DraftKings Inc. has opened the 2026 fiscal year with a commanding performance, reporting Q1 revenue of $1.65 billion, representing a 17% increase compared to the same period in 2025.
The growth was primarily attributed to highly efficient customer acquisition strategies, sustained player engagement, and significantly improved Sportsbook net revenue margins. In a historic shift for DraftKings, net income reached $21.1 million, marking a dramatic turnaround from the $33.8 million loss recorded in Q1 2025.
Surge in Revenue Per Payer
DraftKings reported 4.2 million monthly unique payers (MUPs) during the quarter. While this headline figure was down 4% due to the company’s strategic exit from Texas lottery operations, underlying organic growth remained strong. When excluding the Texas impact, MUPs actually rose by 2%.
More importantly, the average revenue per payer surged 21% to $131, signaling that existing users are engaging more deeply with the platform’s diverse offerings.
CEO Jason Robins expressed high confidence in the company’s trajectory:
“We are off to a fantastic start to the year as our first quarter results exceeded our expectations. Our core business is strong, and profitability is inflecting. That gives us the firepower to press our advantage in Predictions.”
CFO Alan Ellingson emphasized the scaling efficiency of the business model:
“The business continues to scale efficiently as we grow revenue, expand profitability, and invest in high-return opportunities.”
Dominating the Prediction Market Space
DraftKings is now live with mobile sports betting in 27 states, Washington D.C., and Puerto Rico, covering over half of the US population. However, the company’s next frontier is the prediction market sector. Following the launch of its standalone prediction app last December, DraftKings intends to use its “Super App” ecosystem to capture the booming demand for non-traditional wagers. Robins noted:
“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.”
