DraftKings Q2 revenue hits record $1.5bn as net income surges 147.5%

Key points:

– Q2 2025 revenue up 37% year-on-year to $1.5bn and net income rises to $157.9m

– Adjusted EBITDA more than doubles to $300.6m, a 134.9% increase

– Sportsbook revenue reached $997.9m and iGaming up 22.6% to $429.7m

DraftKings reported a new quarterly revenue record of $1.5bn for Q2 2025, representing a 37% year-on-year increase and marking its strongest financial performance to date.

Net income climbed sharply to $157.9m, while adjusted EBITDA more than doubled to $300.6m, reflecting a 134.9% improvement.

The operator also posted an operating profit of $150.6m, a reversal from the $32.4m operating loss reported in Q2 2024. DraftKings credited the gains to healthy customer engagement, improved hold percentage and sportsbook-friendly outcomes.

Sportsbook drives growth amid stable iGaming expansion

DraftKings’ sportsbook segment contributed $997.9m to total Q2 revenue, a 45.3% increase. The sports betting handle reached $11.5bn, up 6.3%. The operator noted a favourable hold rate and efficient customer acquisition as key factors.

Meanwhile, iGaming revenue grew 22.6% to $429.7m, continuing the segment’s steady performance. Other revenue sources rose 26.8% to $85m.

The company reaffirmed its full-year revenue guidance of $6.2bn to $6.4bn, first issued in May 2025 and now expects to land at the upper end of the range. Adjusted EBITDA for FY2025 remains forecast between $800m and $900m.

Good to know: DraftKings began charging a $0.50 fee on all mobile and online sports wagers in Illinois, following similar tax pass-through measures implemented by FanDuel parent Flutter

Cost management and state expansion in focus

Operating expenses were up compared to last year, but revenue growth outpaced spending. The company cited strong margin expansion as a result of product efficiency and acquisition scale.

DraftKings has continued its rollout across the US market. The operator is now live with mobile sports betting in 25 states and Washington, DC, covering roughly 49% of the US population. It also operates iGaming in five states and remains active in Ontario, Canada.

Upcoming launches include Missouri and Puerto Rico, with the former expected to contribute to second-half growth following a successful 2024 ballot initiative.

Acquisition talks and strategic positioning

On July 15, DraftKings reportedly began acquisition discussions with prediction market platform Railbird Exchange, which recently gained federal licensure. While no deal has been finalised, the move signals potential interest in expanding into new verticals. DraftKings declined to comment on the matter.

This follows its May 2024 acquisition of Jackpocket, a digital lottery platform. While the deal added to monthly user totals, it also contributed to a decline in ARPMUP due to differing monetisation dynamics.

In Q1 2025, DraftKings posted 4.3 million Monthly Unique Payers – up 28% – but adjusted EBITDA guidance was lowered due to softer March sports outcomes.

Past results frame trajectory

DraftKings closed 2024 with $4.8bn in revenue, a 30.1% annual increase and achieved positive adjusted EBITDA for the first time at $181.3m. The Q2 2025 results mark a continuation of that trend, with revenue and profitability reaching new highs.

As the operator maintains its guidance and eyes further expansion, ongoing customer acquisition efficiency and state-level tax policy will remain key areas to monitor in the second half of 2025.