Mission Statement, Vision, & Core Values of Churchill Downs Incorporated (CHDN)

The strategic foundation of Churchill Downs Incorporated (CHDN)-its Mission, Vision, and Core Values-is what truly underpins its financial performance, which saw a record third-quarter 2025 net revenue of $683.0 million and Adjusted EBITDA of $262.3 million. Are you clear on how the company's core value of 'Integrity' translates into their capital allocation decisions, or how their vision to be a 'world-class gaming, entertainment and technology company' drives a 9% year-over-year revenue increase? Understanding these guiding principles is defintely more critical than just looking at the balance sheet; it tells you where those record-breaking numbers will come from next. Let's dig into the DNA of this iconic company.

Churchill Downs Incorporated (CHDN) Overview

You're looking for a clear, no-nonsense look at Churchill Downs Incorporated (CHDN), and I can tell you right now that this company is far more than just the Kentucky Derby. It's a diversified, high-growth gaming and entertainment conglomerate. The core story is simple: they took an irreplaceable asset-the Derby-and used its cash flow to build a national footprint in historical racing and online wagering, which is why their trailing twelve months (TTM) revenue through September 30, 2025, hit a massive $2.884 billion.

The company's history stretches back to 1875 in Louisville, Kentucky, where the iconic racetrack was first established. Today, Churchill Downs Incorporated operates across three main segments: Live and Historical Racing, Wagering Services and Solutions, and Gaming. This structure lets them capture revenue from multiple angles, from the premium experience of the Kentucky Derby to the high-volume, repeatable business of their Historical Racing Machines (HRMs). Honestly, they've mastered turning a heritage asset into a modern growth engine. You can dig into the full context of this strategy at Churchill Downs Incorporated (CHDN): History, Ownership, Mission, How It Works & Makes Money.

Their product portfolio is a smart mix of high-margin, high-visibility events and scalable technology platforms:

• Live Racing: Anchored by the Kentucky Derby, the longest continually-held annual sporting event in the U.S.
• Wagering Services: TwinSpires, their online platform, is the most profitable horse race wagering platform in the U.S.
• Gaming: A growing network of regional casinos and Historical Racing Machine (HRM) venues across states like Kentucky and Virginia.

2025 Financial Performance: Record Revenue Growth

The latest numbers from the third quarter of 2025 show exactly how well this diversified strategy is working. Churchill Downs Incorporated reported a record net revenue of $683.0 million for the quarter ending September 30, 2025, an increase of 9% year-over-year. This isn't just organic growth; it's a direct result of strategic capital deployment, particularly in the Live and Historical Racing segment.

The biggest driver was the Live and Historical Racing segment, which saw its revenue jump to $305.7 million, a $53.3 million increase. Here's the quick math: that growth is fueled by new and expanded Historical Racing Machine (HRM) venues in Virginia and Kentucky, plus the incremental contribution from the acquisition of a majority stake in Casino Salem in New Hampshire. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), a key measure of operational profitability, also hit a record $262.3 million, up 11%. That's a defintely strong signal of operational efficiency.

Now, to be fair, GAAP net income was down to $38.1 million due to a one-time, non-cash impairment charge of $31.0 million related to gaming rights. But the Adjusted Net Income-which strips out that one-off noise-was up 7% to $77.1 million, showing the underlying business is robust. The company is clearly focused on expansion and returning capital, approving a $0.438 per share dividend and repurchasing $53.5 million in shares during the quarter.

A Leader in Gaming and Entertainment

Churchill Downs Incorporated is a true leader in the gaming and entertainment industry, not just a legacy racing company. They have successfully positioned themselves as an 'Industry-Leading, Diversified Business' by leveraging their brand strength and expanding into high-growth areas like historical racing. Their portfolio now includes seven entertainment venues with approximately 5,130 HRMs in Kentucky and eight venues with around 4,875 HRMs in Virginia.

