DraftKings Inc. Reports First Quarter 2025 Financial Results with 20% Revenue Increase

DraftKings reports Q1 2025 revenue of $1.41 billion, a 20% increase, amid strong customer engagement and adjusted guidance.

Quiver AI Summary

DraftKings Inc. announced its first quarter 2025 financial results, reporting a revenue of $1.41 billion, a 20% increase from the previous year. This growth was attributed to strong customer engagement, efficient acquisition strategies, and a higher Sportsbook hold percentage, despite setbacks from favorable sports outcomes for customers. Average monthly unique paying customers rose by 28%, and the company indicated healthy metrics across its Sportsbook and iGaming products. However, DraftKings revised its fiscal year 2025 revenue and Adjusted EBITDA guidance downwards due to these sports outcomes, forecasting revenue between $6.2 billion to $6.4 billion. The company also highlighted its expansion in mobile sports betting, currently active in 25 states and Washington, D.C., and plans to launch in Missouri pending necessary approvals. The earnings presentation and further details are available on their investor relations website.

Potential Positives

• DraftKings reported a 20% increase in revenue for the first quarter of 2025, amounting to $1,409 million, driven by healthy customer engagement and efficient customer acquisition.
• The average number of unique monthly payers rose to 4.3 million, representing a 28% increase compared to the same quarter last year, indicating strong customer retention and engagement.
• DraftKings has revised its fiscal year 2025 revenue guidance to between $6.2 billion and $6.4 billion, which still reflects significant year-over-year growth of approximately 32%.
• The company has a healthy balance sheet, with $1.1 billion in cash and cash equivalents, and completed a stock repurchase of 3.7 million shares in the first quarter, signaling confidence in its stock value.

Potential Negatives

• DraftKings revised its fiscal year 2025 revenue guidance downward, now expecting $6.2 billion to $6.4 billion compared to the previous guidance of $6.3 billion to $6.6 billion.
• The company also decreased its fiscal year 2025 Adjusted EBITDA guidance from $900 million to $1.0 billion down to $800 million to $900 million.
• The average revenue per monthly unique payer (ARPMUP) decreased by 5% compared to the previous year, primarily due to the impact of Jackpocket customers having lower ARPMUP than existing DraftKings customers.

FAQ

What were DraftKings' Q1 2025 revenue results?

DraftKings reported revenue of $1,409 million for Q1 2025, a 20% increase from $1,175 million in Q1 2024.

How did customer engagement impact DraftKings' revenue?

Continued healthy customer engagement and efficient acquisition of new customers significantly drove the increase in revenue for DraftKings.

What is DraftKings' fiscal year 2025 revenue guidance?

DraftKings revised its FY 2025 revenue guidance to $6.2 billion to $6.4 billion, marking a decrease from previous estimates.

How many states does DraftKings operate in for mobile sports betting?

DraftKings is live with mobile sports betting in 25 states and Washington, D.C., covering approximately 49% of the U.S. population.

When will DraftKings hold its next investor conference call?

DraftKings will host a conference call on May 9, 2025, from 8:30 a.m. to 9:15 a.m. ET to discuss Q1 results.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$DKNG Insider Trading Activity

$DKNG insiders have traded $DKNG stock on the open market 44 times in the past 6 months. Of those trades, 0 have been purchases and 44 have been sales.

Here’s a breakdown of recent trading of $DKNG stock by insiders over the last 6 months:

• PAUL LIBERMAN (See Remarks) has made 0 purchases and 12 sales selling 1,942,945 shares for an estimated $78,731,760.
• MATTHEW KALISH (See Remarks) has made 0 purchases and 11 sales selling 1,007,585 shares for an estimated $45,271,234.
• JASON ROBINS (See Remarks) has made 0 purchases and 5 sales selling 869,802 shares for an estimated $37,419,009.
• R STANTON DODGE (Chief Legal Officer) has made 0 purchases and 11 sales selling 604,077 shares for an estimated $25,048,515.
• ALAN WAYNE ELLINGSON (Chief Financial Officer) has made 0 purchases and 4 sales selling 164,542 shares for an estimated $6,984,333.
• JOCELYN MOORE sold 3,420 shares for an estimated $143,640

