DraftKings

DKNG Q1 2025 Earnings

Reported May 9, 2025 at 6:52 AM ET · SEC Source

Q1 25 EPS

$0.12

MISS 2.44%

Est. $0.12

Q1 25 Revenue

$1.41B

MISS 1.23%

Est. $1.43B

vs S&P Since Q1 25

-63.6%

TRAILING MARKET

DKNG -35.9% vs S&P +27.7%

Market Reaction

Did DKNG Beat Earnings? Q1 2025 Results

DraftKings delivered a mixed first quarter for 2025, falling just short of Wall Street's expectations as investors had been watching closely for signs of momentum in the competitive online gaming space. The company posted revenue of $1.41 billion, up… Read more DraftKings delivered a mixed first quarter for 2025, falling just short of Wall Street's expectations as investors had been watching closely 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
24/7 Wall St

DKNG YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

DKNG Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q3 25

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

— Jason Robins, Q1 2025 Earnings Press Release