DraftKings surpasses Wall Street forecasts in first-quarter revenue and profits. The firm revealed that its expansion into predictive markets via its Super App has already reduced customer acquisition expenses, boosting share prices in after-hours trading.
The U.S. sports betting giant recorded revenue of $1.65 billion for the quarter ending March 31, a 17% increase from the previous year, fueled by effective customer acquisition, improved sportsbook margins, and ongoing customer engagement.
Net earnings stood at $21.1 million, recovering from a loss of $33.9 million in the same quarter last year, alongside an adjusted EBITDA increase to $167.9 million from $102.6 million. DraftKings announced adjusted earnings of 20 cents per share, exceeding analysts’ predictions of 17 cents.
Stock prices for the Boston-based enterprise jumped by 1.8% in after-hours trading after a rise of 5.4% during the regular session.
“We have made a superb start to the year as our first-quarter results have surpassed expectations,” stated Chief Executive Officer Jason Robins.
DraftKings affirmed its full-year 2026 revenue projection of $6.5 billion to $6.9 billion and an adjusted EBITDA target of $700 million to $900 million.
The firm indicated that monthly unique paying customers dipped by 4% year-over-year to 4.2 million, partly due to its exit from the Texas lottery market. However, excluding this impact, paying customers increased by 2%.
Average revenue per monthly unique payer rose, supported by strong customer retention and acquisition across sportsbook and iGaming offerings.
Sportsbook revenue surged by 24.1% to $1.09 billion, while total betting volume saw a 1.5% uptick to $14.08 billion. The sportsbook margin enhanced to 7.8%, up from 6.4% the previous year.
iGaming revenue also increased by 8.9% to $461.3 million, making up nearly 28% of the total revenue.
DraftKings underscored the early success of its newly introduced Super App strategy, which integrates sportsbook, iGaming, and predictive market options into one platform.
The firm noted that its comprehensive mobile app, now featuring DraftKings Predictions, resulted in an over 80% reduction in April’s predictive market customer acquisition costs.
“Our core business remains robust, and profitability is gaining traction. This empowers us to reinforce our position in Predictions,” emphasized Robins. “With our Super App, market-making capabilities, proprietary exchange, and various combinations, we aim to secure a leading position in Sports Predictions before the year concludes.”
Robins further mentioned that annualized consumer volume in prediction markets exceeded $1 billion in April, with total annualized trading volume surpassing $2.3 billion, marking a month-over-month increase of 38% and 43%, respectively.
The company highlighted that 69% of the prediction market trading volume comes from jurisdictions where sports betting is still not permitted, indicating a significant underutilized market opportunity.
DraftKings reiterated its long-term objectives presented during its investor day, including a potential gross revenue target of $55 billion to $80 billion by 2030 with at least a 30% long-term adjusted EBITDA margin.
Chief Financial Officer Alan Ellingson commented: “Our business continues to scale efficiently, driving revenue growth, enhancing profitability, and investing in high-return initiatives.”