Revenue growth has exhibited significant volatility, ranging from a 52.7% peak in 2024Q1 to 4.4% in 2025Q3, while gross margins remain constrained between 31.5% and 46.0% due to promotional intensity.
| Sales/Revenue | 6.29B | 6.05B | 4.77B | 3.67B | 2.24B | 1.3B | 614.53M | 323.41M | 226.28M | 191.84M |
| Revenue Growth % | 25.8% | 26.99% | 30.07% | 63.6% | 72.87% | 110.9% | 90.02% | 42.93% | 17.95% | - |
| Cost of Goods Sold | 3.66B | 3.56B | 2.95B | 2.29B | 1.48B | 794.16M | 346.59M | 103.89M | 48.69M | 31.75M |
| COGS % of Revenue | - | 58.75% | 61.89% | 62.54% | 66.25% | 61.28% | 56.4% | 32.12% | 21.52% | 16.55% |
| Gross Profit | 2.63B | 2.5B | 1.82B | 1.37B | 756.19M | 501.86M | 267.94M | 219.52M | 177.59M | 160.09M |
| Gross Margin % | 41.79% | 41.25% | 38.11% | 37.46% | 33.75% | 38.72% | 43.6% | 67.88% | 78.48% | 83.45% |
| Gross Profit Growth % | - | 37.45% | 32.33% | 81.6% | 50.68% | 87.3% | 22.06% | 23.61% | 10.93% | - |
| Operating Expenses | 2.59B | 2.51B | 2.43B | 2.16B | 2.27B | 2.06B | 1.11B | 366.07M | 254.37M | 233.29M |
| OpEx % of Revenue | - | 41.51% | 50.89% | 59% | 101.23% | 159.22% | 180.82% | 113.19% | 112.41% | 121.61% |
| Selling, General & Admin | 2.11B | 2.05B | 2.03B | 1.81B | 1.95B | 1.81B | 942.57M | 310.14M | 221.48M | 213.08M |
| SG&A % of Revenue | - | 33.92% | 42.56% | 49.31% | 87.02% | 139.64% | 153.38% | 95.9% | 97.88% | 111.07% |
| Research & Development | 479.83M | 459.91M | 397.11M | 355.16M | 318.25M | 253.66M | 168.63M | 55.93M | 32.88M | 20.21M |
| R&D % of Revenue | - | 7.6% | 8.33% | 9.69% | 14.2% | 19.57% | 27.44% | 17.29% | 14.53% | 10.54% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -607K |
| Operating Income | 36.36M | -15.82M | -609M | -789.23M | -1.51B | -1.56B | -843.26M | -146.54M | -76.78M | -73.2M |
| Operating Margin % | 0.58% | -0.26% | -12.77% | -21.53% | -67.48% | -120.49% | -137.22% | -45.31% | -33.93% | -38.16% |
| Operating Income Growth % | - | 97.4% | 22.84% | 47.79% | 3.19% | -85.19% | -475.42% | -90.86% | -4.89% | - |
| EBITDA | 313.39M | 259.67M | -338.14M | -587.3M | -1.34B | -1.44B | -765.85M | -132.91M | -69.28M | -66.9M |
| EBITDA Margin % | 4.98% | 4.29% | -7.09% | -16.02% | -59.92% | -111.15% | -124.62% | -41.1% | -30.62% | -34.87% |
| EBITDA Growth % | 237.03% | 176.79% | 42.42% | 56.25% | 6.8% | -88.09% | -476.22% | -91.84% | -3.57% | - |
| D&A (Non-Cash Add-back) | 277.03M | 275.49M | 270.85M | 201.92M | 169.25M | 121.14M | 77.41M | 13.64M | 7.5M | 6.3M |
| EBIT | 114.01M | -15.82M | -590.2M | -788.57M | -1.44B | -1.52B | -843.26M | -146.54M | -76.78M | -73.2M |
| Net Interest Income | -13.17M | -19.94M | 44.3M | 55.74M | 18.7M | 1.96M | -1.07M | 1.35M | 666K | -1.54M |
| Interest Income | 12.3M | 0 | 47.26M | 58.42M | 21.35M | 4.07M | 0 | 1.35M | 666K | 0 |
| Interest Expense | 25.47M | 19.94M | 2.96M | 2.68M | 2.65M | 2.11M | 1.07M | 0 | 0 | 1.54M |
| Other Income/Expense | 38.53M | 23.8M | 15.37M | -2.75M | 65.9M | 46.69M | -389.2M | 3.87M | 666K | -2.15M |
| Pretax Income | 74.89M | 7.98M | -593.63M | -791.97M | -1.45B | -1.51B | -1.23B | -142.68M | -76.11M | -75.35M |
| Pretax Margin % | 1.19% | 0.13% | -12.45% | -21.61% | -64.53% | -116.89% | -200.55% | -44.12% | -33.64% | -39.27% |
| Income Tax | 16.24M | 4.27M | -86.34M | 10.17M | -67.87M | 8.27M | -622K | 58K | 105K | 210K |
| Effective Tax Rate % | 21.69% | 53.53% | 14.54% | -1.28% | 4.69% | -0.55% | 0.05% | -0.04% | -0.14% | -0.28% |
| Net Income | 58.64M | 3.71M | -507.29M | -802.14M | -1.38B | -1.52B | -1.23B | -142.73M | -76.22M | -75.56M |
| Net Margin % | 0.93% | 0.06% | -10.64% | -21.88% | -61.5% | -117.53% | -200.45% | -44.13% | -33.68% | -39.38% |
| Net Income Growth % | 114.71% | 100.73% | 36.76% | 41.79% | 9.53% | -23.65% | -763.03% | -87.27% | -0.88% | - |
| Net Income (Continuing) | 58.64M | 3.71M | -507.29M | -802.14M | -1.38B | -1.52B | -1.23B | -142.73M | -76.22M | -75.56M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.11 | -0.01 | -1.05 | -1.73 | -3.15 | -3.79 | -4.03 | -0.77 | -0.41 | -0.41 |
| EPS Growth % | 114.61% | 99.23% | 39.31% | 45.08% | 16.89% | 5.96% | -423.38% | -87.8% | 0% | - |
| EPS (Basic) | - | 0.01 | -1.05 | -1.73 | -3.15 | -3.79 | -4.03 | -0.77 | -0.41 | -0.41 |
| Diluted Shares Outstanding | 532M | 495.9M | 481.95M | 462.6M | 436.51M | 402.49M | 305.59M | 184.6M | 184.6M | 184.6M |
