Churchill Downs Q2 revenue hits $934.4m as Derby Week drives record results
Live and Historical Racing segment leads 5% revenue increase as new Salem acquisition expands Northeast footprint.
Key points:
– Net revenue rose 5% year-on-year to $934.4m
– Net income grew 4% to $216.9m, with Adjusted EBITDA up 1% to $450.9m
– $250.4m returned to shareholders through Q2 repurchases
Churchill Downs Incorporated (CDI) reported all-time high revenue of $934.4m for Q2 2025, a 5% year-on-year increase.
Net income attributable to CDI rose 4% to $216.9m, while adjusted EBITDA reached a record $450.9m, up 1%.
The gains were largely driven by continued growth in the Live and Historical Racing segment, which generated $540.9m in revenue – up 10.3%.
This growth was supported by the November 2024 launch of The Rose in Northern Virginia and expanded operations at CDI’s Kentucky HRM venues.
Churchill Downs Racetrack also contributed to revenue growth through record wagering and licensing during Derby Week, although ticketing revenue fell compared to last year.
Wagering Services revenue rose 5.3% to $168.4m, with TwinSpires Horse Racing benefiting from increased Derby Week engagement. Exacta also posted gains from incremental HRM installations in Virginia and New Hampshire. Adjusted EBITDA for the segment increased by $1.8m to $48.0m.
The Gaming segment posted a revenue decline of 3% to $266.3m, primarily due to the closure of HRM operations in Louisiana and reduced contributions from Terre Haute Casino Resort. Adjusted EBITDA for the segment fell 9.5% to $127.3m.
CDI repurchased over 2.5 million shares during the quarter, returning $250.4m to shareholders. A new $500m repurchase programme was authorised by the board on 22 July. The company ended the quarter with net bank leverage of 4.2x.
Good to know: CDI has entered into agreements to acquire 90% of Casino Salem for $180m, expanding its charitable gaming footprint in New Hampshire
The 151st Kentucky Derby also set new media records, achieving 17.7 million average viewers (up 6%) and a peak audience of 21.8 million (up 8%).
The company expects to benefit from new US tax legislation enacted in July, with permanent reinstatements of 100% bonus depreciation rules anticipated to significantly reduce cash tax obligations this year.
These results follow CDI’s Q1 2025 report, which saw net revenue rise 9% to $642.6m, offset by a 5% drop in net income to $76.7m. With HRM venues continuing to deliver incremental growth, the company remains focused on operational expansion and shareholder returns heading into H2.
Gambling Insider delivers the latest industry news, in-depth features, and operator reviews that you can trust. Our team combines rigorous editorial standards with decades of specialized expertise to ensure accuracy and fairness. We are committed to delivering clear, impartial, and dependable coverage across the global gambling sector.
