Latest news with #DraftKings'
Yahoo
5 days ago
- Business
- Yahoo
DraftKings Secures Direct Mobile Sports Betting License to Operate in Missouri
BOSTON, Aug. 15, 2025 (GLOBE NEWSWIRE) -- DraftKings Inc. (Nasdaq: DKNG) announced today that the Missouri Gaming Commission has granted the company a direct mobile sports betting license. This direct mobile sports betting license will enable DraftKings to operate independently across the state of Missouri, without the need for affiliation with a land-based casino or professional sports team. DraftKings' online sportsbook would go live on the universal launch date currently expected for December 1, 2025, contingent on final regulatory approvals. 'We're pleased to secure one of two direct mobile licenses in Missouri — paving the way for us to bring DraftKings' industry-leading online sportsbook to fans across the state,' said Matt Kalish, President, DraftKings North America. 'Missouri is home to several professional teams and deeply passionate fanbases, and we look forward to enhancing their sports experience with a dynamic and responsible mobile platform.' Once live, Missouri will become the 29th U.S. state where DraftKings operates regulated sports betting. The company also offers regulated online sports betting in Washington D.C. and Ontario, Canada. DraftKings is dedicated to providing a fun gaming environment that all customers can enjoy responsibly in states where sports betting is legal. The company offers a suite of responsible gaming tools and resources. These include My Stat Sheet, which allows customers to monitor personalized gaming activity, and My Budget Builder, a tool that helps players set custom limits and reminders through a guided, easy-to-use experience. With a proven track record in regulated markets, DraftKings continues to expand access to innovative and responsible sports betting experiences across North America. As part of its commitment to the states in which the company operates, DraftKings is dedicated to supporting communities in times of need through its S.E.R.V.E.S. program. The program provides inclusive and responsible opportunities for people to build, create, imagine and innovate. Earlier this year, DraftKings made a charitable donation to the St. Louis Tornado Response Fund, part of the St. Louis Community Foundation, to aid recovery efforts following the devastating tornado that struck the Greater St. Louis area in May. More information about DraftKings is available at and fans can download the DraftKings mobile apps via iOS and Android here. About DraftKingsDraftKings Inc. is a digital sports entertainment and gaming company created to be the Ultimate Host and fuel the competitive spirit of sports fans with products that range across daily fantasy, regulated gaming and digital media. The company is headquartered in Boston and was launched in 2012 by Jason Robins, Matt Kalish and Paul Liberman. DraftKings' mission is to make life more exciting by responsibly creating the world's favorite real-money games and betting experiences. DraftKings Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 28 states, Washington, D.C. and in Ontario, Canada. The Company operates iGaming pursuant to regulations in five states and in Ontario, Canada under its DraftKings brand and pursuant to regulations in four states under its Golden Nugget Online Gaming brand. DraftKings also owns Jackpocket, the leading digital lottery courier app in the United States. DraftKings' daily fantasy sports product is available in 44 states, the District of Columbia and certain Canadian provinces. DraftKings is both an official sports betting and daily fantasy partner of the NFL, NHL, PGA TOUR, WNBA and UFC, as well as an official daily fantasy partner of NASCAR, an official sports betting partner of the NBA and an authorized gaming operator of MLB. In addition, DraftKings owns and operates DraftKings Network a multi-platform content ecosystem. DraftKings is committed to being a responsible steward of this new era in real-money gaming by developing and promoting educational information and tools to help all players enjoy our games responsibly. Forward-Looking StatementsCertain statements made in this press release are 'forward looking statements' within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. When used in this press release, the words 'estimates,' 'projected,' 'expects,' 'anticipates,' 'forecasts,' 'plans,' 'intends,' 'believes,' 'seeks,' 'may,' 'will,' 'would,' 'should,' 'future,' 'propose' and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside DraftKings' control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see DraftKings' filings with the Securities and Exchange Commission. DraftKings does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-08-2025
- Business
- Yahoo
DraftKings Reports Second Quarter Revenue Growth of 37% to $1,513 Million
Sets Company Records for Revenue, Net Income, and Adjusted EBITDA Maintains 2025 Revenue and Adjusted EBITDA Guidance Ranges BOSTON, Aug. 06, 2025 (GLOBE NEWSWIRE) -- DraftKings Inc. (Nasdaq: DKNG) ('DraftKings' or the 'Company') today announced its second quarter 2025 financial results. The Company also posted a second quarter 2025 business update and a slide presentation on the Investor Relations section of its website at Second Quarter 2025 HighlightsFor the three months ended June 30, 2025, DraftKings reported revenue of $1,513 million, an increase of $408 million, or 37%, compared to $1,104 million during the same period in 2024. The increase in the Company's second quarter 2025 revenue was driven primarily by continued healthy customer engagement, efficient acquisition of new customers, higher structural Sportsbook hold percentage, and sportsbook-friendly outcomes. Revenue of $1,513 million, net income of $158 million, and Adjusted EBITDA of $301 million in the second quarter set new records for the company. 'We set records for revenue, net income and Adjusted EBITDA in the second quarter, driven by an acceleration in revenue growth to 37% year-over-year,' said Jason Robins, DraftKings' Chief Executive Officer and Co-founder. 'We are pleased to be maintaining our fiscal year 2025 guidance, with revenue expected to be closer to the high end of our range, highlighting the strength of our platform as we prepare for an exciting new state launch.' 'We remain focused on investing in key growth initiatives across the organization to maximize shareholder returns over the long-term,' said Alan Ellingson, DraftKings' Chief Financial Officer. 