Churchill Downs Incorporated Reports 8.7% Revenue Growth in Q3 2025

Churchill Downs Incorporated (CDI) reported its financial results for the third quarter of 2025, revealing a total net revenue of $683.0 million, an increase of 8.7% from $628.5 million in the same period last year. The growth was primarily driven by a $52.5 million increase in the Live and Historical Racing segment, attributed to the openings of The Rose Gaming Resort and Owensboro Racing and Gaming. However, the company experienced a decline in net income, which fell to $38.1 million from $65.4 million a year earlier, largely due to increased impairment expenses and transaction costs.

For the nine months ended September 30, 2025, total net revenue reached $2.26 billion, up from $2.11 billion in the prior year, marking a 7.1% increase. The Live and Historical Racing segment contributed significantly to this growth, with revenues rising by $125.1 million. Despite the revenue increase, operating income decreased to $560.3 million from $582.2 million, reflecting higher operating expenses, including a notable $45.1 million impairment charge related to the Chasers Poker Room.

In terms of strategic developments, CDI completed the acquisition of 90% of Casino Salem in August 2025, which is expected to enhance its gaming portfolio. The company also reported a significant increase in its total assets, which rose to $7.45 billion from $7.28 billion at the end of 2024, driven by the acquisition and increased capital expenditures. The total liabilities also increased, primarily due to higher outstanding debt, which rose to $5.13 billion from $4.94 billion.

Operationally, CDI's customer engagement metrics showed positive trends, particularly in the Live and Historical Racing segment, where revenue from Virginia HRM venues increased significantly. The company reported an Adjusted EBITDA of $262.3 million for the third quarter, up from $235.3 million in the previous year, indicating improved operational efficiency despite the challenges faced. The company’s employee headcount remained stable, supporting its ongoing operations and expansion efforts.

Looking ahead, CDI anticipates continued growth driven by its recent acquisitions and the expansion of its gaming operations. The company plans to invest approximately $200 million to $240 million in capital projects throughout 2025, which includes enhancements to existing facilities and the development of new venues. CDI remains optimistic about its ability to navigate market conditions and capitalize on opportunities in the gaming and entertainment sectors.