DraftKings Demonstrates Enduring Resilience with Impressive Q2 Financials

DraftKings posted an impressive performance in the second quarter of 2025, setting all-time highs in revenue and Adjusted EBITDA. The iGaming and sports betting giant achieved $1.51 billion in revenue during the quarter, a 37% year-over-year rise. Adjusted EBITDA hit $301 million, more than twice the company’s highest mark, translating to a 20% margin.

Sports Betting and iGaming Performed Admirably

Robust sportsbook performance, favorable sports results, and disciplined cost control measures were the primary drivers behind these gains. The net revenue from the sportsbook suged 45% year-over-year, helped by a 230-basis-point expansion in net revenue margin, which hit a record high of 8.7%. Furthermore, sportsbook handle climbed to $11.5 billion, with live betting handle growing 16%.

These standout results further underline DraftKings’ leadership position in the sports betting sector. Parlay bets also played a key role, with their share of handle improving by over 4% from last year. Positive sports combined with reduced promotional expenditure resulted in a dramatic improvement in profitability. Existing customers made up a larger proportion of the betting base, which further improved efficiency.

Product enhancements are driving strong revenue growth, while prudent cost discipline and efficiency initiatives across the organization are delivering meaningful Adjusted EBITDA Margin expansion.

DraftKings statement

iGaming revenue grew 23% year-on-year, in line with expectations, with jackpots significantly boosting customer engagement. Adjusted gross margin for the business reached 48%, a year-over-year improvement of over 4%, supported by higher sportsbook hold and lower promotional spend.

End-of-Year Forecasts Remain Positive

Operating costs remained within expectations, as DraftKings continued to leverage its scale for cost-effective customer acquisition while incorporating artificial intelligence-based tools for optimizing operations. Recent social media initiatives on platforms like X also proved popular, engaging consumers with simple, easy-to-understand terms and hopefully onboarding them to broader offerings.

We are pleased to be maintaining our fiscal year 2025 guidance, with revenue expected to be closer to the high end of our range.

DraftKings statement

Looking forward, the company reiterated full-year revenue guidance of $6.2-$6.4 billion, expecting results at the high end of the range. Adjusted EBITDA guidance remains $800-$900 million, with the company anticipating it will finish near the midpoint. The forecast now includes the expected launch of mobile sports betting in Missouri later this year, along with increased tax rates in New Jersey, Louisiana, and Illinois.

With strong momentum heading into the NFL and NBA seasons, product improvements in live betting and customer engagement features, and a disciplined capital allocation strategy, including the repurchase of 6.5 million shares so far this year, DraftKings appears perfectly positioned to sustain its growth trajectory in the second half of 2025.