Churchill Downs Inc
SWB:CHR
Churchill Downs Inc
Churchill Downs Incorporated, founded in 1875 and famously home to the Kentucky Derby, has cultivated its brand into an iconic player in the horse racing industry. Nestled in the heart of Louisville, Kentucky, the company's centerpiece is the Churchill Downs Racetrack, where the annual "Run for the Roses" captivates millions. However, Churchill Downs Inc. has transitioned well beyond just hosting horse races; it leverages its historic reputation to draw in spectators and bettors, both at the track and across its burgeoning digital platforms. These events not only rake in substantial revenue from admission fees, broadcasting rights, and concessions but also create a robust ecosystem for gambling, which is a significant revenue pillar.
Over the years, the company has strategically diversified its portfolio, crafting a multifaceted business model. Alongside its physical racetracks, Churchill Downs Inc. has expanded into the realm of online wagering, notably with its TwinSpires platform, allowing users to place bets from the comfort of their homes on a variety of sports and racing events. Furthermore, its acquisition strategy has been keenly focused on regional casinos and gaming properties, with a growing presence across states in the U.S., underscoring a deliberate move to capture a larger share of the gaming market. This blend of tradition and innovation has enabled Churchill Downs Inc. to remain a heavyweight in the horse racing industry while tapping into broader gambling trends that continue to evolve.
Churchill Downs Incorporated, founded in 1875 and famously home to the Kentucky Derby, has cultivated its brand into an iconic player in the horse racing industry. Nestled in the heart of Louisville, Kentucky, the company's centerpiece is the Churchill Downs Racetrack, where the annual "Run for the Roses" captivates millions. However, Churchill Downs Inc. has transitioned well beyond just hosting horse races; it leverages its historic reputation to draw in spectators and bettors, both at the track and across its burgeoning digital platforms. These events not only rake in substantial revenue from admission fees, broadcasting rights, and concessions but also create a robust ecosystem for gambling, which is a significant revenue pillar.
Over the years, the company has strategically diversified its portfolio, crafting a multifaceted business model. Alongside its physical racetracks, Churchill Downs Inc. has expanded into the realm of online wagering, notably with its TwinSpires platform, allowing users to place bets from the comfort of their homes on a variety of sports and racing events. Furthermore, its acquisition strategy has been keenly focused on regional casinos and gaming properties, with a growing presence across states in the U.S., underscoring a deliberate move to capture a larger share of the gaming market. This blend of tradition and innovation has enabled Churchill Downs Inc. to remain a heavyweight in the horse racing industry while tapping into broader gambling trends that continue to evolve.
Record Financials: Churchill Downs delivered record net revenue and adjusted EBITDA for both the fourth quarter and the full year 2025, surpassing prior records.
Kentucky Derby Strength: The 2025 Kentucky Derby set new records for handle, total attendance, and TV ratings, and management expects consistent and meaningful growth in 2026.
Derby Momentum: Early ticket sales and sponsorships for the upcoming 152nd Derby are strong, pacing ahead of last year with expectations of being fully sold out.
Growth in HRM & Gaming: Historical Racing Machine (HRM) venues in Kentucky and Virginia achieved record adjusted EBITDA, and expansion continues with new openings and products like electronic table games.
Strong Free Cash Flow: Free cash flow reached a record $700 million in 2025, enabling continued share repurchases, increased dividends, and significant capital investment.
Capital Allocation: Over $456 million was returned to shareholders through share repurchases and dividends, and leverage is expected to decline below 4x in 2026.
Positive Outlook: Management sees strong momentum heading into 2026, citing multiple growth drivers and favorable macro tailwinds, including tax law changes.
