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Segment Information | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
Segment Information | 16. SEGMENT INFORMATION We manage our operations through three reportable segments: Live and Historical Racing, Wagering Services and Solutions, and Gaming. Our operating segments reflect the internal management reporting used by our chief operating decision maker, our Chief Executive Officer, to evaluate results of operations and to assess performance and allocate resources. Eliminations include the elimination of intersegment transactions. We utilize non-GAAP measures, including EBITDA (earnings before interest, taxes, depreciation and amortization) and Adjusted EBITDA. Our chief operating decision maker utilizes Adjusted EBITDA to evaluate segment performance, develop strategy, and allocate resources. Adjusted EBITDA includes the following adjustments: Adjusted EBITDA includes our portion of EBITDA from our equity investments and the portion of EBITDA attributable to noncontrolling interests. Adjusted EBITDA excludes, as applicable: •Transaction expense, net which includes: –Acquisition, disposition, and property sale related charges; –Other transaction expense, including legal, accounting, and other deal-related expense; •Stock-based compensation expense; •Rivers Des Plaines' impact on our investments in unconsolidated affiliates from legal reserves and transaction costs; •Asset impairments, net; •Gain on property sales; •Legal reserves; •Pre-opening expense; and •Other charges, recoveries and expenses We utilize the Adjusted EBITDA metric to provide a more accurate measure of our core operating results and enable management and investors to evaluate and compare from period to period our operating performance in a meaningful and consistent manner. Adjusted EBITDA should not be considered as an alternative to operating income as an indicator of performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure provided in accordance with GAAP. Our calculation of Adjusted EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited. For segment reporting, Adjusted EBITDA includes intercompany revenue and expense totals that are eliminated in the accompanying Condensed Consolidated Statements of Comprehensive Income. The tables below present net revenue from external customers, Adjusted EBITDA by segment and reconciles comprehensive income to Adjusted EBITDA: Net revenue by segment is comprised of the following:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2025 |  | 2024 |  | 2025 |  | 2024
Live and Historical Racing | $ | 300.0 |  |  | $ | 247.5 |  |  | $ | 1,082.4 |  |  | $ | 957.3 |
Wagering Services and Solutions | 118.0 |  |  | 111.3 |  |  | 383.3 |  |  | 369.6 |
Gaming | 265.0 |  |  | 269.7 |  |  | 794.2 |  |  | 783.1 |
All Other | — |  |  | — |  |  | 0.1 |  |  | 0.1 |
Net Revenue | $ | 683.0 |  |  | $ | 628.5 |  |  | $ | 2,260.0 |  |  | $ | 2,110.1 |
Adjusted EBITDA by segment is comprised of the following:
| Three Months Ended September 30, 2025
(in millions) | Live and Historical Racing |  | Wagering Services and Solutions |  | Gaming
Revenues | $ | 305.7 |  |  | $ | 127.2 |  |  | $ | 265.5 |
Pari-mutuel taxes and purses | (79.8) |  |  | (6.0) |  |  | (6.4) |
Gaming taxes | (1.8) |  |  | (0.6) |  |  | (81.7) |
Marketing and advertising | (13.5) |  |  | (1.4) |  |  | (9.2) |
Salaries and benefits | (36.8) |  |  | (8.7) |  |  | (41.1) |
Content expense | (1.7) |  |  | (48.5) |  |  | (2.3) |
