DraftKings Q3 2025 Earnings: Revenue Up 4%, Guidance Cut After Sports Losses
DraftKings grew revenue but posted a net loss and cut its 2025 outlook after unusually bettor-friendly NFL outcomes hit results.
| Q3 2025 | Reported |
|---|---|
| EPS | -$0.52 |
| Revenue | $1.14B |
Figures as reported by the company to the SEC for the quarter ended September 30, 2025. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Revenue rose about 4% from a year earlier, but growth slowed sharply as an unusual stretch of NFL outcomes favored bettors over the sportsbook, cutting into results by more than $300 million combined in September and October.
- The company posted a net loss for the quarter, reflecting continued heavy spending on promotions, technology, and customer acquisition even as its betting and gaming business keeps scaling up.
- Management lowered full-year 2025 revenue guidance to $5.9 billion-$6.1 billion (from a prior $6.2 billion-$6.4 billion) and cut expected adjusted EBITDA, a profitability measure that excludes certain non-cash and one-time costs, to $450 million-$550 million (from $800 million-$900 million), citing the sports-outcome impact.
- Despite the guidance cut, CEO Jason Robins said this was “the most bullish” he has ever felt about the company’s future, pointing to accelerating underlying growth and the upcoming launch of DraftKings Predictions, a new sports prediction-markets product.
- DraftKings announced it will become ESPN’s “Official Sportsbook and Odds Provider” starting December 2025, with integration directly into the ESPN app and digital platforms.
- The company expanded its share buyback authorization from $1 billion to $2 billion, a move announced alongside the lowered guidance.
- Trailing-12-month profit margins remain thin, with operating and net margins both under 1%, even though revenue over that same period is up nearly 26%, underscoring a strategy still focused on growth and market share over near-term profitability.
- Monthly unique payers, a measure of active paying customers, rose to roughly 3.6 million, pointing to continued customer acquisition and retention even in a quarter where betting outcomes weighed on revenue.
Q3 2025 in context
| Metric | Sep 2025 | Sep 2024 | Change |
|---|---|---|---|
| Revenue | $1.1B | $1.1B | +4.4% |
| Net income | -$257M | -$294M | +12.6% |
| Free cash flow | $283M | $131M | +116.3% |
| Diluted EPS | -$0.52 | -$0.60 | +13.3% |
| Gross margin | 31.5% | 32.2% | -0.8 pts |
| Operating margin | -23.8% | -27.3% | +3.5 pts |
| Net margin | -22.4% | -26.8% | +4.4 pts |
Figures for the quarter ended Sep 2025 and the quarter ended Sep 2024, as reported to the SEC.
How the stock took it
Draftkings Inc closed at $27.98 on Nov 6, 2025, the last session before the report, and at $30.54 on Nov 10, 2025, the first session after it — +9.2% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report · earnings call