0001883685-25-000029
SEC filingRevenue grew 36.9% YoY to $1.51B driven by Sportsbook and iGaming expansion, with net income of $157.9M.
For the three months ended June 30, 2025, DraftKings reported total revenue of $1,512.5 million, a 36.9% increase from $1,104.4 million in the prior-year period. The growth was primarily driven by Sportsbook and iGaming offerings, which together contributed $390.1 million of the revenue increase. Monthly Unique Payers (MUPs) grew 6.5%, while Average Revenue per MUP (ARPMUP) increased 29.1%, fueled by structural improvements in Sportsbook hold percentage, sportsbook-friendly outcomes, and enhanced promotional reinvestment. Gross profit rose to $657.9 million (43.5% margin vs. 39.9% prior year) as cost of revenue grew slower than revenue, reflecting lower gaming taxes and payment processing fees as a percentage of revenue. Operating income swung to $150.6 million from a loss of $32.4 million, and net income reached $157.9 million compared to $63.8 million. Diluted earnings per share were $0.30 versus $0.10. Adjusted EBITDA more than doubled to $300.6 million, with margin expanding from 11.6% to 19.9%.
Segment performance highlights the strength of Sportsbook and iGaming. Sportsbook revenue surged 45.3% to $997.9 million, underpinned by a 6.3% increase in handle to $11.5 billion and a 2.3 percentage point expansion in net revenue margin to 8.7%. iGaming revenue grew 22.6% to $429.7 million, driven by MUP expansion across the product. Other revenue increased 26.8% to $85.0 million, primarily due to the inclusion of Jackpocket since its acquisition in May 2024. The revenue mix shifted toward higher-margin Sportsbook and iGaming, though cost of revenue as a percentage of sales improved due to structural hold gains.
Management's discussion focuses on strategic priorities: continued investment in product offerings, expansion into new jurisdictions, improving jurisdiction-level unit economics, and product diversification. The company expects to achieve profitability on a consolidated Adjusted EBITDA basis when total contribution profit exceeds fixed costs, aided by a growing addressable market and scalable technology. Although no specific numerical guidance is provided, the MD&A emphasizes accelerating positive contribution profit growth through efficient customer acquisition, higher retention, and cost discipline. The company maintains a strong liquidity position with $1.26 billion in cash and cash equivalents, and it highlighted the $600 million Term B Facility and revolver availability to support operations and growth initiatives.