DraftKings

DKNG · Nasdaq · Consumer Discretionary · Financials, fiscal 2018 to 2025

DKNG · Last close · October 26, 2026

$21.22

DraftKings' revenue rose 27.0% to $6.1 billion in fiscal 2025. Its operating margin was −0.3%, up from −12.8% a year earlier. Free cash flow was $648 million, up 58.9%. It paid out $572 million in dividends and buybacks, 88% of free cash flow. The diluted share count rose 2.9%.

DRAFTKINGS INC. Latest fiscal year ended December 31, 2025 10-K filed February 13, 2026 · 0001883685-26-000013 Updated October 10, 2026

Revenue

$6.1B

27.0%

Operating margin

−0.3%

12.5 pts

Net income

$4M

Free cash flow

$648M

58.9%

Return on capital

−0.7%

41.1 pts

Market cap

$10.5B

Oct 26 close

P/E

—

Loss: no P/E

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

About these figures. Years to 2021 come from the former DraftKings, the listed company until a new holding company took its place in its 2022 purchase of Golden Nugget Online Gaming.

What DraftKings does

DraftKings runs digital sports entertainment and gaming products for people who bet real money. Its main lines are online and retail sports betting, which it calls Sportsbook, and online casino games, which it calls iGaming. It also offers daily fantasy sports, a digital lottery courier service and, most recently, prediction markets where users trade event contracts.

Sportsbook makes money by setting odds that build in a margin for the house. Revenue is the amount users bet on settled markets minus what is paid out to winners. iGaming and the other products earn money from their own wagers and fees. The company spends heavily on marketing, promotions and incentives to win and keep paying users.

DraftKings says it competes for users' time and spending with other forms of entertainment, such as television, movies, live sports and in-person casinos, as well as with other betting and gaming companies. Its products are offered state by state, so each state's rules decide where it can operate. It has a history of losses, and it relies on Amazon Web Services to run its products.

Its biggest risks, as it describes them

Changes in state laws, taxes or licensing that limit where and how it can offer betting and gaming.
A history of losses, and no assurance it will be consistently profitable.
Its reliance on Amazon Web Services and other outside providers to run its products.
Difficulty getting banks and payment processors to handle users' deposits and withdrawals.
Swings in results caused by the outcomes of sporting events and by seasonal patterns.

From DraftKings's annual report on Form 10-K, filed February 13, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value DraftKings yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from DraftKings' 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from DraftKings' fiscal 2025 free cash flow of $648M, net cash of −$132M at December 31, 2025 and 496 million diluted shares, from its filings. The scenarios are fitted to DraftKings: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 39.3% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 12%: 11% for a cyclical or higher-risk business (Casinos & Gaming), plus 1 point for unsteady results (a loss in fiscal 2024); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to DraftKings's own revenue growth, as above. Cautious: growth of 10% then 6% a year, 2% after year 10, a 13% discount rate. Base: growth of 20% then 11% a year, 2.5% after year 10, a 12% discount rate. Optimistic: growth of 25% then 14% a year, 3% after year 10, a 11% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $21.22
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

The P/E method needs positive earnings, and DraftKings' latest diluted earnings per share were negative or zero.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	2,153	1,309	1,270	788	1,128
Debt incl. finance leases	1,248	1,251	1,254	1,256	1,259
Net debt (negative means net cash)	−904	−58	−17	468	132
Net debt to EBITDA	—	—	—	—	0.5x
Debt to equity	0.7x	0.9x	1.5x	1.2x	2.0x
Interest coverage	−740.5x	−570.3x	−294.6x	−205.8x	−0.6x
Current ratio	3.0x	1.7x	1.3x	0.9x	1.0x
Quick ratio	3.0x	1.7x	1.3x	0.9x	1.0x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, 2 insiders bought $3.2 million of DraftKings shares on the open market, and 6 insiders sold $20.7 million, $19.9 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Aug 19, 2026	Jocelyn MooreDirector	Sold plan	10,759	$24.05	$258,754	Form 4
Jun 11, 2026	Dodge R StantonChief Legal Officer	Sold plan	62,500	$29.68	$1.9 million	Form 4
May 20, 2026	Erik BradburyChief Accounting Officer	Sold plan	862	$25.33	$21,834	Form 4
May 18, 2026	Woodrow LevinDirector	Sold	34,234	$25.71	$880,156	Form 4
Mar 13, 2026	Jocelyn MooreDirector	Sold plan	2,150	$25.60	$55,040	Form 4
Mar 11, 2026	Paul LibermanSee Remarks, Director	Sold plan	484,417	$25.16	$12.2 million	Form 4
Mar 3, 2026	Erik BradburyChief Accounting Officer	Sold plan	2,883	$24.56	$70,800	Form 4
Feb 19, 2026	Erik BradburyChief Accounting Officer	Sold plan	7,268	$22.50	$163,530	Form 4
Feb 17, 2026	Harry SloanDirector	Bought	100,000	$21.85	$2.2 million	Form 4
Jan 20, 2026	Dodge R StantonChief Legal Officer	Sold plan	52,777	$32.01	$1.7 million	Form 4
Dec 1, 2025	Dodge R StantonChief Legal Officer	Sold plan	52,777	$33.84	$1.8 million	Form 4
Nov 14, 2025	Alan Wayne EllingsonChief Financial Officer	Sold plan	8,421	$29.23	$246,146	Form 4

