DraftKings (DKNG) Announces Third Quarter 2025 Earnings Results

DraftKings Inc. (DKNG) today announced its financial results for the latest quarter, revealing a challenging performance amid a competitive landscape. The company reported a diluted earnings per share of -$0.52, missing analysts’ expectations by $0.09. Additionally, DraftKings faced a significant revenue shortfall, posting a loss of $19.57 million compared to an estimated revenue of $1.2 billion, marking a staggering difference of over $1.2 billion.

Key Highlights:

• DraftKings reported third quarter 2025 revenue of $1,144 million, a 4% increase from $1,095 million in Q3 2024.
• The revenue growth was attributed to strong customer engagement, efficient customer acquisition, and a higher Sportsbook hold percentage.
• Monthly Unique Payers (MUPs) rose to 3.6 million, reflecting a 2% increase year-over-year.
• Average Revenue per MUP (ARPMUP) increased to $106, a 3% rise compared to the previous year.
• DraftKings revised its fiscal year 2025 revenue guidance to $5.9 billion to $6.1 billion, indicating a year-over-year growth of 24% to 28%.
• The company plans to launch DraftKings Predictions in the coming months, which is seen as a significant growth opportunity.
• DraftKings is currently live with mobile sports betting in 25 states and Washington, D.C., covering approximately 49% of the U.S. population.

DraftKings Inc. reported its third quarter 2025 financial results, showcasing a revenue increase of 4% year-over-year, driven by robust customer engagement and efficient acquisition strategies. CEO Jason Robins expressed optimism about the company’s future, stating, “This is the most bullish I have ever felt about our future,” highlighting the acceleration of underlying business growth and the upcoming launch of DraftKings Predictions as a key opportunity. CFO Alan Ellingson noted the positive trajectory of Free Cash Flow and announced an increase in the share repurchase program from $1.0 billion to $2.0 billion.

The company also reported a rise in Monthly Unique Payers to 3.6 million and an increase in Average Revenue per MUP to $106. DraftKings has revised its fiscal year 2025 revenue guidance to a range of $5.9 billion to $6.1 billion, reflecting strong anticipated growth. With mobile sports betting operations in 25 states and plans for further expansion, DraftKings is well-positioned to capitalize on the growing market for digital sports entertainment and gaming.

DraftKings Inc. (DKNG) has experienced a tumultuous ride in the stock market, with a notable decline of 7.17% over the past week and a staggering 38.32% drop in the last three months. This downward trend reflects investor concerns, particularly given the company’s negative price-to-earnings ratio of -42, indicating that it is currently unprofitable. Despite a robust revenue growth rate of 34.25% over the past two years, the company’s net profit margin remains in the red at -7.11%, highlighting ongoing challenges in achieving profitability. Additionally, the return on invested capital is also negative at -16.48%, suggesting inefficiencies in how the company is utilizing its capital. As DraftKings continues to navigate these financial hurdles, the market’s reaction has been decidedly bearish, with a one-year price change of -26.85%. Investors will be keenly watching for any signs of improvement in profitability metrics and overall financial health in the coming quarters.

DraftKings Inc. operates a digital sports entertainment and gaming company. It offers multi-channel sports betting and gaming technologies, powering sports and gaming entertainment for operators in 17 countries. The company operates iGaming through its DraftKings brand in 5 states, as well as operates Golden Nugget Online Gaming, an iGaming product and gaming brand in 3 states. Its Sportsbook is live with mobile and/or retail betting operations in the United States pursuant to regulations in 18 states. The company’s daily fantasy sports product is available in 6 countries internationally with 15 distinct sports categories. In addition, it offers DraftKings Marketplace, a digital collectibles ecosystem designed for mainstream accessibility that offers curated NFT drops and supports secondary-market transactions, as well as owns Vegas Sports Information Network (VSiN), a multi-platform broadcast and content company. DraftKings Inc. was founded in 2011 and is headquartered in Boston, Massachusetts.