DraftKings 2025 Q3 Earnings Revenue Growth Amid Narrowed Losses

DraftKings (DKNG) reported fiscal 2025 Q3 earnings on November 7, 2025, delivering a 4.4% revenue increase to $1.14 billion but narrowing losses to $0.52 per share. The company revised 2025 revenue guidance downward amid challenges from customer-friendly sports outcomes.

Revenue

DraftKings’ total revenue rose to $1.14 billion in Q3 2025, a 4.4% increase from $1.10 billion in the prior-year period. Sportsbook revenue, the company’s largest segment, grew to $596.12 million, while iGaming revenue expanded to $451.3 million. Other revenue streams, including digital lottery courier services, contributed $96.6 million. The performance reflects a 13% growth in NFL handle and 25% iGaming net revenue growth, though sports outcomes negatively impacted results by $300 million.

Earnings/Net Income

DraftKings narrowed its net loss to $256.79 million in Q3 2025, a 12.6% reduction from $293.69 million in the prior year. Earnings per share improved to a loss of $0.52 from $0.60, a 13.3% improvement. Despite progress, the company has posted losses for six consecutive years in the same quarter, underscoring ongoing financial challenges.

Price Action

The stock price of DraftKings surged 13.48% on the latest trading day but declined 0.62% for the week and 10.54% month-to-date. The mixed short-term performance highlights investor uncertainty amid revised guidance and volatile market conditions.

Post-Earnings Price Action Review

The stock’s post-earnings volatility reflects a complex mix of factors. While the 13.48% single-day gain suggests optimism over improved financials and strategic initiatives, the 10.54% monthly decline indicates lingering concerns about profitability and guidance cuts. The 0.62% weekly drop underscores near-term jitters, particularly around the $300 million impact from customer-friendly sports outcomes. Analysts note that DraftKings’ long-term potential—driven by new product launches and share repurchase programs—could stabilize the stock, but near-term execution risks remain a drag.

CEO Commentary

CEO Jason Robins highlighted progress in sportsbook margins, NFL handle growth, and iGaming performance, while acknowledging the $300 million revenue hit from sports outcomes. Strategic priorities include launching DraftKings Predictions in non-sports betting states, expanding the $2 billion share repurchase program, and prioritizing short-term payback periods for new ventures.

Guidance

DraftKings revised 2025 revenue guidance to $5.9 billion–$6.1 billion (from $6.2 billion–$6.4 billion) and adjusted EBITDA to $450 million–$550 million (from $800 million–$900 million). The downward adjustments reflect the impact of customer-friendly sports outcomes and underscore the need for disciplined investment in new markets.

Additional News

DraftKings expanded its share repurchase program to $2 billion, signaling confidence in its financial position and commitment to shareholder returns. The company also secured exclusive marketing agreements with ESPN and NBCUniversal, enhancing brand visibility and customer engagement. Additionally, the launch of DraftKings Predictions is positioned as a key growth driver, with a conservative, data-driven approach to ensure short-term payback periods.

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