DKNG earnings analysis
What we found in DKNG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
DraftKings reported Q1 2026 earnings with impressive growth in both revenue and profits, achieving $1.646 billion in revenue (up 16.8% year-over-year) and an EPS of $0.20, exceeding analyst expectations. The company demonstrated strong performance in its Sportsbook and iGaming segments but faced some challenges in maintaining its Monthly Unique Payers (MUPs).
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth of 16.8%
- DraftKings generated $1,646 million in revenue for Q1 2026, up from $1,409 million in Q1 2025.
- EPS of $0.20 Surpasses Estimates
- The reported diluted EPS was $0.20, comparing favorably against estimates of $0.16.
- Significant Growth in Sportsbook Revenue
- Sportsbook revenue surged by 24.1% to $1,095 million from $882 million year-over-year.
- Increase in Average Revenue per MUP
- ARPMUP rose by 21.3% to $134 for Q1 2026, reflecting improved monetization.
- Positive Adjusted EBITDA of $167.9M
- Adjusted EBITDA was $167.8 million, up from $102.6 million in the same quarter last year.
- Strong Cash Position
- DraftKings ended the quarter with $999.4 million in cash and cash equivalents.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Decline in Monthly Unique Payers
- MUPs decreased by 3.6% year-over-year, mainly due to the exit from the Texas Lottery market.
- High Sales and Marketing Expenses
- Sales and marketing expenses increased by 16.9% to $401.7 million, impacting margins.
- Increased Interest Expenses
- Net interest expense for Q1 2026 was $5.7 million, a swing from $4.4 million of net interest income in Q1 2025.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.2
- Gross margin
- 57.7%
- Operating margin
- 0.4%
- Segment
- Sportsbook: $1,094.9M
- Segment
- iGaming: $461.3M
- Segment
- Other: $89.9M
What they said about what is next.
DraftKings maintains fiscal year 2026 revenue guidance of $6.5 billion to $6.9 billion and expects Adjusted EBITDA between $700 million to $900 million.
The filing reads better than the one before it.
What came before.
- 10-K · February 13, 2026
- DraftKings' 2025 10-K shows continued top-line scale with revenue of $6,054.5 million in 2025 (up from $4,767.7M in 2024 and $3,665.4M in 2023) and user metrics improving (4.0M MUPs in 2025). The business remains…
- 10-Q · November 7, 2025
- DraftKings reported Q3 revenue of $1,144,019,000, up $48,529,000 (+4.4%) year-over-year but down materially versus the prior quarter. Gross margin compressed to ~31.5% and the company generated an operating loss of…
- 10-Q · August 7, 2025
- DraftKings posted a strong June quarter: revenue of $1,512,507,000 (Q2 2025) increased sequentially and year-over-year, with gross margin expanding to 43.5% and operating income of $150,644,000 driving GAAP diluted EPS…
- 10-Q · May 9, 2025
- DraftKings reported Q1 2025 revenue of $1,408,806,000, up from $1,174,996,000 in Q1 2024, with gross margin roughly stable at 40.1%. Operating loss narrowed to $(46,331,000) and diluted EPS improved to $(0.07) from…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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