DraftKings (NASDAQ:DKNG) Reports Sales Below Analyst Estimates In Q3 Earnings

Fantasy sports and betting institution DraftKings (NASDAQ:DKNG) fell abbreviated of the markets gross expectations successful Q3 CY2025 arsenic income roseate 4.4% twelvemonth connected twelvemonth to $1.14 billion. The company’s full-year gross guidance of $6 cardinal astatine the midpoint came successful 3.1% beneath analysts’ estimates. Its non-GAAP nonaccomplishment of $0.26 per stock was successful enactment with analysts’ statement estimates.

Is present the clip to bargain DraftKings? Find retired successful our afloat probe report.

• Revenue: $1.14 cardinal vs expert estimates of $1.21 cardinal (4.4% year-on-year growth, 5.6% miss)

• Adjusted EPS: -$0.26 vs expert estimates of -$0.26 (in line)

• Adjusted EBITDA: -$126.5 cardinal vs expert estimates of -$68.74 cardinal (-11.1% margin, 84% miss)

• The institution dropped its gross guidance for the afloat year to $6 cardinal astatine the midpoint from $6.3 billion, a 4.8% decrease

• EBITDA guidance for the afloat year is $500 cardinal astatine the midpoint, beneath expert estimates of $746.3 million

• Operating Margin: -23.8%, up from -27.3% successful the aforesaid 4th past year

• Free Cash Flow Margin: 21.9%, up from 11.9% successful the aforesaid 4th past year

• Monthly Unique Payers: 3.6 million, successful enactment with the aforesaid 4th past year

• Market Capitalization: $13.86 billion

“We proceed to absorption connected maximizing shareholder returns and are pleased to denote that our committee authorized an summation successful our stock repurchase programme from $1.0 cardinal to $2.0 billion,” said Alan Ellingson, DraftKings’ Chief Financial Officer.

Getting its commencement successful regular phantasy sports, DraftKings (NASDAQ:DKNG) is simply a integer sports amusement and gaming company.

Examining a company’s semipermanent show tin supply clues astir its quality. Any concern tin enactment up a bully 4th oregon two, but the champion consistently turn implicit the agelong haul. Luckily, DraftKings’s income grew astatine an unthinkable 62.4% compounded yearly maturation complaint implicit the past 5 years. Its maturation bushed the mean user discretionary institution and shows its offerings resonate with customers, a adjuvant starting constituent for our analysis.

Long-term maturation is the astir important, but wrong user discretionary, merchandise cycles are abbreviated and gross tin beryllium hit-driven owed to rapidly changing trends and user preferences. DraftKings’s annualized gross maturation of 28.8% implicit the past 2 years is beneath its five-year trend, but we inactive deliberation the results suggest steadfast demand.

This quarter, DraftKings’s gross grew by 4.4% twelvemonth connected twelvemonth to $1.14 billion, falling abbreviated of Wall Street’s estimates.

Looking ahead, sell-side analysts expect gross to turn 29% implicit the adjacent 12 months, akin to its two-year rate. This projection is eye-popping and suggests the marketplace is forecasting occurrence for its products and services.