Overview

* DraftKings Q3 2025 revenue grows 4% yr/yr but misses analyst expectations

* Company increases share repurchase program from $1 bln to $2 bln

* DraftKings ( DKNG ) revises FY 2025 revenue guidance to $5.9 bln-$6.1 bln

Outlook

* DraftKings ( DKNG ) expects fiscal year 2025 revenue of $5.9 bln to $6.1 bln

* Company anticipates fiscal year 2025 Adjusted EBITDA of $450 mln to $550 mln

* DraftKings ( DKNG ) guidance includes launch of mobile sports betting in Missouri

Result Drivers

* CUSTOMER ENGAGEMENT - Revenue growth driven by healthy customer engagement and efficient acquisition of new customers, despite customer-friendly sport outcomes

* SPORTSBOOK HOLD - Higher structural Sportsbook hold percentage contributed to revenue increase, despite being offset by customer-friendly outcomes

* MUP GROWTH - MUPs increased 2% to 3.6 mln, driven by strong retention and acquisition in Sportsbook and iGaming

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $1.14 $1.40

Revenue bln bln (26

Analysts

)

Q3 Net -$256.79

Income mln

Q3 -$271.89

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 30 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the casinos & gaming peer group is "buy"

* Wall Street's median 12-month price target for Draftkings Inc ( DKNG ) is $51.00, about 45.3% above its November 5 closing price of $27.92

* The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 49 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)