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Mar 31
DraftKings Q1 2025 Earnings Report
DraftKings reported strong top-line growth in Q1 2025 driven by increased customer engagement and product performance.
Key Takeaways
DraftKings delivered a 20% revenue increase in Q1 2025 despite a net loss, fueled by user growth and improved Sportsbook performance.
Revenue rose to $1.41 billion, up from $1.17 billion a year ago.
Monthly Unique Payers reached 4.3 million, a 28% YoY increase.
Adjusted EPS was positive at $0.12, despite a GAAP net loss of $33.9 million.
The acquisition of Jackpocket contributed to customer growth and revenue diversification.
DraftKings
DraftKings
DraftKings Revenue by Segment
Revenue by Segment
Sportsbook Revenue
CapyFin.comiGaming Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
DraftKings lowered its FY25 revenue and Adjusted EBITDA guidance due to unfavorable sports outcomes in Q1, but remains confident in customer metrics and product strategy.
Positive Outlook
- Customer engagement remains strong despite macroeconomic headwinds.
- Adjusted EBITDA improved significantly year-over-year.
- Positive momentum from Jackpocket acquisition.
- Healthy balance sheet with significant cash reserves.
- Stock repurchase program executed with 3.7 million shares bought back.
Challenges Ahead
- Lowered revenue guidance to $6.2–$6.4 billion from $6.3–$6.6 billion.
- Adjusted EBITDA guidance cut to $800M–$900M from $900M–$1B.
- Customer-friendly sport outcomes impacted profitability.
- ARPMUP decreased due to Jackpocket customer mix.
- Free cash flow was negative, with $119M used in operations.