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$DKNG Hedge Fund Activity

We have seen 382 institutional investors add shares of $DKNG stock to their portfolio, and 396 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• JANUS HENDERSON GROUP PLC added 9,352,019 shares (+31346.8%) to their portfolio in Q4 2024, for an estimated $347,895,106
• FMR LLC added 7,150,382 shares (+110.6%) to their portfolio in Q4 2024, for an estimated $265,994,210
• FRED ALGER MANAGEMENT, LLC removed 2,860,154 shares (-61.6%) from their portfolio in Q4 2024, for an estimated $106,397,728
• POINT72 ASSET MANAGEMENT, L.P. added 2,372,661 shares (+79.4%) to their portfolio in Q4 2024, for an estimated $88,262,989
• CITADEL ADVISORS LLC added 2,198,447 shares (+32.4%) to their portfolio in Q4 2024, for an estimated $81,782,228
• ALYESKA INVESTMENT GROUP, L.P. removed 2,189,303 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $81,442,071
• MACQUARIE GROUP LTD removed 2,146,186 shares (-41.0%) from their portfolio in Q4 2024, for an estimated $79,838,119

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

$DKNG Analyst Ratings

Wall Street analysts have issued reports on $DKNG in the last several months. We have seen 8 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

• BMO Capital issued a "Outperform" rating on 04/24/2025
• Cowen & Co. issued a "Buy" rating on 04/24/2025
• Jefferies issued a "Buy" rating on 04/13/2025
• Citigroup issued a "Outperform" rating on 04/02/2025
• Needham issued a "Buy" rating on 02/18/2025
• BTIG issued a "Buy" rating on 02/03/2025
• CBRE issued a "Buy" rating on 01/29/2025

To track analyst ratings and price targets for $DKNG, check out Quiver Quantitative's $DKNG forecast page.

$DKNG Price Targets

Multiple analysts have issued price targets for $DKNG recently. We have seen 10 analysts offer price targets for $DKNG in the last 6 months, with a median target of $59.0.

Here are some recent targets:

• An analyst from Mizuho Securities set a target price of $59.0 on 04/28/2025
• An analyst from Northland Securities set a target price of $50.0 on 04/25/2025
• Brian Pitz from BMO Capital set a target price of $65.0 on 04/24/2025
• An analyst from Stifel Nicolaus set a target price of $53.0 on 04/22/2025
• David Katz from Jefferies set a target price of $60.0 on 04/13/2025
• Jordan Bender from JMP Securities set a target price of $57.0 on 04/02/2025
• An analyst from Needham set a target price of $65.0 on 02/18/2025

Full Release

BOSTON, May 08, 2025 (GLOBE NEWSWIRE) -- DraftKings Inc. (Nasdaq: DKNG) (“DraftKings” or the “Company”) today announced its first quarter 2025 financial results. The Company also posted a letter to shareholders and an earnings presentation on the Investor Relations section of its website at investors.draftkings.com.

First Quarter 2025 Highlights




For the three months ended March 31, 2025, DraftKings reported revenue of $1,409 million, an increase of $234 million, or 20%, compared to $1,175 million during the same period in 2024. The increase in the Company’s first quarter 2025 revenue was driven primarily by continued healthy customer engagement, efficient acquisition of new customers, higher structural Sportsbook hold percentage, and the impact of the acquisition of Jackpocket Inc. (“Jackpocket”), which closed on May 22, 2024, partially offset by customer-friendly sport outcomes.

“Recent product enhancements are driving outperformance in our core value drivers, and our customer metrics continue to be strong through an evolving macroeconomic environment,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder. “If not for customer-friendly sport outcomes in March, we would be raising our fiscal year 2025 revenue and Adjusted EBITDA guidance.”

“We have a healthy balance sheet and repurchased 3.7 million shares in the first quarter under our existing stock repurchase program,” said Alan Ellingson, DraftKings’ Chief Financial Officer.

Continued Healthy Growth in Customer Retention, Acquisition, and Engagement

• 
  Monthly Unique Payers (“MUPs”) increased to 4.3 million average monthly unique paying customers in the first quarter of 2025, representing an increase of 28% compared to the first quarter of 2024.   This increase reflects strong unique payer retention and acquisition across DraftKings’ Sportsbook and iGaming product offerings and the impact of the acquisition of Jackpocket.   Excluding the impact of the acquisition of Jackpocket, MUPs increased by approximately 11% compared to the first quarter of 2024.
  
  
  


• 
  Average Revenue per MUP (“ARPMUP”) was $108 in the first quarter of 2025, representing a 5% decrease compared to the same period in 2024.   The decrease was primarily due to lower ARPMUP for Jackpocket customers, when compared to customers of DraftKings’ existing product offerings prior to the acquisition.   Excluding the impact of the acquisition of Jackpocket, ARPMUP increased approximately 7% compared to the first quarter of 2024.
  
  
  


• 
  Detailed financial data and other operational information for the first quarter of 2025 is available in the financial statements set forth below under the caption “Financial and Operational Results.”
  
