DraftKings Receives Buy Rating from Shaun Kelley Amid Strong Financial Performance and Growth PotentialWe raise our Q2 revenue estimate to $1.50B, +6% vs. the Street’s $1.41B and EBITDA to $290M, +24% ahead of the Street’s $233M. Bottom line: With a beat expected, investor focus is shifting to 2026. Recall, at their 2023 analyst day, DKNG laid out a target of $1.4B in EBITDA in 2026, in line with current Street estimates. We have a more conservative view and model $1.26B in 2026 EBITDA to reflect (1) ~$30M tax headwinds from NJ, MD, and LA in 1H; (2) ~$40-50M of launch costs in (3) more modest gross margin expansion to allow for additional tax headwinds in 2H26. We reiterate our Buy rating. Now including additional tax pressures in our model DKNG has historically targeted 100-200bps annual gross margin expansion.