Churchill Downs Reports Record-Breaking Q2 Earnings with $934 Million in Revenue and $451 Million in EBITDA

Churchill Downs reported record-breaking Q2 2025 earnings with net revenue of $934 million and adjusted EBITDA of $451 million. The Kentucky Derby saw a 6% increase in viewership and 11% increase in wagering, while HRM property expansions are progressing. A new $500 million share repurchase program was approved, and the company acquired a 90% interest in the Casino Salem project in New Hampshire.

Churchill Downs Incorporated (CHDN) has reported strong second-quarter earnings for 2025, showcasing record-breaking financial performance. The company's net revenue reached $934.4 million, surpassing the anticipated $919.53 million by 1.62%, and earnings per share (EPS) stood at $2.99, exceeding the forecast of $2.96 by 1.01% [1]. This robust performance has driven the stock price to rise by 4.3% in pre-market trading, reaching $111 [1].

The company's adjusted EBITDA also set a new record at $451 million, highlighting its operational efficiency. Free cash flow for the first half of 2025 was $455 million, with a per-share amount of $6.29 [1]. Furthermore, Churchill Downs announced a new $500 million share repurchase program, indicating a strong commitment to shareholder value [1].

The Kentucky Derby's viewership and wagering increased by 6% and 11% respectively, demonstrating the event's continued popularity and cultural relevance. The company's broadcast partnership with NBC also delivered record-breaking viewership, with average viewership reaching nearly 18 million and peak viewership climbing to almost 22 million [1].

Expansions in the HRM (Horse Racing and Marketing) property markets are progressing, with Churchill Downs acquiring a 90% interest in the Casino Salem project in New Hampshire. The company anticipates continued growth in these markets and is focusing on expanding its presence in New Hampshire [1].

Executives emphasized the company's commitment to shareholder value and growth prospects. CEO Bill Carstanjen highlighted the importance of partnerships and driving shareholder value, while CFO Marcia Dahl expressed confidence in the company's growth trajectory [1].

Market volatility and economic conditions, regulatory changes, competition, and operational disruptions pose potential risks, but Churchill Downs is well-positioned to navigate these challenges. The company's strong financial health, as indicated by its Piotroski Score of 9, supports this positive outlook [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-churchill-downs-beats-q2-2025-forecasts-stock-rises-93CH-4151349