DraftKings Inc.
- Open
- 25.94
- Day high
- 26.35
- Day low
- 25.23
- Prev close
- 25.70
- Volume
- 5.4M
- Mkt cap
- $12.5B
- P/E (TTM)
- 205.0
- EPS (TTM)
- $0.13
- P/B
- 20.7
- P/S
- 2.0
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$2.8M over the last 3 months (0 open-market buys, 4 sales)
- 🏛Institutions mixed (13F)
DraftKings Inc. (DKNG) is a Consumer Cyclical company listed on NASDAQ. The stock is down 40% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 4 sales (SEC Form 4). Drillr has 2 published research articles covering DKNG.
DraftKings Inc. (DKNG) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 16 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
DKNG earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 8, 2026 | $0.07 | $0.04 | -38.3% | $1.6B | +0.9% |
| Feb 12, 2026 | $0.50 | $0.36 | -28.0% | $2.0B | +14.2% |
| Nov 6, 2025 | $-0.43 | $-0.26 | +39.7% | $1.1B | -5.0% |
| Aug 7, 2025 | $0.15 | $0.30 | +98.3% | $1.5B | +6.2% |
| May 1, 2025 | $-0.08 | $-0.07 | +9.7% | $1.4B | -1.4% |
| Feb 13, 2025 | $0.07 | $-0.28 | -500.0% | $1.4B | +0.0% |
| Nov 8, 2024 | $-0.42 | $-0.60 | -42.9% | $1.1B | -1.3% |
| Aug 1, 2024 | $0.01 | $0.12 | +1130.8% | $1.1B | -0.7% |
| May 2, 2024 | $-0.29 | $-0.30 | -4.3% | $1.2B | +4.2% |
| Feb 15, 2024 | $0.06 | $-0.10 | -266.7% | $1.2B | -0.9% |
| Nov 2, 2023 | $-0.69 | $-0.61 | +11.6% | $790M | +12.1% |
| Aug 3, 2023 | $-0.24 | $-0.17 | +29.2% | $875M | +14.4% |
DKNG insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 12, 2026 | Dodge R Stantonofficer: Chief Legal Officer | Option | 62,500 | $2.95 |
| Jun 12, 2026 | Dodge R Stantonofficer: Chief Legal Officer | Sell | 8,189 | $29.97 |
| Jun 12, 2026 | Dodge R Stantonofficer: Chief Legal Officer | Sell | 54,311 | $29.64 |
| Jun 2, 2026 | Liberman Pauldirector, officer: See Remarks | Tax | 16,053 | $26.33 |
| Jun 2, 2026 | Robins Jasondirector, officer: See Remarks | Tax | 7,932 | $26.33 |
| Jun 2, 2026 | Ellingson Alan Wayneofficer: Chief Financial Officer | Option | 2,140 | — |
| Jun 2, 2026 | Ellingson Alan Wayneofficer: Chief Financial Officer | Tax | 359 | $26.33 |
| Jun 2, 2026 | Dodge R Stantonofficer: Chief Legal Officer | Tax | 646 | $26.33 |
| Jun 2, 2026 | Liberman Pauldirector, officer: See Remarks | Option | 7,951 | — |
| Jun 2, 2026 | Ellingson Alan Wayneofficer: Chief Financial Officer | Option | 19,920 | — |
| Jun 2, 2026 | Robins Jasondirector, officer: See Remarks | Option | 58,654 | — |
| Jun 2, 2026 | Ellingson Alan Wayneofficer: Chief Financial Officer | Tax | 9,632 | $26.33 |
| Jun 2, 2026 | Ellingson Alan Wayneofficer: Chief Financial Officer | Option | 742 | — |
| Jun 2, 2026 | Liberman Pauldirector, officer: See Remarks | Tax | 3,845 | $26.33 |
| Jun 2, 2026 | Liberman Pauldirector, officer: See Remarks | Tax | 4,666 | $26.33 |
Source: DKNG SEC Form 4 filings, latest Jun 12, 2026. For informational purposes only — not investment advice.
