Churchill Downs Incorporated Reports 2025 Third Quarter Results

Company Highlights - Churchill Downs Incorporated (CDI) reported record third quarter net revenue of $683.0 million, an increase of $54.5 million or 9% compared to the previous year [6] - Net income attributable to CDI was $38.1 million, down $27.3 million or 42% due to a one-time, non-cash impairment [6][18] - Adjusted net income attributable to CDI increased to $77.1 million, up $5.0 million or 7% [6][37] - Adjusted EBITDA reached a record $262.3 million, an increase of $27.0 million or 11% [6][37] Consolidated Results - Net revenue for the third quarter of 2025 was $683.0 million compared to $628.5 million in 2024 [3] - Net income attributable to CDI was $38.1 million in 2025 versus $65.4 million in 2024 [3][18] - Diluted EPS attributable to CDI decreased to $0.54 from $0.86 [3] - Adjusted net income attributable to CDI was $77.1 million, up from $72.1 million [3] - Adjusted EBITDA increased to $262.3 million from $235.3 million [3] Segment Results Live and Historical Racing - Revenue increased to $305.7 million in Q3 2025 from $252.4 million in Q3 2024 [5] - Adjusted EBITDA rose to $116.4 million from $93.0 million [5] Wagering Services and Solutions - Revenue increased to $127.2 million from $118.7 million [9] - Adjusted EBITDA increased to $46.0 million from $42.5 million [9] Gaming - Revenue decreased to $265.5 million from $270.3 million [11] - Adjusted EBITDA remained consistent at $123.3 million [12] Capital Management - The company repurchased 515,527 shares at a total cost of $53.5 million during Q3 2025 [15] - The Board of Directors approved a $0.438 per share dividend, marking the fifteenth consecutive year of increased dividends [16] Tax Impact - The enactment of H.R. 1 in July 2025 is expected to significantly reduce the company's cash tax expense due to reinstated bonus depreciation rules and interest expense deduction limitations [17]