Churchill Downs is riding high after posting record second-quarter results for 2025. The company pulled in $934.4 million in net revenue, up 5% compared to last year’s Q2. The Churchill Downs Q2 numbers tell a story of strong racing gains, mixed gaming trends and a few strategic moves to grow its reach.

• Revenue from Live and Historical Racing came in at $540.9 million, up more than 10% year-on-year, while adjusted EBITDA hit $296.5 million. Growth was mainly driven by the opening of The Rose in Virginia and new HRM machines in Richmond, plus gains across its Kentucky venues. Churchill Downs Q2 performance in this segment was also boosted by Derby Week wagering and media rights income, even though ticket sales dipped slightly.

• The online wagering and B2B segment brought in $168.4 million in revenue, rising 5.3% compared to the same period last year. TwinSpires saw solid action around the Derby, and Exacta added some lift through new HRM placements in Virginia and New Hampshire. Profitability took a slight hit from higher promo and legal costs, but volume growth kept things on track.

• Gaming revenue dropped 3% to $266.3 million, with adjusted EBITDA falling nearly 10% to $127.3 million. Churchill Downs shut down HRM operations in Louisiana and was hit by a new gaming tax at its Terre Haute property. The softer numbers at joint-venture casinos like Rivers Des Plaines and Miami Valley added to the pressure.

• Net income for the quarter reached $216.9 million, a 4% increase from Q2 last year. Adjusted EBITDA was also up slightly, hitting $450.9 million, which marks another quarterly record. EPS rose to $2.99 as lower state taxes and a deferred tax gain helped offset some impairment and rising interest costs.

• The company bought back $250.4 million worth of shares in Q2, totaling around 2.57 million shares. Just after the quarter closed, the board approved a new $500 million repurchase plan. Churchill Downs Q2 capital strategy clearly focused on giving value back to shareholders.

• CDI also announced a big move into New Hampshire with the planned $180 million purchase of a 90% stake in Salem’s charitable casino operation. The deal includes Chasers Poker Room and could pave the way for a new entertainment and dining venue near Boston. Churchill Downs Q2 results were followed closely by this expansion news, hinting at a more aggressive regional play.

• A tax law passed in early July brings two major financial perks: full bonus depreciation is now permanent, and interest deductibility has been expanded. CDI expects to tap a $91.2 million deferred tax asset linked to past interest costs. That’s expected to give a boost to cash flow in the second half of the year.

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