CDI reports $934.4M in revenue, boosted by historical racing and Derby Week momentum
Revenue Hits New High on Live & Historical Racing Surge
Churchill Downs Incorporated (CDI) has delivered its strongest second-quarter performance ever, reporting record net revenue of $934.4 million—a 5% year-on-year increase. The company’s growth was primarily fueled by strength in the Live and Historical Racing (HRM) segment, which surged by 10.3% to reach $540.9 million.
This impressive growth reflects the successful November 2024 opening of The Rose HRM venue in Northern Virginia, along with continued expansions across CDI’s Kentucky HRM locations. Despite a slight dip in ticketing revenue, Churchill Downs Racetrack offset this with record wagering and licensing income during Derby Week.
Strong Profitability Despite Gaming Headwinds
CDI also posted solid profitability metrics:
Net income rose 4% to $216.9 million
Adjusted EBITDA climbed 1% to a quarterly record of $450.9 million
However, not all segments fared equally well. The Gaming segment saw a 3% decline in revenue, down to $266.3 million, largely due to the closure of HRM operations in Louisiana and weaker-than-expected contributions from the Terre Haute Casino Resort. This impacted profitability, with segment Adjusted EBITDA falling 9.5% to $127.3 million.
TwinSpires and Exacta See Continued Growth
CDI’s Wagering Services revenue rose 5.3% to $168.4 million, driven by higher Derby Week engagement on its TwinSpires platform. Meanwhile, Exacta Systems benefited from incremental HRM terminal installations across Virginia and New Hampshire, helping the segment post $48.0 million in Adjusted EBITDA, a modest $1.8 million gain.
Shareholder Returns and Expansion Strategy
Demonstrating its commitment to capital return, CDI repurchased 2.5 million shares during Q2, returning $250.4 million to shareholders. In addition, a new $500 million share repurchase program was authorized by the board on 22 July, highlighting strong investor confidence and a robust cash position.
In a strategic move to expand its charitable gaming footprint, CDI also signed a deal to acquire 90% of Casino Salem in New Hampshire for $180 million.
Kentucky Derby Delivers Historic Media Reach
The 151st Kentucky Derby set new records in media viewership, drawing an average of 17.7 million viewers (+6% YoY) and peaking at 21.8 million (+8%). These figures reinforce the Derby’s stature as a premier U.S. sports and entertainment event and a key driver of CDI’s brand and revenue streams.
Favorable Tax Reform and Future Outlook
CDI expects further financial upside from new U.S. tax legislation enacted in July, which reinstated 100% bonus depreciation. This is projected to significantly reduce the company’s cash tax obligations for the remainder of 2025.
With Q1 already showing strong revenue gains and Q2 setting new records, CDI enters H2 2025 with strong momentum, underpinned by its HRM expansion strategy, digital wagering innovation, and enhanced capital return initiatives.
Conclusion: Balanced Growth with Operational Focus
CDI’s Q2 results affirm the company’s strategic alignment between racing, wagering, and gaming operations. While short-term headwinds in the gaming segment persist, consistent growth in historical racing and digital wagering—combined with a disciplined capital deployment strategy—positions Churchill Downs for continued success in the evolving U.S. gambling landscape.
