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Jun 30
Churchill Downs Q2 2025 Earnings Report
Churchill Downs Incorporated reported strong second quarter 2025 results, achieving all-time record net revenue and Adjusted EBITDA, driven by growth in Live and Historical Racing and Wagering Services, despite a slight decline in Gaming revenue.
Key Takeaways
Churchill Downs Incorporated delivered an all-time record second quarter in 2025, with net revenue reaching $934.4 million, a 5% increase year-over-year. Net income attributable to CDI grew by 4% to $216.9 million, and Adjusted EBITDA hit a record $450.9 million, up 1%. The company saw significant contributions from its Live and Historical Racing segment, particularly from Virginia and Kentucky HRM venues, and record-breaking Kentucky Derby wagering. While the Gaming segment experienced a slight revenue decrease, the overall performance was robust, supported by strategic acquisitions and a new share repurchase program.
All-time record net revenue of $934.4 million, marking a 5% increase compared to the prior year quarter.
Net income attributable to CDI increased by 4% to $216.9 million, with diluted EPS at $2.99.
Achieved all-time record Adjusted EBITDA of $450.9 million, up 1% from the previous year.
The company announced a new $500 million share repurchase program and acquired 90% of Casino Salem in New Hampshire for $180 million.
Churchill Downs
Churchill Downs
Churchill Downs Revenue by Segment
Churchill Downs Revenue by Geographic Location
Revenue by Segment
Live and Historical Racing Revenue
CapyFin.comWagering Services and Solutions Revenue
CapyFin.comGaming Revenue
CapyFin.comAll Other Revenue
CapyFin.comRevenue by Geographic Location
Kentucky Revenue
CapyFin.comVirginia Revenue
CapyFin.comNew Hampshire Revenue
CapyFin.comFlorida Revenue
CapyFin.comIowa Revenue
CapyFin.comIndiana Revenue
CapyFin.comLouisiana Revenue
CapyFin.comMaine Revenue
CapyFin.comMaryland Revenue
CapyFin.comMississippi Revenue
CapyFin.comNew York Revenue
CapyFin.comPennsylvania Revenue
CapyFin.com Forward Guidance
Churchill Downs Incorporated anticipates increased cash flow from operating activities due to new federal tax provisions, including the permanent reinstatement of 100% bonus depreciation rules. The company is also focused on strategic growth through the acquisition of Casino Salem and continued development of new and expanded HRM venues.
Positive Outlook
- New federal tax bill (H.R. 1) expected to significantly reduce current year cash tax expense.
- Permanent reinstatement of 100% bonus depreciation rules will increase cash flow from operating activities.
- Acquisition of Casino Salem in New Hampshire provides a new charitable gaming, entertainment, and dining destination.
- Board of Directors approved a new $500 million common stock repurchase program, signaling confidence in future performance.
- Continued development and expansion of HRM venues in Virginia and Kentucky are expected to drive future revenue growth.
Challenges Ahead
- The company is still evaluating the impact, if any, to existing operations from the Casino Salem acquisition.
- The decrease in Gaming segment revenue due to the cessation of HRM operations in Louisiana and a net decrease at other wholly owned gaming properties.
- Increased handle tax and higher pari-mutuel taxes partially offset revenue growth in Live and Historical Racing.
- Increased legal expenses and marketing related to Derby Week impacted TwinSpires Horse Racing's Adjusted EBITDA.
- Higher effective state gaming tax rate at Terre Haute Casino Resort contributed to a decrease in Gaming Adjusted EBITDA.