DraftKings smashes records in Q2 with 37% increase in revenue

DraftKings (NASDAQ: DKNG) announced last week that the firm was on the receiving end of a stellar second quarter in 2025, hitting $1.513 billion in revenue, marking a significant 37% jump from Q2’s earnings last year.

In addition to this, the company also declared its net income grew to $158 million with its adjusted EBITDA surging to $301 million, setting a record across all three metrics.

Highlighted as the primary reasons behind the unprecedented earnings report, DraftKings stated the upswing in revenue was due to “healthy customer engagement, efficient acquisition of new customers, and higher structural Sportsbook hold percentages.”

Furthermore, favorable sports betting outcomes were also cited for adding roughly $110 million to the firm’s revenue in the final two months of the quarter alone.

DraftKings’ sportsbook handle amassed over $11.5 billion, which represented a 6% year-on-year improvement, while the platform’s Monthly Unique Players (MUPs) growth also mirrored this figure, climbing 6% to 3.3 million users.

Deemed to be a result of the company’s smarter promotional spending and better hold rates, the operator’s average revenue per player also rose by 29% to $151.

Following CEO Jason Robins‘ Q2 earnings call on Thursday morning, DraftKings’ stock immediately rose to over $46 when the markets opened, amounting to an increase of 1.7%.

Revenue projections hold firm despite state tax increases

The firm also held steady on its 2025 revenue guidance of $6.2 to $6.4 billion, with recent indicators pointing more towards the higher end of this range.

Likewise, adjusted EBITDA guidance remained between $800 and $900 million, this was in spite of the firm facing higher state tax levies in New Jersey, Louisiana, and Illinois.

DraftKings also expanded its North American footprint as a result of its mobile sports betting now operating in 25 states and Washington, D.C., reaching approximately 49% of the U.S. population. Similarly, its iGaming operations are now up and running in five states, as well as in Ontario, Canada, which accounts for nearly 40% of the Canadian population.

More positives for DraftKings with share buyback, prediction markets

A key factor not yet included in the firm’s fiscal year 2025 guidance is likely to be a DraftKings entry into the prediction market sector, with reports indicating the company is in talks to acquire CFTC-licensed operator Railbird Exchange.

Nevertheless, Jason Robins stressed the need for caution on this front, warning that regulatory uncertainty and ongoing litigation could halt a product release in this emerging vertical. Needless to say, this follows directly on the heels of Kalshi losing its legal case in Maryland last week, undeniably underscoring the prominent risk factors facing the sector.

Outside of the noise surrounding its possible entry into the prediction markets, in the first half of 2025, DraftKings has also successfully repurchased 6.5 million shares in total under its $1 billion buyback directive.

Indeed, from a trader’s perspective, DraftKings’ current setup remains compelling following the firm’s growth stock hitting record profitability, in tandem with CEO Robin’s dangling a possible entry into the prediction market arena. Consequently, should the latter venture materialize soon, DraftKings is certainly positioned to record substantial revenue growth in 2026.