olivlawolivlaw

olivLaw · US equity research

DraftKings Inc. DKNG

Services-Miscellaneous Amusement & Recreation · SIC 7990 · Vertical: Services-Miscellaneous Amusement & Recreation (SIC 7990)

23.11USD+5.38% · 1 dayClose 04 Nov 2026

DraftKings is a digital sports entertainment and gaming company offering sports betting, online casino, daily fantasy sports and, since December 2025, prediction markets. It matters now because its second quarter 2026 revenue declined while it maintained its 2026 guidance and pushes into prediction markets. Its 2025 revenue reached 6054.5 million USD.

At the close of 04 Nov 2026, DraftKings Inc. (DKNG) stock was 23.11 USD (+5.38% on the day), with beta 1.08, 52-week range 18.59–36.24 USD. Latest reported quarter (Q2 2026): revenue of 1.4 bn USD (−4.6% YoY), net income of -67.6 m USD (−142.8% YoY), diluted EPS -0.14 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
unavailable
P/E (TTM)
unavailable
Diluted EPS TTM -0.36 · TTM to 30 Jun 2026
E/P (TTM)
-1.54%
TTM to 30 Jun 2026
Dividend yield
unavailable
Beta (2y)
1.08
Volatility (1y) 53%
52-week range
18.5936.24

Price history

Loading chart…

Technical reading

RSI (14)
65.9
strong (55–70)
Bollinger (20, 2)
18.40 – 22.54
above the upper band · %B 1.14 · band width 20.2%
SMA 50 / 200
21.65 / 24.08
mixed trend
MACD (12, 26, 9)
0.23 / -0.16
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+17.9%−1.1%+19.0 pp—
3 months+6.2%−0.5%+6.7 pp—
6 months−3.4%+4.4%−7.8 pp—
Year to date−32.9%+12.3%−45.3 pp—
1 year−19.2%+13.5%−32.8 pp−31.8%
3 years−31.5%+76.4%−107.9 pp−25.8%
5 years−47.0%+63.7%−110.7 pp—
Max drawdown (1y)
−48.7%
05 Jan 2026 → 02 Oct 2026
Max drawdown (5y)
−77.1%
08 Nov 2021 → 11 May 2022
Compound annual growth (5y)
−11.9%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2026 · 30 Jun 2026

Revenue
1.4 bn USD
−4.6% YoY
Net income
-67.6 m USD
−142.8% YoY
Diluted EPS
-0.14
−146.7% YoY
net / operating
-4.7% / -4.7%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Revenue1.1 bn1.4 bn1.4 bn1.5 bn1.1 bn2.0 bn1.6 bn1.4 bn
Cost of revenue742.4 m834.6 m843.8 m854.6 m784.1 m1.1 bn949.4 m891.8 m
Operating income-298.6 m-139.2 m-46.3 m150.6 m-271.9 m151.8 m5.8 m-68.2 m
Depreciation & amortisation90.0 m ≈66.1 m70.1 m65.3 m ≈66.1 m ≈74.0 m71.7 m80.3 m ≈
Interest expense872.0 k760.0 k5.1 m11.6 m————
Pre-tax income-294.9 m-145.5 m-39.4 m169.9 m-270.5 m147.0 m22.9 m-71.9 m
Income tax-1.3 m-11.1 m-5.6 m11.8 m-12.1 m10.1 m6.4 m-1.8 m
Net income-293.7 m-134.9 m-33.9 m157.9 m-256.8 m136.4 m21.1 m-67.6 m
Diluted EPS-0.60-0.28 ≈-0.070.30-0.520.27 ≈0.03-0.14
Operating cash flow133.6 m ≈325.2 m-119.0 m173.9 m ≈287.5 m ≈320.5 m-48.4 m111.4 m ≈
Capex2.7 m ≈2.0 m2.6 m4.3 m ≈4.4 m ≈4.0 m7.1 m4.6 m ≈
Share repurchases0 ≈48.1 m142.3 m100.5 m ≈71.2 m ≈257.6 m98.6 m55.6 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year20202021⚠ 2022202320242025
Revenue614.5 m1.3 bn2.2 bn3.7 bn4.8 bn6.1 bn
Revenue YoYunavailable+110.9%—+63.6%+30.1%+27.0%
Net income-1.2 bn-1.5 bn-1.4 bn-802.1 m-507.3 m3.7 m
Net income YoYunavailableunavailable—unavailableunavailableunavailable
Diluted EPS-4.03-3.78-3.16-1.73-1.05-0.01
Diluted EPS YoYunavailableunavailable—unavailableunavailableunavailable
net %-200.5%-117.5%-61.5%-21.9%-10.6%0.1%
Free cash flow-205.9 m-435.4 m-657.9 m-22.7 m407.6 m647.5 m

The series breaks before 2022: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.

