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DraftKings Inc. announced its third quarter 2025 financial results, reporting revenue of $1.144 billion, a 4% increase year-over-year. The company also revealed that its board authorized an expansion of its share repurchase program from $1 billion to $2 billion, while maintaining bullish growth expectations driven by accelerating handle growth and the upcoming launch of DraftKings Predictions.
Q3 2025 Financial Performance
For the three months ended September 30, 2025, DraftKings generated revenue of $1.144 billion compared to $1.095 billion during the same period in 2024. The 4% revenue increase was driven by strong customer engagement, efficient new customer acquisition, and higher structural sportsbook hold percentage, partially offset by customer-friendly sport outcomes.
When adjusted for sport outcome impacts across periods, third quarter 2025 revenue growth showed strong momentum. In October, sportsbook handle increased 17% year-over-year.
The company reported sportsbook handle of $11.4 billion in Q3 2025, representing a 10% increase from $10.4 billion in Q3 2024. Sportsbook revenue was $596.1 million with a 5.2% net revenue margin, compared to $656.9 million and a 6.3% margin in the prior year period. iGaming revenue grew 24.9% to $451.3 million, while other revenue increased 25.3% to $96.6 million.
Executive Commentary on Growth Trajectory
“This is the most bullish I have ever felt about our future. Underlying growth in the business is accelerating and we are excited to launch DraftKings Predictions in the coming months, which we view as a significant incremental opportunity.”
Jason Robins, DraftKings’ Chief Executive Officer and Co-founder, expressed confidence in the company’s growth trajectory and upcoming product launches.
Alan Ellingson, DraftKings’ Chief Financial Officer, highlighted the company’s cash flow outlook and capital allocation strategy:
“With handle growth accelerating and parlay handle mix continuing to increase, we are excited about the trajectory of our Free Cash Flow. We continue to focus on maximizing shareholder returns and are pleased to announce that our board authorized an increase in our share repurchase program from $1.0 billion to $2.0 billion.”
Customer Metrics and Engagement
Monthly Unique Payers (MUPs) increased approximately 2% to 3.6 million average monthly unique paying customers in the third quarter of 2025 compared to Q3 2024. This increase reflects strong unique payer retention and acquisition across DraftKings’ sportsbook and iGaming offerings. Excluding Jackpocket, MUPs increased by 6% compared to the third quarter of 2024.
Average Revenue per MUP (ARPMUP) increased to $106 in Q3 2025, representing a 3% increase compared to the same period in 2024. The increase was primarily due to higher iGaming revenue and structural improvement in sportsbook hold percentage, partially offset by customer-friendly sport outcomes for sportsbook.
Revised Fiscal Year 2025 Guidance
DraftKings updated its fiscal year 2025 revenue guidance, now expecting revenue of $5.9 billion to $6.1 billion. The updated guidance range represents year-over-year growth of 24% to 28% based on the company’s fiscal year 2024 revenue.
The company also revised its fiscal year 2025 Adjusted EBITDA guidance to $450 million to $550 million. The guidance includes anticipated financial impacts from DraftKings launching mobile sports betting in Missouri later this year and the expected launch of DraftKings Predictions in the coming months, pending licensure.
Market Footprint and Expansion
DraftKings operates mobile sports betting in 25 states and Washington, D.C., which collectively represent approximately 49% of the U.S. population. The company expects to launch its sportsbook product in Missouri pending market access, licensure, regulatory approvals, and contractual approvals where applicable.
DraftKings also operates iGaming in five states, which collectively represent approximately 11% of the U.S. population. The company operates both sportsbook and iGaming products in Ontario, Canada, which represents approximately 40% of Canada’s population.
Nine-Month Performance
For the nine months ended September 30, 2025, DraftKings reported revenue of $4.065 billion, a 20.5% increase compared to $3.375 billion in the same period of 2024. Sportsbook handle for the nine-month period reached $36.8 billion, up 10.9% year-over-year, while sportsbook revenue increased 19.2% to $2.476 billion. iGaming revenue grew 20.6% to $1.304 billion.
The company reported a net loss attributable to common stockholders of $132.7 million for the nine-month period, compared to a loss of $372.4 million in the prior year period. Adjusted EBITDA for the nine months was $276.8 million, compared to $91.9 million in the same period of 2024.
Conference Call Details
DraftKings hosted a conference call and audio webcast on Friday, November 7, 2025, from 8:30 a.m. to 9:15 a.m. ET, during which management discussed the company’s results and provided commentary on business performance.
Source: DraftKings Inc.
