DraftKings Q1 2026 earnings: revenue up 17%, company swings to profit
DraftKings reported $1.65B in Q1 2026 revenue and a return to profitability, driven by sports betting growth and rising EBITDA margins.
| Q1 2026 | Reported |
|---|---|
| EPS | $0.03 |
| Revenue | $1.65B |
Figures as reported by the company to the SEC for the quarter ended March 31, 2026. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Revenue reached $1.65 billion for the quarter, up about 17% from a year earlier, driven by growth in both sports betting and online casino (iGaming) activity.
- DraftKings turned a profit for the quarter and reported adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, a measure of operating cash profitability) of $168 million, up 64% from a year ago.
- Sportsbook revenue rose about 24% to roughly $1.09 billion, while iGaming revenue grew about 9% to $461.3 million, with both segments contributing to growth.
- The company’s ‘net revenue margin’ – the share of betting handle it keeps as revenue after paying out winnings – improved by 1.4 percentage points, a sign that betting outcomes and promotional spending trends worked in the company’s favor.
- Trailing-twelve-month profitability metrics remain thin in absolute terms, with net margin near 1% and operating margin near 0.6%, reflecting a company still early in converting revenue growth into sustained bottom-line profit even as this quarter moved in a positive direction.
- CEO Jason Robins said the company is ‘off to a fantastic start this year’ and that adjusted EBITDA would have topped $200 million in the quarter if not for spending tied to launching sports betting in Arkansas and investing in the company’s newer prediction-markets business.
- Management pointed to prediction markets – a newer product letting customers trade on the outcome of sports and other events – as a growth priority, saying consumer volume in that business hit an annualized $1 billion pace in April, with a goal of establishing a leadership position in sports predictions by year-end.
- DraftKings reaffirmed its full-year 2026 guidance of $6.5 billion to $6.9 billion in revenue and $700 million to $900 million in adjusted EBITDA, a range that includes an estimated $200-300 million in planned spending to build the prediction-markets business.
- Robins gave an early look at the following quarter, saying April results on a preliminary basis showed betting handle up 6% and revenue up 22% year-over-year, with more than $100 million of adjusted EBITDA generated in that month alone.
Q1 2026 in context
| Metric | Mar 2026 | Mar 2025 | Change |
|---|---|---|---|
| Revenue | $1.6B | $1.4B | +16.8% |
| Net income | $21M | -$34M | +162.2% |
| Free cash flow | -$56M | -$122M | +54.4% |
| Diluted EPS | $0.03 | -$0.07 | +142.9% |
| Gross margin | 42.3% | 40.1% | +2.2 pts |
| Operating margin | 0.4% | -3.3% | +3.6 pts |
| Net margin | 1.3% | -2.4% | +3.7 pts |
Figures for the quarter ended Mar 2026 and the quarter ended Mar 2025, as reported to the SEC.
How the stock took it
Draftkings Inc closed at $25.22 on May 7, 2026, the last session before the report, and at $24.51 on May 11, 2026, the first session after it — -2.8% across the report.
| Earlier report | Close before | Close after | Change |
|---|---|---|---|
| Nov 7, 2025 | $27.98 | $30.54 | +9.2% |
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