Reported results vs expectations

Loading…

Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
1.1 bn USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
631.5 m USD
Total assets
4.5 bn USD
Debt / equity
unavailable
Current ratio
1.03x
ROE
0.5%
ROA
0.1%
FCF margin
10.7%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
3.7 bn
2024
4.8 bn
2025
6.1 bn

SEC (XBRL)· 13 Feb 2026verified

Cost of revenue
2023
2.3 bn
2024
3.0 bn
2025
3.6 bn

SEC (XBRL)· 13 Feb 2026verified

Gross profit
2023
1.4 bn ≈
2024
1.8 bn ≈
2025
2.5 bn ≈

SEC (XBRL)· 13 Feb 2026derived

Operating income
2023
-789.2 m
2024
-609.0 m
2025
-15.8 m

SEC (XBRL)· 13 Feb 2026verified

Depreciation & amortisation
2023
201.9 m
2024
270.9 m
2025
275.5 m

SEC (XBRL)· 13 Feb 2026verified

EBITDA
2023
-587.3 m ≈
2024
-338.1 m ≈
2025
259.7 m ≈

SEC (XBRL)· 13 Feb 2026derived

Interest expense
2023
2.7 m
2024
3.0 m
2025
—

SEC (XBRL)· 14 Feb 2025verified

Pre-tax income
2023
-791.3 m
2024
-593.2 m
2025
7.0 m

SEC (XBRL)· 13 Feb 2026verified

Income tax
2023
10.2 m
2024
-86.3 m
2025
4.3 m

SEC (XBRL)· 13 Feb 2026verified

Net income
2023
-802.1 m
2024
-507.3 m
2025
3.7 m

SEC (XBRL)· 13 Feb 2026verified

Diluted EPS
2023
-1.73
2024
-1.05
2025
-0.01

SEC (XBRL)· 13 Feb 2026verified

Weighted average diluted shares
2023
462.6 m
2024
482.0 m
2025
495.9 m

SEC (XBRL)· 13 Feb 2026verified

Balance sheet · USD

Cash
2023
1.3 bn
2024
788.3 m
2025
1.1 bn

SEC (XBRL)· 13 Feb 2026verified

Receivables
2023
47.5 m
2024
57.8 m
2025
105.6 m

SEC (XBRL)· 13 Feb 2026verified

Current assets
2023
2.1 bn
2024
1.5 bn
2025
1.8 bn

SEC (XBRL)· 13 Feb 2026verified

Property, plant & equipment, net
2023
60.7 m
2024
50.6 m
2025
51.1 m

SEC (XBRL)· 13 Feb 2026verified

Goodwill
2023
886.4 m
2024
1.6 bn
2025
1.6 bn

SEC (XBRL)· 13 Feb 2026verified

Intangibles (excl. goodwill)
2023
690.6 m
2024
933.1 m
2025
889.2 m

SEC (XBRL)· 13 Feb 2026verified

Total assets
2023
3.9 bn
2024
4.3 bn
2025
4.5 bn

SEC (XBRL)· 13 Feb 2026verified

Accounts payable
2023
34.1 m
2024
53.7 m
2025
67.9 m

SEC (XBRL)· 13 Feb 2026verified

Current liabilities
2023
1.5 bn
2024
1.7 bn
2025
1.8 bn

SEC (XBRL)· 13 Feb 2026verified

Total liabilities
2023
3.1 bn
2024
3.3 bn
2025
3.9 bn

SEC (XBRL)· 13 Feb 2026verified

Equity
2023
840.3 m †
2024
1.0 bn †
2025
631.5 m †

SEC (XBRL)· 13 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
-1.8 m
2024
417.8 m
2025
662.9 m