  
  

Fiscal Year 2025 Guidance

• 
  DraftKings is revising its fiscal year 2025 revenue guidance to $6.2 billion to $6.4 billion, a decrease from our previous guidance of $6.3 billion to $6.6 billion announced on February 13, 2025. Our fiscal year 2025 revenue guidance equates to approximately 32% year-over-year growth based on the Company’s fiscal year 2024 revenue and the midpoint of the Company’s fiscal year 2025 revenue guidance range.
  
  
  


• 
  DraftKings is revising its fiscal year 2025 Adjusted EBITDA guidance to $800 million to $900 million, compared to our previous guidance of $900 million to $1.0 billion announced on February 13, 2025.
  
  
  


• 
  The Company’s guidance for fiscal year 2025 includes all of its existing jurisdictions and does not include the impact of mobile sports betting launching in Missouri.
  
  
  

Mobile Sports Betting and iGaming Footprint

• 
  DraftKings is live with mobile sports betting in 25 states and Washington, D.C., which collectively represent approximately 49% of the U.S. population.
  
  
  


• 
  DraftKings is also live with iGaming in 5 states, representing approximately 11% of the U.S. population.
  
  
  


• 
  DraftKings is live with its Sportsbook and iGaming products in Ontario, Canada, which represents approximately 40% of Canada’s population.
  
  
  


• 
  On November 5, 2024, Missouri voters passed a ballot initiative that legalized sports betting in the state.   DraftKings expects to launch its Sportsbook product in Missouri pending market access, licensure, regulatory approvals, and contractual approvals where applicable.
  
  
  

Webcast and Conference Call Details



As previously announced, DraftKings will host a conference call and audio webcast tomorrow, Friday, May 9, 2025, from 8:30 a.m. to 9:15 a.m. ET, during which management will discuss the Company’s results and provide commentary on business performance.   A question-and-answer session will follow the prepared remarks.

To listen to the audio webcast and live question and answer session, please visit DraftKings’ investor relations website at investors.draftkings.com.   A live audio webcast of theearnings conference callwill be available on the Company’s website at investors.draftkings.com, along with a copy of this press release, the Company’s Quarterly Report on Form 10-Q, an earnings presentation, and a letter to shareholders.   The audio webcast will be available on the Company’s investor relations website until 11:59 p.m. ET on June 30, 2025.

Financial and Operational Results



DraftKings’ first quarter 2025 financial results, as well as the financial results for the respective comparative period, and certain operational results are presented below:

Non-GAAP Financial Measures

This press release includes Adjusted EBITDA and Adjusted Earnings (Loss) Per Share, which are non-GAAP financial measures that DraftKings uses to supplement its results presented in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes Adjusted EBITDA and Adjusted Earnings (Loss) Per Share are useful in evaluating its operating performance, similar to measures reported by its publicly-listed U.S. competitors, and regularly used by security analysts, institutional investors and other interested parties in analyzing operating performance and prospects. Adjusted EBITDA and Adjusted Earnings (Loss) Per Share are not intended to be substitutes for any GAAP financial measures, and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.

DraftKings defines and calculates Adjusted EBITDA as net income (loss) before the impact of interest income or expense (net), income tax provision or benefit, and depreciation and amortization, and further adjusted for the following items: stock-based compensation; transaction-related costs; litigation, settlement and related costs; advocacy and other related legal expenses; gain or loss on remeasurement of warrant liabilities; and other non-recurring and non-operating costs or income, as described in the reconciliation below.

DraftKings defines and calculates Adjusted Earnings (Loss) Per Share as basic earnings (loss) per share attributable to common stockholders before the impact of amortization of acquired intangible assets; stock-based compensation; transaction-related costs; litigation, settlement and related costs; advocacy and other related legal expenses; gain or loss on remeasurement of warrant liabilities; and other non-recurring and non-operating costs or income, as described in the reconciliation below.

DraftKings includes these non-GAAP financial measures because they are used by management to evaluate the Company’s core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments. Adjusted EBITDA and Adjusted Earnings (Loss) Per Share exclude certain expenses that are required in accordance with GAAP because they are non-recurring items (for example, in the case of transaction-related costs and advocacy and other related legal expenses), non-cash expenditures (for example, in the case of amortization of acquired intangible assets, depreciation and amortization, remeasurement of warrant liabilities and stock-based compensation), or non-operating items which are not related to the Company’s underlying business performance (for example, in the case of interest income and expense and litigation, settlement and related costs).

The unaudited table below presents the Company’s Adjusted EBITDA reconciled to its net income (loss), which is the most directly comparable financial measure calculated in accordance with GAAP, for the periods indicated:

______________________________

The unaudited table below presents the Company’s Adjusted Earnings (Loss) Per Share reconciled to its basic earnings (loss) per share attributable to common stockholders, which is the most directly comparable financial measure calculated in accordance with GAAP, for the periods indicated:

_____________

*   Weighted average number of shares used to calculate Adjusted Earnings (Loss) Per Share for the three months ended March 31, 2025 and 2024 was 493.3 million and 474.2 million, respectively; totals may not add due to rounding.

