Start here if you're new
what it is
DraftKings lets you bet on sports, play online casino games, and enter fantasy contests from your phone.
how it gets paid
Last year Draftkings Hlds made $6.1B in revenue. online sportsbook was the main engine at $3.5B, or 57% of sales.
why it's growing
Revenue grew 27.0% last year. The number that matters is $4.1 billion because scale is the whole case here.
what just happened
DraftKings reported $4.1B in latest-quarter revenue, but the market focused on an earnings miss versus consensus.
At a glance
B+ balance sheet — decent shape, but not bulletproof
60/100 earnings predictability — reasonably predictable
53.8x trailing p/e — you're paying up for this one
27.0% return on capital — every dollar works hard here
xvary composite: 43/100 — below average
What they do
DraftKings lets you bet on sports, play online casino games, and enter fantasy contests from your phone.
You do not show up for one bet. You stay because fantasy, sportsbook, casino, and now exchange-style products live in one app, backed by partnerships with 4 major leagues: NFL, MLB, PGA Tour, and NBA. That bundle is cross-sell → getting one customer to buy more products → so what: it helps push $6.1 billion of annual revenue through one platform instead of paying to reacquire you somewhere else.
How they make money
$6.1B
annual revenue · their business grew +27.0% last year
online sportsbook
$3.5B
igaming casino
$1.7B
daily fantasy sports
$0.7B
b2b software and licensing
$0.2B
The products that matter
takes sports wagers online
Online Sports Betting
$4.3B · 70.5% of shown revenue
it's the engine. $4.3B of revenue growing 31% means this segment still does most of the heavy lifting for the $6.1B business.
main revenue driver
online casino games
iGaming
$1.2B · 19.7% of shown revenue
this $1.2B segment grew 25% last year. It's smaller than sportsbook, but it gives DraftKings another way to make more from the same customer base.
mix upgrade
fantasy sports contests
Daily Fantasy Sports
$0.6B · 9.8% of shown revenue
it's a $0.6B segment growing 8%. This was the original funnel. Now it's the smaller on-ramp into the broader gambling app.
audience funnel
Key numbers
$11B
2028 revenue
That is management's growth map. It means adding $4.9 billion on top of today's $6.1 billion base.
53.8x
trailing p/e
You are paying a mature-multiple price for a company with a negative 0.3% operating margin. That leaves little room for sloppy execution.
27.0%
return on capital
Return on capital → profit earned on invested money → so what: when DraftKings finds efficient growth, it can earn well above average on that spend.
$1.8B
long-term debt
Debt is 10% of capital, which is manageable. The real issue is execution, not a balance sheet emergency.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 5 / 100
- long-term debt $1.8B (10% of capital)
- net profit margin 12.4% — keeps 12 cents of every dollar in revenue
- return on equity 36% — $0.36 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in DKNG 3 years ago → it's now worth $25,650.
The index would have given you $14,770.
source: institutional data · total return
What just happened
missed estimates
DraftKings reported $4.1B in latest-quarter revenue, but the market focused on an earnings miss versus consensus.
SEC data showed latest-quarter revenue of $4.1 billion, up 255% vs. prior year, with EPS of -$0.27. Consensus data shows the last reported quarter at $0.25 versus a $0.62 estimate, a 59.68% miss, so the scoreboard depends on which filing date you use.
$4.1B
revenue
$0.27
eps
+255%
revenue vs. last year
the number that mattered
The number that matters is $4.1 billion because scale is the whole case here. If revenue grows that fast and margin stays near negative 0.3%, you learn customer acquisition is still eating the party.
-
draftkings has entered the predictions markets.the sudden rise of this alternative to sports betting created competition to draftkings' traditional betting platform.
-
in the legacy system, odds are set by the house, draftkings, which is the counterparty on all bets.the innovation of predictions markets is that they are more like exchanges aligning both sides of a bet, where the individual bettors are the counterparties on the platform. in the old system, the bettor is betting against the odds maker where draftkings, through its technology, was able to provide the most competitive odds. in prediction markets, the exchange or platform enables the bettors to interact while earning a fee. the new model allows a wider range of events to bet upon, beyond just sports, and odds are adjusted more rapidly.
-
the popularity of the new system weighed on draftkings growth but now has become an opportunity.
-
at the end of october, draftkings acquired railbird with its railbird exchange.then in december the company launched a predictive market stand-alone mobile application under the oversight of the u.s.
-
commodities futures trading commission (cftc).
source: SEC filing and consensus data, 2026
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What could go wrong
DraftKings' biggest risk is state-by-state gambling rules. You are not buying one clean national market. You are buying a legal patchwork where tax rates, approvals, marketing limits, and product access can all move the economics.
med
state-by-state regulation
Sports betting and iGaming expand one jurisdiction at a time. Slower approvals, tighter ad rules, or less favorable tax structures in major states would hit the growth story where it lives.
This risk sits against a $6.1B revenue base. If access gets tighter, the addressable market gets smaller with it.
med
promo spending climbs again
This business still wins customers with offers, odds boosts, and marketing. If competition heats up and DraftKings spends harder to hold share, the 4.6% net margin can disappear fast.
An 8.0% operating margin is progress, not protection. Thin margins make discipline the operating model.
med
the stock prices perfection, then punishes normal
A 5 / 100 price-stability score means you already own a volatile stock. Add a 54x multiple on the $0.65 fy2026 EPS estimate, and the market is asking for cleaner execution than this business has historically delivered.
The 52-week range of $26–$54 tells you the re-rating risk runs both ways. You do not need broken fundamentals for the stock to drop hard.
A tougher rulebook or another expensive customer-acquisition cycle would pressure the same $6.1B revenue base investors need to turn into durable profit.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric that matters
net margin after the growth burst
Revenue can grow 20%+ and still disappoint you if the 4.6% net margin slips. This is the line between scaled profit and expensive motion.
calendar
next earnings print
The next report needs to do more than show growth. You want to see whether the $1.1B Q4 pace translated into cleaner profitability.
regulatory watch
new-state approvals and tax changes
The bull case gets stronger when more markets open on workable terms. The bear case gets louder when key jurisdictions raise costs or limit how DraftKings can market.
trend
revenue mix between sportsbook and iGaming
Sportsbook is $4.3B. iGaming is $1.2B and growing 25%. If iGaming keeps gaining weight, the business gets steadier and the margin story gets easier to believe.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts think the stock can lag near term even if the operating story keeps improving.
risk profile
below average
stability score 4 — more volatile than most stocks. You're getting movement, not safety.
chart momentum
below average
technical score 4 — the chart is not helping the fundamental case right now.
earnings predictability
60 / 100
better than chaos, worse than consistency. Expect revisions and bigger reactions when results land.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 407 buyers vs. 361 sellers in 3q2025. total institutional holdings: 0.4B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$26
$82
$35
current price
$54
target midpoint · +54% from current · 3-5yr high: $70 (+100% · 19% ann'l return)
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