Churchill Downs Beats Q1 Estimates With $663 Million in Revenue

Louisville-based Churchill Downs Inc. (Nasdaq: CHDN) reported first-quarter adjusted earnings of $1.21 per share, surpassing analyst expectations and setting a record for the period as the company prepares for its flagship Kentucky Derby event.

“The results validate our strategy,” Jefferies analyst David Katz said, noting the company’s recent strategic moves, including the acquisition of the Preakness Stakes intellectual property for $85 million. The deal gives Churchill Downs control over two of the three jewels in horse racing’s Triple Crown.

Metric	Actual	Consensus	Prior Year
Revenue	$663M	$661.5M	$643M
Adj. EPS	$1.21	$1.06	$1.07

The company posted net revenue of $663 million for the quarter ended March 31, a 3.1 percent increase from the prior-year period and slightly ahead of the $661.5 million consensus estimate. The strong performance was driven by a significant uptick in the company’s Live and Historical Racing segment, which saw revenue jump $24 million year-over-year.

Segment Performance

The Live and Historical Racing segment was the quarter's standout performer, with revenue climbing to $301 million from $277 million. Adjusted EBITDA for the segment rose to $113 million, an increase of $11 million. This growth was primarily fueled by the company’s expanding network of Historical Racing Machine (HRM) venues in Kentucky and Virginia. The company stated the Kentucky HRM increase was due to a $6 million increase from its Western Kentucky venues and a $4 million increase from its Northern Kentucky venues.

In contrast, the Gaming segment saw revenue decrease by $5 million to $262 million, and Adjusted EBITDA dipped by $1 million to $123 million. The company cited the cessation of HRM operations in Louisiana in May 2025 as a primary reason for the decline.

The Wagering Services and Solutions segment, which includes the TwinSpires online platform, saw a modest revenue increase of $2 million to $118 million, while its Adjusted EBITDA grew by $4 million to $45 million, aided by lower legal expenses.

The strong earnings report and strategic acquisition set a positive tone as Churchill Downs heads into its most important event, the 152nd Kentucky Derby on May 2. The Preakness deal allows the company to further consolidate its position in the horse racing industry, with potential for streamlined media rights, sponsorships, and event monetization. Investors will be watching the upcoming Derby to gauge consumer spending and the ongoing performance of the company’s core assets.

This article is for informational purposes only and does not constitute investment advice.