Historic horse racing drives Churchill earnings, stock higher

Churchill Downs Inc. stock on NASDAQ rose 10% shortly after the opening bell Thursday in reaction to a positive earnings report after the markets closed Wednesday.

Thanks largely to historic horse-racing machines, CDI reported a 9% higher revenue during the summer quarter than it did in 2024 with a record $262 million in earnings before interest, taxes, depreciation and amortization.

The earnings report for July 1-Sept. 30 was released after the stock markets closed Wednesday.

In a news release, CDI said the biggest increases in revenue came from HHR machines to the tune of $30 million more in Virginia and nearly $21 million more in Kentucky. It also said it gained $2 million more from its temporary casino facility in Salem, N.H.

The company based in Louisville, Ky., said its net revenue was $683 million, up more than $54 million from the same quarter in 2024. Net income attributable to CDI was $38 million, down $27 million or 42% driven by a one-time, non-cash impairment, defined as a drop in the value of a cash-generating asset when its stated value is more than can be recovered. Adjusted net income attributable to CDI rose $5 million or 7% to $77 million. The record adjusted EBITDA went up $27 million or 11%.

Churchill said third-quarter highlights included the announcement that NBC Sports would televise the 2026 Grade 1 Kentucky Oaks at night, the completed expansion of Rosie’s casino in Richmond, Va., the buying of 90% of Casino Salem in New Hampshire, the opening of a Rosie’s in Henrico County, Va.; a 43.8-cents-per-share annual dividend and net bank leverage of more than four times with a return of more than $53 million to stock holders through share repurchases.

The company repurchased 515,527 shares. Some $15 million or 28% came from a March 2025 stock-repurchase program and the rest from a July repurchase.

Churchill Downs executives will host a shareholders call Thursday at 8 a.m. EDT