DraftKings Q1 revenue slightly beats estimates on customer acquisition & engagement growth

DraftKings

07/05/2026 21:24

Overview

U.S. digital sports gaming firm's Q1 revenue rose 17% yr/yr, slightly beating analyst expectations

Adjusted diluted EPS for Q1 increased yr/yr, reflecting improved profitability

Company maintained fiscal yr 2026 revenue and adjusted EBITDA guidance

Outlook

DraftKings maintains fiscal 2026 revenue guidance of $6.5 bln to $6.9 bln

Company maintains fiscal 2026 Adjusted EBITDA guidance of $700 mln to $900 mln

Result Drivers

CUSTOMER ACQUISITION & ENGAGEMENT - Co said revenue growth was driven by efficient customer acquisition and continued healthy customer engagement

SPORTSBOOK MARGIN - Higher Sportsbook net revenue margin contributed to increased revenue and ARPMUP

LOTTERY EXIT IMPACT - MUPs fell 4% yr/yr, mainly reflecting lower Lottery users after Texas exit; excluding Lottery, MUPs rose 2%

Company press release: ID:nBw8tJ3dKa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$1.65 bln
$1.64 bln (28 Analysts)
Q1 Net Income
$21.07 mln
Q1 Operating Income
$5.85 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 29 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the casinos & gaming peer group is "buy"

Wall Street's median 12-month price target for Draftkings Inc is $31.00, about 29.6% above its May 6 closing price of $23.92

The stock recently traded at 46 times the next 12-month earnings vs. a P/E of 46 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)