Churchill Downs Incorporated Reports 2025 Fourth Quarter and Full Year Results

LOUISVILLE, Ky., Feb. 25, 2026 (GLOBE NEWSWIRE) -- Churchill Downs Incorporated (Nasdaq: CHDN) (the "Company", "CDI", "we") today reported business results for the quarter and full year ended December 31, 2025.

Company Highlights

The summaries below present revenue from external customers and intercompany revenue from each of our reportable segments. All comparisons are against the applicable prior year period unless otherwise noted.

Live and Historical Racing

Fourth Quarter 2025

Fourth quarter 2025 revenue increased $43.9 million due to a $20.8 million increase from our Kentucky HRM venues, a $16.1 million increase from our Virginia HRM venues, a $4.6 million increase primarily from our New Hampshire venues, and a $2.4 million increase at Churchill Downs Racetrack. The Kentucky HRM increase was due to a $12.4 million increase from our Western Kentucky venues, a $4.0 million increase from our Northern Kentucky venues, a $2.6 million increase from our Southwestern Kentucky venue, and a $1.8 million increase from our Louisville venues. The Virginia HRM increase was primarily due to a $10.0 million net increase from our Northern Virginia venues, a $5.4 million net increase from our Central Virginia venues primarily from the September 2025 opening of our Roseshire HRM venue, and a $0.7 million net increase primarily from our Western and Southern Virginia venues.

Fourth quarter 2025 Adjusted EBITDA increased $20.5 million due to a $10.5 million increase from our Kentucky HRM venues, a $6.9 million increase from our Virginia HRM venues, a $1.7 million increase at Churchill Downs Racetrack, and a $1.4 million increase from our New Hampshire venues. The Kentucky HRM increase was due to a $4.9 million increase from our Western Kentucky venues, a $2.9 million increase from our Northern Kentucky venues, a $1.5 million net increase from our Southwestern Kentucky venues, and a $1.2 million net increase from our Louisville venues. The Virginia HRM increase was primarily due to a $3.6 million net increase from our Northern Virginia venues, a $1.3 million net increase from our Central Virginia venues primarily from the September 2025 opening of our Roseshire HRM venue, and a net $2.0 million increase primarily from a decrease in government relations expense.

Full Year 2025

Full year 2025 revenue increased $175.4 million due to an $88.3 million increase from our Virginia HRM venues, a $72.6 million increase from our Kentucky HRM venues, an $8.4 million increase from Churchill Downs Racetrack, and a $6.1 million increase primarily from our New Hampshire venues. The Virginia HRM increase was primarily due to an $82.7 million net increase from our Northern Virginia venues and a $10.6 million net increase from our Central Virginia venues primarily from the September 2025 opening of our Roseshire HRM venue, partially offset by a $5.0 million net decrease primarily from our Western and Southern Virginia venues. The Kentucky HRM increase was primarily due to a $40.1 million net increase from our Western Kentucky venues, a $14.5 million increase from our Northern Kentucky venues, a $10.0 million increase from our Southwestern venue, and an $8.0 million increase from our Louisville venues.

Full year 2025 Adjusted EBITDA increased $62.4 million due to a $41.4 million increase from our Kentucky HRM venues, an $18.7 million increase from our Virginia HRM venues, a $1.6 million increase primarily from our New Hampshire venues, and a $0.7 million increase from Churchill Downs Racetrack. The Kentucky HRM increase was primarily due to a $13.6 million net increase from our Western Kentucky venues, an $11.8 million increase from our Northern Kentucky venues, a $10.1 million increase from our Louisville venues, and a $5.9 million net increase from our Southwestern Kentucky venues. The Virginia HRM increase was primarily due to a $24.1 million net increase from our Northern Virginia venues, which includes $3.5 million of one-time business interruption insurance recovery related to the delayed opening of The Rose Gaming Resort in fourth quarter 2024, and a $1.8 million decrease in government relations expense, partially offset by a $7.2 million net decrease primarily from our Western and Southern Virginia venues.

Wagering Services and Solutions

Fourth Quarter 2025

Fourth quarter 2025 revenue increased $6.9 million due to a $4.5 million increase from our sports betting business, a $1.7 million increase from Exacta primarily attributable to incremental HRMs in our owned and third-party HRM venues, and a $0.7 million increase from TwinSpires Horse Racing.

