v3.26.3
Segment Information
 9 Months Ended
Sep. 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 September 30,Nine Months Ended September 30,
(in millions)2026202520262025
Live and Historical Racing$308 $300 $1,148 $1,083 
Wagering Services and Solutions116 118 392 383 
Gaming272 265 799 794 
All Other— — — — 
Net Revenue$696 $683 $2,339 $2,260 





Adjusted EBITDA by segment is comprised of the following:
Three Months Ended September 30, 2026
(in millions)Live and Historical RacingWagering Services and SolutionsGaming
Revenues$315 $126 $273 
Pari-mutuel taxes and purses(87)(6)(6)
Gaming taxes(1)— (84)
Marketing and advertising(12)— (9)
Salaries and benefits(38)(9)(43)
Content expense(1)(47)(2)
Selling, general and administrative expense(11)(3)(11)
Maintenance, insurance and utilities(13)(3)(10)
Gaming equipment rental and technology costs(15)(1)(5)
Food and beverage costs(4)— (4)
Other operating expense(1)
(23)(9)(18)
Equity in income of unconsolidated affiliates— — 47 
Other income 1 — — 
Adjusted EBITDA$111 $48 $128 
Three Months Ended September 30, 2025
(in millions)Live and Historical RacingWagering Services and SolutionsGaming
Revenues$305 $127 $266 
Pari-mutuel taxes and purses(80)(6)(7)
Gaming taxes(2)(1)(82)
Marketing and advertising(13)(1)(9)
Salaries and benefits(37)(9)(41)
Content expense(2)(49)(3)
Selling, general and administrative expense(11)(3)(10)
Maintenance, insurance and utilities(11)(1)(11)
Gaming equipment rental and technology costs(13)— (4)
Food and beverage costs(3)— (4)
Other operating expense(1)
(21)(11)(16)
Equity in income of unconsolidated affiliates— — 44 
Other income 4 — — 
Adjusted EBITDA$116 $46 $123 
(1) Other operating expense primarily includes supplies, regulatory licenses and fees, property taxes, and third-party service fees and costs.
Nine Months Ended September 30, 2026
(in millions)Live and Historical RacingWagering Services and SolutionsGaming
Revenues$1,191 $422 $805 
Pari-mutuel taxes and purses(282)(18)(24)
Gaming taxes(5)(1)(240)
Marketing and advertising(40)(8)(25)
Salaries and benefits(112)(26)(127)
Content expense(3)(168)(5)
Selling, general and administrative expense(36)(11)(35)
Maintenance, insurance and utilities(38)(8)(29)
Gaming equipment rental and technology costs(42)(4)(14)
Food and beverage costs(12)— (13)
Other operating expense(1)
(80)(33)(53)
Equity in income of unconsolidated affiliates— — 143 
Other income 1 — 1 
Adjusted EBITDA$542 $145 $384 
Nine Months Ended September 30, 2025
(in millions)Live and Historical RacingWagering Services and SolutionsGaming
Revenues$1,123 $411 $799 
Pari-mutuel taxes and purses(268)(18)(29)
Gaming taxes(5)(2)(234)
Marketing and advertising(43)(8)(26)
Salaries and benefits(107)(26)(128)
Content expense(5)(169)(7)
Selling, general and administrative expense(32)(13)(32)
Maintenance, insurance and utilities(33)(3)(30)
Gaming equipment rental and technology costs(37)(2)(13)
Food and beverage costs(11)— (12)
Other operating expense(1)
(71)(35)(49)
Equity in income of unconsolidated affiliates— — 134 
Other income 4 — 1 
Adjusted EBITDA$515 $135 $374 
(1) Other operating expense primarily includes supplies, regulatory licenses and fees, property taxes, and third-party service fees and costs.
The table below reconciles net income to Adjusted EBITDA:
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2026202520262025
Reconciliation of Net Income to Adjusted EBITDA:
Net income attributable to Churchill Downs Incorporated$80 $38 $404 $332 
Net income attributable to noncontrolling interests— 1 1 2 
Net income80 39 405 334 
Adjustments
Depreciation and amortization61 57 176 174 
Interest expense69 75 211 222 
Income tax provision 31 22 147 115 
Stock-based compensation expense 6 7 19 18 
Pre-opening expense2 3 7 9 
Other expenses, net— 3 2 7 
Asset impairments, net— 46 — 48 
Transaction expense, net4 1 6 3 
Other income, expense:
Interest, depreciation and amortization expense related to equity investments9 9 28 29 
Other charges and recoveries, net2 — (3)(1)
Total adjustments184 223 593 624 
Adjusted EBITDA$264 $262 $998 $958 
Adjusted EBITDA by segment:
Live and Historical Racing$111 $116 $542 $515 
Wagering Services and Solutions48 46 145 135 
Gaming128 123 384 374 
Total segment Adjusted EBITDA287 285 1,071 1,024 
All Other(23)(23)(73)(66)
Total Adjusted EBITDA$264 $262 $998 $958 

The table below presents total capital expenditures for each of our segments:
Nine Months Ended September 30,
(in millions)20262025
Capital expenditures:
Live and Historical Racing$139 $178 
Wagering Services and Solutions15 18 
Gaming20 24 
Total segment capital expenditures174 220 
All Other2 5 
Total capital expenditures$176 $225 
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.