While Churchill Downs Inc. reports some mixed results for 2025, its live and historical racing segment enjoyed an increase in adjusted earnings—including a revenue and adjusted earnings increase for Churchill Downs racing operations.
After trading closed Feb. 25, the Louisville, Ky.,-based company reported its business results for the fourth quarter of 2025 and for the full year ended Dec. 31, 2025.
For the year the company reports a 10% decline in net income attributable to CDI to $383 million. But the company also reports a 4% increase in its adjusted earnings before interest, taxes, depreciation, and amortization to $1,205.3 billion.
The company said four factors impacted the comparability of the company's net income attributable to 2025 compared with 2024. It said a $33 million after-tax increase in impairment charges in the current year primarily related to the impairment of Chasers' gaming rights; a $3.8 million after-tax increase of other charges and recoveries, net; a $3.5 million after-tax increase in transaction, preopening, and other expenses; and a $3 million valuation allowance established primarily for unrealizable state-deferred tax assets. (Chasers is located approximately 30 minutes from downtown Boston and is the leading New Hampshire charitable gaming operator, offering poker and a variety of table games.)
Excluding these items, full year 2025 adjusted net income attributable to CDI decreased $0.5 million primarily due to a $2.4 million after-tax increase in interest expense associated with higher outstanding debt balances and higher interest rates, and a $0.2 million after-tax decrease due to a portion of the company's income from United Tote and its facility in New Hampshire being recognized as income attributable to a noncontrolling interest.
Its live and historical racing segment continues to perform well. The company said 2025 revenue increased $175.4 million due to an $88.3 million increase from its Virginia HHR venues, a $72.6 million increase from its Kentucky HHR venues, an $8.4 million increase from Churchill Downs racetrack, and a $6.1 million increase primarily from its New Hampshire venues.
Full-year 2025 adjusted EBITDA in this segment increased $62.4 million due to a $41.4 million increase from Kentucky HHR venues, an $18.7 million increase from Virginia HHR venues, a $1.6 million increase primarily from New Hampshire venues, and a $700,000 increase from Churchill Downs racetrack.