Fourth quarter 2025 Adjusted EBITDA increased $4.7 million due to a $4.0 million increase from our sports betting business and a $1.4 million increase from TwinSpires Horse Racing, partially offset by a $0.7 million decrease from Exacta due to a one-time reduction in accrued compensation expense in the prior year.

Full Year 2025

Full year 2025 revenue increased $25.6 million due to an $11.8 million increase in TwinSpires Horse Racing primarily due to Derby Week wagering, an $11.1 million increase from Exacta attributable to incremental HRMs in our owned HRM venues, and a $2.7 million increase from our sports betting business.

Full year 2025 Adjusted EBITDA increased $11.7 million due to a $9.2 million increase from Exacta attributable to incremental HRMs in our owned HRM venues, and a $4.2 million increase from our sports betting business, partially offset by a $1.7 million decrease attributable to TwinSpires Horse Racing due to increased legal expenses.

Gaming

Fourth Quarter 2025

Fourth quarter 2025 revenue decreased $7.2 million due to an $8.0 million decrease primarily from the cessation of HRM operations in Louisiana and a $2.3 million decrease in Mississippi primarily from temporary roadwork impacting Riverwalk and the impact of a local curfew on Harlow's, partially offset by a $3.1 million net increase primarily from our Indiana, New York, and Maine properties.

Fourth quarter 2025 Adjusted EBITDA decreased $11.2 million. Our wholly owned gaming properties decreased $8.5 million primarily due to a $5.3 million decrease from the cessation of HRM operations in Louisiana, a $2.6 million decrease in Mississippi from temporary roadwork impacting Riverwalk and the impact of a local curfew on Harlow's, and a $0.6 million net decrease primarily from our Florida property. Our equity investments decreased $2.7 million due to a $2.3 million decrease from Miami Valley Gaming primarily from a one-time decrease in local tax expense in the prior year and a $0.4 million decrease from Rivers Des Plaines.

Full Year 2025

Full year 2025 revenue increased $3.9 million due to a $33.3 million increase primarily attributable to the opening of the Terre Haute Casino Resort in April 2024, partially offset by an $18.9 million decrease from the cessation of HRM operations in Louisiana, a $5.1 million decrease in Mississippi primarily from temporary roadwork impacting Riverwalk and the impact of a local curfew on Harlow's, and a $5.4 million net decrease at our six other wholly owned gaming properties.

Full year 2025 Adjusted EBITDA decreased $23.9 million. Our wholly owned gaming properties decreased $15.5 million primarily due to an $8.1 million decrease from the cessation of HRM operations in Louisiana, a $4.6 million decrease in Mississippi from temporary roadwork impacting Riverwalk and the impact of a local curfew on Harlow's, a $6.9 million net decrease at our six other wholly owned gaming properties, partially offset by a $4.1 million increase primarily attributable to the opening of the Terre Haute Casino Resort in April 2024. Our equity investments decreased $8.4 million due to a $7.8 million decrease from Rivers Des Plaines due to increased competition and a $0.6 million decrease from Miami Valley Gaming.

All Other

Fourth Quarter 2025

Fourth quarter 2025 revenue increased $0.1 million due to intercompany revenue related to the captive insurance company. All captive revenue is eliminated in consolidation.

Fourth quarter 2025 Adjusted EBITDA decreased $3.6 million primarily due to increased corporate related expenses partially offset by income related to our captive insurance company.

Full Year 2025

Full year 2025 revenue increased $2.1 million due to intercompany revenue related to the captive insurance company that was established in April 2024. All captive revenue is eliminated in consolidation.

Full year 2025 Adjusted EBITDA decreased $4.1 million driven primarily by increased corporate administrative expenses offset by income related to our captive insurance company.

Share Repurchase Program

The Company repurchased 310,639 shares of its common stock at a total cost of $32.0 million in the fourth quarter of 2025. The Company repurchased 4,190,380 shares of its common stock at a total cost of $425.3 million in 2025.

We had approximately $429.5 million of repurchase authority remaining under the July 2025 Stock Repurchase Program as of December 31, 2025.

Annual Dividend

On October 21, 2025, the Company's Board of Directors approved an annual cash dividend on the Company's common stock of $0.438 per outstanding share, a seven percent increase over the prior year. The dividend was payable on January 6, 2026, to shareholders of record as of the close of business on December 5, 2025. This marks the fifteenth consecutive year that the Company increased the dividend per share.

