Companies /Consumer Cyclical

DraftKings Inc - Class A

NASDAQ: DKNG Gambling
$24.32
▲ $0.61 (+2.55%) today
Markets open · 2:15pm ET

Q3 2025 Earnings

Reported Nov 7, 2025, 6:35am ET · SEC source
$-0.26
Miss −1.84%
EPS · est. $-0.26
$1.1B
Miss −4.81%
Revenue · est. $1.2B
+13.1%
Beating market
DKNG vs S&P since report
1 quarter
Consecutive EPS misses

Market Reaction

% change · around the report
0+6%+12%+18%Nov 7Nov 7report 6:35am ETearnings+0.7%+18.5%
0+6%+12%+18%Nov 7Nov 7earnings+0.7%+18.5%
DKNG +18.5%S&P 500 +0.7%
0+6%+12%+18%Nov 7Nov 7report 6:35am ETearnings+0.6%+18.5%
0+6%+12%+18%Nov 7Nov 7earnings+0.6%+18.5%
DKNG +18.5%NASDAQ +0.6%
0+8%+16%+24%Nov 6Nov 14report 6:35am ETearnings+0.6%+16.7%
0+8%+16%+24%Nov 6Nov 14earnings+0.6%+16.7%
DKNG +16.7%S&P 500 +0.6%
0+8%+16%+24%Nov 6Nov 14report 6:35am ETearnings+0.2%+16.7%
0+8%+16%+24%Nov 6Nov 14earnings+0.2%+16.7%
DKNG +16.7%NASDAQ +0.2%
+0.46%
Day of report
−0.15%
Next session
−5.63%
One week
+14.24%
30 days

S&P 500 over the same 30 days: +1.13%.

Did DKNG Beat Earnings? Q3 2025 Results

DraftKings delivered a disappointing third quarter, missing on both the top and bottom lines as unfavorable sporting outcomes weighed heavily on results. Revenue came in at $1.14 billion, up 4.4% year-over-year but falling 4.81% short of the $1.20 billion consensus, while adjusted EPS of -$0.26 missed the -$0.26 estimate by 1.84%. The culprit was clear: Sportsbook revenue tumbled 9.3% to $596.12 million as net revenue margin compressed to 5.2% from 6.3%, even as handle climbed 10% to $11.40 billion, a dynamic that has kept <a href="https://247wallst.com/investing/2025/10/29/retail-investors-flip-bearish-as-draftkings-tumbles-toward-52-week-lows/">sentiment around the stock</a> cautious heading into the print. iGaming offered a meaningful offset, with that segment rising 24.9% to $451.30 million. Looking ahead, management revised full-year revenue guidance to $5.90 billion to $6.10 billion and Adjusted EBITDA to $450 million to $550 million, pointing to the pending DraftKings Predictions launch and a Missouri market entry as incremental growth drivers, even as near-term margin pressure from sport outcome volatility remains a watch item.

Key Takeaways
  • Continued healthy customer engagement and efficient new customer acquisition
  • Higher structural Sportsbook hold percentage
  • Strong iGaming revenue growth of 24.9% YoY
  • Sportsbook Handle increased 10% YoY to $11.4 billion in Q3
  • Customer-friendly sport outcomes negatively impacted Sportsbook revenue
  • Parlay handle mix continuing to increase

“This is the most bullish I have ever felt about our future. Underlying growth in the business is accelerating and we are excited to launch DraftKings Predictions in the coming months, which we view as a significant incremental opportunity.”

DraftKings CEO, on the earnings call

Forward Guidance & Outlook

DraftKings revised its FY2025 revenue guidance to $5.9 billion to $6.1 billion, representing 24% to 28% year-over-year growth. The company revised FY2025 Adjusted EBITDA guidance to $450 million to $550 million. Guidance includes anticipated financial impacts from launching mobile sports betting in Missouri later in the year and the expected launch of DraftKings Predictions pending licensure. In October, Sportsbook Handle increased 17% year-over-year, indicating continued strong momentum.

DKNG YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$400.0M$800.0M$1.2B$1.1B$1.1BRevenue$353.1M$359.9MGross Profit$-249,577,749$-271,890,000Operating Income$-228,134,328$-256,788,000Net Income
$0$400.0M$800.0M$1.2BRevenueGross ProfitOperating IncomeNet Income

DKNG Revenue by Segment

Sportsbook$596.1M−9.3%
iGaming$451.3M+24.9%
Other Revenue$96.6M+25.3%

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