and technology costs(24)(2)(9)
Food and beverage costs(8)— (8)
Other operating expense(1)
(50)(24)(33)
Equity in income of unconsolidated affiliates— — 90 
Other income — — 1 
Adjusted EBITDA$399 $89 $251 
(1) Other operating expense primarily includes supplies, regulatory licenses and fees, property taxes, and third-party service fees and costs.
Adjusted EBITDA by segment is comprised of the following:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2026202520262025
Reconciliation of Net Income to Adjusted EBITDA:
Net income attributable to Churchill Downs Incorporated$241 $217 $324 $294 
Net income attributable to noncontrolling interests1 1 1 1 
Net income242 218 325 295 
Adjustments
Depreciation and amortization59 58 115 117 
Interest expense70 75 142 147 
Income tax provision 86 74 116 93 
Stock-based compensation expense 8 7 13 11 
Pre-opening expense2 2 5 6 
Other expenses, net— 4 2 4 
Asset impairments, net— 2 — 2 
Transaction expense, net1 2 2 2 
Other income, expense:
Interest, depreciation and amortization expense related to equity investments10 10 19 20 
Other charges and recoveries, net(1)(1)(5)(1)
Total adjustments235 233 409 401 
Adjusted EBITDA$477 $451 $734 $696 
Adjusted EBITDA by segment:
Live and Historical Racing$318 $297 $431 $399 
Wagering Services and Solutions52 48 97 89 
Gaming133 127 256 251 
Total segment Adjusted EBITDA503 472 784 739 
All Other(26)(21)(50)(43)
Total Adjusted EBITDA$477 $451 $734 $696 

The table below presents total capital expenditures for each of our segments:
Six Months Ended June 30,
(in millions)20262025
Capital expenditures:
Live and Historical Racing$93 $135 
Wagering Services and Solutions10 12 
Gaming12 14 
Total segment capital expenditures115 161 
All Other2 4 
Total capital expenditures$117 $165 
Our chief operating decision maker does not review disaggregated assets by segment. The measure of segment assets is reported on the balance sheet as total consolidated assets.