Churchill Downs Incorporated has reported its financial results throughout the third quarter of 2025, as the operator set new quarterly records for both net revenue and adjusted EBITDA after generating $683m and $262.3m, respectively, for increases of 9% and 11% year-over-year.
Despite recording new quarterly highs in net revenue and adjusted EBITDA, Churchill Downs also reported a decrease in net income of 42% to $38.1m, primarily affected by a one-time, non-cash impairment. The operator generated an adjusted net income of $77.1m, however, representing an increase of 7% from the prior year period.
Live and historical racing accounted for $305.7m of Churchill Downs' total net revenue for Q3 2025, equating to growth of 21.1% while adjusted EBITDA for the vertical was reported to be $116.4m and rose 25.2%. Louisville, which serves as the host city of Churchill Downs' Kentucky Derby horse race, generated $53.9m of live and historical racing revenue for the operator, with Virginia operations providing an additional $139.7m.
Churchill Downs extended its Virginia operations over the course of Q3 2025, including the expansion of Rosie's Richmond with 450 incremental historical racing machines and the launch of Roseshire Gaming Parlor with 175 machines of its own.
Wagering services and solutions reported a total revenue of $118m for the third quarter of 2025, representing an increase of 6%. The operator's gaming revenue witnessed a decrease in revenue generated year-over-year, falling 1.7% for a total of $265m. While Churchill Downs' gaming vertical reported a stagnant adjusted EBITDA of $123.3m, wagering services and solution grew its adjusted EBITDA by 8.2% for a total of $46m.
Operating expenses also grew from the costs reported for Q3 2024, as Churchill Downs produced $585m in expenses from its respective verticals throughout the third quarter of 2025, equating to a rise of 16.4%. Churchill Downs' operating income for Q3 2025 was reported to be $98m, representing a decrease of 22.2% from the prior year period.
The operator's gaming verticals in New York and Indiana generated $48m and $33.3m of revenue for Q3 2025, respectively, while Maryland accounted for an additional $30.5m during the period.
TwinSpires Horse Racing, owned and operated by Churchill Downs since January 2021, reportedly produced a total handle of $501.7m throughout Q3 2025, rising by 6.9% and currently serving as the official online betting partner of the Kentucky Derby.
Along with its financial report for the third quarter of 2025, Churchill Downs also unveiled a new growth project titled Victory Run, a $280-$300m investment set to debut as part of the 2028 edition of the Kentucky Derby race.
The four-story structure features private suites, indoor and outdoor dining and covered box seating which will replace approximately 6,400 existing seats within the facility. Churchill Downs expects construction of Victory Run to begin following the 2026 Kentucky Derby, pending incentives which must be approved by the City of Louisville and appropriate state agencies.
Churchill Downs completed its acquisition to obtain 90% of the Casino Salem facility in New Hampshire for $180m on August 27 and began to operate a temporary mini casino shortly after
