DraftKings (DKNG) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Mon, June 1, 2026 astatine 12:36 PM CDT 39 min read

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Date

Friday, May 8, 2026 astatine 8:30 a.m. ET

Call participants

• Chief Executive Officer — Jason Robins

• Chief Financial Officer — Alan Ellingson

Full Conference Call Transcript

Jason Robins: Thank you, Mike. We are disconnected to a fantastic commencement this year. Our archetypal 4th results exceeded our expectations, and we proceed to expect fiscal twelvemonth 2026 gross of $6.5 cardinal to $6.9 cardinal and adjusted EBITDA of $700 cardinal to $900 million. In the archetypal quarter, gross accrued 17% year-over-year and surpassed $1.6 billion. Adjusted EBITDA accrued 64% year-over-year to $168 million. If not for our important concern successful Predictions and the motorboat of Sportsbook successful Arkansas, our adjusted EBITDA would person exceeded $200 million. Profitability is inflecting successful our halfway business. That gives america the firepower to property our vantage successful Predictions. Predictions, particularly successful Sports, is simply a strategical precedence for DraftKings.

This class is inactive successful its archetypal inning, and we judge DraftKings is champion positioned to specify it. We are readying important concern successful the coming months to amended our offering, physique liquidity and standard lawsuit acquisition. We mean to execute with urgency and found a enactment presumption successful Sports Predictions earlier year-end. At our Investor Day successful March, we laid retired a wide strategy, 1 nationwide Super App to triumph successful Sports. Already, we are delivering connected our plan. Predictions is present unrecorded successful our flagship app. And arsenic a result, our Predictions lawsuit acquisition costs declined by much than 80% successful April.

Within Predictions, we person much than doubled markets disposable to trade, which is driving Predictions measurement per lawsuit supra Sportsbook grip per customer. In April, our annualized Predictions user measurement exceeded $1 billion, and our annualized full measurement traded exceeded $2.3 billion, an summation of 38% and 43% month-over-month, respectively. We person besides launched marketplace making, which unlocks entree to an further furniture of the worth chain. Market making is already generating a affirmative instrumentality for us. In the coming weeks, we expect to motorboat our proprietary speech and statesman offering combos. Together, these moves volition accelerate innovation, amended the lawsuit acquisition and fortify our economics.

We are assured successful sports Predictions due to the fact that we progressively presumption our Sportsbook capabilities arsenic a cardinal advantage. Sports Predictions and Sportsbook service the aforesaid customers successful the aforesaid unrecorded moments and leverage a shared underlying infrastructure. Whether the lawsuit acquisition is structured arsenic a stake oregon a contract, occurrence inactive comes down to compelling markets, pricing, liquidity, spot and a seamless lawsuit experience. That is wherefore our sustainable vantage has made america a person successful Sportsbook and presumption america to pb successful Sports Predictions, too. Beginning adjacent quarter, we volition study Sports revenue, which volition harvester Sportsbook and Sports predictions. This champion reflects however we program to run the business. The accidental up successful Sports is massive.