Churchill Downs Incorporated Reports 2025 Fourth Quarter and Full Year Results

Company Highlights - Churchill Downs Incorporated (CDI) reported record net revenue of $665.9 million for Q4 2025, an increase of $41.7 million or 7% compared to Q4 2024 [3][6] - Net income attributable to CDI for Q4 2025 was $51.3 million, down $20.4 million or 28% from the prior year [3][30] - Adjusted EBITDA for Q4 2025 reached a record $247.0 million, up $10.4 million or 4% year-over-year [3][6] Consolidated Results - For the full year 2025, net revenue was $2,925.9 million, an increase of $175.4 million compared to $2,734.3 million in 2024 [3][9] - Full year net income attributable to CDI was $383.0 million, down from $426.8 million in 2024 [3][31] - Adjusted diluted EPS for the full year was $6.13, compared to $5.91 in 2024 [3][51] Segment Results Live and Historical Racing - Q4 2025 revenue from Live and Historical Racing was $319.4 million, up from $275.5 million in Q4 2024 [5] - Full year revenue for this segment was $1,442.4 million, an increase from $1,267.0 million in 2024 [5][9] Wagering Services and Solutions - Q4 2025 revenue increased to $114.9 million from $108.0 million in Q4 2024 [11] - Full year revenue for this segment was $526.3 million, up from $500.7 million in 2024 [11][15] Gaming - Q4 2025 revenue decreased to $250.3 million from $257.5 million in Q4 2024, primarily due to the cessation of HRM operations in Louisiana [17][18] - Full year revenue for the Gaming segment was $1,049.3 million, slightly up from $1,045.4 million in 2024 [17][20] Capital Management - The company repurchased 310,639 shares at a total cost of $32.0 million in Q4 2025, and 4,190,380 shares for $425.3 million throughout 2025 [26] - An annual cash dividend of $0.438 per share was approved, marking a 7% increase over the prior year [27] Income Taxes - The enactment of H.R. 1 in July 2025 is expected to significantly reduce the company's cash tax expense, enhancing cash flow from operating activities [29]