Churchill Downs (CHDN) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 net revenue of $643 million (up 8.7%–9% year-over-year) and record adjusted EBITDA of $245.1 million, despite economic uncertainty, challenging weather, and one less day in the quarter.

• Net income attributable to the company declined 4.6%–5% to $76.7 million, mainly due to lower other recoveries and higher expenses.

• Opened Owensboro Racing and Gaming in Kentucky and The Rose Gaming Resort in Virginia, with strong early performance.

• Paused several major capital projects, including a $900 million Churchill Downs Racetrack project, due to economic uncertainty and inflation risk, but remain committed to long-term growth.

• Board approved a new $500 million share repurchase program; $119.5 million returned to shareholders through buybacks and dividends in Q1.

Financial highlights

• Net revenue rose $51.7 million year-over-year to $642.6 million; adjusted EBITDA increased $2.6 million to $245.1 million.

• Live and historical racing segment revenue increased by $27.4–$28 million, driven by new HRM venues.

• Gaming revenue up $24 million, led by Terre Haute Casino Resort; adjusted EBITDA up $0.7 million.

• Wagering services and solutions segment adjusted EBITDA grew by $1.7–$2 million year-over-year.

• Cash flow from operations was $246.5 million, with capital expenditures totaling $80.1 million.

Outlook and guidance

• Project capital for 2025 expected at $250–$290 million, reduced due to the pause of certain racetrack projects.

• Maintenance capital projection for 2025 reduced to $90–$100 million.

• Management expects operating cash flow and credit facility availability to fund operations and capital needs over the next 12 months.

• Expect 2025 Kentucky Derby results to be comparable to last year’s record event across key metrics.