The latest 12 of 15 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Fail	Fail	Pass
Cash from operations is positive	Fail	Pass	Pass
Return on assets rose	Pass	Pass	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Fail	Pass	Pass
Current ratio rose	Fail	Fail	Pass
Share count didn't rise	Fail	Fail	Fail
Gross margin rose	Pass	Pass	Pass
Revenue rose relative to assets	Pass	Pass	Pass
F-score	4 of 9	6 of 9	8 of 9
Accruals ratio	−20.1%	−22.5%	−15.0%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put DraftKings side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
DraftKings	FY25	27.0%	−0.3%	10.7%	−0.7%	0.5x	8
Penn Entertainment	FY25	5.8%	−9.7%	−2.0%	−8.1%	—	4	Compare
Wynn Resorts	FY25	0.1%	15.7%	9.7%	11.6%	5.3x	5	Compare
Boyd Gaming	FY25	4.1%	18.3%	9.5%	13.5%	1.6x	6	Compare
Caesars Entertainment	FY25	2.1%	16.2%	4.3%	9.6%	3.4x	6	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

8 years of figures

Fiscal year	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	226	323	614	1,296	2,240	3,665	4,768	6,054
Revenue growth	—	42.9%	90.0%	110.9%	72.9%	63.6%	30.1%	27.0%
Gross profit	178	220	268	502	756	1,373	1,817	2,498
Research and development	—	—	—	—	—	—	—	—
Operating income	−77	−146	−843	−1,562	−1,512	−789	−609	−16
Net income	−76	−143	−1,232	−1,523	−1,378	−802	−507	4
Diluted EPS (US$)	−0.45	−0.77	−4.03	−3.78	−3.16	−1.73	−1.05	−0.01
Diluted shares (millions)	170	185	306	402	436	463	482	496
Cash flow
Cash from operations	−46	−47	−194	−420	−626	−2	418	663
Capital expenditure	14	17	12	16	32	21	10	15
Free cash flow	−59	−63	−206	−435	−658	−23	408	648
Dividends paid	0	0	0	0	0	0	0	0
Share buybacks	0	0	289	18	0	0	48	572
Acquisitions	0	0	179	65	96	0	442	16
Stock-based compensation	7	18	325	683	579	398	381	339
Balance sheet at fiscal year end
Cash and short-term investments	230	76	1,817	2,153	1,309	1,270	788	1,128
Debt incl. finance leases	—	68	0	1,248	1,251	1,254	1,256	1,259
Total assets	—	331	3,439	4,069	4,040	3,945	4,284	4,531
Total liabilities	—	380	808	2,390	2,718	3,105	3,273	3,899
Shareholders' equity	76	−50	2,631	1,678	1,323	840	1,011	632
Margins and ratios
Gross margin	78.5%	67.9%	43.6%	38.7%	33.8%	37.5%	38.1%	41.2%
Operating margin	−33.9%	−45.3%	−137.2%	−120.5%	−67.5%	−21.5%	−12.8%	−0.3%
Net margin	−33.7%	−44.1%	−200.4%	−117.5%	−61.5%	−21.9%	−10.6%	0.1%
Free cash flow margin	−26.2%	−19.6%	−33.5%	−33.6%	−29.4%	−0.6%	8.6%	10.7%
Return on capital	—	—	−176.2%	−155.4%	−117.2%	−59.7%	−41.8%	−0.7%
Return on equity	—	—	−95.4%	−70.7%	−91.8%	−74.2%	−54.8%	0.5%
Return on assets	—	—	−65.3%	−40.6%	−34.0%	−20.1%	−12.3%	0.1%
Net debt to EBITDA	—	—	—	—	—	—	—	0.5x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: DraftKings' Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with DraftKings.