DraftKings Inc. (NASDAQ:DKNG) Surpasses Q2 Expectations with 37% Revenue Growth and Record Earnings

DraftKings Inc. (NASDAQ:DKNG) Beats Q2 Estimates as Revenue Jumps 37%

DraftKings Inc. reported strong second-quarter earnings, surpassing analyst expectations on both revenue and earnings per share (EPS). The company posted revenue of $1.51 billion, a 37% year-over-year increase, beating the consensus estimate of $1.44 billion. Adjusted EPS came in at $0.38, well above the expected $0.15. The market reacted positively, with shares rising 2.3% in after-hours trading.

Key Financial Highlights vs. Estimates

• Revenue: $1.51B (actual) vs. $1.44B (estimated) – 4.9% beat
• EPS: $0.38 (actual) vs. $0.15 (estimated) – 153% beat
• Net Income: $158M (a record high for the company)
• Adjusted EBITDA: $301M (another company record)

The strong performance was driven by higher customer engagement, improved sportsbook hold rates, and efficient customer acquisition. Monthly Unique Payers (MUPs) grew 6% year-over-year to 3.3 million, while Average Revenue Per MUP (ARPMUP) surged 29% to $151.

Market Reaction & Price Action

The stock’s after-hours gain of 2.3% suggests investor optimism following the earnings beat. Over the past month, DraftKings shares have climbed nearly 6%, reflecting broader confidence in the company’s growth trajectory. The latest results reinforce the bullish sentiment, particularly as DraftKings continues to expand its market share in the U.S. sports betting and iGaming sectors.

Outlook vs. Analyst Expectations

DraftKings maintained its full-year 2025 revenue guidance of $6.2B to $6.4B, aligning closely with the analyst consensus of $6.41B. The company expects revenue to trend toward the higher end of its range, supported by favorable sportsbook outcomes and operational efficiency. Adjusted EBITDA guidance remains unchanged at $800M-$900M, with management anticipating results near the midpoint.

For Q3 2025, analysts project revenue of $1.42B and an EPS loss of $0.20. DraftKings did not provide explicit Q3 guidance, but the full-year outlook suggests continued momentum.

Key Takeaways from the Press Release

• Record financial performance in revenue, net income, and Adjusted EBITDA.
• Customer metrics improved, with higher retention and acquisition rates.
• Share buybacks of 6.5 million shares in the first half of 2025.
• Expansion plans include a pending launch in Missouri, pending regulatory approvals.
• Tax impacts from higher rates in New Jersey, Louisiana, and Illinois factored into guidance.

For a deeper dive into DraftKings' earnings and future estimates, visit the earnings estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.