DraftKings Reports Solid Q3 Financials and Plans Prediction Markets Launch
Positive Q3 Performance for DraftKings
DraftKings, a leader in the US gaming and sports betting industry, has released its financial results for the third quarter of 2025, showing steady performance. The company also updated its annual outlook and announced plans to soon introduce a new prediction markets platform.
Financial Highlights and Customer Growth
In Q3, DraftKings generated $1.14 billion in revenue, reflecting a 4% increase compared to the same period last year. This growth was driven by strong customer engagement, effective acquisition strategies, and a higher average hold percentage on sportsbook bets, which offset some customer-favorable betting outcomes.
The number of monthly unique bettors rose by 2%, reaching 3.6 million players. The company’s retention efforts contributed significantly to this rise. On average, bettors wagered $106 each, a 3% increase from the previous year.
Despite growing revenues, DraftKings posted an adjusted EBITDA loss of $126.5 million in Q3. However, year-to-date EBITDA showed a positive trend, increasing to $276.8 million. Similarly, the adjusted loss per share expanded to $0.26 in the quarter, but the year-to-date earnings per share improved to $0.27 from $0.09 a year earlier.
Revised Outlook and Upcoming Product Launch
DraftKings adjusted its 2025 guidance to project total revenue between $5.9 billion and $6.1 billion, marking a growth range of 24% to 28%. The company also expects adjusted EBITDA to fall between $450 million and $550 million. These estimates incorporate anticipated earnings from the company’s planned launch in Missouri.
Looking ahead, DraftKings plans to launch its DraftKings Predictions platform within the coming months, pending regulatory approval. This new platform will expand the company’s presence by offering event contracts across all 50 states, greatly enhancing its market reach.
Currently, DraftKings offers sports betting in 25 US states and Washington DC, along with online casino games in five states. Its iGaming and betting services are also available in Ontario, Canada’s most populous province.
Leadership Outlook on Future Growth
CEO Jason Robins expressed confidence about DraftKings’ accelerating growth and upcoming opportunities. He highlighted the anticipated launch of the DraftKings Predictions platform as a major new avenue for expansion.
“Our business growth is gaining momentum, and we are eager to introduce DraftKings Predictions soon, which we see as a considerable chance to enhance our offerings.”
Jason Robins, CEO of DraftKings
Chief Financial Officer Alan Ellingson also voiced satisfaction with the strong performance and the company’s ability to create shareholder value.
