Churchill Downs Incorporated has reported its financial results for Q4 and full-year 2025, having set a new quarterly record in net revenue by generating $665.9m and increasing 7%, while the operator’s net income fell 28% to $51.3m.
Churchill Downs sets all-time quarterly highs for Q4 despite net income decrease
While the operator witnessed a fall in net income during Q4 2025, it also managed to set an all-time high in adjusted EBITDA during the quarterly period by increasing the figure 4% to $247m.
Live and historical racing accounted for $319.4m of Churchill Downs’ net revenue during Q4 2025, representing growth of 15.9%. The vertical also generated $122.1m of adjusted EBITDA for the quarterly period, rising 20.2% year-over-year.
Wagering services and solutions managed to produce $114.9m of revenue for Q4 2025 and increased 6.4%, while adjusted EBITDA grew 12.6% for a total of $42m. Gaming was the only Churchill Downs vertical to witness a decrease in revenue and adjusted EBITDA during Q4 2025, falling 2.8% and 9.3%, respectively, to $250.3m and $108.9m.
Churchill Downs’ operating expenses for Q4 2025 totaled $542.4m, representing an increase of 9% from the prior year period to $542.4m. The increase may have also led Churchill Downs to report a decrease in operating income during Q4 2025, which fell 2.6% to $123.5m.
The operator reported $53.8m of revenue stemmed from Kentucky operations, as well as $19.4m from its Churchill Downs racetrack. For gaming, New York drove the most revenue during Q4 2025 with $45.5m, while Indiana was the only other state to eclipse $30m after producing $32.4m for the quarterly period.
Was Churchill Downs able to meet financial expectations during FY2025?
Churchill Downs generated just over $2.9bn of FY2025 net revenue, equating to growth of 7%, while adjusted EBITDA during the full-year period totaled $1.2bn, having grown 4% year-over-year.
Despite the increases, however, Churchill Downs also witnessed a decrease in net income for FY2025, which fell 10.3% to $383m. Operating expenses grew by over $200m during FY2025 to $2.2bn, leading to a 3.6% fall in operating income to $683.8m.
Live and historical racing, along with wagering services and solutions, generated an increase in revenue for FY2025, rising 13.8% and 4%, respectively, for totals of close to $1.4bn and $488.2m.
The operator’s gaming vertical managed to produce a FY2025 revenue of $1bn, representing a slight increase of 0.4%. New York accounted for $184.5m of Churchill Downs’ total gaming revenue for FY2025, while Louisiana and Indiana drove $131.4m and $129.9m of full-year revenue, respectively.
Churchill Downs racetrack generated $262.4m of FY2025 and increased 1.1%, while Virginia operations produced $546.1m of net revenue for growth of 19.2%. The operator also witnessed $217.1m of revenue stem from Louisville operations, as well as $168.3m from business in southwestern Kentucky.
Churchill Downs opens new Kentucky racetrack
Churchill Downs hosted the grand opening ceremony for its new Marshall Yards Racing & Gaming facility on February 25, a 23,000 sq ft venue which features 225 historical racing machines, a retail sportsbook and simulcast wagering.
Marshall Yards Racing & Gaming will help support purse funding for Oak Grove Racing, Gaming & Hotel in Kentucky and represents the eighth historical racing and entertainment venue launched across the state by Churchill Downs.
“We are setting a new pace for growth as we expand CDI's footprint in Southwestern Kentucky,” Churchill Downs CEO Bill Carstanjen said.
“Marshall Yards reflects our vision to build destination experiences that generate local economic opportunities, inspire regional tourism and secure our place at the forefront of racing and entertainment.”
The operator originally announced its intention of hosting a grand ceremony for Marshall Yards Racing & Gaming in January 2026, but has now officially debuted the facility to southwestern Kentucky residents.
Churchill Downs outlined changes to its 2026 Spring Meet and Kentucky Derby Week schedule on February 10, extending the racing calendar and introducing new programming elements for its most high-profile event
