DraftKings

DKNG Q3 2025 Earnings

Reported Nov 7, 2025 at 6:35 AM ET · SEC Source

Q3 25 EPS

$-0.26

MISS 1.84%

Est. $-0.26

Q3 25 Revenue

$1.14B

MISS 4.81%

Est. $1.20B

vs S&P Since Q3 25

-26.2%

TRAILING MARKET

DKNG -18.8% vs S&P +7.4%

Market Reaction

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 bi… Read more 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 sentiment around the stock 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
24/7 Wall St

DKNG YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

24/7 Wall St

DKNG Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q3 25

“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.”

— Jason Robins, Q3 2025 Earnings Press Release