DraftKings 2025 Q3 Earnings Revenue Growth Amid Narrowed Losses

DraftKings (DKNG) reported fiscal 2025 Q3 earnings on Nov 8, 2025, with revenue rising 4.4% year-over-year to $1.14 billion, slightly below the Zacks consensus estimate. The company narrowed its net loss by 12.6% to $256.79 million, while EPS improved to -$0.52 from -$0.60. Guidance was revised downward, reflecting $300 million in revenue impacts from customer-friendly sports outcomes and a $127 million negative adjusted EBITDA.

Revenue

Sportsbook revenue led the charge with $596.12 million, while iGaming contributed $451.3 million, reflecting robust engagement with NFL and NBA offerings. Additional revenue streams, including digital lottery services, added $96.6 million. The 4.4% overall growth underscores market share retention despite competitive pressures.

Earnings/Net Income

DraftKings reduced its per-share loss by 13.3% to $0.52, while net losses fell by 12.6% to $256.79 million. Despite improvements, the company has posted losses for six consecutive years in the quarter, signaling ongoing profitability challenges. The EPS improvement is a positive step, though sustained losses remain a concern.

Post-Earnings Price Action Review

The stock surged 13.48% in the latest trading day but faced headwinds with a 0.62% weekly decline and a 10.54% monthly drop. Analysts attribute the daily rally to optimism around the $2 billion share repurchase expansion and strategic partnerships, though broader market volatility and revised guidance dampened longer-term sentiment.

CEO Commentary

CEO Jason Robins highlighted growth in sportsbook and iGaming, with NFL and NBA handle up 13% and 19%, respectively. Strategic partnerships with ESPN and NBCUniversal were cited as competitive advantages, alongside a planned Spanish-language app to expand market reach. Robins emphasized confidence in long-term earnings stability despite Q3 challenges.

Guidance

DraftKings revised FY2025 revenue guidance to $5.9B–$6.1B (from $6.2B–$6.4B) and adjusted EBITDA to $450M–$550M (from $800M–$900M). Alan Ellingson noted Q3’s 4% revenue growth but stressed the $127M negative adjusted EBITDA, with Predictions market contributions expected in 2026.

Additional News

DraftKings expanded its share repurchase program to $2 billion, signaling confidence in free cash flow growth. The company secured exclusive marketing agreements with ESPN and NBCUniversal to enhance brand reach. Additionally, a Spanish-language app is in development to tap into underserved markets.

The report underscores a mix of resilience and challenges for DraftKings, with strategic initiatives aimed at long-term growth balancing near-term financial pressures. Investors will closely monitor the rollout of Predictions and regulatory developments in key markets.