'In addition to our investments, we repurchased 6.5 million shares through our stock repurchase program in the first two quarters of this year.' Continued Healthy Growth in Customer Retention, Acquisition, and Engagement Monthly Unique Payers ('MUPs') increased to 3.3 million average monthly unique paying customers in the second quarter of 2025, representing an increase of 6% compared to the second quarter of 2024. This increase reflects strong unique payer retention and acquisition across DraftKings' Sportsbook and iGaming product offerings and the impact of the acquisition of Jackpocket. Excluding the impact of the acquisition of Jackpocket, MUPs increased by 5% compared to the second quarter of 2024. Average Revenue per MUP ('ARPMUP') increased to $151 in the second quarter of 2025, representing a 29% increase compared to the same period in 2024. The increase was primarily due to improvement in our Sportsbook hold percentage and improved promotional reinvestment for Sportsbook. Excluding the impact of the acquisition of Jackpocket, ARPMUP increased 30% compared to the second quarter of 2024. Detailed financial data and other operational information for the second quarter of 2025 is available in the financial statements set forth below under the caption 'Financial and Operational Results.' Fiscal Year 2025 Guidance DraftKings is maintaining its fiscal year 2025 revenue guidance of $6.2 billion to $6.4 billion, which the Company previously announced on May 8, 2025. The Company is on track to deliver revenue closer to the high end of this range due to sportsbook-friendly outcomes in the second quarter as well as continuing strength across our core value drivers. Fiscal year 2025 revenue guidance equates to 32% year-over-year growth based on the Company's fiscal year 2024 revenue and the midpoint of the Company's fiscal year 2025 revenue guidance range. DraftKings is maintaining its fiscal year 2025 Adjusted EBITDA guidance of $800 million to $900 million, which the Company previously announced on May 8, 2025. The Company is on track to deliver Adjusted EBITDA near the midpoint of this range. The Company's guidance now includes anticipated financial impacts from DraftKings launching mobile sports betting in Missouri later this year. In addition, the Company's guidance now includes anticipated financial impacts from higher tax rates in New Jersey, Louisiana, and Illinois. The Company's guidance for fiscal year 2025 does not include the potential launch of a Prediction Markets offering. Mobile Sports Betting and iGaming Footprint DraftKings is live with mobile sports betting in 25 states and Washington, D.C., which collectively represent approximately 49% of the U.S. population. DraftKings expects to launch its Sportsbook product in Missouri pending market access, licensure, regulatory approvals, and contractual approvals where applicable. DraftKings is also live with iGaming in 5 states, which represents approximately 11% of the U.S. population. DraftKings is live with its Sportsbook and iGaming products in Ontario, Canada, which represents approximately 40% of Canada's population. Webcast and Conference Call DetailsAs previously announced, DraftKings will host a conference call and audio webcast tomorrow, Thursday, August 7, 2025, from 8:30 a.m. to 9:15 a.m. ET, during which management will discuss the Company's results and provide commentary on business performance. A question-and-answer session will follow the prepared remarks. To listen to the audio webcast and live question and answer session, please visit DraftKings' investor relations website at A live audio webcast of the earnings conference call will be available on the Company's website at along with a copy of this earnings press release, the Company's Quarterly Report on Form 10-Q, a second quarter 2025 business update and a slide presentation. The audio webcast will be available on the Company's investor relations website until 11:59 p.m. ET on September 30, 2025. Financial and Operational ResultsDraftKings' second quarter 2025 financial results, as well as the financial results for each comparative period, and certain operational results are presented below: DRAFTKINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except par value) June 30, 2025 (Unaudited) December 31, 2024 Assets Current assets: Cash and cash equivalents $ 1,261,969 $ 788,287 Restricted cash 4,616 16,499 Cash reserved for users 297,369 525,407 Receivables reserved for users 67,623 62,542 Accounts receivable 68,950 57,839 Prepaid expenses and other current assets 86,172 83,187 Total current assets 1,786,699 1,533,761 Property and equipment, net 53,214 50,550 Intangible assets, net 879,996 933,121 Goodwill 1,555,116 1,555,116 Operating lease right-of-use assets 69,066 74,917 Equity method investments 13,882 13,200 Deposits and other non-current assets 116,329 123,060 Total assets $ 4,474,302 $ 4,283,725 Liabilities and Stockholders' equity Current liabilities: Accounts payable and accrued expenses $ 553,162 $ 661,245 Liabilities to users 724,969 979,453 Operating lease liabilities, current portion 11,361 10,993 Other current liabilities 45,061 3,300 Total current liabilities 1,334,553 1,654,991 Convertible notes, net of issuance costs 1,257,751 1,256,429 Term B Loan, net of issuance costs 578,499 — Operating lease liabilities 62,332 67,660 Warrant liabilities 14,205 22,033 Long-term income tax liabilities 84,328 76,375 Other long-term liabilities 133,006 195,611 Total liabilities $ 3,464,674 $ 3,273,099 Commitments and contingent liabilities Stockholders' equity: Class A common stock, $0.0001 par value; 900,000 shares authorized as of June 30, 2025 and December 31, 2024; 520,537 and 504,722 shares issued and 496,051 and 489,071 outstanding as of June 30, 2025 and December 31, 2024, respectively $ 48 $ 48 Class B common stock, $0.0001 par value; 900,000 shares authorized as of June 30, 2025 and December 31, 2024; 393,014 shares issued and outstanding as of June 30, 2025 and December 31, 2024 39 39 Treasury stock, at cost; 24,486 and 15,651 shares as of June 30, 2025 and December 31, 2024, respectively (907,739 ) (563,146 ) Additional paid-in capital 8,197,948 7,978,425 Accumulated deficit (6,317,156 ) (6,441,228 ) Accumulated other comprehensive income 36,488 36,488 Total stockholders' equity $ 1,009,628 $ 1,010,626 Total liabilities and stockholders' equity $ 4,474,302 $ 4,283,725 DRAFTKINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Amounts in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue $ 1,512,507 $ 1,104,441 $ 2,921,313 $ 2,279,437 Cost of revenue 854,559 663,414 