Selling, general and administrative expense | (10.7) |  |  | (3.3) |  |  | (10.5) |
Maintenance, insurance and utilities | (11.9) |  |  | (1.0) |  |  | (10.3) |
Gaming equipment rental and technology costs | (13.4) |  |  | (0.7) |  |  | (4.4) |
Food and beverage costs | (3.6) |  |  | — |  |  | (4.0) |
Other operating expense | (19.8) |  |  | (11.0) |  |  | (16.8) |
Equity in income of unconsolidated affiliates | — |  |  | — |  |  | 44.5 |
Other income | 3.7 |  |  | — |  |  | — |
Adjusted EBITDA | $ | 116.4 |  |  | $ | 46.0 |  |  | $ | 123.3 |
| Three Months Ended September 30, 2024
(in millions) | Live and Historical Racing |  | Wagering Services and Solutions |  | Gaming
Revenues | $ | 252.4 |  |  | $ | 118.7 |  |  | $ | 270.3 |
Pari-mutuel taxes and purses | (65.3) |  |  | (4.9) |  |  | (9.0) |
Gaming taxes | (1.4) |  |  | (0.6) |  |  | (78.8) |
Marketing and advertising | (9.3) |  |  | (1.4) |  |  | (9.5) |
Salaries and benefits | (31.1) |  |  | (8.0) |  |  | (42.7) |
Content expense | (1.7) |  |  | (45.9) |  |  | (2.3) |
Selling, general and administrative expense | (9.4) |  |  | (4.2) |  |  | (11.9) |
Maintenance, insurance and utilities | (12.8) |  |  | (1.1) |  |  | (11.7) |
Gaming equipment rental and technology costs | (9.9) |  |  | (0.9) |  |  | (3.9) |
Food and beverage costs | (2.4) |  |  | — |  |  | (4.3) |
Other operating expense | (16.2) |  |  | (9.2) |  |  | (16.9) |
Equity in income of unconsolidated affiliates | — |  |  | — |  |  | 44.0 |
Other income | 0.1 |  |  | — |  |  | — |
Adjusted EBITDA | $ | 93.0 |  |  | $ | 42.5 |  |  | $ | 123.3 |
| Nine Months Ended September 30, 2025
(in millions) | Live and Historical Racing |  | Wagering Services and Solutions |  | Gaming
Revenues | $ | 1,123.0 |  |  | $ | 411.4 |  |  | $ | 799.0 |
Pari-mutuel taxes and purses | (267.5) |  |  | (18.1) |  |  | (28.5) |
Gaming taxes | (4.7) |  |  | (1.5) |  |  | (234.1) |
Marketing and advertising | (43.0) |  |  | (8.0) |  |  | (26.2) |
Salaries and benefits | (106.5) |  |  | (25.8) |  |  | (128.1) |
Content expense | (5.0) |  |  | (169.1) |  |  | (6.7) |
Selling, general and administrative expense | (32.0) |  |  | (13.2) |  |  | (32.2) |
Maintenance, insurance and utilities | (33.5) |  |  | (3.0) |  |  | (29.5) |
Gaming equipment rental and technology costs | (37.8) |  |  | (2.2) |  |  | (13.0) |
Food and beverage costs | (11.1) |  |  | — |  |  | (12.3) |
Other operating expense | (70.8) |  |  | (35.2) |  |  | (49.3) |
Equity in income of unconsolidated affiliates | — |  |  | — |  |  | 134.4 |
Other income | 3.8 |  |  | — |  |  | 0.6 |
Adjusted EBITDA | $ | 514.9 |  |  | $ | 135.3 |  |  | $ | 374.1 |
| Nine Months Ended September 30, 2024
(in millions) | Live and Historical Racing |  | Wagering Services and Solutions |  | Gaming
Revenues | $ | 991.5 |  |  | $ | 392.7 |  |  | $ | 787.9 |
Pari-mutuel taxes and purses | (227.3) |  |  | (15.8) |  |  | (32.7) |
Gaming taxes | (4.4) |  |  | (1.9) |  |  | (219.1) |
Marketing and advertising | (31.1) |  |  | (7.5) |  |  | (26.5) |
Salaries and benefits | (94.4) |  |  | (23.9) |  |  | (121.0) |
Content expense | (5.1) |  |  | (163.2) |  |  | (6.7) |
Selling, general and administrative expense | (26.7) |  |  | (13.0) |  |  | (33.9) |
Maintenance, insurance and utilities | (34.6) |  |  | (3.1) |  |  | (32.4) |
Gaming equipment rental and technology costs | (30.5) |  |  | (2.6) |  |  | (11.4) |
Food and beverage costs | (8.8) |  |  | — |  |  | (12.4) |