See the full DKNG insider & 13F page →DKNG research & analysis
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DraftKings Inc. company profile
Overview
DraftKings Inc. (NASDAQ:DKNG) is a digital sports entertainment and gaming company founded in 2011 and headquartered in Boston, Massachusetts. The company went public in 2019 through a SPAC merger and has since become one of the leading online sports betting and gaming operators in the United States. DraftKings began as a daily fantasy sports platform but has evolved into a comprehensive digital gaming ecosystem that includes sports betting, online casino games, and digital collectibles. The company operates across multiple states in the U.S. and has expanded internationally, serving millions of customers through its mobile applications and online platforms.
Business
DraftKings operates in the rapidly growing online gambling and sports entertainment industry, which encompasses several key segments that generate revenue through different gaming products and services. The company's primary business revolves around online sports betting (sportsbook), where customers place wagers on professional and collegiate sports events. This includes traditional pre-game betting as well as live in-game betting, where users can place wagers while sporting events are in progress. The sportsbook offers various betting options including moneyline bets (picking the winner), point spreads, over/under totals, and complex multi-leg bets called parlays that combine multiple wagers for higher payouts but lower odds of winning. iGaming represents DraftKings' online casino operations, offering digital versions of traditional casino games such as slots, blackjack, poker, and roulette. The company operates iGaming through both its flagship DraftKings brand and the acquired Golden Nugget Online Gaming brand. These games use random number generators to simulate casino experiences and allow players to win real money. Daily Fantasy Sports (DFS) was DraftKings' original product, where users create fantasy lineups of real athletes and compete for cash prizes based on those players' statistical performance in actual games. Unlike traditional season-long fantasy sports, DFS contests typically last one day or one week, providing more immediate gratification and frequent opportunities to play. The company also operates DraftKings Marketplace, a platform for buying and selling non-fungible tokens (NFTs) and digital collectibles related to sports and entertainment. Additionally, DraftKings owns the Vegas Sports Information Network (VSiN), a multimedia content company that produces sports betting-related programming and analysis. Based on recent financial data, online sports betting represents the largest revenue segment at approximately 70-75% of total revenue, with iGaming contributing around 20-25%, and other segments including DFS and emerging verticals making up the remainder.
Revenue model
DraftKings generates revenue primarily through gross gaming revenue, which represents the amount wagered by customers minus the winnings paid out to them. This is fundamentally different from traditional product sales, as the company acts as the "house" in gambling transactions. In sports betting, DraftKings makes money through the hold percentage or "vig" - the mathematical advantage built into betting odds. For example, if two equally likely outcomes each have -110 odds, a customer must wager $110 to win $100, giving the house a theoretical edge. DraftKings' structural sportsbook hold percentage has improved to approximately 11%, meaning they retain about 11% of all money wagered after paying out winnings. The iGaming business operates on a similar model, where casino games have built-in house edges. Slot machines, for instance, are programmed to return a certain percentage to players over time (typically 85-98%), with the remainder constituting the operator's revenue. For daily fantasy sports, DraftKings charges entry fees and rake (commission) on contests, typically retaining 10-20% of entry fees while distributing the rest as prize money to winners. Several factors significantly impact DraftKings' margins and profitability. Customer acquisition costs represent a major expense, as the company spends heavily on marketing and promotional offers to attract new users in the competitive online gaming market. Promotional spending includes free bets, deposit matches, and other incentives that directly reduce gross gaming revenue. Sports outcomes volatility can cause quarterly fluctuations, as unusual results in major sporting events can temporarily impact hold percentages. Regulatory changes and tax increases in various states can compress margins, leading DraftKings to implement surcharges in high-tax jurisdictions. Product mix also affects profitability, with parlays and live betting typically generating higher hold percentages than traditional straight bets, while customer engagement and retention directly impact lifetime value calculations.
