Churchill Downs Unveils New $500 Million Buyback Plan

• Share repurchase program announced in conjunction with Q2 results
• Replaces buyback plan announced in March

Shares of Churchill Downs (NASDAQ: CHDN) are pointing higher Thursday after the gaming company reported mixed second-quarter results late Wednesday. Expansion of the operator’s shareholder rewards program may be propelling the stock today.

The owner and operator of the fabled Kentucky racetrack of the same name said its board of directors approved a fresh $500 million share buyback plan, replacing one of the same amount authorized in March.

The new share repurchase program includes and is not in addition to any repurchase authority remaining under the prior authorization,” according to a statement. “Share repurchases may be made at management’s discretion from time to time in the open market (either with or without a 10b5-1 plan) or through privately negotiated transactions. The repurchase program has no time limit and may be suspended or discontinued at any time.”

In addition to being a dedicated buyer of its own stock, Churchill Downs pays a dividend — a payout that has steadily risen for more than a decade.

Churchill Downs Takes Action with its Buyback Plans

In addition to tax efficiencies for investors, companies embrace repurchasing their shares because of flexibility. They can make those purchases at various times on the open market, and there’s nothing legally binding them to buy back the stated amount.

Kentucky-based Churchill Downs, which recently acquired a majority stake in Casino Salem — a gaming venue located in the New Hampshire town of the same name – isn’t burdened by returning capital to shareholders. It concluded the second quarter with leverage of 4.2x and cash on hand of $182 million.

In a report to clients, Stifel analyst Jeffrey Stantial noted the gaming company’s “repurchase activity accelerated sharply following recent stock underperformance,” indicating it was taking advantage of lower prices to buy its shares.

Churchill Downs Odds and Ends

Helped by the Kentucky Derby in May, Churchill Downs posted record revenue in the second quarter. Earlier on Thursday, the operator announced broadcast expansion of the Derby Week slate, which could drive increased betting handle in the years ahead.

The company announced that the 152^nd running of the Kentucky Oaks, featuring the top three-year-old fillies, will air on Friday, May 1, 2026, at 8 pm ET on NBC and Peacock.

“By moving the Kentucky Oaks to primetime, we’re giving one of horse racing’s most treasured traditions the national stage it deserves,” said Churchill Downs CEO Bill Carstanjen. “This decision is rooted in our commitment to growing the sport, reaching new audiences, and creating unforgettable experiences for our fans.”