DraftKings Q1 Revenue Climbs to $1.65B on Strong User Spend

DraftKings opened 2026 with a strong first quarter, reporting revenue of $1.65 billion, up 17% from the same period last year. The company credited efficient customer acquisition, steady engagement, and improved Sportsbook margins for the growth.

Read more Ontario Regulator Fines Relax Gaming and Arrise for Allowing Games on Unregulated Sites

Net income reached $21.1 million, a sharp turnaround from the $33.8 million loss in Q1 2025. CEO Jason Robins said, “We are off to a fantastic start to the year as our first quarter results exceeded our expectations. Our core business is strong, and profitability is inflecting. That gives us the firepower to press our advantage in Predictions.”

DraftKings reports 4.2 million monthly unique payers 

DraftKings reported 4.2 million monthly unique payers in Q1, down 4% year‑over‑year due to its exit from Texas lottery operations. Excluding that impact, MUPs rose 2%, showing resilience in Sportsbook and iGaming. Average revenue per payer jumped 21% to $131, driven by higher Sportsbook net revenue margins.

CFO Alan Ellingson highlighted efficiency gains, saying, “The business continues to scale efficiently as we grow revenue, expand profitability, and invest in high-return opportunities.”

The company reaffirmed its full‑year guidance of $6.5 to $6.9 billion in revenue and adjusted EBITDA between $700 and $900 million. 

DraftKings is now live with mobile sports betting in 27 states, Washington D.C., and Puerto Rico, covering 53% of the US population. Its iGaming operations span five states, representing 11% of the population. In Canada, DraftKings offers both Sportsbook and iGaming in Ontario, reaching about 40% of the country’s population.

Total assets stand at $4.3 billion

DraftKings’ financial position reflects both progress and challenges. At the end of Q1 2026, the company held $999 million in cash and equivalents, down from $1.1 billion at the close of 2025. Total assets stood at $4.3 billion, with liabilities at $3.7 billion, leaving stockholders’ equity at $605 million.

Read more Bulldogs Jacob Preston charged by MRC after controversial sin bin

Operating cash flow was negative $48.4 million, though this was an improvement from the $119 million outflow in Q1 2025. Financing cash flow was also negative at $121 million, driven by treasury stock purchases and loan repayments. 

Despite these outflows, profitability and adjusted EBITDA gains suggest DraftKings is better positioned to manage liquidity.

Push into prediction markets

Beyond its traditional sportsbook and iGaming operations, DraftKings is moving aggressively into prediction markets. 

Robins highlighted this expansion, noting, “With our Super App, market making capabilities, proprietary exchange, and combos coming together, we intend to establish a leadership position in Sports Predictions before year‑end.”

DraftKings sees prediction markets as a natural extension of its platform, using its technology and customer base to capture new demand.  The company launched its prediction market standalone app last December.

Read more Do Arsenal have a West Ham curse? How title run-ins have faltered vs. Hammers, giving Man City hope