DraftKings Inc
F:IK1
DraftKings Inc
DraftKings Inc. emerges from the vibrant crossroads of innovation and entertainment, where the love for sports blends seamlessly with the excitement of digital gaming. Established in 2012, DraftKings was born from the vision of three Boston-based entrepreneurs who wanted to elevate the sports experience beyond passive viewing by introducing daily fantasy sports competitions. Rather than waiting until the end of a sports season, fans could now engage with their favorite leagues on a daily basis, crafting lineups and earning points based on real-player performances. This model tapped into a growing market of sports aficionados eager for deeper immersion and interaction with the games they love.
Fast forward to today, DraftKings has evolved into a leading player in the digital sports entertainment and gaming industry. With the legalization of sports betting across various states in the U.S., DraftKings expanded its offerings to include online sports wagering. This move allows users to place bets on an array of sports events directly from their smartphones or computers, blending the strategy of prediction with the thrill of real-time outcomes. The company generates revenue primarily through the conversion of user wagers into income, augmented by its offerings of daily fantasy sports contests and access fees. Furthermore, with a robust platform capable of supporting intense real-time interaction, DraftKings captures a dynamic slice of the market that not only seeks entertainment but also the potential for monetizable engagement, thus carving out a unique niche in the sports gaming landscape.
DraftKings Inc. emerges from the vibrant crossroads of innovation and entertainment, where the love for sports blends seamlessly with the excitement of digital gaming. Established in 2012, DraftKings was born from the vision of three Boston-based entrepreneurs who wanted to elevate the sports experience beyond passive viewing by introducing daily fantasy sports competitions. Rather than waiting until the end of a sports season, fans could now engage with their favorite leagues on a daily basis, crafting lineups and earning points based on real-player performances. This model tapped into a growing market of sports aficionados eager for deeper immersion and interaction with the games they love.
Fast forward to today, DraftKings has evolved into a leading player in the digital sports entertainment and gaming industry. With the legalization of sports betting across various states in the U.S., DraftKings expanded its offerings to include online sports wagering. This move allows users to place bets on an array of sports events directly from their smartphones or computers, blending the strategy of prediction with the thrill of real-time outcomes. The company generates revenue primarily through the conversion of user wagers into income, augmented by its offerings of daily fantasy sports contests and access fees. Furthermore, with a robust platform capable of supporting intense real-time interaction, DraftKings captures a dynamic slice of the market that not only seeks entertainment but also the potential for monetizable engagement, thus carving out a unique niche in the sports gaming landscape.
Record Quarter: DraftKings set new records for both revenue and adjusted EBITDA in Q4 2025, with revenue up 43% year-over-year to nearly $2 billion.
Profitability Milestone: Fiscal year 2025 marked the company’s first-ever positive net income.
Predictions Market Focus: Management is highly optimistic about the emerging predictions business, seeing it as a massive incremental opportunity but is not including revenue from it in 2026 guidance.
Conservative Guidance: 2026 guidance is intentionally conservative, with expected revenue of $6.5–$6.9 billion and adjusted EBITDA of $700–900 million.
Share Repurchases: 16 million shares were repurchased in 2025, with plans to remain active as adjusted EBITDA grows.
Sportsbook & iGaming Strength: Sportsbook revenue rose over 30% year-over-year, and iGaming revenue increased 20%.
Regulatory Clarity: A more stable regulatory environment is enabling DraftKings to accelerate investment in predictions.
Promo and Competition: Promotional intensity remains rational in both core and predictions markets, and management does not see a surge from competitors.