Capital Investments

We currently expect our project capital to be approximately $180 to $220 million in 2026, although this amount may vary significantly based on the timing of work completed, unanticipated delays, and timing of payment to third parties. We plan to use our operating cash flows and existing revolving credit facility to fund our capital project expenditures.

Income Taxes

On July 4, 2025, the United States enacted H.R. 1, a new federal tax and spending bill. Many of the tax provisions included in the bill are retroactive and will have a significant favorable impact on the Company’s current year cash tax expense, primarily due to the permanent reinstatements of 100% bonus depreciation rules and a 30% of EBITDA-based interest expense deduction limitation. As a result of this change, the Company began utilizing the net deferred tax asset of $85.1 million primarily related to interest expense previously subject to limitation. The expected reduction in cash paid taxes as a result of these new tax provisions will increase cash flow from operating activities.

Fourth Quarter 2025 Results

The Company's fourth quarter 2025 net income attributable to CDI was $51.3 million compared to $71.7 million in the prior year quarter.

The following factors impacted the comparability of the Company's fourth quarter 2025 net income to the prior year quarter:

Excluding the items above, fourth quarter 2025 adjusted net income attributable to CDI decreased $0.4 million primarily due to the following:

This was partially offset by:

Full Year 2025 Results

The Company's full year 2025 net income attributable to CDI was $383.0 million compared to $426.8 million in the prior year.

The following factors impacted comparability of the Company's net income for the year ended December 31, 2025 compared to the prior year:

Excluding these items, full year 2025 adjusted net income attributable to CDI decreased $0.5 million primarily due to the following:

This was partially offset by:

Conference Call

A conference call regarding this news release is scheduled for Thursday, February 26, 2026 at 9 a.m. ET. Investors and other interested parties may listen to the teleconference by accessing the online, real-time webcast and broadcast of the call at http://ir.churchilldownsincorporated.com/events.cfm, or by registering in advance via teleconference here. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are encouraged to dial-in 15 minutes prior to the start time. An online replay will be available by noon ET on Thursday, February 26, 2026. A copy of the Company’s news release announcing quarterly results and relevant financial and statistical information about the period will be accessible at www.churchilldownsincorporated.com.

Use of Non-GAAP Measures

In addition to the results provided in accordance with GAAP, the Company also uses non-GAAP measures, including adjusted net income, adjusted diluted EPS, EBITDA (earnings before interest, taxes, depreciation and amortization), and Adjusted EBITDA.

The Company uses non-GAAP measures as a key performance measure of the results of operations for purposes of evaluating performance internally. These measures facilitate comparison of operating performance between periods and help investors to better understand the operating results of the Company by excluding certain items that may not be indicative of the Company's core business or operating results. The Company believes the use of these measures enables management and investors to evaluate and compare, from period to period, the Company’s operating performance in a meaningful and consistent manner. The non-GAAP measures are a supplemental measure of our performance that is not required by, or presented in accordance with, GAAP, and should not be considered as an alternative to, or more meaningful than, net income or diluted EPS (as determined in accordance with GAAP) as a measure of our operating results.

We use Adjusted EBITDA to evaluate segment performance, develop strategy, and allocate resources. We utilize the Adjusted EBITDA metric to provide a more accurate measure of our core operating results and enable management and investors to evaluate and compare from period to period our operating performance in a meaningful and consistent manner. Adjusted EBITDA should not be considered as an alternative to operating income as an indicator of performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure provided in accordance with GAAP. Our calculation of Adjusted EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited.

Adjusted net income and adjusted diluted EPS exclude discontinued operations net income or loss; net income or loss attributable to noncontrolling interests; transaction expense, which includes acquisition and disposition related charges, as well as legal, accounting, and other deal-related expense; pre-opening expense; and certain other gains, charges, recoveries, and expenses.

Adjusted EBITDA includes our portion of EBITDA from our equity investments and the portion of EBITDA attributable to noncontrolling interests.

Adjusted EBITDA excludes, as applicable in each period:

For segment reporting, Adjusted EBITDA includes intercompany revenue and expense totals that are eliminated in the Consolidated Statements of Comprehensive Income. See the Reconciliation of Comprehensive Income to Adjusted EBITDA included herewith for additional information.

