DraftKings Shines with Strong Q2 2025 Results and Positive Outlook
Record-Breaking Q2 Financial Performance
DraftKings delivered outstanding results in the second quarter of 2025, achieving its highest-ever revenue and Adjusted EBITDA figures. The company generated $1.51 billion in revenue, marking a 37% increase compared to the same period last year. Adjusted EBITDA soared to $301 million, more than doubling previous records, and representing a 20% margin.
Strong Gains in Sports Betting and iGaming
The impressive growth was driven by a robust sportsbook showing, positive outcomes in sporting events, and effective cost management. Sportsbook net revenue surged 45% year-over-year, fueled by a 230-basis-point rise in net revenue margin that reached a record 8.7%. The total sportsbook handle climbed to $11.5 billion, with live betting activity growing 16%.
These results reinforce DraftKings’ leading position in the sports betting industry. Parlay bets gained traction, increasing their share of the handle by more than 4% from the previous year. Favorable sports results combined with lower promotional expenses significantly boosted profitability. Additionally, a higher proportion of bets came from existing customers, enhancing operational efficiency.
DraftKings highlighted that enhancements in their product offerings are fueling strong revenue growth, while disciplined cost control and efficiency initiatives are expanding the Adjusted EBITDA margin significantly.
Within the iGaming segment, revenue rose by 23% compared to last year, driven in part by large jackpots that engaged players. Adjusted gross margin improved by over 4% year-on-year to reach 48%, supported by increased sportsbook hold rates and reduced promotional costs.
Optimistic Outlook for the Remainder of the Year
DraftKings maintained its operating expenses within expected limits, leveraging its scale to acquire customers cost-effectively and integrating artificial intelligence tools to optimize operations. Recent social media campaigns on platforms like X helped engage users with clear and simple messaging, aiming to introduce them to a broader range of offerings.
The company affirmed its fiscal 2025 guidance, expecting revenue to approach the upper end of its forecast range. Full-year revenue is projected between $6.2 billion and $6.4 billion, while Adjusted EBITDA is anticipated to fall between $800 million and $900 million, likely near the midpoint.
These projections now incorporate the planned launch of mobile sports betting in Missouri later this year, alongside anticipated tax increases in New Jersey, Louisiana, and Illinois.
With strong momentum building ahead of the NFL and NBA seasons, ongoing enhancements in live betting and customer engagement features, and a strategic approach to capital allocation—including the repurchase of 6.5 million shares this year—DraftKings is well-positioned to continue its growth trajectory through the second half of 2025.