Fueled primarily by business from historical horse racing gaming in Virginia and Kentucky, Churchill Downs Inc. reported all-time record net revenue of $934.4 million during the second quarter of 2025. This represents a 5% increase of $43.7 million over 2024 figures.
The gaming and racing company also announced increases in other key metrics, including net income attributable to CDI of $216.9 million, up $7.6 million or 4%, and all-time record adjusted earnings before interest, taxes, depreciation, and amortization of $450.9 million, representing an increase of $6.1 million or 1%.
Though CDI enjoyed record-breaking spring meet wagering at its flagship track of Churchilll Downs, led by record handle on the Kentucky Derby (G1) and supporting program that day and through the week, CDI reported a $1 million decrease at Churchill Downs toward the company's adjusted EBITDA, which it attributed to "lower Derby Week ticketing revenue and higher pari-mutuel taxes that were partially offset by increased wagering and licensing/sponsorship revenue."
Television viewership of the Derby rose this year on NBC.
Other areas of softness for CDI during the second quarter included a $1.4 million net decrease in adjusted EBITDA from the elimination of HHR gaming in Louisiana, where CDI operates Fair Grounds Race Course & Slots and off-track-betting parlors. CDI previously said the cessation of HHR meant the elimination of 46% of its off-track betting parlor revenue associated with Fair Grounds.
CDI had threatened to surrender its racing license at Fair Grounds in light of a Louisiana Supreme Court ruling in March declaring the statute authorizing HHR gaming unconstitutional without first requiring local voter approval. Protective measures were placed on the historic New Orleans Fair Grounds property by state and local politicians, and CDI reached an agreement with Louisiana horsemen last month for continued racing.
HHR devices, which resemble slot machines, have been highly profitable for track operators such as CDI and a boon for purses, even more so than video poker machines on a terminal-by-terminal basis. Video poker can be utilized at OTBs in Louisiana, but is not restricted to racetracks and OTBs.
READ: Fair Grounds Racing to Continue After Agreement Reached
Amid lighter-than-anticipated ticket sales leading up to this year's Kentucky Derby, CDI announced April 23 that it would pause several planned infrastructure and seating improvements, citing "current macroeconomic conditions and increasing uncertainty surrounding construction costs related to tariff and trade disputes."
The action came just two months after CDI announced the improvements, and CDI's stock on Nasdaq tumbled from $105.04 on April 23 to close at $87.99 the following day. It has since recovered and closed at $109.16 on July 23, up 1% from the day before.
After numerous years of steady increases, CDI stock is down 17% year-to-date, compared to a 9% increase in the Nasdaq composite year-to-date. Its second-quarter returns could elevate CDI stock when the Nasdaq reopens July 24.
New initiatives for CDI this year include the announcement July 14 of definitive agreements to acquire 90% of the outstanding equity interests of Casino Salem in New Hampshire with the right to develop a charitable gaming, entertainment, and dining destination for $180 million, and a $500 million share repurchase program authorized by CDI's board of directors July 22.
As is customary for CDI, the company will hold a conference call with investors and analysts, during which its executives will discuss the company's quarterly results. That call is scheduled for Thursday at 9 a.m. ET.
