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DraftKings closed out the first quarter of 2025 with steady growth in revenue, rising customer numbers, and improved operational performance, although it still posted a net loss. The company credits several key developments, including a strategic acquisition and product upgrades, for its upward momentum.
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In Q1 2025, DraftKings generated $1.4 billion in revenue, reflecting a 19.9% year-over-year increase. A large portion of that, nearly $882 million, came from sportsbook operations, which saw a 20.1% bump compared to the same period last year.
The operator reported a net loss of $33.9 million for the quarter. However, this was a major improvement from the $143.8 million loss posted in Q1 2024. Adjusted EBITDA reached $102.6 million, which marks a sharp 358.4% improvement year-over-year.
CEO Jason Robins pointed to recent progress as a major factor behind these results. “Recent product enhancements are driving outperformance in our core value drivers, and our customer metrics continue to be strong through an evolving macroeconomic environment,” he said.
He added that March saw some unexpected results in sports betting. “If not for customer-friendly sport outcomes in March, we would be raising our fiscal year 2025 revenue and adjusted EBITDA guidance.”
DraftKings’ handle (the total amount wagered) rose 15.7% from the previous year, reaching almost $13.9 billion. That contributed to a sportsbook net revenue margin of 6.4%.
The company also continued to grow in other areas. iGaming brought in $423.5 million during the quarter, up 14.5% year-over-year. Revenue in the “other” category rose by 45.7% to $103.4 million, thanks in part to new initiatives and the closing of the Jackpocket Inc. acquisition in May 2024.
That acquisition also played a role in boosting player activity. Monthly unique players jumped 28% to 4.3 million, which the company attributed to both improved retention and new customer gains.
DraftKings spent $843.8 million on cost of revenue, up 18.8% from Q1 2024. Marketing expenses rose slightly to $343.7 million, increasing by $3 million year-over-year.
Despite solid top-line growth, DraftKings lowered its full-year outlook. It now expects revenue between $6.2 billion and $6.4 billion, down from the earlier forecast of $6.3 billion to $6.6 billion. Adjusted EBITDA expectations were also revised to $800 million–$900 million from the previous $900 million–$1 billion range.
The company is preparing to expand further, eyeing Missouri as a potential new market pending regulatory approvals. Sports betting was legalized in the state in November 2024, and DraftKings hopes to launch there soon.