SEC (XBRL)· 13 Feb 2026verified

Capex
2023
20.9 m
2024
10.2 m
2025
15.4 m

SEC (XBRL)· 13 Feb 2026verified

Free cash flow
2023
-22.7 m ≈
2024
407.6 m ≈
2025
647.5 m ≈

SEC (XBRL)· 13 Feb 2026derived

Investing cash flow
2023
-90.4 m
2024
-566.6 m
2025
-166.0 m

SEC (XBRL)· 13 Feb 2026verified

Financing cash flow
2023
-63.2 m
2024
-144.5 m
2025
-222.5 m

SEC (XBRL)· 13 Feb 2026verified

Share repurchases
2023
0
2024
48.1 m
2025
571.5 m

SEC (XBRL)· 13 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
27.0%
computed by olivLawFY 2025
Revenue CAGR 3Y
39.3%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
58.0%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
unavailable
the base of the ratio is not positive
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
58.9%
computed by olivLawFY 2025

Profitability

Gross margin
40.5%
computed by olivLawTTM to 30 Jun 2026
EBITDA margin
1.8%
computed by olivLawTTM to 30 Jun 2026
EBIT margin
-2.9%
computed by olivLawTTM to 30 Jun 2026
Net margin
-2.7%
computed by olivLawTTM to 30 Jun 2026
FCF margin
10.5%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
-21.1%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROA
-3.8%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
unavailable
input data missing
ROCE
-6.7%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
-9.9x
computed by olivLawTTM to 30 Jun 2026

Liquidity

Current ratio
1.0x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
unavailable
input data missing
Cash ratio
0.6x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
671.0 m USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
20.1 m USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
650.9 m USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
unavailable
insufficient data
Cash conversion
612.1%
computed by olivLawTTM to 30 Jun 2026

Efficiency

Days sales outstanding
4 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
61 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
unavailable
input data missing
Enterprise value
unavailable
input data missing
Market cap / net income TTM
unavailable
input data missing
P/E (TTM)
unavailable
insufficient data
Earnings yield
-1.5%
computed by olivLawTTM to 30 Jun 2026
P/B
unavailable
input data missing
P/S
unavailable
input data missing
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
unavailable
input data missing
FCF yield
unavailable
input data missing
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
unavailable
input data missing

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • indicators available: 4 of at least 6
  • score weight coverage: 25.0% of at least 60%
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

23.11 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: unavailable

Key indicators

Market capitalisation
unavailable
input data missing
P/E (TTM)
unavailable
insufficient data
P/B
unavailable
input data missing
EV/EBITDA
unavailable
input data missing
ROE
-21.1%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Net margin
-2.7%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
27.0%
computed by olivLawFY 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

29/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Source: SEC (XBRL)published 07 Aug 2026
verified 722derived 65

Score by group

25% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/Eunavailable · the base of the ratio is not positive
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption

no valuation method could be computed

Multiple comparisons use the SIC vertical: Services-Miscellaneous Amusement & Recreation (SIC 7990)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: indicators available: 4 of at least 6; score weight coverage: 25.0% of at least 60%; valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality-2.7%47 (vs peers)25%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth39.3%100 (on a fixed band)33%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet-9.9x0 (on a fixed band)25%
Current ratio · Balance sheet1.0x18 (on a fixed band)17%
P/E (TTM) · Valuationunavailableunavailable—
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuationunavailableunavailable—
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet7/100 · 2/3 factors with a value
  • Growth· partial100/100 · 1/2 factors with a value
  • Quality· partial47/100 · 1/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation· partialunavailable · 0/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

DRAFTKINGS INC. (DKNG). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: revenue 6.1 bn USD in 2025; YoY growth 27.0%; net margin -2.7%; ROE -21.1%.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (indicators available: 4 of at least 6; score weight coverage: 25.0% of at least 60%; valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Revenue CAGR 3Y: 39.3%

What contradicts it

  • Interest coverage: -9.9x
  • Current ratio: 1.0x

Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Services-Miscellaneous Amusement & Recreation (SIC 7990) · same industry (4-digit SIC) · compared with 20 companies

