DraftKings Records $21.1 Million Q1 Profit Following Prior-Year Loss

(AsiaGameHub) –   DraftKings commenced 2026 with a first quarter that surpassed Wall Street’s projections, attributed to enhanced sportsbook margins, more disciplined customer acquisition, and initial success with its Super App strategy.

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Good to Know

• DraftKings reported a 17% year-over-year increase in revenue, reaching $1.65 billion.
• The company achieved a net profit of $21.1 million, a turnaround from a $33.9 million loss in the previous year.
• Customer acquisition costs for prediction markets in April saw a reduction of over 80%.

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DraftKings Leverages Strong Q1 Performance to Intensify Focus on Prediction Markets

DraftKings presented investors with a dual narrative for the quarter. Its primary sportsbook and iGaming operations sustained growth, concurrently, prediction markets appeared to be less expensive to develop than initially anticipated.

For the period concluding March 31, DraftKings announced revenues of $1.65 billion, marking an approximate 17% increase year-over-year. A net profit of $21.1 million was recorded, a significant improvement from the $33.9 million loss reported in the same quarter last year. Adjusted EBITDA climbed to $167.9 million from $102.6 million, and adjusted earnings per share stood at $0.20, surpassing Wall Street’s forecast of $0.17.

CEO Jason Robins commented:

“We are off to a fantastic start to the year as our first-quarter results exceeded our expectations,”

The sportsbook segment largely drove the quarter’s performance. Revenue from this division rose 24.1% to $1.09 billion, despite a modest 1.5% increase in betting handle to $14.08 billion. The sportsbook margin saw an enhancement, reaching 7.8% from 6.4% in the prior year.

iGaming contributed a consistent additional revenue stream. Online casino product revenue grew 8.9% to $461.3 million, constituting almost 28% of the group’s overall revenue.

Initially, customer figures appeared softer; however, DraftKings attributed this decline to its withdrawal from the Texas lottery market. Monthly unique paying customers decreased by 4% to 4.2 million. Excluding this factor, the number would have increased by 2%. Average revenue per monthly unique payer also saw an uptick, supported by improved retention and the acquisition of new users across both sportsbook and iGaming platforms.

DraftKings maintained its 2026 financial outlook. The company continues to project revenues between $6.5 billion and $6.9 billion, alongside adjusted EBITDA ranging from $700 million to $900 million.

A more recent development revolves around the DraftKings Super App. This platform integrates sportsbook, iGaming, and DraftKings Predictions into a single mobile application. The company reported that in April, customer acquisition costs for its prediction market segment dropped by over 80%.

Robins stated:

“Our core business is strong, and profitability is inflecting. That gives us the firepower to press our advantage in Predictions,” said Robins. “With our Super App, market-making capabilities, proprietary exchange, and combos coming together, we intend to establish a leadership position in Sports Predictions before year-end.”

The volume within the prediction market also saw an increase. Annualized consumer volume surpassed $1 billion in April, and annualized total traded volume exceeded $2.3 billion. These metrics showed month-over-month growth of 38% and 43%, respectively.

Furthermore, DraftKings noted that 69% of its prediction market trading volume originates from states where traditional legal sports betting is not available. This provides the Boston-based operator with an alternative avenue to engage users who are unable to access conventional online sports betting.

CFO Alan Ellingson remarked:

“The business continues to scale efficiently as we grow revenue, expand profitability, and invest in high-return opportunities.”

DraftKings reiterated its long-term objectives from its investor day presentation, which encompass a potential gross revenue opportunity of $55 billion to $80 billion by 2030 and a minimum long-term adjusted EBITDA margin of 30%.