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DraftKings Posts Q1 Profit and Revenue Beat as EPS Miss Nudges Shares Lower

DraftKings is betting on prediction markets to lift margins.

Overview

  • DraftKings reported first-quarter revenue of $1.65 billion, up 17% from a year ago, and recorded $21.1 million in net income.
  • Adjusted EPS of 20 cents missed the 22-cent consensus, and shares slipped about 1.4% in premarket trading Friday after a 5.4% jump the prior session.
  • The company reaffirmed its 2026 revenue outlook of $6.5 billion to $6.9 billion, citing stronger sportsbook margins and rising adjusted EBITDA.
  • CEO Jason Robins made 'DraftKings Predictions' the priority to answer event-contract rivals such as Kalshi and Polymarket, saying Q1 spending on the product hurt EBITDA and will rise in Q2.
  • DraftKings said it has begun market making with early positive returns, plans to add parlay-style combo bets to the product, and saw April customer-acquisition costs fall by more than 80%.