Companies /Consumer Cyclical

DraftKings Inc - Class A

NASDAQ: DKNG Gambling
$23.75
▲ $0.04 (+0.17%) today
Markets open · 10:17am ET

Q1 2025 Earnings

Reported May 9, 2025, 6:52am ET · SEC source
$0.12
Miss −2.44%
EPS · est. $0.12
$1.4B
Miss −1.23%
Revenue · est. $1.4B
−2.0%
Trailing market
DKNG vs S&P since report
1 quarter
Consecutive EPS misses

Market Reaction

% change · around the report
0+2%+4%May 9May 9report 6:52am ETearnings−0.3%+0.6%
0+2%+4%May 9May 9earnings−0.3%+0.6%
DKNG +0.6%S&P 500 −0.3%
0+2%+4%May 9May 9report 6:52am ETearnings−0.5%+0.6%
0+2%+4%May 9May 9earnings−0.5%+0.6%
DKNG +0.6%NASDAQ −0.5%
−3%0+3%+6%May 8May 16report 6:52am ETearnings+3.8%−0.6%
−3%0+3%+6%May 8May 16earnings+3.8%−0.6%
DKNG −0.6%S&P 500 +3.8%
−3%0+3%+6%May 8May 16report 6:52am ETearnings+5.0%−0.6%
−3%0+3%+6%May 8May 16earnings+5.0%−0.6%
DKNG −0.6%NASDAQ +5.0%
+2.49%
Day of report
+4.69%
Next session
+1.85%
One week
+4.55%
30 days

S&P 500 over the same 30 days: +6.56%.

Did DKNG Beat Earnings? Q1 2025 Results

DraftKings delivered a mixed first quarter for 2025, falling just short of Wall Street's expectations as <a href="https://247wallst.com/investing/2025/05/08/draftkings-nasdaq-dkng-earnings-live-will-this-be-a-blockbuster-quarter/">investors had been watching closely</a> for signs of momentum in the competitive online gaming space. The company posted revenue of $1.41 billion, up 19.9% year-over-year but shy of the $1.43 billion consensus by 1.23%, while adjusted EPS of $0.12 missed the $0.12 estimate by 2.44%. The single biggest drag on the quarter was customer-friendly sport outcomes in March, which weighed on sportsbook margins even as structural hold improvements and the Jackpocket acquisition added meaningful lift; Sportsbook net revenue margin still edged up to 6.4% from 6.1% a year ago. On the bright side, adjusted EBITDA surged to $102.63 million from $22.39 million in the prior-year period, and monthly unique payers grew 28% to 4.3 million. The March headwinds also prompted DraftKings to trim its full-year 2025 revenue guidance to $6.20 billion to $6.40 billion and reduce adjusted EBITDA guidance to $800 million to $900 million, though CEO Jason Robins noted the company would have raised its outlook absent those unfavorable outcomes.

Key Takeaways
  • Continued healthy customer engagement
  • Efficient acquisition of new customers
  • Higher structural Sportsbook hold percentage (6.4% vs 6.1% YoY)
  • Jackpocket acquisition contribution
  • Monthly Unique Payers increased 28% YoY to 4.3 million
  • ARPMUP increased approximately 7% excluding Jackpocket

“Recent product enhancements are driving outperformance in our core value drivers, and our customer metrics continue to be strong through an evolving macroeconomic environment.”

DraftKings CEO, on the earnings call

Forward Guidance & Outlook

DraftKings revised its fiscal year 2025 revenue guidance downward to $6.2 billion to $6.4 billion (from $6.3 billion to $6.6 billion), representing approximately 32% year-over-year growth at the midpoint. Adjusted EBITDA guidance was also reduced to $800 million to $900 million (from $900 million to $1.0 billion). The revised guidance reflects customer-friendly sport outcomes in March. Guidance includes all existing jurisdictions but does not include the potential impact of mobile sports betting launching in Missouri. The company expects to launch its Sportsbook in Missouri pending market access, licensure, and regulatory approvals.

DKNG YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$500.0M$1.0B$1.5B$1.2B$1.4BRevenue$464.9M$565.0MGross Profit$-27,804,717$-46,331,000Operating Income$-19,213,617$-33,864,000Net Income
$0$500.0M$1.0B$1.5BRevenueGross ProfitOperating IncomeNet Income

DKNG Revenue by Segment

Sportsbook$882.0M+20.1%
iGaming$423.5M+14.5%
Other Revenue$103.4M+45.7%

Figures from SEC filings and company reports. Not investment advice.