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Jun 30, 2025
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.
Revenue by Segment
Revenue by Geographic Location
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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