DKNG · DraftKings Inc.

DraftKings delivered a strong Q1 2026 with revenue of $1.646 billion, up 17% from $1.409 billion in the prior year, primarily fueled by a 24% increase in Sportsbook revenue to $1.095 billion on a 1.5% handle rise to $14.1 billion and margin expansion to 7.8% from 6.4%. iGaming revenue grew 9% to $461 million, offsetting a 13% drop in Other revenue. This efficiency drove operating income to $5.8 million from a $46 million loss, net income of $21 million (diluted EPS $0.03), and Adjusted EBITDA of $168 million, up 64% YoY. CEO Jason Robins highlighted exceeding expectations, strong core business, and investments in Predictions via Super App and proprietary exchange for leadership by year-end. CFO Alan Ellingson noted scalable growth and reaffirmed FY2026 revenue guidance of $6.5-6.9 billion and Adjusted EBITDA $700-900 million. MUPs dipped 4% to 4.2 million due to Texas Lottery exit but rose 2% ex-Lottery, with ARPMUP surging 21% to $131 on Sportsbook margins. Balance sheet shows cash at $999 million (down from $1.13 billion), total debt steady at ~$1.84 billion, equity $605 million. Cash burn reflected $121 million financing outflows mainly from $99 million treasury stock purchases under repurchase program. Live in key markets: sports betting 53% U.S. population, iGaming 11%. Earnings call set for May 8, 2026.