DraftKings Inc. · DKNG · FY2025 Q2 · Calendar Q3 2025

DraftKings Maintains FY2025 Outlook After Record Q2

The supplied analysis supports a constructive near-term operating thesis: record Q2 performance, strong sportsbook growth, maintained guidance and planned product expansion provide evidence of demand and operating momentum. The thesis is conditional because taxes, regulation, competition and sports-outcome volatility could limit profitability.

Reported After market closeNASDAQConsumer Cyclical $9.71B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $0.38 Consensus $0.15
EPS surprise +151.2% Reported versus consensus
Reported revenue $1.51B Consensus $1.42B
Revenue surprise +6.2% Reported versus consensus

Market reaction

event-close to next-session close
Stock move -5.1% Event window
SPY move +0.8% Same window
Abnormal move -5.9% Stock minus SPY
Volume 1.8× Versus trailing sessions
Subsequent drift +8.0% Up to 20 sessions
DKNGSPY benchmark

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Transcript intelligence

What changed

Compared with the prior-quarter analysis, management moved from a lowered FY2025 outlook to maintained guidance after record Q2 revenue and adjusted EBITDA. The current analysis also emphasizes the Missouri launch, broader AI efficiency efforts and exploration of prediction markets, while tax and regulatory risks remain central.

Guidance delta

Management maintained FY2025 guidance and pointed to the high end of the revenue range and midpoint EBITDA, despite tax pressure.

Key takeaways

  • Record Q2 revenue and adjusted EBITDA were attributed to strong sportsbook growth.
  • Sportsbook net revenue grew 45% year over year, with improved hold and parlay mix supporting margins.
  • Management highlighted AI-led cost efficiency, a potential Missouri launch and exploratory prediction-market work.
  • Tax increases and regulation remain material constraints on profitability and growth.

Management priorities

  • Expand sportsbook and iGaming activity, including the planned Missouri launch
  • Scale AI applications for expense efficiency and potential top-line opportunities
  • Evaluate prediction-market entry and regulatory requirements
  • Renegotiate market-access and data-rights agreements
  • Explore sports-streaming partnerships

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Earnings History

Estimate Beat Miss Match
DKNG EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 3 future estimate-only quarters. Q1 '24 estimate $-0.29 Q1 '24 actual $-0.30, miss Q2 '24 estimate $0.01 Q2 '24 actual $0.12, beat Q3 '24 estimate $-0.42 Q3 '24 actual $-0.60, miss Q2 '25 estimate $0.15 Q2 '25 actual $0.38, beat Q3 '25 estimate $-0.43 Q3 '25 actual $-0.26, beat Q4 '25 estimate $0.36 Q4 '25 actual $0.36, match Q1 '26 estimate $0.22 Q1 '26 actual $0.20, miss Q2 '26 estimate $0.02 Q2 '26 actual $-0.14, miss Q3 '26 estimate $-0.35 Q4 '26 estimate $0.46 Q1 '27 estimate $0.16
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Analyst Consensus ?

ConsensusBuy48 ratings
Bullish3675.0%
Neutral816.7%
Bearish48.3%

Analyst 52W Price Targets

$19.58Current
$15Low
$41.82Average
$105High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 11, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Susquehanna Positive PositiveMaintainOct 8, 2026
Macquarie Outperform OutperformMaintainOct 7, 2026
Guggenheim Buy BuyMaintainOct 7, 2026
B of A Securities Buy NeutralUpgradeOct 5, 2026
BTIG Buy BuyMaintainOct 1, 2026
Show 43 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $19.58. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
SusquehannaJoseph Stauff$27$19.15 +37.9%Oct 8, 2026
GuggenheimAnalyst unavailable$30$19.75 +53.2%Oct 7, 2026
UBSRobin Farley$48$22.58 +145.1%Sep 18, 2026
BernsteinIan Moore$29$24.21 +48.1%Sep 3, 2026
Wolfe ResearchAnalyst unavailable$40$23.44 +104.3%Sep 2, 2026
See 171 more

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Company context

Snapshot as of publication

DraftKings Inc. operates as a leading digital enterprise specializing in sports entertainment and gaming. The company provides sophisticated multi-channel sports betting and gaming technology solutions to operators across 17 countries, facilitating diverse entertainment experiences. Directly, DraftKings manages its own iGaming services under the DraftKings brand in five U.S. states, and separately operates Golden Nugget Online Gaming, another iGaming offering, in three states. Its Sportsbook platform is accessible for both mobile and physical wagers in 18 U.S.…

Historical context

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-10-11T17:50:41.663784+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-11T17:50:41.660967+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-11. For educational purposes only; not investment advice.