Churchill Downs Incorporated (CDI) reported a record net revenue of $2.93 billion for the fiscal year ending December 31, 2025, marking a 7% increase from $2.73 billion in 2024. The company's net income, however, decreased by 10.3% to $383 million, down from $427 million in the previous year. The decline in profitability was attributed to increased impairment expenses and transaction costs, which rose significantly compared to the prior year. Adjusted EBITDA also saw a rise, reaching $1.21 billion, up 4% from $1.16 billion in 2024, driven primarily by strong performance in the Live and Historical Racing segment.
In terms of operational developments, CDI opened several new venues, including Owensboro Racing and Gaming in Kentucky and Roseshire Gaming Parlor in Virginia, contributing to the revenue growth in the Live and Historical Racing segment, which increased by $175.4 million year-over-year. The company also acquired 90% of Casino Salem in New Hampshire, which is set to be redeveloped into Rockingham Grand Casino, with an expected capital investment of $180-200 million. This acquisition is part of CDI's strategy to expand its footprint in the gaming industry.
Customer engagement metrics showed positive trends, with the Kentucky Derby achieving an all-time handle record and attracting nearly 147,000 fans in attendance. The company also reported a significant increase in its online wagering platform, TwinSpires, which benefited from heightened activity during Derby Week. CDI's employee headcount stood at approximately 9,000 as of December 31, 2025, reflecting the company's ongoing commitment to staffing its expanding operations.
Despite the positive revenue growth, CDI faced challenges, including a $85.1 million impairment charge related to the Chasers Poker Room's gaming rights, which impacted net income. The company also noted that the cessation of historical racing machine operations in Louisiana negatively affected revenue comparability. Looking ahead, CDI remains focused on strategic investments and operational improvements, with plans to continue enhancing its facilities and expanding its gaming offerings, particularly in the growing online and sports betting markets.
The outlook for CDI remains cautiously optimistic, with management emphasizing the importance of maintaining strong cash flow and a solid balance sheet to support future growth initiatives. The company is committed to delivering long-term sustainable value for its shareholders while navigating the competitive landscape of the gaming and entertainment industry.
About Churchill Downs Inc
Churchill Downs Incorporated is a leading entertainment company specializing in horse racing, casino gaming, and sports betting. Its core assets include iconic racetracks like Churchill Downs, regional casinos, and online wagering platforms such as TwinSpires. The company offers live and historical racing, pari-mutuel wagering, and gaming services across multiple U.S. states, leveraging its brand, event prestige, and diverse gaming operations to attract a broad customer base.
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