| Basic Shares Outstanding | 487.24M | 371M | 481.95M | 462.6M | 436.51M | 402.49M | 305.59M | 184.6M | 184.6M | 184.6M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Regulatory tax rate volatility
According to the provided quarterly financial data, DraftKings experienced significant revenue volatility, with growth rates fluctuating from a high of 52.7% in 2024Q1 to a low of 4.4% in 2025Q3, reflecting the inherent sensitivity of the platform to the professional sports calendar and state-level market maturity.
The wide variance in top-line expansion suggests that DraftKings remains heavily dependent on the timing of major sporting events, which complicates the assessment of underlying organic growth. Investors should monitor whether the recent deceleration in 2025Q3 represents a structural saturation of early-adopter markets or merely a temporary lull in the seasonal betting cycle.
Based on reported income statements, DraftKings' gross margins have oscillated between 31.5% and 46.0%, indicating that the company's profitability remains highly susceptible to state-level gaming tax changes and promotional intensity, which collectively act as a structural cap on the firm's ability to achieve consistent margin expansion.
The compression observed in 2025Q3 to 31.5% highlights the vulnerability of the business model to unfavorable sporting outcomes and increased tax burdens. This suggests that while the company has achieved scale, its gross margin profile is not yet resilient enough to withstand adverse regulatory or operational shocks without significant impact to the bottom line.
As reported in recent financial filings, DraftKings has demonstrated an improving ability to scale operating income, moving from a significant loss of $298.6 million in 2024Q3 to a positive $151.8 million in 2025Q4, suggesting that the company is finally beginning to realize the benefits of its fixed-cost technology investments.
The transition to positive operating margins appears to be driven by a more disciplined approach to SG&A expenses relative to revenue growth. However, the sustainability of this leverage remains unproven, as the company must continue to balance aggressive customer acquisition requirements with the need to maintain profitability in an increasingly competitive and taxed landscape.
Analysis of the income statement reveals that DraftKings' path to profitability has been historically obscured by substantial stock-based compensation, which reached $113.5 million in 2023Q4, though recent quarters show a notable reduction in these non-cash charges, potentially signaling a shift toward more sustainable GAAP-based earnings generation.
The reduction in stock-based compensation warrants further investigation to determine if this reflects a permanent change in compensation philosophy or a temporary measure to bolster reported net income. Investors should remain cautious, as the quality of earnings remains sensitive to how the company manages its equity-based incentives alongside its core operational performance.
Based on the provided data, the primary risk to the investment thesis is the potential for permanent margin compression due to state-level tax contagion, as evidenced by the recent volatility in operating margins which suggests that the company's profitability is highly sensitive to external regulatory and tax environments.
Short-term improvements in operating income may be misleading if they do not account for the permanent increase in the cost of doing business across key jurisdictions. The market may be underestimating the long-term impact of progressive tax structures, which could structurally impair the unit economics of the business regardless of the company's internal operational efficiencies.
Quick answers to the most common questions about buying DKNG stock.
For fiscal year 2025, DraftKings Inc. (DKNG) reported total revenue of $6.05B. This represents a 3056.0% increase compared to $191.8M in 2017.
DraftKings Inc. (DKNG) is profitable, generating $3.7M in net income for the fiscal year ending 2025 with a net profit margin of 0.1%.
DraftKings Inc. (DKNG) reported an operating income of $-15.8M, resulting in an operating profit margin of -0.3%. This margin reflects the operational efficiency of the business before interest and taxes.
DraftKings Inc. (DKNG) generated $2.50B in gross profit for the year, representing a gross profit margin of 41.3%. This demonstrates the company's core pricing power and production efficiency.