Information reconciling forward-looking fiscal year 2025 Adjusted EBITDA guidance to its most directly comparable GAAP financial measure, net income (loss), is unavailable to DraftKings without unreasonable effort due to, among other things, certain items required for such reconciliations being outside of DraftKings’ control and/or not being able to be reasonably predicted. Preparation of such reconciliations would require a forward-looking balance sheet, statement of income, and statement of cash flow, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to the Company without unreasonable effort. DraftKings provides a range for its Adjusted EBITDA forecast that it believes will be achieved; however, the Company cannot provide any assurance that it can predict all of the components of the Adjusted EBITDA calculation. DraftKings provides a forecast for Adjusted EBITDA because it believes that Adjusted EBITDA, when viewed with DraftKings’ results calculated in accordance with GAAP, provides useful information for the reasons noted above. However, Adjusted EBITDA is not a measure of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to net income (loss) or cash flow from operating activities or as an indicator of operating performance or liquidity.

About DraftKings

DraftKings Inc. is a digital sports entertainment and gaming company created to be the Ultimate Host and fuel the competitive spirit of sports fans with products that range across daily fantasy, regulated gaming, and digital media. Headquartered in Boston and launched in 2012 by Jason Robins, Matt Kalish and Paul Liberman, DraftKings is the only U.S.-based vertically integrated sports betting operator. DraftKings’ mission is to make life more exciting by responsibly creating the world’s favorite real-money games and betting experiences. DraftKings Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 28 states, Washington, D.C., and in Ontario, Canada. The Company operates iGaming pursuant to regulations in five states and in Ontario, Canada under its DraftKings brand and pursuant to regulations in four states under its Golden Nugget Online Gaming brand. DraftKings also owns Jackpocket, the leading digital lottery courier app in the United States. DraftKings’ daily fantasy sports product is available in 44 states, the District of Columbia, and certain Canadian provinces. DraftKings is both an official sports betting and daily fantasy partner of the NFL, NHL, PGA TOUR, WNBA and UFC, as well as an official daily fantasy partner of NASCAR, an official sports betting partner of the NBA and an authorized gaming operator of MLB. In addition, DraftKings owns and operates DraftKings Network a multi-platform content ecosystem. DraftKings is committed to being a responsible steward of this new era in real-money gaming by developing and promoting educational information and tools to help all players enjoy our games responsibly.





Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including statements about the Company and its industry that involve substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release, including statements regarding guidance, DraftKings’ future results of operations or financial condition, strategic plans and focus, user growth and engagement, product initiatives, and the objectives and expectations of management for future operations (including launches in new jurisdictions and the expected timing thereof), are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “confident,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “forecast,” “going to,” “intend,” “may,” “plan,” “poised,” “potential,” “predict,” “project,” “propose,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. DraftKings cautions you that the foregoing may not include all of the forward-looking statements made in this press release.

You should not rely on forward-looking statements as predictions of future events. DraftKings has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends, including the current macroeconomic environment, that it believes may affect its business, financial condition, results of operations, and prospects. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside DraftKings’ control and that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include, but are not limited to, DraftKings’ ability to manage growth; DraftKings’ ability to execute its business plan and meet its projections; potential litigation involving DraftKings; changes in applicable laws or regulations, particularly with respect to gaming; general economic and market conditions impacting demand for DraftKings’ products and services; economic and market conditions in the media, entertainment, gaming, and software industries in the markets in which DraftKings operates; market and global conditions and economic factors, as well as the potential impact of general economic conditions, and the potential impact of new and existing laws, regulations, or policies, including those relating to tariffs, import/export, or trade restrictions, inflation, rising interest rates and instability in the banking system, on DraftKings’ liquidity, operations and personnel, as well as the risks, uncertainties, and other factors described in “Risk Factors” in DraftKings’ filings with the Securities and Exchange Commission (the “SEC”), which are available on the SEC’s website at www.sec.gov. Additional information will be made available in other filings that DraftKings makes from time to time with the SEC. The forward-looking statements contained herein are based on management’s current expectations and beliefs and speak only as of the date hereof, and DraftKings makes no commitment to update or publicly release any revisions to forward-looking statements in order to reflect new information or subsequent events, circumstances or changes in expectations, except as required by law.

Contacts

Media:

Media@draftkings.com

@DraftKingsNews

Investors:

Investors@draftkings.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.