DraftKings has opened the fiscal year with a massive performance, reporting first-quarter revenue of US$1.6 billion, a 17% year-on-year rise that exceeded internal expectations, amid plans to focus on prediction markets.
This financial momentum saw adjusted EBITDA climb 63.5% to $167.9 million, while net income swung from a loss to a positive $21.1 million.
“Firepower” for Future Growth
DraftKings CEO Jason Robins attributed the results to a strong core business and inflecting profitability, noting that this financial strength provides the “firepower” to dominate the rapidly growing Prediction Markets sector.
“With our Super App, market making capabilities, proprietary exchange and combos coming together, we intend to establish a leadership position in Sports Predictions before year-end,” Robins stated.
Efficiency and Market Share
Despite exiting the Texas lottery marketm, which caused a slight dip in total monthly unique players to 4.2 million, the operator saw organic user growth of 2%. Efficiency gains were evident as the sportsbook net revenue margin improved to 7.8%, helping average revenue per user climb 21% to $131.
DraftKings has maintained its 2026 guidance, forecasting total annual revenues between $6.5 billion and $6.9 billion. With sportsbook revenue already up 24.1% to $1.09 billion this quarter, the firm is well-positioned to capitalize on its high-margin digital ecosystem and new proprietary exchange.