Other operating expense | (55.9) |  |  | (33.4) |  |  | (46.7) |
Equity in income of unconsolidated affiliates | — |  |  | — |  |  | 139.9 |
Other income | 0.3 |  |  | — |  |  | 1.8 |
Adjusted EBITDA | $ | 473.0 |  |  | $ | 128.3 |  |  | $ | 386.8 |
Adjusted EBITDA by segment is comprised of the following:
| Three Months Ended September 30, |  | Nine Months Ended September 30, |
(in millions) | 2025 |  | 2024 |  | 2025 |  | 2024 |
Reconciliation of Comprehensive Income to Adjusted EBITDA: |  |  |  |  |  |  |  |
Net income and comprehensive income attributable to Churchill Downs Incorporated | $ | 38.1 |  |  | $ | 65.4 |  |  | $ | 331.7 |  |  | $ | 355.1 |  |
Net income attributable to noncontrolling interests | 1.1 |  |  | 0.8 |  |  | 2.3 |  |  | 1.7 |  |
Net income | 39.2 |  |  | 66.2 |  |  | 334.0 |  |  | 356.8 |  |
Adjustments |  |  |  |  |  |  |  |
Depreciation and amortization | 56.5 |  |  | 49.6 |  |  | 173.5 |  |  | 145.7 |  |
Interest expense | 75.6 |  |  | 73.1 |  |  | 222.1 |  |  | 217.0 |  |
Income tax provision | 22.0 |  |  | 19.9 |  |  | 115.1 |  |  | 125.4 |  |
Stock-based compensation expense | 7.4 |  |  | 7.1 |  |  | 18.2 |  |  | 23.2 |  |
Pre-opening expense | 2.4 |  |  | 7.8 |  |  | 9.0 |  |  | 23.6 |  |
Other expenses, net | 2.9 |  |  | 1.0 |  |  | 7.7 |  |  | 1.3 |  |
Asset impairments, net | 45.1 |  |  | 3.9 |  |  | 47.5 |  |  | 3.9 |  |
Transaction expense, net | 1.9 |  |  | (4.0) |  |  | 3.4 |  |  | 0.7 |  |
Other income, expense: |  |  |  |  |  |  |  |
Interest, depreciation and amortization expense related to equity investments | 9.4 |  |  | 10.6 |  |  | 28.9 |  |  | 31.4 |  |
Rivers Des Plaines' legal reserves and transaction costs | — |  |  | — |  |  | — |  |  | 0.3 |  |
Other charges and recoveries, net | (0.1) |  |  | 0.1 |  |  | (1.1) |  |  | (6.7) |  |
Total adjustments | 223.1 |  |  | 169.1 |  |  | 624.3 |  |  | 565.8 |  |
Adjusted EBITDA | $ | 262.3 |  |  | $ | 235.3 |  |  | $ | 958.3 |  |  | $ | 922.6 |  |
Adjusted EBITDA by segment: |  |  |  |  |  |  |  |
Live and Historical Racing | $ | 116.4 |  |  | $ | 93.0 |  |  | $ | 514.9 |  |  | $ | 473.0 |  |
Wagering Services and Solutions | 46.0 |  |  | 42.5 |  |  | 135.3 |  |  | 128.3 |  |
Gaming | 123.3 |  |  | 123.3 |  |  | 374.1 |  |  | 386.8 |  |
Total segment Adjusted EBITDA | 285.7 |  |  | 258.8 |  |  | 1,024.3 |  |  | 988.1 |  |
All Other | (23.4) |  |  | (23.5) |  |  | (66.0) |  |  | (65.5) |  |
Total Adjusted EBITDA | $ | 262.3 |  |  | $ | 235.3 |  |  | $ | 958.3 |  |  | $ | 922.6 |  |
The table below presents total asset information for each of our segments:
(in millions) | September 30, 2025 |  | December 31, 2024
Total assets: |  |  |
Live and Historical Racing | $ | 4,351.1 |  |  | $ | 4,143.3 |
Wagering Services and Solutions | 468.9 |  |  | 460.6 |
Gaming | 1,544.4 |  |  | 1,953.7 |
Total segment assets | 6,364.4 |  |  | 6,557.6 |
All Other | 1,090.4 |  |  | 718.3 |
Total assets | $ | 7,454.8 |  |  | $ | 7,275.9 |
The table below presents total capital expenditures for each of our segments:
| Nine Months Ended September 30,
(in millions) | 2025 |  | 2024
Capital expenditures: |  |  |
Live and Historical Racing | $ | 177.4 |  |  | $ | 287.7 |
Wagering Services and Solutions | 18.0 |  |  | 14.2 |
Gaming | 24.3 |  |  | 105.4 |
Total segment capital expenditures | 219.7 |  |  | 407.3 |
All Other | 4.9 |  |  | 10.3 |
Total capital expenditures | $ | 224.6 |  |  | $ | 417.6 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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