LOUISVILLE, Ky. (WDRB) — Churchill Downs Incorporated announced another round of record-setting results Wednesday, driven in large part by the 151st Kentucky Derby, which posted the highest wagering figures in the event’s history.
According to the company’s second-quarter earnings report, released ahead of a quarterly earnings call Thursday, all-sources handle for the Kentucky Derby race, Derby Day program and Derby Week reached all-time highs.
The Derby broadcast also delivered improved ratings, with an average of 17.7 million viewers — up six percent from the prior year — and a peak audience of 21.8 million, up eight percent from 2025 and the highest viewership since 1989.
Those gains helped push Churchill Downs Inc. to record quarterly revenue of $934.4 million, a five percent increase over the same quarter last year. Adjusted EBITDA — a key measure of profitability — also reached a new high at $450.9 million.
Still, not all Derby metrics were up. While overall revenue from Churchill Downs Racetrack increased by $4.9 million, the track’s quarterly adjusted profit actually declined by $1 million due to higher pari-mutuel taxes and a dip in ticketing revenue during Derby Week.
The broader “Live and Historical Racing” segment — which includes HRM (Historical Racing Machine) venues in Kentucky and Virginia — remained the company’s primary growth engine, with quarterly revenue climbing to $540.9 million, up more than $50 million year-over-year. HRM venues in Northern Virginia and Western Kentucky saw the biggest gains, with expansions in Richmond, Va., and Louisville also contributing.
The company’s digital wagering division also benefited from Derby momentum. TwinSpires.com posted increased Derby Week wagering, contributing to an $8.5 million revenue gain in the “Wagering Services and Solutions” segment. However, increased marketing and legal expenses offset some of that growth, leading to a $2.4 million decline in TwinSpires’ adjusted profit.
Meanwhile, Churchill’s gaming segment — including casinos and slot-style venues across several states — reported a revenue decline of $8.1 million and a $13.4 million dip in adjusted profit. The losses stemmed from the shutdown of HRM operations in Louisiana and higher state gaming taxes in Indiana.
Despite some unevenness across segments, Churchill Downs Inc. reported a net income of $216.9 million for the quarter, up 4% from a year ago.
The company also outlined continued expansion plans, including a $180 million acquisition of a majority stake in a charitable gaming operation at The Mall at Rockingham Park in Salem, New Hampshire — just 30 minutes from downtown Boston.
Earlier this year, Churchill Downs shelved plans for a nearly $1 billion renovation of its flagship racetrack, citing uncertainty around tariffs and trade costs. In its place, the company is moving forward with a scaled-back $30 million upgrade focused on premium areas like The Mansion, Finish Line Suites, and Trophy Room.
In addition, the company’s board approved a new $500 million stock repurchase program after buying back $250 million worth of shares during the second quarter.
Shares of CHDN rose $1.10 on the NASDAQ Wednesday to close at $109.16, continuing a steady climb from a two-year low of $90.71 on May 5.
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