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DraftKings Inc.

DKNG

DraftKings Inc. • NASDAQ
$33.16 ▲ 2.98% (+0.96)
Market Cap $16.50 B
52w High $53.61
52w Low $26.23
Dividend Yield 0%
P/E -61.41
Volume 5.53M
Outstanding Shares 497.68M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $1.144B ▼ $1.087B ▲ $-256.788M ▼ -22.446% ▼ $0 ▼ $-159.079M ▼
Q2-2025 $1.513B ▲ $507.304M ▼ $157.936M ▲ 10.442% ▲ $0.32 ▲ $246.856M ▲
Q1-2025 $1.409B ▲ $611.334M ▼ $-33.864M ▲ -2.404% ▲ $-0.069 ▲ $35.791M ▲
Q4-2024 $1.393B ▲ $697.307M ▲ $-134.851M ▲ -9.682% ▲ $-0.28 ▲ $-78.676M ▲
Q3-2024 $1.095B $651.65M $-293.688M -26.809% $-0.6 $-204.041M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $1.228B ▼ $4.624B ▲ $3.892B ▲ $732.286M ▼
Q2-2025 $1.262B ▲ $4.474B ▼ $3.465B ▼ $1.01B ▲
Q1-2025 $1.12B ▲ $4.516B ▲ $3.643B ▲ $872.915M ▼
Q4-2024 $788.287M ▼ $4.284B ▲ $3.273B ▲ $1.011B ▼
Q3-2024 $877.822M $4.273B $3.197B $1.076B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-256.788M ▼ $287.477M ▲ $-41.831M ▼ $-101.413M ▲ $144.233M ▲ $247.917M ▲
Q2-2025 $157.936M ▲ $173.921M ▲ $-35.259M ▲ $-119.689M ▼ $18.973M ▼ $169.605M ▲
Q1-2025 $-33.864M ▲ $-119.016M ▼ $-39.019M ▲ $372.823M ▲ $214.788M ▲ $-121.663M ▼
Q4-2024 $-134.851M ▲ $325.189M ▲ $-78.417M ▼ $-73.094M ▼ $173.678M ▲ $323.161M ▲
Q3-2024 $-293.688M $133.584M $-31.65M $-18.903M $83.031M $101.77M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Product and Service Other
Product and Service Other
 $320.00M ▲$100.00M ▼$80.00M ▼$100.00M ▲

Five-Year Company Overview

Income Statement

Income Statement DraftKings’ income statement shows a business that has grown very quickly while steadily moving toward profitability but not there yet. Revenue has climbed several times over in the last five years, showing strong demand for its sportsbook and gaming products. The company still reports losses, but those losses have clearly shrunk from their peak a few years ago as scale improves and marketing is more disciplined. Gross profit has expanded nicely, meaning the core business is becoming more profitable before overhead and marketing. However, operating and net income remain negative, so the path is improving but still carries execution risk and sensitivity to promotions, taxes, and marketing intensity.

Balance Sheet

Balance Sheet The balance sheet looks reasonably solid but shaped by years of investment and ongoing losses. Total assets have stayed fairly stable, suggesting the company is no longer in a heavy build-out phase. Cash levels remain meaningful but have come down from earlier highs, so there is less of a cushion than at the start of its rapid growth period. Debt increased sharply earlier in the period and has since held roughly steady, which introduces interest costs and some financial risk but is not extreme relative to the company’s scale. Shareholders’ equity had been eroding as losses accumulated but ticked back up recently, reflecting improving results and a business that is starting to grow into its capital structure.

Cash Flow

Cash Flow Cash flow has improved materially and is now a key bright spot. DraftKings used to burn cash from its operations, but that trend has shifted toward break-even and then into positive territory, which is a meaningful milestone for a high-growth consumer business. Free cash flow has followed the same pattern, moving from consistent outflows to modest positive generation, helped by relatively light capital spending needs. This means the company is becoming less dependent on outside funding to support its growth, though the margin of safety is still not large if conditions turn. Overall, the cash flow story is one of a business transitioning from “spend to capture market share” toward a more self-sustaining model.

Competitive Edge

Competitive Edge DraftKings holds a strong position in U.S. online sports betting and iGaming, supported by a well-known brand, early-mover advantage, and national marketing presence. Its deep relationships with major sports leagues and teams give it credibility, data access, and prime placement that smaller rivals struggle to match. The company benefits from network effects in daily fantasy sports and a large, engaged user base it can cross-sell into sportsbook, casino, and new offerings. At the same time, competition is intense from other large operators, promotional battles can be costly, and regulatory and tax environments differ by state and can shift over time. Overall, the company appears to have a meaningful but not unassailable edge, with scale and technology as key strengths but continued pressure from rivals and regulators as ongoing challenges.

Innovation and R&D

Innovation and R&D Innovation is a core part of DraftKings’ strategy and an important pillar of its moat. By bringing its technology platform in-house through acquisitions, the company gained more control over product design, speed of feature launches, and how it uses data and artificial intelligence. It has leaned into live betting, personalized offers, and a polished mobile experience, all of which tend to deepen engagement and raise the bar for competitors. The company is also experimenting beyond traditional sports betting with products like digital collectibles, lottery integration, and upcoming prediction markets, which could diversify revenue sources and increase user stickiness. The main watchpoint is whether these new bets can scale profitably and whether DraftKings can keep innovating faster than both established peers and new entrants.

Summary

DraftKings’ recent financials tell the story of a company that has moved from land-grab mode toward a more balanced focus on growth and profitability. Revenue and gross profit have climbed strongly, while losses and cash burn have narrowed, signaling improving economics but not yet a fully mature earnings profile. The balance sheet carries moderate debt and less cash than in the past, but improving cash flow reduces near-term funding pressure. Competitively, DraftKings benefits from brand, partnerships, scale, and a strong app, yet still operates in a highly competitive, heavily regulated, and promotion-sensitive industry. Its emphasis on technology, data, and new product categories offers continued upside potential, but results will depend on disciplined execution, regulatory developments, and how the broader online gaming market evolves.

NEWS

November 25, 2025 · 8:00 AM UTC

DraftKings Launches Spanish-Language Experience for its Online Sportsbook and Casino

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November 24, 2025 · 7:00 AM UTC

DraftKings Set to Launch Mobile Sports Wagering in Missouri on December 1

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November 18, 2025 · 12:00 PM UTC

DraftKings CEO and Co-Founder Jason Robins Named the 2025 American Gambling Awards C-Suite Executive of the Year

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November 6, 2025 · 4:15 PM UTC

DraftKings Reports Third Quarter 2025 Results

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October 28, 2025 · 4:15 PM UTC

DraftKings Appoints Gregory W. Wendt to Board of Directors

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