DraftKings (DKNG) reported Q1 2026 results with revenue of $1.6 billion, up 17% year-over-year, and adjusted EBITDA of $168 million, up 64%. Sportsbook revenue rose 24% to $1.1 billion with net revenue margin up 140 basis points to 7.8%. Parlay handle mix grew nearly 300 basis points. Adjusted gross margins increased nearly 200 basis points. The company repurchased nearly $100 million in stock and achieved positive net income for the second straight quarter. Predictions investment is planned at $200 million to $300 million annually, with customer acquisition cost declining over 80% in April after integration into the flagship app. Annualized consumer volume exceeded $1 billion in April, and total volume traded reached $2.3 billion. Market making launched and is generating positive returns. April operational metrics showed handle up 6%, revenue up 22% year-over-year, and adjusted EBITDA over $100 million. Fiscal year 2026 guidance reaffirmed: revenue $6.5 billion to $6.9 billion, adjusted EBITDA $700 million to $900 million. Sportsbook and Predictions will be reported together as Sports revenue starting next quarter. Advocacy spend was $26 million. iGaming introduced Flex Spins and...
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