DraftKings Posts Q2 Sales Surprise, Stock Soars Amid Better-Than-Expected Revenue and Earnings

DraftKings reported Q2 revenue of $1.51 billion, a 36.9% YoY increase and a 5.9% beat on estimates. The company expects full-year revenue of $6.3 billion, close to analyst estimates. Non-GAAP profit was $0.38 per share, below estimates. DraftKings' revenue guidance for the full year is $6.3 billion, and EBITDA guidance is $850 million, above analyst estimates.

DraftKings, the leading sports betting platform, reported its second consecutive profitable quarter as a public company. In its Q2 2025 earnings, the company posted revenue of $1.51 billion, which was a 36.9% year-over-year (YoY) increase and a 5.9% beat on consensus estimates of $1.42 billion [2]. Non-GAAP earnings per share were $0.38, falling short of the $0.39 expected by analysts.

The company maintained its full-year 2025 revenue guidance at $6.3 billion, which aligns closely with analyst projections. DraftKings also kept its EBITDA guidance at $850 million, exceeding analyst estimates. The company's revenue growth was driven by a 6% increase in average monthly users to 3.3 million, up from 3.1 million in Q2 2024 and 2.1 million in Q2 2023. Average revenue per user (ARPU) rose to $151, a 29% increase from the same quarter in 2022 and a 10% increase from 2023 [1].

DraftKings' stock price reacted positively to the earnings report, jumping as much as 6% in late trading before settling in the +2% range. The company's marketing costs, a key focus for investors, amounted to $233.2 million, an 8% increase from the same quarter last year and a 12% increase from the second quarter of 2023. This increase is consistent with the company's efforts to expand its customer base and geographical footprint.

DraftKings' CEO, Jason Robins, noted the company's continued exploration of federally regulated prediction markets, stating, "We continue to monitor events surrounding federally regulated prediction markets and are actively exploring ways to enhance shareholder value through this opportunity." The company's stock price has risen 22% so far this year and 11% over the past month, reflecting investor confidence in the company's growth trajectory [1].

References:
[1] https://www.sportico.com/business/sports-betting/2025/draftkings-q2-2025-earnings-revenue-1234866213/
[2] https://sherwood.news/markets/still-lagging-fanduel-draftkings-reports-better-than-expected-q2-revenue/