Churchill Downs Inc. reported record third quarter revenue and earnings Oct. 28.
The Louisville, Ky.-based company reported net revenue of $696 million for the quarter that ended Sept. 30, up 2% from $683 million a year earlier. Net income attributable to the company rose to $80 million from $38 million, while adjusted earnings before interest, taxes, depreciation, and amortization increased 1% to $264 million.
The sharp increase in net income partly reflected a $35 million after-tax charge recorded in the third quarter of 2025 related to the impairment of gaming rights. Excluding that charge and other items affecting comparisons, the company said adjusted net income increased $9 million.
The company's live and historical horse racing gaming segment generated $315 million in revenue, up from $305 million, but adjusted EBITDA in that category declined to $111 million from $116 million.
CDI reported receiving approval to relocate and expand its Rosie's Collinsville historical horse racing gaming venue to 150 machines in Henry County, Va. It further announced the expansion of its new Thoroughbred Championship Series with the New York Racing Association.
Gaming, tracked separately by CDI from live and HHR operations, accounted for $273 million in revenue in the third quarter, up from $266 million, while adjusted EBITDA increased to $128 million from $123 million.
Revenue from wagering services and solutions slipped to $126 million from $127 million, while adjusted EBITDA increased to $48 million from $46 million.
On Aug. 3, CDI closed on its previously announced acquisition of 49% of United Tote from NYRA Content Management Solutions, a subsidiary of New York Racing Association. NYRA has agreed to extend its tote services agreement with United Tote through 2035.
On Oct. 27, the company's board approved a 7% increase in its annual dividend to 46.9 cents per share and authorized up to $750 million in share repurchases. Churchill Downs repurchased $48 million in shares during the third quarter.
CDI's stock price was up 0.53% Wednesday and closed at $81.95. It is down 26.80% year to date, but has risen in recent weeks from a yearly low of $73.08 Oct. 8.
In one acquisition announced shortly thereafter, prominent racehorse owner and billionaire Mike Repole announced he had purchased 1 million shares of CDI, representing about a 1.5% stake.
CDI has scheduled a conference call with financial analysts to discuss its quarterly returns at 9 a.m. ET Oct. 29.