This isn't about being the biggest, but about being the most strategic and profitable. They own the most profitable horse race wagering platform in the U.S. and continue to drive growth through organic investments and smart acquisitions, like the one in New Hampshire. The company's ability to consistently increase its dividend for fifteen consecutive years underscores its highly profitable financial profile and disciplined capital management. If you want to understand why they're consistently outperforming, you need to look closer at the engine driving this growth-the HRM expansion and the TwinSpires platform. That's where the real money is being made.

Churchill Downs Incorporated (CHDN) Mission Statement

You're looking for the bedrock of Churchill Downs Incorporated's (CHDN) strategy, and honestly, it's a simple but powerful statement that anchors their multi-billion-dollar operation. The mission statement is: To provide the highest-quality horse racing and entertainment experience by delivering first-class customer service. That's the core mandate, and it's what guides capital allocation across their diverse portfolio-from the iconic Twin Spires to the growing Historical Racing Machine (HRM) venues.

A mission statement isn't just a plaque on a wall; it's the lens through which every major investment is evaluated. For Churchill Downs Incorporated, this mission ensures that even as they expand into new gaming markets, the focus remains on premium, memorable experiences. Their success in the 2025 fiscal year, with trailing twelve-month revenue hitting approximately $2.884 billion as of Q3, defintely shows this focus is paying off.

Here's the quick math: record Q2 2025 net revenue of $934.4 million, up 5% year-over-year, proves that investing in the experience-the racing, the venues, the technology-drives the top line. But the mission breaks down into three actionable components that define their strategic approach.

Pillar 1: Highest-Quality Horse Racing and Entertainment Experience

This component is about protecting and elevating the product, which, for Churchill Downs Incorporated, starts with the Kentucky Derby. You can't have a world-class entertainment company without a world-class anchor asset. Their commitment to quality is evident in the tangible investments and the measurable results from the 151st Kentucky Derby in Q2 2025.

• Average viewership hit 17.7 million, a 6% increase.
• Peak viewership reached 21.8 million, a strong 8% rise.
• All-sources handle for Derby Day was an all-time record.

To ensure the integrity of the racing product, a core quality driver, the company is deeply invested in the 2025 Safety from Start to Finish Program. They collaborate with the Horseracing Integrity and Safety Authority (HISA) and use a state-of-the-art Integrated Racetrack Surface Tester for precision management of the track conditions. This isn't just PR; it's a necessary operational investment to maintain the quality and integrity of their most valuable asset. The quality of the experience is paramount, and it's what allows them to command a premium.

Pillar 2: Delivering First-Class Customer Service

The second pillar, first-class customer service, extends beyond the racetrack to their entire ecosystem, including their online wagering platform, TwinSpires, and their growing network of gaming properties. This means creating seamless, premium experiences, whether you're at the track or betting from your phone.

The company is actively remodeling and expanding its physical assets to meet this service standard. For example, they are investing approximately $25 million to $30 million in renovations to the Finish Line Suites and The Mansion at Churchill Downs Racetrack, aiming for completion by April 2026. This is a direct capital investment to upgrade hospitality and increase premium capacity to 750 guests in the suites alone. They're swapping out older, dated spaces for modern, integrated hospitality. That's how you translate a service mission into an action plan.

Also, a key part of service is community engagement, which acts as a social license to operate (SLO). Churchill Downs Incorporated supports over 800 community nonprofits annually, demonstrating a commitment to the stakeholders surrounding their venues. That kind of community support is foundational to long-term customer and regulatory goodwill.

Pillar 3: Strategic Growth and Value Creation

While not explicitly in the short mission statement, the company's vision is to be a world-class gaming, entertainment, and technology company focused on innovation, growth, and creating value for shareholders. This forms the third, crucial component of their operating philosophy. You can see this in their aggressive, yet disciplined, expansion into Historical Racing Machines (HRMs) and new casino markets.

