Case for Investing
Iconic Asset - Kentucky Derby
Industry-Leading, Diversified Businesses
Highly Profitable Financial Profile with Disciplined Capital Management
Clearly Defined Pathway for Growth
Proven Management Team
Case for Investing
Iconic Asset - Kentucky Derby
One of kind & irreplaceable asset
The longest continually held annual sporting event in the U.S.
Most prestigious event in racing surrounded by a week-long celebration of fashion, entertainment, and horse racing
Setting all-time record-breaking viewership and social media impressions
Focused on growing a premier international sporting & entertainment event
Premium entertainment experiences
Sponsorship & licensing
Broadcast rights
Wagering
Strategic capital investment
Provides high margin growth & significant free cash flow
Realizing benefit of increased consumer focus on live sporting events and luxury entertainment experiences
Harvesting the value created by recent capital investments
Strategically investing for long-term value creation
Case for Investing
Industry-Leading, Diversified Businesses
Beyond the Kentucky Derby, we have a diverse collection of entertainment assets that generate high margins with significant Adjusted EBITDA & Free Cash Flow
Historical Racing Machines ("HRMs")
Kentucky: Seven entertainment venues with ~5,130 HRMs and one new HRM venue under construction
Virginia: Eight entertainment venues with ~4,875 HRMs
New Hampshire: Casino Salem & Chasers Poker Room with HRM and table game expansion in planning and design
Wagering Services & Solutions
One of the largest and most profitable U.S. online wagering platforms for horse racing
Expanding pari-mutuel content and technology services to B2C sports betting platforms
Exacta provides HRM technology in our Virginia & Kentucky venues and to third parties in the U.S. and globally
Regional Gaming
Ten wholly-owned gaming properties and underlying real estate in nine states
~14,360 slot machines and video lottery terminals and ~360 table games
Two equity investments in best-in-class gaming properties1
1. Miami Valley Gaming, 50% owned Ohio joint venture, and Rivers Casino Des Plaines, 61% owned Illinois joint venture.
With High Free Cash Flow Conversion & Free Cash Flow Yield
Free cash flow includes maintenance capital spend and excludes project capital spend.
Free cash flow yield is calculated using a closing stock price of $106.19 as of November 24, 2025.
Case for Investing
Disciplined Capital Management
Investments focused on creating long-term shareholder value
Organic investments to expand offerings in high growth areas with returns above cost of capital
Strategic acquisitions
Annual dividends with 15 years of consecutive increase in dividend per share
Opportunistic share repurchases dependent upon free cash flow generation, leverage levels, and other investment opportunities to grow the business
Maintain broad and expedient access to the capital markets
Ideal target is 3.0x-4.0x bank covenant net leverage - willing to go higher for a strategic investment
4.1x bank covenant net leverage as of September 30, 2025 - expect to be below 4.0x in 2026
Significant balance sheet flexibility
Demonstrated ability to access debt markets with attractive rates / terms
Case for Investing
Disciplined Capital Management
Our capital investments have provided strong returns and long-term shareholder value
Property1
Initial Year of
Investment
Cumulative Investment ($ millions)2
Projected Unlevered IRR
Derby City Gaming (HRM)
2018
$154
> 65%
Newport Racing & Gaming (HRM)
2020
$36
> 30%
Oak Grove (HRM)
2020
$196
> 30%
Turfway Park (HRM)
2022
$179
Mid-teens
Homestretch Club at CDRT
2022
$37
> 30%
First Turn at CDRT
2023
$87
> 20%
Properties with greater than 2 years of actual performance included using an unlevered DCF analysis.
Investment represents capital spend and acquisition costs.
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Disclaimer
CDI - Churchill Downs Incorporated published this content on December 02, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on December 02, 2025 at 12:39 UTC.
Churchill Downs Incorporated is a racing, online wagering and gaming entertainment company, which is anchored by its flagship event, the Kentucky Derby. The Company owns and operates 14 live and historical racing entertainment venues in three states and nine casino gaming properties in eight states and 13 retail sportsbooks. It also operates an online horse racing wagering platform in the United States. Its segments include Live and Historical Racing, TwinSpires, and Gaming. Live and Historical Racing segment includes live and historical pari-mutuel racing at Churchill Downs Racetrack and its historical racing properties in Kentucky, Virginia and New Hampshire. The TwinSpires segment includes the TwinSpires Horse Racing, the TwinSpires Sports and Casino and the United Tote businesses. It also provides technology to support historical horse racing operations in Kentucky, Wyoming and New Hampshire. Gaming segment is engaged in the casino properties and associated racetrack facilities.
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
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Global
Global
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Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
