Churchill Downs Incorporated (CHDN)

Over the past six months, Churchill Downs, Inc. (CHDN) stock has experienced a decline. The company announced a $500 million share buyback program. In Q4 CY2025, Churchill Downs reported revenue of $665.9 million, beating Wall Street expectations, but its non-GAAP profit of $0.97 per share missed analyst estimates. In March 2026, the Horseracing Integrity and Safety Authority (HISA) ordered Churchill Downs to pay US$5.27 million in delinquent dues plus interest.

Demand for Churchill Downs' products and services exhibits seasonality, particularly with the Kentucky Derby. Revenue from the Derby is seasonal, but the company's overall cash flow remains consistent due to its other diversified segments. Derby Week is a major economic driver, bringing over $400 million to the local economy each year. The company's historical horse racing machine (HRM) venues in Virginia and Kentucky have also been significant drivers of revenue growth.

Churchill Downs, Inc. (CHDN) is a diversified entertainment company involved in live Thoroughbred horse racing, pari-mutuel wagering, online wagering, and regional casino gaming. The company operates in the Consumer Cyclical sector, focusing on Gambling, Resorts & Casinos, Horse Racing Tracks, and Racing & Individual Sports. Its major products and services include live and historical racing, online wagering through TwinSpires, casino gaming, and ancillary services such as admission, ticket, parking, and food sales.

Churchill Downs, Inc. is headquartered in Louisville, Kentucky, and has a significant geographic footprint across the United States. The company operates 14 live and historical racing entertainment venues in three states and nine casino gaming properties in eight states, along with 13 retail sportsbooks. Key operational areas include Kentucky, Virginia, New Hampshire, Florida, New York, Louisiana, Iowa, Mississippi, Ohio, Maryland, Maine, Pennsylvania, Illinois, and Indiana.

Churchill Downs' brand reputation is significantly bolstered by the Kentucky Derby. However, the company's reputation faced challenges in the past year due to HISA delinquent dues and a Louisiana ruling on historical racing machines. HISA accused Churchill Downs of failing to pay $5 million in required 2025 fees, which later resulted in a regulatory order to pay $5.27 million. Louisiana's highest court declared historical racing machines unconstitutional without voter approval, leading to an $18.9 million decrease in revenue from HRM in Louisiana for Churchill Downs.

Churchill Downs, Inc. (CHDN) has a diverse ownership structure. Approximately 70-79% of the company's stock is held by institutional investors, around 5.8% by insiders, and the remainder by public companies and individual investors. Major institutional owners include BlackRock, Inc., Vanguard Group Inc, Capital International Investors, and State Street Corp.