1,698,362 1,373,483 Sales and marketing 233,187 215,676 576,867 556,375 Product and technology 108,417 92,655 211,677 181,470 General and administrative 165,700 165,084 330,094 339,335 Income (loss) from operations 150,644 (32,388 ) 104,313 (171,226 ) Other income (expense): Interest income 12,305 14,212 21,794 29,279 Interest expense (11,640 ) (678 ) (16,734 ) (1,327 ) Gain (loss) on remeasurement of warrant liabilities (5,851 ) 9,791 (3,356 ) (8,303 ) Other gain (loss), net 24,459 (446 ) 24,481 (1,181 ) Income (loss) before income tax and equity method investments 169,917 (9,509 ) 130,498 (152,758 ) Income tax provision (benefit) 11,790 (73,570 ) 6,190 (73,921 ) (Gain) loss from equity method investments 191 239 236 (91 ) Net income (loss) attributable to common stockholders $ 157,936 $ 63,822 $ 124,072 $ (78,746 ) Earnings (loss) per share attributable to common stockholders: Basic $ 0.32 $ 0.13 $ 0.25 $ (0.17 ) Diluted $ 0.30 $ 0.10 $ 0.23 $ (0.17 ) DRAFTKINGS INC. NON-GAAP FINANCIAL MEASURES (Unaudited) (Amounts in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Adjusted EBITDA $ 300,644 $ 127,967 $ 403,273 $ 150,357 Adjusted Earnings (Loss) Per Share $ 0.38 $ 0.22 $ 0.50 $ 0.27 DRAFTKINGS INC. REVENUE DISAGGREGATION (Unaudited) (Amounts in thousands, except percentages) Three Months Ended June 30, (amounts in thousands) 2025 2024 $ Change % Change Sportsbook Handle $ 11,474,841 $ 10,793,014 $ 681,827 6.3 % Sportsbook Revenue 997,872 686,889 310,983 45.3 % Sportsbook Net Revenue Margin 8.7 % 6.4 % N/A N/A Sportsbook Revenue $ 997,872 $ 686,889 $ 310,983 45.3 % iGaming Revenue 429,660 350,552 79,108 22.6 % Other Revenue 84,975 67,000 17,975 26.8 % Total Revenue $ 1,512,507 $ 1,104,441 $ 408,066 36.9 % Six Months Ended June 30, (amounts in thousands) 2025 2024 $ Change % Change Sportsbook Handle $ 25,355,232 $ 22,794,438 $ 2,560,794 11.2 % Sportsbook Revenue 1,879,829 1,420,943 458,886 32.3 % Sportsbook Net Revenue Margin 7.4 % 6.2 % N/A N/A Sportsbook Revenue $ 1,879,829 $ 1,420,943 $ 458,886 32.3 % iGaming Revenue 853,131 720,549 132,582 18.4 % Other Revenue 188,353 137,945 50,408 36.5 % Total Revenue $ 2,921,313 $ 2,279,437 $ 641,876 28.2 % DRAFTKINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Amounts in thousands) Six Months Ended June 30, 2025 2024 Cash Flows from Operating Activities: Net income (loss) attributable to common stockholders $ 124,072 $ (78,746 ) Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities: Depreciation and amortization 135,415 114,803 Non-cash interest income (1,285 ) (2,798 ) Non-cash interest expense 2,224 1,327 Stock-based compensation 163,547 183,755 (Gain) loss on remeasurement of warrant liabilities 3,356 8,303 (Gain) loss from equity method investment 236 (91 ) Deferred income taxes 96 (79,762 ) Other non-cash (gain) loss, net (16,422 ) 1,920 Change in operating assets and liabilities, net of effect of acquisitions: Receivables reserved for users (5,081 ) 73,531 Accounts receivable (11,111 ) (14,494 ) Prepaid expenses and other current assets (2,544 ) (22,698 ) Deposits and other non-current assets 2,759 (179 ) Operating leases, net — 168 Accounts payable and accrued expenses (98,441 ) (82,154 ) Liabilities to users (254,484 ) (148,107 ) Long-term income tax liability 7,953 (1,171 ) Other long-term liabilities 4,615 5,387 Net cash flows provided by (used in) operating activities $ 54,905 $ (41,006 ) Cash Flows from Investing Activities: Purchases of property and equipment (6,963 ) (5,446 ) Cash paid for internally developed software costs (60,414 ) (44,072 ) Cash paid for gaming market access and licenses (2,234 ) (12,695 ) Cash paid for acquisitions, net of cash acquired — (392,013 ) Other investing activities (4,667 ) (2,308 ) Net cash flows provided by (used in) investing activities $ (74,278 ) $ (456,534 ) Cash Flows from Financing Activities: Proceeds from Term B Loan, net 588,116 — Repayment of Term B Loan principal (1,500 ) — Purchase of treasury stock for RSU withholding (101,852 ) (57,912 ) Purchase of treasury stock under Stock Repurchase Program (242,741 ) — Proceeds from exercise of stock options 6,304 5,443 Proceeds from shares issued under Employee Stock Purchase Plan 6,900 — Other financing activities (2,093 ) — Net cash flows provided by (used in) financing activities $ 253,134 $ (52,469 ) Net increase (decrease) in cash and cash equivalents, restricted cash, and cash reserved for users 233,761 (550,009 ) Cash and cash equivalents, restricted cash, and cash reserved for users at the beginning of period 1,330,193 1,623,493 Cash and cash equivalents, restricted cash, and cash reserved for users at the end of period $ 1,563,954 $ 1,073,484 Disclosure of cash and cash equivalents, restricted cash, and cash reserved for users Cash and cash equivalents $ 1,261,969 $ 815,880 Restricted cash 4,616 12,844 Cash reserved for users 297,369 244,760 Cash and cash equivalents, restricted cash, and cash reserved for users at the end of period $ 1,563,954 $ 1,073,484 Supplemental Disclosure of Noncash Investing and Financing Activities: Investing activities included in accounts payable and accrued expenses $ 1,084 $ 1,709 Equity consideration issued in connection with acquisitions $ — $ 331,557 Decrease of warrant liabilities from cashless exercise of warrants $ 11,185 $ 46,398 Shares issued for contingent consideration $ 4,962 $ — Supplemental Disclosure of Cash Activities: (Decrease) increase in cash reserved for users $ (228,038 ) $ (96,530 ) Cash paid for interest $ 9,421 $ — Non-GAAP Financial Measures This press release includes Adjusted EBITDA and Adjusted Earnings (Loss) Per Share, which are non-GAAP financial measures that DraftKings uses to supplement its results presented in accordance with U.S. generally accepted accounting principles ('GAAP'). The Company believes Adjusted EBITDA and Adjusted Earnings (Loss) Per Share are useful in evaluating its operating performance, similar to measures reported by its publicly-listed U.S. competitors, and regularly used by security analysts, institutional investors and other interested parties in analyzing operating performance and prospects. Adjusted EBITDA and Adjusted Earnings (Loss) Per Share are not intended to be substitutes for any GAAP financial measures, and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry. DraftKings defines and calculates Adjusted EBITDA as net income (loss) before the impact of interest income or expense (net), income tax provision or benefit, and depreciation and amortization, and further adjusted for the following items: stock-based