About Churchill Downs Incorporated

Churchill Downs Incorporated ("CDI") (Nasdaq: CHDN) has created extraordinary entertainment experiences for over 150 years, beginning with the company’s most iconic and enduring asset, the Kentucky Derby. Headquartered in Louisville, Kentucky, CDI has expanded through the acquisition, development, and operation of live and historical racing entertainment venues, the growth of the online wagering businesses, and the acquisition, development, and operation of regional casino gaming properties. https://www.churchilldownsincorporated.com/

This news release contains various "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the use of terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "predict," "project," "seek," "should," "will," "scheduled," and similar words or similar expressions (or negative versions of such words or expressions), although some forward-looking statements are expressed differently.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Important factors, that could cause actual results to differ materially from expectations include the following: the occurrence of extraordinary events, such as terrorist attacks, public health threats, civil unrest, and inclement weather, including as a result of climate change; the effect of economic conditions on our consumers' confidence and discretionary spending or our access to credit, including the impact of inflation; changes in, or new interpretations of, applicable tax laws or rulings that could result in additional tax liabilities; the impact of any pandemics, epidemics, or outbreaks of infectious diseases, and related economic matters on our results of operations, financial conditions and prospects; lack of confidence in the integrity of our core businesses or any deterioration in our reputation; negative shifts in public opinion regarding gambling that could result in increased regulation of, or new restrictions on, the gaming industry; loss of key or highly skilled personnel, as well as general disruptions in the general labor market; the impact of significant competition, and the expectation that competition levels will increase; changes in consumer preferences, attendance, wagering, and sponsorships; risks associated with equity investments, strategic alliances and other third-party agreements; inability to respond to rapid technological changes in a timely manner; concentration and evolution of slot machine and historical racing machine ("HRM") manufacturing and other technology conditions that could impose additional costs; failure to enter into or maintain agreements with industry constituents, including horsemen and other racetracks; cybersecurity risk, including cyber-security breaches, or loss or misuse of our confidential information as a result of a breach including customers’ personal information, or IT system operational disruptions, could lead to government enforcement actions or other litigation; costs of compliance with increasingly complex laws and regulations regarding data privacy and protection of personal information; reliance on our technology services and catastrophic events, system failures, errors or defects disrupting our operations; inability to identify, complete, or fully realize the benefits of our proposed acquisitions, divestitures, development of new venues or the expansion of existing facilities on time, on budget, or as planned; difficulty in integrating recent or future acquisitions into our operations; cost overruns and other uncertainties associated with the development of new venues and the expansion of existing facilities; general risks related to real estate ownership and significant expenditures, including risks related to environmental liabilities; personal injury litigation related to injuries occurring at our racetracks; compliance with the Foreign Corrupt Practices Act or other similar laws and regulations, or applicable anti-money laundering regulations; payment-related risks, such as risk associated with fraudulent credit card or debit card use; work stoppages and labor problems; risks related to pending or future legal proceedings and other actions; highly regulated operations and changes in the regulatory environment could adversely affect our business; restrictions in our debt facilities limiting our flexibility to operate our business; failure to comply with the financial ratios and other covenants in our debt facilities and other indebtedness; increases to interest rates, disruption in the credit markets or changes to our credit ratings may adversely affect our business; increase in our insurance costs, or inability to obtain similar insurance coverage in the future, and any inability to recover under our insurance policies for damages sustained at our properties in the event of inclement weather and casualty events; and other factors described under the heading "Risk Factors" in our most recent Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission.

We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

(a) The income tax impact is related to the remeasurement of deferred tax attributes and by applying the effective tax rate for each adjustment, including current and deferred income tax expense, based upon the jurisdiction and the nature of the adjustment.

(a) Total handle generated by Velocity is not included in total handle from TwinSpires Horse Racing.

(a) Food and beverage, hotel, and other services furnished to customers for free as an inducement to wager or through the redemption of our customers' loyalty points are recorded at the estimated standalone selling prices in other revenue with a corresponding offset recorded as a reduction in historical racing pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were $15.6 million for the three months ended December 31, 2025 and $14.2 million for the three months December 31, 2024.

(a) Other operating expense primarily includes supplies, regulatory licenses and fees, property taxes, and third-party service fees and costs.

Contact: Sam Ullrich

(502) 638-3906

Sam.Ullrich@kyderby.com