Multiples and returns vs the median

P/E
—
vertical median 33.6x
EV/EBITDA
—
vertical median 10.4x
P/S
—
vertical median 1.7x
P/B
—
vertical median 2.0x
ROE
-21.1%
vertical median -11.2%
below median
Net margin
-2.7%
vertical median 0.7%
below median (−498.9%)
EBIT margin
-2.9%
vertical median 2.3%
below median (−225.1%)
Revenue YoY
27.0%
vertical median 4.7%
above median (+470.5%)
Net debt/EBITDA
—
vertical median 3.5x
Dividend yield
—
vertical median 2.2%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
DISWalt Disney Co205.4 bn24.57.8%8.7%+3.4%+14% / +28%
MTNVail Resorts, Inc.5.7 bn39.144.4%5.2%−4.3%+15% / −26%
RSIRush Street Interactive, Inc.2.5 bn40.923.0%2.6%+22.8%−33% / +193%
BRSLBrightstar Lottery PLC1.9 bn13.711.6%5.9%−0.0%−35% / −62%
PRKSUnited Parks & Resorts Inc.1.6 bn13.5—8.1%−3.6%−5% / −30%
PRSUPursuit Attractions and Hospitality, Inc.1.5 bn33.67.7%9.6%+23.4%+65% / +70%
NIPGNIP Group Inc.471.7 m—-15.9%-14.9%+1.9%−91% / unavailable
SEGSeaport Entertainment Group Inc.301.9 m—-22.6%-91.4%+18.3%+10% / unavailable
GENIGenius Sports Limited70.1 m—-17.2%-16.7%+31.0%−30% / +26%
SEATVivid Seats Inc.32.0 m0.02,000.9%278.1%−30.5%−63% / −98%
GRSDGrandstand Limited29.8 m—-28.5%-19.9%+30.1%−85% / −91%
FCHLFitness Champs Holdings Limited12.0 m—-349.1%-32.9%+4.7%−100% / unavailable
FBYDFalcon’s Beyond Global, Inc.77—-100.8%-36.0%+120.8%−62% / −26%
MSGEMadison Square Garden Entertainment Corp.—38.7—8.6%+12.5%+59% / +160%
MSGSMsg Knickerbockers Corp.—983.9—0.7%+11.0%+38% / +86%
XPOFXponential Fitness, Inc.———-401.5%−20.7%−32% / −67%
CDROCodere Online Luxembourg, S.A.——17.3%1.9%+24.2%+25% / +173%
ENHAEnhanced Group Inc.——-1,903.4%—unavailableunavailable / unavailable
STUBStubhub Holdings, Inc.——-145.8%-91.3%−1.4%−44% / unavailable
GDHGGolden Heaven Group Holdings Ltd.——-6.5%-56.2%−31.5%−75% / −100%
DKNGDraftkings Inc.——-21.1%-2.7%+27.0%−19% / −32%

1- and 3-year price returns: for DKNG from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Scenarios are not available. input data missing

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

DraftKings is a digital sports entertainment and gaming company offering sports betting, online casino, daily fantasy sports and, since December 2025, prediction markets 13. It matters now because its second quarter 2026 revenue declined while it maintained its 2026 guidance and pushes into prediction markets 23. Its 2025 revenue reached 6054.5 million USD 1.

SWOT

Strengths

  • The company has a large user base and a recognized brand supported by league and media partnerships 1.
  • Shared account and wallet technology lets users move between products 1.
  • The company reported positive adjusted EBITDA for fiscal 2025 1.

Weaknesses

  • Revenue is sensitive to sports outcomes, which can cause sharp margin swings 3.
  • Net income was negative in the second quarter of 2026 while marketing costs rose 23.
  • Operations depend on a relatively small number of states with legal iGaming 3.

Opportunities

  • Prediction markets could become a new revenue source if adoption continues 13.
  • Legalization of iGaming in other states could substantially expand the user base 1.
  • Expansion in Canada could add revenue from new provinces 3.

Threats

  • Regulation and taxes could change profitability in any jurisdiction 1.
  • Competition and industry consolidation could reduce market share 1.
  • Cybersecurity incidents could damage reputation and operations 1.

Risks

  • Sports outcomeshigh

    Results of sporting events are not controlled by the company and can strongly affect quarterly revenue 13.

  • Regulation and licensinghigh

    Regulatory changes or delays in obtaining licenses could limit expansion into new jurisdictions 1.

  • Taxationmedium

    Changes in tax law or interpretation could create significant additional obligations 1.