compensation; transaction-related costs; litigation, settlement and related costs; advocacy and other related legal expenses; gain or loss on remeasurement of warrant liabilities; and other non-recurring and non-operating costs or income, as described in the reconciliation below. DraftKings defines and calculates Adjusted Earnings (Loss) Per Share as diluted earnings (loss) per share attributable to common stockholders before the impact of amortization of acquired intangible assets; stock-based compensation; transaction-related costs; litigation, settlement and related costs; advocacy and other related legal expenses; gain or loss on remeasurement of warrant liabilities; other non-recurring and non-operating costs or income; and the tax impact of adjusting items, as described in the reconciliation below. DraftKings includes these non-GAAP financial measures because they are used by management to evaluate the Company's core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments. Adjusted EBITDA and Adjusted Earnings (Loss) Per Share exclude certain expenses that are required in accordance with GAAP because they are non-recurring items (for example, in the case of transaction-related costs and advocacy and other related legal expenses), non-cash expenditures (for example, in the case of amortization of acquired intangible assets, depreciation and amortization, remeasurement of warrant liabilities and stock-based compensation), or non-operating items which are not related to the Company's underlying business performance (for example, in the case of interest income and expense and litigation, settlement and related costs). The unaudited table below presents the Company's Adjusted EBITDA reconciled to its net income (loss), which is the most directly comparable financial measure calculated in accordance with GAAP, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (amounts in thousands) 2025 2024 2025 2024 Net income (loss) $ 157,936 $ 63,822 $ 124,072 $ (78,746 ) Adjusted for: Depreciation and amortization (1) 65,299 61,623 135,415 114,803 Interest income (12,305 ) (14,212 ) (21,794 ) (29,279 ) Interest expense 11,640 678 16,734 1,327 Income tax provision (benefit) 11,790 (73,570 ) 6,190 (73,921 ) Stock-based compensation (2) 84,701 90,220 163,547 183,755 Transaction-related costs (3) — 18,585 — 23,493 Litigation, settlement, and related costs (4) — 10,804 — 20,124 Advocacy and other related legal expenses (5) — — — 285 (Gain) loss on remeasurement of warrant liabilities 5,851 (9,791 ) 3,356 8,303 Other non-recurring costs and non-operating (income) costs (6) (24,268 ) (20,192 ) (24,247 ) (19,787 ) Adjusted EBITDA $ 300,644 $ 127,967 $ 403,273 $ 150,357 __________________________ (1) The amounts include the amortization of acquired intangible assets of $36.4 million and $36.4 million for the three months ended June 30, 2025 and 2024, respectively, and $79.1 million and $65.7 million for the six months ended June 30, 2025 and 2024, respectively. (2) Reflects stock-based compensation expenses resulting from the issuance of awards under incentive plans. (3) Includes capital markets advisory, consulting, accounting and legal expenses related to the evaluation, negotiation, and consummation of transactions and offerings that are under consideration, pending, or completed, as well as integration costs related to acquisitions. (4) Primarily includes external legal costs related to litigation and litigation settlement costs deemed unrelated to our ordinary-course business operations. (5) Reflects non-recurring and non-ordinary course costs relating to advocacy efforts and other legal expenses in jurisdictions where we do not operate certain product offerings and are actively seeking licensure, or similar approval, for those product offerings. This adjustment excludes (i) costs relating to advocacy efforts and other legal expenses in jurisdictions where we do not operate that are incurred in the ordinary course of business and (ii) costs relating to advocacy efforts and other legal expenses incurred in jurisdictions where related legislation has been passed and we currently operate. (6) Primarily includes the change in fair value of certain financial assets, as well as our equity method share of investee's losses and other costs relating to non-recurring and non-operating items. The unaudited table below presents the Company's Adjusted Earnings (Loss) Per Share reconciled to its diluted earnings (loss) per share attributable to common stockholders, which is the most directly comparable financial measure calculated in accordance with GAAP, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Diluted earnings (loss) per share attributable to common stockholders $ 0.30 $ 0.10 $ 0.23 $ (0.17 ) Adjusted for: Amortization of acquired intangible assets (1) 0.07 0.07 0.15 0.14 Discrete tax benefit attributed to the acquisition of Jackpocket Inc. (2) — (0.15 ) — (0.16 ) Stock-based compensation (3) 0.16 0.17 0.31 0.39 Transaction-related costs (4) — 0.04 — 0.05 Litigation, settlement, and related costs (5) — 0.02 — 0.04 Advocacy and other related legal expenses (6) — — — 0.00 (Gain) loss on remeasurement of warrant liabilities 0.00 0.00 0.00 0.02 Other non-recurring and non-operating costs (income) (0.04 ) (0.04 ) (0.04 ) (0.04 ) Tax impact of adjusting items (7) (0.11 ) — (0.16 ) — Adjusted Earnings (Loss) Per Share* $ 0.38 $ 0.22 $ 0.50 $ 0.27 __________________________ * Weighted average diluted number of shares used to calculate Adjusted Earnings (Loss) Per Share for the three months ended June 30, 2025 and 2024 was 529.5 million and 518.8 million, respectively, and 529.6 million and 476.8 million for the six months ended June 30, 2025 and 2024, respectively; totals may not add due to rounding. (1) The amounts include the amortization of acquired intangible assets of $36.4 million and $36.4 million for the three months ended June 30, 2025 and 2024, respectively, and $79.1 million and $65.7 million for the six months ended June 30, 2025 and 2024, respectively. (2) The Company recorded a discrete income tax benefit of $75.8 million during the second quarter of 2024 which was attributable to non-recurring partial releases of the Company's U.S. valuation allowance as a result of the purchase accounting for Jackpocket. (3) Reflects stock-based compensation expenses resulting from the issuance of awards under incentive plans. (4) Includes capital markets advisory, consulting, accounting and legal expenses related to the evaluation, negotiation, and consummation of transactions and offerings that are under