Record-Breaking Revenue and Growth
Churchill Downs Incorporated reported record net revenue and record adjusted EBITDA for the third quarter of 2025. The Live and Historical Racing segment also experienced record growth, with revenue increasing by 21% and adjusted EBITDA by 25% compared to the previous year.
Strong Performance of HRM Properties
The company's HRM properties in Kentucky and Virginia showed strong growth. The Rose in Virginia reported increasing gross gaming revenues, and the new Henrico County venue had a strong start. Kentucky HRM properties also increased margins by over 3 points compared to the previous year.
Expansion and Investment Initiatives
Churchill Downs announced plans for the $280-$300 million Victory Run project, which will enhance the track's capacity and improve the guest experience. Additionally, the company is expanding its footprint with new venues in New Hampshire and continued investment in Exacta technology.
Increased Dividend and Share Repurchases
The Board approved a 7% increase in dividends for the 15th consecutive year. The company also repurchased over $50 million of its stock in the third quarter, demonstrating strong capital management.
Positive Tax Legislation Impact
The new federal tax provisions will result in an estimated $50-$60 million reduction in cash taxes for 2025 and 2026 due to favorable changes in business tax rates and bonus depreciation rules.