Churchill Downs (CHDN) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 net revenue of $683.0 million, up 9% year-over-year, and record adjusted EBITDA of $262.3 million, with strong performance in Live and Historical Racing and Wagering Services and Solutions.

• Net income attributable to shareholders declined 42% to $38.1 million due to a one-time, non-cash impairment charge related to Chasers Poker Room gaming rights, while adjusted net income rose 7% to $77.1 million.

• Major operational milestones included the expansion of Rosie's Richmond, acquisition of 90% of Casino Salem, and opening of new HRM venues in Kentucky, Virginia, and New Hampshire.

• Announced a 7% increase in annual dividend, marking the fifteenth consecutive year of dividend growth.

• Strategic investments in Kentucky Derby experiences, HRM venues, and technology are driving long-term growth.

Financial highlights

• Net revenue for Q3 2025 was $683.0 million (up $54.5 million or 9% year-over-year), with nine-month net revenue at $2.26 billion.

• Adjusted EBITDA for Q3 was $262.3 million (up $27.0 million or 11%), and for nine months was $958.3 million.

• Kentucky HRM properties saw double-digit adjusted EBITDA growth and margin expansion of over three points year-over-year.

• Virginia HRM properties achieved a 51% margin, considered best-in-class and sustainable.

• Free cash flow in Q3 was $166 million ($2.34/share), up 13% year-over-year.

Outlook and guidance

• Project capital expenditures for 2025 are projected at $200M–$240M, with maintenance capital at $75M–$85M.

• Free cash flow to benefit from federal tax changes, with $50M–$60M lower cash tax payments expected in both 2025 and 2026.

• Management expects cash flows from operations and available borrowings to be sufficient for business operations and capital expenditures over the next twelve months.

• Bank covenant net leverage at 4.1x, expected to fall below 4x in 2026.