consideration, pending, or completed, as well as integration costs related to acquisitions. (5) Primarily includes external legal costs related to litigation and litigation settlement costs deemed unrelated to our ordinary-course business operations. (6) Reflects non-recurring and non-ordinary course costs relating to advocacy efforts and other legal expenses in jurisdictions where we do not operate certain product offerings and are actively seeking licensure, or similar approval, for those product offerings. This adjustment excludes (i) costs relating to advocacy efforts and other legal expenses in jurisdictions where we do not operate that are incurred in the ordinary course of business and (ii) costs relating to advocacy efforts and other legal expenses incurred in jurisdictions where related legislation has been passed and we currently operate. (7) Beginning in the first quarter of the 2025, the Company began applying an estimated non-GAAP effective tax rate of 25%. The non-GAAP effective tax rate reflects the non-GAAP tax provision commensurate with the Company's level of non-GAAP profitability, which was determined after adjusting for the non-GAAP adjustments presented above and excluding the impact of changes in the valuation allowance. Information reconciling forward-looking fiscal year 2025 Adjusted EBITDA guidance to its most directly comparable GAAP financial measure, net income (loss), is unavailable to DraftKings without unreasonable effort due to, among other things, certain items required for such reconciliations being outside of DraftKings' control and/or not being able to be reasonably predicted. Preparation of such reconciliations would require a forward-looking balance sheet, statement of income, and statement of cash flow, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to the Company without unreasonable effort. DraftKings provides a range for its Adjusted EBITDA forecast that it believes will be achieved; however, the Company cannot provide any assurance that it can predict all of the components of the Adjusted EBITDA calculation. DraftKings provides a forecast for Adjusted EBITDA because it believes that Adjusted EBITDA, when viewed with DraftKings' results calculated in accordance with GAAP, provides useful information for the reasons noted above. However, Adjusted EBITDA is not a measure of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to net income (loss) or cash flow from operating activities or as an indicator of operating performance or liquidity. About DraftKings DraftKings Inc. is a digital sports entertainment and gaming company created to be the Ultimate Host and fuel the competitive spirit of sports fans with products that range across daily fantasy, regulated gaming, and digital media. Headquartered in Boston and launched in 2012 by Jason Robins, Matt Kalish and Paul Liberman, DraftKings is the only U.S.-based vertically integrated sports betting operator. DraftKings' mission is to make life more exciting by responsibly creating the world's favorite real-money games and betting experiences. DraftKings Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 28 states, Washington, D.C., and in Ontario, Canada. The Company operates iGaming pursuant to regulations in five states and in Ontario, Canada under its DraftKings brand and pursuant to regulations in four states under its Golden Nugget Online Gaming brand. DraftKings also owns Jackpocket, the leading digital lottery courier app in the United States. DraftKings' daily fantasy sports product is available in 44 states, the District of Columbia, and certain Canadian provinces. DraftKings is both an official sports betting and daily fantasy partner of the NFL, NHL, PGA TOUR, WNBA and UFC, as well as an official daily fantasy partner of NASCAR, an official sports betting partner of the NBA and an authorized gaming operator of MLB. In addition, DraftKings owns and operates DraftKings Network a multi-platform content ecosystem. DraftKings is committed to being a responsible steward of this new era in real-money gaming by developing and promoting educational information and tools to help all players enjoy our games responsibly. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including statements about the Company and its industry that involve substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release, including statements regarding guidance, DraftKings' future results of operations or financial condition, strategic plans and focus, user growth and engagement, product initiatives, and the objectives and expectations of management for future operations (including launches in new jurisdictions and the expected timing thereof), are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as 'anticipate,' 'believe,' 'confident,' 'contemplate,' 'continue,' 'could,' 'estimate,' 'expect,' 'forecast,' 'going to,' 'intend,' 'may,' 'plan,' 'poised,' 'potential,' 'predict,' 'project,' 'propose,' 'should,' 'target,' 'will,' or 'would' or the negative of these words or other similar terms or expressions, or by statements of vision, strategy or outlook. DraftKings cautions you that the foregoing may not include all of the forward-looking statements made in this press release. You should not rely on forward-looking statements as predictions of future events. DraftKings has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends, including the current macroeconomic environment, that it believes may affect its business, financial condition, results of operations, and prospects. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside DraftKings' control and that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include, but are not limited to, DraftKings' ability to manage growth; DraftKings' ability to execute its business plan and meet its projections; potential litigation involving DraftKings; changes in applicable laws or regulations, particularly with respect to gaming; general economic and market conditions impacting demand for DraftKings' products and services; economic and market conditions in the media, entertainment, gaming, and software industries in the markets in which DraftKings operates; market and global conditions and economic factors, as well as the potential impact of general economic conditions, and the potential impact of new and existing laws, regulations, or policies, including those relating to tariffs, import/export, or trade restrictions, inflation, rising interest rates and instability in the banking system, on DraftKings' liquidity, operations and personnel, as well as the risks, uncertainties, and other factors described in 'Risk Factors' in DraftKings' filings with the Securities and Exchange Commission (the 'SEC'), which are available on the SEC's website at Additional information will be made available in other filings that DraftKings makes from time to time with the SEC. The forward-looking statements contained herein are based on management's current expectations and beliefs and speak only as of the date hereof, and DraftKings makes no commitment to update or publicly release any revisions to forward-looking statements in order to reflect new information or subsequent events, circumstances or changes in expectations, except as required by law. Contacts Media: Media@ @DraftKingsNews Investors: Investors@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Upturn
