The earnings call highlighted strong growth in revenue and operational efficiency, as well as a healthy balance sheet and significant progress in live betting. However, customer-friendly outcomes impacted revenue and EBITDA negatively, leading to a downward revision in fiscal year guidance. Challenges in specific markets also contributed to the headwinds.

Company Guidance -

Q2 2025

During DraftKings' first quarter 2025 earnings call, the company shared several key metrics and updated guidance. Revenue grew by 20% year-over-year to $1.409 billion, and adjusted EBITDA reached $103 million. The sports book handle increased by 15% to $13.9 billion, with a structural sports book hold percentage of 10.4%, up 50 basis points from the previous year. However, customer-friendly sports outcomes, particularly in March, led to a lower actual hold percentage of 9.5%. Despite this, DraftKings maintained a strong balance sheet with $1.1 billion in cash. For fiscal year 2025, the company revised its revenue guidance to between $6.2 billion and $6.4 billion and adjusted EBITDA to between $800 million and $900 million. The company also anticipates a sports book net revenue margin of 7% to 7.5% and expects free cash flow to reach approximately $750 million.

Strong Revenue Growth

DraftKings generated $1.409 billion of revenue in Q1 2025, representing 20% year-over-year growth.

Increased Sports Book Handle

Sports book handle increased 15% year-over-year to $13.9 billion, consistent with expectations.

Operational Efficiency

Promotional reinvestments were more efficient year-over-year, and adjusted gross margin increased more than 100 basis points to 45%.

Healthy Balance Sheet

DraftKings completed Q1 with $1.1 billion in cash after repurchasing 3.7 million shares.

Live Betting Growth

Live betting accounted for greater than 50% of total handle for the first time, indicating strong growth in this area.

DraftKings (DKNG) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

DKNG Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 06, 2025	2025 (Q2)	0.15 / -	0.12	―	―	―
May 08, 2025	2025 (Q1)	-0.08 / -0.07	-0.3	76.67% (+0.23)
Feb 13, 2025	2024 (Q4)	-0.17 / -0.28	-0.1	-180.00% (-0.18)
Nov 07, 2024	2024 (Q3)	-0.41 / -0.60	-0.61	1.64% (+0.01)
Aug 02, 2024	2024 (Q2)	>-0.01 / 0.12	-0.17	170.59% (+0.29)
May 02, 2024	2024 (Q1)	-0.29 / -0.30	-0.87	65.52% (+0.57)
Feb 15, 2024	2023 (Q4)	0.08 / -0.10	-0.53	81.13% (+0.43)
Nov 02, 2023	2023 (Q3)	-0.69 / -0.61	-1	39.00% (+0.39)
Aug 03, 2023	2023 (Q2)	-0.24 / -0.17	-0.489	65.24% (+0.32)
May 04, 2023	2023 (Q1)	-0.88 / -0.87	-1.074	18.99% (+0.20)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

DKNG Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 08, 2025	$35.35	$36.23	+2.49%
Feb 13, 2025	$46.45	$53.49	+15.16%
Nov 07, 2024	$38.98	$40.13	+2.95%
Aug 02, 2024	$35.49	$32.02	-9.78%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.