In 2025, the Live and Historical Racing segment contributed $276.4 million in Q1 revenue, an 11% jump, thanks to new venues like Owensboro Racing and Gaming in Kentucky and the debut of The Rose Gaming Resort in Virginia. This growth is a clear execution of the 'value creation' vision. They also acquired 90% of Casino Salem in New Hampshire for $180 million in Q2 2025, which immediately expands their footprint. That's a clear, strategic move to diversify revenue streams beyond the Kentucky Derby. Churchill Downs Incorporated (CHDN): History, Ownership, Mission, How It Works & Makes Money

The company anticipated spending between $120 million and $130 million on capital projects in 2025 to fuel this long-term growth. This disciplined capital management, even with the temporary pause of the larger, nearly $1 billion renovation project due to macro-economic uncertainty, shows they are trend-aware realists. They'll invest for growth, but they won't overpay for it. That's the kind of realism that keeps the balance sheet strong.

Churchill Downs Incorporated (CHDN) Vision Statement

You're looking for the blueprint, the strategic compass guiding Churchill Downs Incorporated's (CHDN) aggressive expansion and financial performance. The core vision is clear: to be a world-class gaming, entertainment, and technology company. This isn't just about the Kentucky Derby anymore; it's about a three-part focus-Innovation, Growth, and Creating Value for Shareholders-that's driving their record 2025 numbers.

Honestly, the vision translates directly into capital allocation. You see it in the Q3 2025 results, where record net revenue hit $683.0 million, up 9% year-over-year, and Adjusted EBITDA grew by 11% to a record $262.3 million. That's the financial proof of the strategy at work. If you want a deeper dive on the capital flows, you should read Exploring Churchill Downs Incorporated (CHDN) Investor Profile: Who's Buying and Why?.

Innovation: Elevating the Entertainment Experience

The first pillar of the vision is Innovation, which for Churchill Downs Incorporated means constantly improving the customer experience, especially at their flagship events and properties. They're not just maintaining an iconic asset; they're premiumizing it. The biggest near-term example is the Victory Run project at Churchill Downs Racetrack, a planned investment of between $280 million and $300 million. This new four-story structure will replace approximately 6,400 existing seats with premium seating for around 7,800 guests by the 2028 Kentucky Derby.

Here's the quick math: fewer, but better, seats means higher average revenue per guest-a classic premiumization move. Plus, you see media innovation, like the announcement that NBC Sports will showcase the Kentucky Oaks on primetime for the first time ever in 2026. This expands the brand's reach beyond the core racing fan base, treating it as a premier international sporting and entertainment event. They are defintely focused on premium entertainment experiences.

• Victory Run: $280M-$300M investment.
• Replacing 6,400 seats with 7,800 premium seats.
• Kentucky Oaks to primetime in 2026.

Growth: Expanding the Gaming and Racing Footprint

Growth is the second, and perhaps most tangible, part of the vision, primarily executed through the expansion of their Historical Racing Machine (HRM) venues and strategic acquisitions. This strategy is what fueled the record growth in the Live and Historical Racing segment, which has had 21 consecutive quarters of record growth in revenue and Adjusted EBITDA.

In 2025 alone, the company has been busy. They opened Owensboro Racing and Gaming in Kentucky in February 2025, adding 600 HRMs. Then, in August 2025, they completed the expansion of Rosie's Richmond in Virginia, adding 450 incremental HRMs. The most significant move was the August 2025 acquisition of 90% of Casino Salem in New Hampshire for $180 million, instantly broadening their geographic and gaming portfolio. This aggressive expansion is why the Live and Historical Racing segment saw a revenue increase of $53.3 million in Q3 2025. That's how you build an industry-leading, diversified business.

Creating Value for Shareholders: Disciplined Capital Management

The final, crucial element is Creating Value for Shareholders, which is where the financial discipline comes in. Management has a proven track record of returning capital. In March 2025, the Board approved a new $500 million share repurchase program, a clear signal of confidence in the stock's intrinsic value. This is a critical lever for boosting earnings per share (EPS).

Also, the dividend policy is strong. In October 2025, the Board approved a $0.438 per share dividend, marking the fifteenth consecutive year of an increased dividend per share. They returned $53.5 million of capital to shareholders through share repurchases in the third quarter of 2025 alone. What this estimate hides, though, is the net bank leverage, which stood at 4.1x at the end of Q3 2025. That leverage ratio is manageable, but it's a number you must watch to ensure growth doesn't outpace financial stability. The focus is on long-term value creation.

