Churchill Downs Q4 Revenue Up 6.7% with 14.6% EPS Surprise
Churchill Downs reported Q4 revenue of $665.9M, up 6.7% year-over-year, beating estimates by 0.8%, and delivered EPS of $0.97, a 14.6% surprise over consensus. Live and historical racing revenue jumped 15.9% to $319.4M while gaming revenue dipped 2.8% to $250.3M.
1. Q4 Financial Highlights
For the quarter ended December 2025, revenue rose 6.7% to $665.9 million, surpassing the $660.7 million consensus by 0.8%. Adjusted EPS reached $0.97, up from $0.92 a year ago, representing a 14.6% beat over the $0.85 estimate.
2. Segment Performance
Gaming revenue fell 2.8% year-over-year to $250.3 million versus a $249.1 million estimate, while wagering services delivered $104.9 million, slightly above the $103.2 million forecast. Live and historical racing led growth with a 15.9% increase to $319.4 million.
3. Adjusted EBITDA Review
Adjusted EBITDA in live and historical racing was $122.1 million versus $121.7 million expected, wagering services reached $42 million compared with $37.1 million forecasts, and gaming EBITDA totaled $108.9 million below the $113.0 million estimate. Other operations recorded a negative $26 million EBITDA.
4. Stock Reaction and Outlook
Shares have declined 4% over the past month while the stock carries a hold rating. Investors will watch management commentary on margin drivers and guidance revisions for near-term performance signals.