  • Information securitymedium

    Cyberattacks or system errors could compromise user data and trust in the products 1.

  • Dependence on third-party platformslow

    Restrictions by app stores could limit user acquisition through those channels 1.

Investment thesis

What would need to be true (bull case)

  • The company grew paying users and maintained its 2026 revenue guidance, suggesting a stable customer base 23.
  • The Predictions launch and nationwide Super App could diversify revenue sources in coming quarters 3.
  • Shared technology and scalable products could lower the marginal cost of entering new states 1.

What would break the thesis

  • Revenue declined in the second quarter of 2026 and the Sports margin shrank, which could signal margin pressure 3.
  • Marketing and promotional costs are rising, and net income was negative in the second quarter of 2026 23.
  • Reliance on regulation and on legalization in new states makes future revenue hard to predict 1.

What to watch

  • Delivery against 2026 revenue guidance of 6.5 to 6.9 billion USD and adjusted EBITDA guidance2026
  • Trend in MUPs and revenue per user in prediction marketsQ3 2026
  • New iGaming launches in additional states2027
  • Changes in marketing spend and the Sports marginnext 10-K

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

DraftKings provides users with online and retail sports betting, online casino, daily fantasy sports, digital lottery courier and prediction markets through apps and websites 1. Revenue comes mainly from Sportsbook and iGaming, which accounted for 93% of revenue in fiscal 2025 1. The company says it aims to create replicable state-level unit economics and expand its offerings into new jurisdictions 1.

The company says its profitability depends in part on the share of the U.S. adult population with access to its products, and a common account and wallet link its DraftKings-branded offerings 1. This could make it easier for users to move between products 1.

Distribution runs mainly through the Apple App Store, Google Play and websites, and neither Apple nor Google takes a revenue share for distribution 1. Media relationships with ESPN, NBC and Amazon support brand visibility 1.

Segments

Sportsbook

Sportsbook is the largest revenue line, with Sportsbook revenue of 3827.1 million USD in fiscal 2025 and a Net Revenue Margin of 7.1% 1. In the second quarter of 2026 the Sports margin fell to 6.8%, which the company tied to customer-friendly outcomes and promotional reinvestment 3.

iGaming

Online casino generated 1804.6 million USD in fiscal 2025 1. Quarterly iGaming revenue rose from 429.7 million USD to 461.9 million USD in the second quarter of 2026 23.

Market context

The core market is the United States, where the company is live in mobile sports betting in 27 states covering about 53% of the population and in iGaming in 5 states covering about 11% 3. It is also live in provinces representing about 51% of the Canadian population 3.

Growth depends on legalization of real-money gaming in new jurisdictions, and the company warns legalization could be slower than expected or come with taxes and restrictions 1. Prediction markets are a new category overseen by the CFTC, which adds uncertainty 1.

Trends

  • Legalization in new statestailwind

    Expansion of legal gaming into new jurisdictions could support user and revenue growth if licensing progresses 13.

  • Prediction marketsmixed

    The launch of Predictions in December 2025, growing faster than the company anticipated, could open a new revenue category but requires marketing investment 13.

  • Sports outcome volatilityheadwind

    Customer-friendly sports outcomes reduced margins in the second quarter of 2026, showing revenue can swing from quarter to quarter 3.

  • Regulatory and tax pressureheadwind

    Changes in regulation and tax rules, including new interpretations by tax authorities, could reduce profitability in some jurisdictions 1.

Competitive position

The company competes with other forms of entertainment for users' time and income, such as television and sporting events, and with many well-financed online gaming providers 1. Consolidation in the industry could produce larger competitors with more financial resources 1.

Competition in prediction markets is intense and new entrants are appearing, which could affect share in the Predictions category 13.

  • Established online gaming providers named generically in the filing

    The source does not name individual competitors, so no ticker is given.

  • Publicly listed U.S. online gaming companies

    The company refers to publicly listed U.S. competitors without naming them in the supplied text.

  • Traditional entertainment providers

    Television, movies and in-person casinos are cited as alternatives for users' time.

  • New entrants in prediction markets

    The source flags new competitors entering prediction markets, without naming them.

News & filings

In the press

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / DraftKings Inc. · 13 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / DraftKings Inc. · 07 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / DraftKings Inc. · 07 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.