Churchill Downs Incorporated (CHDN) Core Values

You're looking for the bedrock principles that drive a multi-billion-dollar enterprise like Churchill Downs Incorporated, and you're right to focus on the core values. While the company doesn't publish a neat, bulleted list, as a seasoned analyst, I can tell you their actions and financial results in 2025 clearly map to a few non-negotiable pillars. These values aren't just feel-good statements; they are the strategic drivers behind their record-breaking financial performance.

The company's mission is to provide the highest-quality horse racing and entertainment experience by delivering first-class customer service. This mission, coupled with their strategic investments, shows a clear commitment to three core areas. Honestly, you can't post record Q2 net revenue of $934.4 million and Q3 Adjusted EBITDA of $262.3 million without these values being deeply embedded in the operations.

If you want a deeper dive into the foundation, you can check out Churchill Downs Incorporated (CHDN): History, Ownership, Mission, How It Works & Makes Money.

Creating Extraordinary Experiences

This value is all about premium entertainment and customer focus. It's what separates an iconic asset like the Kentucky Derby from just another race. For Churchill Downs Incorporated, this means constant, strategic capital investment (capital expenditure) to elevate the guest experience, even as they manage a massive, diversified portfolio.

Here's the quick math: The company's Live and Historical Racing segment revenue for Q2 2025 was $540.9 million, a significant driver of the total net revenue. This isn't accidental; it's a direct return on their investment in the experience. They know a better experience means higher wagering and attendance.

• Completed the Starting Gate Pavilion and Courtyard Project for the 151st Kentucky Derby in May 2025. This was a targeted renovation to enhance premium access.
• The 151st Derby saw an all-time record all-sources handle for the race and the day's program. Plus, average viewership was 17.7 million, up 6% year-over-year.
• They are planning to invest $280 million to $300 million to build a new structure called Victory Run, continuing the focus on premium spaces.

A superior customer experience always drives the top line. It's defintely a core value.

Strategic Growth and Disciplined Capital Allocation

As a financial analyst, this is the value I watch closest. It translates directly into shareholder returns. Churchill Downs Incorporated is a trend-aware realist; they map near-term risks (like pausing some capital projects earlier in 2025 due to economic uncertainty) but remain committed to long-term, high-return growth.

The company's actions in 2025 show a clear focus on expanding their high-margin Historical Racing Machine (HRM) and gaming footprint. They are not just growing; they are growing where the returns are strongest. They are disciplined with capital, returning $53.5 million to shareholders through share repurchases in Q3 2025 alone.

• Acquired 90% of Casino Salem in New Hampshire for $180 million in August 2025, immediately starting operations at a temporary mini-casino.
• Expanded their Virginia HRM portfolio by adding 450 incremental machines at Rosie's Richmond and opening the Roseshire Gaming Parlor with 175 HRMs in Q3 2025.
• Opened Owensboro Racing & Gaming, their seventh Kentucky HRM venue, in February 2025.

The total capital expenditure forecast for 2025 was between $350 million and $400 million, a clear commitment to future growth.

Community and Social Responsibility

Integrity and community commitment are essential for a company whose business is so heavily regulated and tied to local communities. You can't operate a gaming business without an ironclad reputation for fair play and transparency. The company's commitment to environmental, social, and governance (ESG) principles is the modern expression of this value.

Their community support is concrete, not abstract. They support over 800 community nonprofits annually, which is a significant commitment to their operating regions. This kind of local commitment is crucial for maintaining the social license to operate their gaming and racing venues, especially as they expand into new markets like New Hampshire and continue to build out their HRM venues in Kentucky and Virginia.

• Maintaining a net bank leverage of 4.1x at the end of Q3 2025, showing a responsible approach to their balance sheet and financial health.
• The long-standing commitment to the Kentucky Derby, which brings over $400 million to the local Louisville economy each year, is the ultimate example of their economic responsibility.

This commitment to being a good corporate citizen is a strategic necessity, not just a nice-to-have, and it underpins the long-term sustainability of their diversified business model.