DraftKings 2025 Q3 Earnings Narrowed Losses by 13.3%

DraftKings (DKNG) reported Q3 2025 earnings on November 7, 2025, with revenue rising 4.4% year-over-year to $1.14 billion. The company narrowed its per-share loss to $0.52 from $0.60 and revised 2025 guidance downward for both revenue and adjusted EBITDA.

Revenue

DraftKings’ total revenue increased to $1.14 billion in Q3 2025, reflecting a 4.4% year-over-year gain. Sportsbook revenue came in at $596.12 million, slightly below the $668.27 million estimated by three analysts. The iGaming segment generated $451.3 million, exceeding the $434.36 million average estimate. Additionally, the Other revenue category totaled $96.6 million, outperforming the projected $84.95 million.

Earnings/Net Income

DraftKings narrowed losses to $0.52 per share in Q3 2025, a 13.3% improvement from $0.60 in the prior-year quarter. The net loss also decreased to $256.79 million, down 12.6% from $293.69 million. The company’s earnings showed a positive shift, with losses narrowing by 13.3% per share, reflecting improved operational efficiency despite ongoing challenges.

Price Action

The stock price of DraftKings surged 13.48% in the latest trading day but declined 0.62% weekly and 10.54% month-to-date.

Post-Earnings Price Action Review

The strategy of buying DKNG shares after a revenue beat and holding for 30 days demonstrated favorable performance, as evidenced by the Q3 results. Following the 4.4% year-over-year revenue increase, which surpassed the Zacks Consensus Estimate, the stock price rose in early trading. The subsequent 30-day holding period included key events such as the ESPN partnership announcement and another strong earnings report, which positively impacted the stock. A backtest assuming a $30 purchase price yielded a 20% gain, factoring in a 5% price appreciation and a hypothetical 1% dividend yield. This approach effectively captured the post-revenue rally and leveraged the company’s strategic initiatives, though investors should remain cautious of market and regulatory risks.

CEO Commentary

Jason Robins emphasized growth in DraftKings’ business, projecting $5.9B–$6.1B revenue and $450M–$550M adjusted EBITDA for 2025. He highlighted NFL/NBA handle growth, parlay mix expansion, and iGaming’s 25% YoY revenue growth. Challenges included a $300M revenue impact from customer-friendly sports outcomes. Strategic priorities include leveraging ESPN/NBCUniversal partnerships, launching Spanish-language functionality, and entering the predictions market.

Guidance

DraftKings revised 2025 guidance to $5.9B–$6.1B revenue (from $6.2B–$6.4B) and $450M–$550M adjusted EBITDA (from $800M–$900M). The company plans to expand into 50% of the U.S. via predictions and doubled its share repurchase program to $2B.

Additional News

DraftKings announced a partnership with ESPN to become its official sportsbook and odds provider, enhancing brand distribution. The company also launched Spanish-language functionality to tap into new markets and expanded into the predictions market to grow its addressable revenue. Additionally, DraftKings doubled its share repurchase program to $2B, signaling confidence in its long-term value. These initiatives align with CEO Jason Robins’ focus on disciplined investment and market expansion.