Churchill Downs Reports Strong Q2 2025 Results, Announces Favorable Tax Law Impact

CHDN
October 05, 2025

Churchill Downs Incorporated reported its second quarter 2025 financial results, with net income attributable to CDI increasing to $216.9 million from $209.3 million in the prior year quarter. Adjusted net income attributable to CDI increased by $9.0 million. The Live and Historical Racing segment saw revenue increase by $50.7 million and Adjusted EBITDA by $17.3 million, driven by growth in Virginia and Kentucky HRM venues and Churchill Downs Racetrack.

The Wagering Services and Solutions segment also showed growth, with revenue up $8.5 million and Adjusted EBITDA up $1.8 million, primarily from TwinSpires Horse Racing and Exacta. However, the Gaming segment experienced a revenue decrease of $8.1 million and an Adjusted EBITDA decrease of $13.4 million, attributed to the cessation of HRM operations in Louisiana, a higher state gaming tax rate at Terre Haute, and regional gaming softness.

The company repurchased 2,565,964 shares of common stock for $250.4 million in Q2 2025, with $184.2 million remaining under its $500 million repurchase program. Additionally, the enactment of H.R. 1 on July 4, 2025, permanently reinstating 100% bonus depreciation and a 30% of EBITDA-based interest expense deduction limitation, is expected to significantly reduce current year cash tax expense and increase cash flow from operating activities by utilizing a $91.2 million deferred tax asset.

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