Racing giant Churchill Downs smashes previous revenues in Q2, raking in an impressive $934.4 million, with the star-studded Kentucky Derby playing a significant role in this blockbuster success.
Churchill Downs Incorporated (CDI) Reports Record Q2 2025 Performance
Churchill Downs Incorporated (CDI) has announced a strong financial performance for Q2 2025, with record net revenue of $934.4 million, up 5% year-over-year, and net income of $216.9 million, a 4% increase.
The growth was primarily driven by the Live and Historical Racing segment, which saw a 10.3% revenue increase to $540.9 million. This was supported by increased activity at Kentucky venues and expansion in Virginia, including the opening of The Rose and expansion of the Richmond property. Adjusted EBITDA in this segment rose by $17.3 million year-over-year to $296.5 million due to gains at Kentucky and Virginia sites.
Conversely, the Gaming segment revenue declined by 3% to $266.3 million, impacted partly by the cessation of historical racing machine operations in Louisiana and decreases at nine gaming properties. Despite this segment pullback, overall financial results remained strong.
Strategically, CDI is advancing growth in the charitable gaming sector with its plans to acquire 90% of Casino Salem, located in New Hampshire, for $180 million. The company also approved a new $500 million share repurchase program and returned $250.4 million to shareholders in Q2 through buybacks, reflecting financial strength and shareholder value focus.
The Kentucky Derby, the crown jewel of American horse racing, played a significant role in CDI's success. The 151st running of the event at Churchill Downs Racetrack set all-time highs for all-sources handle across the Derby Race, Derby Day program, and Derby Week overall. Broadcast performance was equally strong, with average viewership peaking at 17.7 million, up 6% from last year, and the highest point of viewership reaching 21.8 million, up 8%.
The new share repurchase program signals continued confidence in the company's future cash flow and value creation strategy. CDI's Board of Directors approved the program on July 22, further reinforcing the company's position as not only the crown jewel of American horse racing but also a media powerhouse attracting broader audiences each year.
In summary, CDI’s Q2 2025 performance was marked by record revenues led by racing operations, with some gaming segment challenges, alongside strategic moves including casino acquisition and share repurchases that position it for continued growth in charitable gaming and related sectors.
[1] Churchill Downs Incorporated (CDI) Press Release, Q2 2025 Financial Results. [2] Churchill Downs Incorporated (CDI) Investor Relations, Q2 2025 Earnings Call Transcript. [3] Churchill Downs Incorporated (CDI) Form 10-Q, Q2 2025 Filing.
- In its Q2 2025 report, Churchill Downs Incorporated (CDI) revealed a surge in revenue from its historical racing and charitable gaming businesses, with plans to expand further into the charitable gaming sector, such as the acquisition of Casino Salem, demonstrating a strategic foray into the finance aspect of the sports and gaming business.
- Amidst the growth in racing operations, Churchill Downs Incorporated (CDI) faced a slight decline in gaming segment revenue, prompting strategic moves like the share repurchase program to reinforce investor confidence, showcasing a dedicated focus on business growth and shareholder value.
