DraftKings Earnings Call Transcripts
Fiscal Year 2026
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Prediction markets are positioned as a major growth driver, leveraging core strengths, data, and national reach through a super app and media partnerships. Financial discipline guides investment, with a focus on expanding high-margin products and engaging new markets as regulatory clarity improves.
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The virtual AGM confirmed quorum, introduced the board, and presented three proposals, all of which passed with over 90% approval. No shareholder questions were received, and final results will be filed with the SEC.
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Q1 revenue grew 17% year-over-year to over $1.6 billion, with adjusted EBITDA up 64% to $168 million. Fiscal 2026 guidance is reaffirmed, with $200–$300 million planned for predictions investment and strong core profitability. Customer acquisition costs for predictions dropped over 80% in April.
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Prediction markets are increasingly used for fast, market-driven insights in finance, politics, and sports, supplementing traditional research and sentiment indicators. Regulatory oversight and innovation are shaping the industry, with integrity and adaptability as ongoing priorities.
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DraftKings is launching a unified Super App to integrate Sportsbook, Predictions, Casino, and Lottery, leveraging AI and proprietary technology for rapid innovation and efficiency. The company targets a $55B–$80B TAM by 2030, expects 30%+ Adjusted EBITDA margins, and continues to lead in customer satisfaction, responsible gaming, and efficient customer acquisition.
Fiscal Year 2025
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Q4 and FY25 set new records for revenue and Adjusted EBITDA, with positive net income achieved for the first time. Guidance for FY26 is conservative, excluding predictions revenue, but investments in new verticals and markets are expected to drive future growth.
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Q3 revenue grew 4% year-over-year to $1.14B, but Adjusted EBITDA was -$127M due to unfavorable sports outcomes. FY25 guidance was revised down, but strong customer engagement, new marketing deals, and the upcoming launch of DraftKings Predictions support long-term optimism.
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The event highlighted a strategic shift toward optimizing structural hold and promo efficiency, leveraging AI for cost control, and focusing on product innovation in parlays and live betting. Prediction markets are seen as a selective opportunity, while iGaming and cross-sell strategies are being refined for growth.
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Record Q2 revenue and adjusted EBITDA driven by strong sportsbook and iGaming growth, with guidance maintained near the high end for 2025. Live betting and product innovation remain key growth drivers, while higher taxes and new state launches are factored into outlook.
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The meeting covered five proposals, including board elections and a shareholder request for board matrix disclosure. Proposals 1–4 passed with over 95% support, while the board matrix disclosure proposal was rejected with less than 4%.
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Q1 2025 saw 20% revenue growth and strong handle, but customer-friendly sports outcomes led to revised FY2025 guidance. Live betting and product enhancements drove market share gains, while digital ad efficiency and share repurchases supported financial strength.
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Revenue and EBITDA growth are ahead of schedule, driven by strong customer acquisition, improved hold rates, and product innovation in live betting and iGaming. Regulatory and tax environments remain stable, with selective M&A and capital structure moves supporting future growth.
Fiscal Year 2024
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Revenue grew 30% to $4.8B in 2024, with positive free cash flow and a 42% increase in customers. 2025 revenue guidance was raised to $6.3–$6.6B, driven by live betting and digital lottery growth, while adjusted EBITDA is expected to reach up to $1B.
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U.S. OSB market shows strong engagement and is expected to outpace the U.K., with top operators consolidating share. Product innovation, especially in live and in-game betting, and efficient marketing are key growth drivers. Taxation and legislative changes remain critical for future expansion.
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Q3 delivered 39% revenue growth and improved margins, despite short-term NFL headwinds. Fiscal 2025 guidance calls for 27–35% revenue growth and $900M–$1B in adjusted EBITDA, with strong customer acquisition and product innovation supporting long-term momentum.
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NFL season is driving major customer acquisition and product launches, including BetVision and live betting enhancements. Strategic focus on iGaming, brand expansion, and selective M&A supports growth, while tax and legislative risks are managed through multiple levers and industry collaboration.
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Q2 2024 saw 26% revenue growth and strong customer acquisition, with CAC down over 40% year-over-year. FY2024 revenue guidance was raised, while Adjusted EBITDA guidance was revised due to tax changes and Jackpocket integration. A $1B share repurchase was authorized.