Competitive moat
DraftKings possesses a moderate competitive moat built primarily on network effects, brand recognition, and operational scale, though the moat faces ongoing challenges in the competitive online gaming landscape. The company's strongest moat element is its customer network and data advantage. With over 10 million customers generating billions in handle annually, DraftKings accumulates vast amounts of betting data that enables sophisticated risk management, personalized marketing, and product optimization. This data advantage becomes self-reinforcing as more customers provide better insights, leading to improved products that attract additional users. Brand recognition and customer loyalty represent another significant moat component. DraftKings has established itself as a premium brand in online sports betting, consistently ranking #1 in app store categories and customer satisfaction surveys. The company's early entry into daily fantasy sports and subsequent expansion into sports betting provided first-mover advantages in building brand awareness and customer relationships. Technological infrastructure and product development capabilities create operational advantages. DraftKings has invested heavily in proprietary trading systems, mobile applications, and live betting technology. The company's recent acquisitions of Simplebet and Sports IQ Analytics strengthen its technological moat in live betting, which represents over 50% of total handle and continues growing. However, DraftKings' moat faces several vulnerabilities. The online gaming industry has relatively low barriers to entry for well-capitalized competitors, as evidenced by the successful launches of FanDuel, BetMGM, and other major operators. Regulatory risks pose ongoing challenges, as changes in state laws, tax rates, or federal regulations could significantly impact operations. The company also faces intense promotional competition, where competitors can quickly match marketing offers and customer incentives. Customer switching costs remain relatively low, as users can easily download multiple apps and shop for the best odds or promotions. While DraftKings has built some switching costs through loyalty programs and integrated experiences across sports betting and iGaming, these are not insurmountable barriers. The competitive threat primarily comes from other large-scale operators like FanDuel (owned by Flutter Entertainment) and BetMGM (MGM/Entain joint venture), both of which have substantial resources and established customer bases. Traditional casino operators expanding online and potential new entrants with significant capital also pose ongoing competitive risks.
Risks & safety
DraftKings presents a moderate margin of safety with solid liquidity but elevated valuation metrics and ongoing profitability challenges. Liquidity and Solvency: - Cash position: $1.12 billion as of Q1 2025, providing substantial operating flexibility - Current ratio: 1.20, indicating adequate short-term liquidity coverage - Free cash flow: Recently turned positive at $408 million for FY 2024, with guidance for $750 million in 2025 - Debt-to-equity ratio: 2.20, reflecting moderate leverage levels - No immediate solvency concerns given strong cash position and improving cash generation Valuation Metrics: - EV/EBITDA: 120x based on Q1 2025 EBITDA, reflecting high valuation expectations - Price-to-book ratio: 18.8x, indicating significant premium to book value - Forward valuation appears more reasonable based on 2025 EBITDA guidance of $800-900 million Other Considerations: - Revenue growth remains strong at 20% year-over-year in Q1 2025 - Path to profitability appears credible with improving unit economics and operating leverage - Regulatory risks in key markets could impact future cash flows - Competitive intensity may pressure margins and customer acquisition costs
Recent development
Over the past few years, DraftKings has executed several strategic initiatives focused on expanding its market presence, enhancing technological capabilities, and diversifying revenue streams. The company has made significant strategic acquisitions to strengthen its competitive position, particularly in live betting technology. Key acquisitions include Simplebet (live betting technology), Sports IQ Analytics (data and analytics), and Mustard Golf (golf-specific betting technology). These acquisitions support DraftKings' strategy to dominate live betting, which now represents over 50% of total handle and continues growing rapidly. Geographic expansion has been a major focus, with DraftKings successfully launching in Missouri following a ballot initiative and preparing for potential expansion into additional states. The company now operates sports betting in 18 states and iGaming in 5 states, representing significant population coverage across key markets. Product innovation and diversification efforts include the launch of DraftKings+, a subscription service offering enhanced features and exclusive content. The company has also expanded its same-game parlay offerings, introduced progressive parlays, and developed in-house player proposition betting capabilities. The acquisition of Jackpocket provides entry into the digital lottery market, offering a new customer acquisition channel with significantly lower costs. Artificial intelligence implementation has become a company-wide strategic priority, with AI being deployed across customer service, document creation, risk management, and potentially future applications in pricing and trading. This AI-first approach aims to improve operational efficiency and customer experience while reducing costs. The company has also focused on operational efficiency improvements, achieving record-low customer acquisition costs while maintaining strong growth in new customer additions. DraftKings has demonstrated disciplined expense management, with operating expenses increasing only 5% in 2024 despite 30% revenue growth, showcasing significant operating leverage potential.
DKNG company profile · for informational purposes only — not investment advice.
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