13-06-2025
- Business
- Business Upturn
DraftKings to Introduce Transaction Fee in Illinois
BOSTON, June 12, 2025 (GLOBE NEWSWIRE) — In response to the recent and prior sports wagering tax increases passed by the Illinois state legislature on all mobile and online sports wagers placed with licensed operators, DraftKings Inc. (Nasdaq: DKNG) today announced that it will implement a 50-cent transaction fee on all mobile and online bets placed in Illinois through DraftKings Sportsbook, effective September 1, 2025. 'Illinois has been an important part of our growth, and we're proud to have contributed meaningfully to the state through tax revenue, job creation, and a sustained investment in responsible gaming tools and resources,' said Jason Robins, Chief Executive Officer and Co-Founder of DraftKings. 'We are disappointed that Illinois policymakers have chosen to more than triple our tax rate over the past two years, and we are very concerned about what this will do to the legal, regulated industry. Meanwhile, Illinois continues to fuel the rapidly growing illegal industry, which pays no taxes or fees and provides none of the consumer protections that regulated operators offer.' DraftKings continues to support collaborative policymaking that works for the state and allows for the long-term sustainability of the industry. Should the legislation be repealed, the company will immediately remove the Illinois-specific per wager transaction fee. About DraftKings DraftKings Inc. is a digital sports entertainment and gaming company created to be the Ultimate Host and fuel the competitive spirit of sports fans with products that range across daily fantasy, regulated gaming, and digital media. Headquartered in Boston and launched in 2012 by Jason Robins, Matt Kalish and Paul Liberman, DraftKings is the only U.S.-based vertically integrated sports betting operator. DraftKings' mission is to make life more exciting by responsibly creating the world's favorite real-money games and betting experiences. DraftKings Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 28 states, Washington, D.C., and in Ontario, Canada. The Company operates iGaming pursuant to regulations in five states and in Ontario, Canada under its DraftKings brand and pursuant to regulations in four states under its Golden Nugget Online Gaming brand. DraftKings also owns Jackpocket, the leading digital lottery courier app in the United States. DraftKings' daily fantasy sports product is available in 44 states, the District of Columbia, and certain Canadian provinces. DraftKings is both an official sports betting and daily fantasy partner of the NFL, NHL, PGA TOUR, WNBA and UFC, as well as an official daily fantasy partner of NASCAR, an official sports betting partner of the NBA and an authorized gaming operator of MLB. In addition, DraftKings owns and operates DraftKings Network a multi-platform content ecosystem. DraftKings is committed to being a responsible steward of this new era in real-money gaming by developing and promoting educational information and tools to help all players enjoy our games responsibly. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including statements about the Company and its industry that involve substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release, including statements regarding guidance, DraftKings' future results of operations or financial condition, strategic plans and focus, user growth and engagement, product initiatives, and the objectives and expectations of management for future operations (including launches in new jurisdictions and the expected timing thereof), are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as 'anticipate,' 'believe,' 'confident,' 'contemplate,' 'continue,' 'could,' 'estimate,' 'expect,' 'forecast,' 'going to,' 'intend,' 'may,' 'plan,' 'poised,' 'potential,' 'predict,' 'project,' 'propose,' 'should,' 'target,' 'will,' or 'would' or the negative of these words or other similar terms or expressions. DraftKings cautions you that the foregoing may not include all of the forward-looking statements made in this press release. You should not rely on forward-looking statements as predictions of future events. DraftKings has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends, including the current macroeconomic environment, that it believes may affect its business, financial condition, results of operations, and prospects. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside DraftKings' control and that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include, but are not limited to, DraftKings' ability to manage growth; DraftKings' ability to execute its business plan and meet its projections; potential litigation involving DraftKings; changes in applicable laws or regulations, particularly with respect to gaming; general economic and market conditions impacting demand for DraftKings' products and services; economic and market conditions in the media, entertainment, gaming, and software industries in the markets in which DraftKings operates; market and global conditions and economic factors, as well as the potential impact of general economic conditions, and the potential impact of new and existing laws, regulations, or policies, including those relating to tariffs, import/export, or trade restrictions, inflation, rising interest rates and instability in the banking system, on DraftKings' liquidity, operations and personnel, as well as the risks, uncertainties, and other factors described in 'Risk Factors' in DraftKings' filings with the Securities and Exchange Commission (the 'SEC'), which are available on the SEC's website at Additional information will be made available in other filings that DraftKings makes from time to time with the SEC. The forward-looking statements contained herein are based on management's current expectations and beliefs and speak only as of the date hereof, and DraftKings makes no commitment to update or publicly release any revisions to forward-looking statements in order to reflect new information or subsequent events, circumstances or changes in expectations, except as required by law. Contacts Media: [email protected] @DraftKingsNews Investors: [email protected] Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same. Ahmedabad Plane Crash
