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Dec 31, 2025
Churchill Downs Q4 2025 Earnings Report
Churchill Downs Q4 2025 Earnings Report
Key Takeaways
Churchill Downs Incorporated achieved record Q4 net revenue and Adjusted EBITDA, driven primarily by strong growth in the Live and Historical Racing segment, particularly from Kentucky and Virginia HRM venues. While net income decreased due to specific tax valuation allowances and transaction expenses, the company continued its expansion strategy with new venue openings and significant capital returns to shareholders.
Record Q4 net revenue of $665.9 million, representing a 7% increase year-over-year.
Live and Historical Racing segment revenue grew 16% to $319.4 million, fueled by new venue openings and Kentucky HRM performance.
Net income attributable to CDI fell 28% to $51.3 million, impacted by a $12.5 million valuation allowance for state deferred tax assets.
Returned $456.3 million to shareholders in 2025 through share repurchases and dividends, with a 7% increase in the annual dividend approved in October.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company expects to invest between $180 million and $220 million in project capital during 2026, focusing on new venue developments and facility upgrades.
Positive Outlook
- Planned opening of Rockingham Grand Casino in mid-2027.
- Completion of Finish Line Suites and The Mansion at Churchill Downs Racetrack by April 2026.
- Opening of Marshall Yards Racing & Gaming in February 2026.
- Favorable impact on cash tax expense due to H.R. 1 tax provisions.
- Fifteenth consecutive year of dividend increases.
Challenges Ahead
- Projected capital spend may vary due to unanticipated delays.
- Increased competition impacting equity investments like Rivers Des Plaines.
- Cessation of HRM operations in Louisiana impacting gaming revenue.
- Temporary roadwork and local curfews affecting Mississippi properties.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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