Churchill Downs (CHDN) Q4 2025 earnings summary

Executive summary

• Achieved record net revenue and Adjusted EBITDA for both the fourth quarter and full year 2025, surpassing previous records set in 2024.

• Fourth quarter 2025 net revenue reached $665.9 million, up 7% year-over-year, while net income attributable to shareholders fell 28% to $51.3 million due to higher tax and transaction expenses.

• Full year 2025 net revenue was $2.93 billion, up 7%, with net income of $383.0 million, down 10% from 2024, impacted by increased impairment charges and transaction costs.

• Hosted a highly successful Kentucky Derby with record handle and highest TV ratings in nearly 40 years.

• Expanded HRM footprint with new venues in Kentucky and Virginia, and announced major investment in New Hampshire.

Financial highlights

• Achieved nine consecutive years of record revenue and Adjusted EBITDA, excluding 2020.

• Q4 net revenue: $665.9M (+7% YoY); full year: $2.93B (+7% YoY).

• Q4 Adjusted EBITDA: $247.0M (+4% YoY); full year: $1.21B (+4% YoY).

• Generated $700 million in free cash flow ($9.75 per share) in 2025.

• Repurchased over 4.2 million shares and returned $456 million to shareholders via buybacks and dividends.

Outlook and guidance

• Expect Kentucky Derby to generate $15–$20 million incremental Adjusted EBITDA in 2026.

• Maintenance capital investment projected at $90–$110 million and project capital at $180–$220 million for 2026.

• Bank leverage expected to decrease as new facilities open and EBITDA grows.

• Announced $180–$200 million investment in Rockingham Grand Casino, targeting mid-2027 opening.

• Anticipate continued record-setting performance driven by expanded Derby week, new NBC contract, and strong ticket sales.