Yahoo
12-06-2025
- Business
- Yahoo
DraftKings to Introduce Transaction Fee in Illinois
BOSTON, June 12, 2025 (GLOBE NEWSWIRE) -- In response to the recent and prior sports wagering tax increases passed by the Illinois state legislature on all mobile and online sports wagers placed with licensed operators, DraftKings Inc. (Nasdaq: DKNG) today announced that it will implement a 50-cent transaction fee on all mobile and online bets placed in Illinois through DraftKings Sportsbook, effective September 1, 2025. 'Illinois has been an important part of our growth, and we're proud to have contributed meaningfully to the state through tax revenue, job creation, and a sustained investment in responsible gaming tools and resources,' said Jason Robins, Chief Executive Officer and Co-Founder of DraftKings. 'We are disappointed that Illinois policymakers have chosen to more than triple our tax rate over the past two years, and we are very concerned about what this will do to the legal, regulated industry. Meanwhile, Illinois continues to fuel the rapidly growing illegal industry, which pays no taxes or fees and provides none of the consumer protections that regulated operators offer.' DraftKings continues to support collaborative policymaking that works for the state and allows for the long-term sustainability of the industry. Should the legislation be repealed, the company will immediately remove the Illinois-specific per wager transaction fee. About DraftKingsDraftKings Inc. is a digital sports entertainment and gaming company created to be the Ultimate Host and fuel the competitive spirit of sports fans with products that range across daily fantasy, regulated gaming, and digital media. Headquartered in Boston and launched in 2012 by Jason Robins, Matt Kalish and Paul Liberman, DraftKings is the only U.S.-based vertically integrated sports betting operator. DraftKings' mission is to make life more exciting by responsibly creating the world's favorite real-money games and betting experiences. DraftKings Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 28 states, Washington, D.C., and in Ontario, Canada. The Company operates iGaming pursuant to regulations in five states and in Ontario, Canada under its DraftKings brand and pursuant to regulations in four states under its Golden Nugget Online Gaming brand. DraftKings also owns Jackpocket, the leading digital lottery courier app in the United States. DraftKings' daily fantasy sports product is available in 44 states, the District of Columbia, and certain Canadian provinces. DraftKings is both an official sports betting and daily fantasy partner of the NFL, NHL, PGA TOUR, WNBA and UFC, as well as an official daily fantasy partner of NASCAR, an official sports betting partner of the NBA and an authorized gaming operator of MLB. In addition, DraftKings owns and operates DraftKings Network a multi-platform content ecosystem. DraftKings is committed to being a responsible steward of this new era in real-money gaming by developing and promoting educational information and tools to help all players enjoy our games StatementsThis press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including statements about the Company and its industry that involve substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release, including statements regarding guidance, DraftKings' future results of operations or financial condition, strategic plans and focus, user growth and engagement, product initiatives, and the objectives and expectations of management for future operations (including launches in new jurisdictions and the expected timing thereof), are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as 'anticipate,' 'believe,' 'confident,' 'contemplate,' 'continue,' 'could,' 'estimate,' 'expect,' 'forecast,' 'going to,' 'intend,' 'may,' 'plan,' 'poised,' 'potential,' 'predict,' 'project,' 'propose,' 'should,' 'target,' 'will,' or 'would' or the negative of these words or other similar terms or expressions. DraftKings cautions you that the foregoing may not include all of the forward-looking statements made in this press should not rely on forward-looking statements as predictions of future events. DraftKings has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends, including the current macroeconomic environment, that it believes may affect its business, financial condition, results of operations, and prospects. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside DraftKings' control and that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include, but are not limited to, DraftKings' ability to manage growth; DraftKings' ability to execute its business plan and meet its projections; potential litigation involving DraftKings; changes in applicable laws or regulations, particularly with respect to gaming; general economic and market conditions impacting demand for DraftKings' products and services; economic and market conditions in the media, entertainment, gaming, and software industries in the markets in which DraftKings operates; market and global conditions and economic factors, as well as the potential impact of general economic conditions, and the potential impact of new and existing laws, regulations, or policies, including those relating to tariffs, import/export, or trade restrictions, inflation, rising interest rates and instability in the banking system, on DraftKings' liquidity, operations and personnel, as well as the risks, uncertainties, and other factors described in 'Risk Factors' in DraftKings' filings with the Securities and Exchange Commission (the 'SEC'), which are available on the SEC's website at Additional information will be made available in other filings that DraftKings makes from time to time with the SEC. The forward-looking statements contained herein are based on management's current expectations and beliefs and speak only as of the date hereof, and DraftKings makes no commitment to update or publicly release any revisions to forward-looking statements in order to reflect new information or subsequent events, circumstances or changes in expectations, except as required by in to access your portfolio
