DraftKings Reports Growth in First Quarter of 2026

DraftKings Inc. just revealed its financial results for the first quarter of 2026, reporting a revenue of $1,646 million, which is a 17% increase compared to the $1,409 million during the same period last year.

Here Are Some Important Numbers

Interestingly, these results come as monthly unique payers (“MUPs”) declined 4% year over year to 4.2 million for the three months ended March 31, 2026. This decline was due primarily to lower Lottery MUPs following the company’s 2025 exit from Texas. Excluding Lottery, MUPs increased 2% compared to the same period in 2025, driven by strong customer retention and acquisition across DraftKings’ Sportsbook and iGaming products, the company said in a statement.

Average Revenue per MUP (ARPMUP) rose 21%, or $23, to $131 for the three months ended March 31, 2026, compared to the same period in 2025. According to DraftKings, this was primarily driven by an improvement in Sportsbook Net Revenue Margin.

Sportsbook revenue rose 24.1% year over year to $1.09 billion in the quarter, despite betting handle increasing by just 1.5% to $14.08 billion, as margin expanded from 6.4% to 7.8%. Meanwhile, iGaming revenue grew 8.9% to $461.3 million, representing nearly 28% of total group revenue and underscoring the segment’s growing importance to DraftKings’ broader business.

Officials Comment on the Report

Jason Robins, CEO and co-founder of DraftKings, said the company had made a “fantastic start” to the year, with first-quarter results surpassing expectations. He added that the core business remained strong and profitability was improving, providing the company with the resources to strengthen its position in Predictions. 

Robins also said DraftKings aimed to establish a leadership position in Sports Predictions before the end of the year. He explained the company has to leverage its Super App, market-making capabilities, proprietary exchange, and combo products to achieve this goal.

However, DraftKings will also be focusing on other parts of its product range, as evidenced by the company recently outlining its plans for Alberta. 

Meanwhile, Alan Ellingson, chief financial officer of DraftKings, said the business continued to scale efficiently through revenue growth, expanding profitability, and investment in high-return opportunities. He added that the company still expected fiscal 2026 revenue to range between $6.5 billion and $6.9 billion, with Adjusted EBITDA projected to be between $700 million and $900 million.

DraftKings will hold a conference call and audio webcast on May 8, 2026, from 8:30 a.m. to 9:15 a.m. ET, during which management will review the company’s results and comment on business performance.

In other news about the company, a hacker who compromised over 60,000 DraftKings accounts was recently sentenced to prison time and to pay over $1.3 million in restitution.