Yahoo
11-06-2025
- Business
- Yahoo
DKNG Q1 Earnings Call: Customer-Friendly Outcomes Drive Guidance Lower Despite Product Gains
Fantasy sports and betting company DraftKings (NASDAQ:DKNG) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 19.9% year on year to $1.41 billion. The company's full-year revenue guidance of $6.3 billion at the midpoint came in 1.1% below analysts' estimates. Its non-GAAP profit of $0.12 per share was in line with analysts' consensus estimates. Is now the time to buy DKNG? Find out in our full research report (it's free). Revenue: $1.41 billion vs analyst estimates of $1.46 billion (19.9% year-on-year growth, 3.4% miss) Adjusted EPS: $0.12 vs analyst estimates of $0.12 (in line) Adjusted EBITDA: $102.6 million vs analyst estimates of $98.92 million (7.3% margin, 3.8% beat) The company dropped its revenue guidance for the full year to $6.3 billion at the midpoint from $6.45 billion, a 2.3% decrease EBITDA guidance for the full year is $850 million at the midpoint, below analyst estimates of $910.4 million Operating Margin: -3.3%, up from -11.8% in the same quarter last year Monthly Unique Payers: 4.3 million, up 900,000 year on year Market Capitalization: $17.97 billion DraftKings' first quarter performance was shaped by a combination of increased product adoption and the impact of unpredictable sports outcomes. CEO Jason Robins explained that while product enhancements led to higher sportsbook hold percentages and more efficient promotional spending, customer-friendly results during March Madness significantly reduced actual hold relative to expectations. Robins emphasized, 'If not for customer-friendly sport outcomes in March, we would be raising our fiscal year 2025 revenue and adjusted EBITDA guidance.' The company also saw growth in live betting and improved efficiency in marketing, as recent acquisitions began to contribute positively to operational results. Looking forward, DraftKings' revised guidance reflects ongoing uncertainty around sports outcomes, evolving state tax and regulatory environments, and continued emphasis on product innovation. Management highlighted the company's commitment to optimizing promotional strategies and leveraging artificial intelligence (AI) to drive both revenue and operational efficiencies. CFO Alan Ellingson noted, 'We continue to expect sports book net revenue margin of 7% to 7.5% as we anticipate higher structural sports book hold percentage and increased promotional efficiency to offset the impacts from customer-friendly sports outcomes year-to-date.' The company expects to further integrate recent acquisitions and capitalize on advancements in live betting and AI-driven initiatives, while monitoring regulatory developments and market maturity across key states. Management attributed quarterly revenue growth and margin improvement to product-driven gains and promotional discipline, offset by unfavorable sports results and regulatory changes. Live betting acceleration: DraftKings saw a significant increase in live betting activity, with live handle surpassing 50% of total handle for the first time. This shift was attributed to recent product improvements and acquisitions, particularly in live betting technology, which management believes will continue to drive engagement and future growth. Product mix and parlay adoption: The company reported a higher mix of parlay bets, both among new and existing customers, contributing to increased sportsbook hold percentages. Management described this as a key lever for profitability and noted that customers continue using parlay products even after promotional incentives subside. Promotional spend optimization: DraftKings continued to reduce promotional reinvestments as a share of gross gaming revenue, reflecting the maturation of customer cohorts and more targeted marketing strategies. Management expects this trend to persist as newer states mature and the customer base becomes less reliant on promotions. AI integration and operational efficiency: The company has expanded its use of AI across business functions, improving both customer service and internal productivity. Management highlighted cost reductions and efficiency gains, with CEO Robins describing AI adoption as a "company-wide movement" that is reshaping how teams approach operational challenges. Regulatory and tax headwinds: Increases in state tax rates, such as in Maryland, and the exit of Jackpocket operations in certain markets negatively affected quarterly results. DraftKings is closely monitoring regulatory risks as states consider new taxes or changes that could impact profitability and competitive dynamics. DraftKings expects future performance to be driven by product innovation, operational efficiency, and market responses to regulatory and sports outcome variability. Expansion of live and in-play betting: Management believes growth in live betting, driven by technology investments and improved user experiences, will be a major contributor to handle and revenue. The company is targeting continued increases in live handle mix, inspired by higher adoption rates in more mature international markets. AI-driven operational gains: DraftKings is scaling its use of AI to enhance both customer-facing products and internal operations, aiming for efficiency improvements in areas such as customer service and risk management. Management expects these initiatives to reduce costs and support margin expansion, while also informing product development and betting models. Regulatory and tax environment: The company anticipates ongoing headwinds from state tax rate increases and evolving regulatory requirements. Management is focused on mitigating these impacts through product optimization, cost control, and advocacy to ensure a favorable operating landscape, while recognizing the risk of further tax changes and competition from illegal markets. In upcoming quarters, the StockStory team will be watching (1) the continued growth and profitability of live and in-play betting, (2) the impact of AI-driven operational efficiencies on margins and customer experience, and (3) the company's ability to navigate regulatory and tax changes across key states. Progress in integrating recent acquisitions and expanding new product offerings will also be important indicators of execution. DraftKings currently trades at a forward P/E ratio of 22.2×. Should you double down or take your chips? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
