Core Insights - DraftKings reported a significant revenue miss and a larger-than-expected loss for Q3, leading management to cut full-year forecasts for both revenue and EBITDA [1][16] - Despite the challenges, the company is optimistic about future growth, particularly with new partnerships and upcoming sports events [22][34] Financial Performance - DraftKings experienced a 10% handle growth in major sports last quarter, which increased to 13% for NFL and nearly 20% for NBA this year [4][3] - The company faced around $400 million in outcome headwinds this year, primarily affecting Q3 results, but anticipates a potential rebound in Q4 [17][19] Strategic Partnerships - The partnership with ESPN is expected to significantly enhance DraftKings' market presence and customer engagement [2][7] - The company has established agreements with NBC Universal and Amazon, positioning itself strongly in the sports betting landscape [7][8] Market Dynamics - DraftKings is focusing on customer acquisition and expanding its market share, particularly in states like Missouri where it plans to launch soon [19][12] - The company believes that the legal and regulated sports betting market provides a safer environment compared to illegal markets, which can lead to organized crime [26][31] Industry Challenges - DraftKings acknowledges the competitive landscape, particularly from prediction markets, but believes its comprehensive sportsbook offerings will maintain its market share [14][13] - The company is aware of the potential impact of betting scandals on consumer confidence but emphasizes the importance of regulation in maintaining game integrity [24][30]

Core Insights - The current momentum in the market is expected to persist in the near term, presenting an opportunity for participation and success [1] - The offering in states like California and Texas is less robust compared to full online sportsbooks, but it can still generate significant interest [2] - The financial opportunities align with regions that have a clearer regulatory landscape, indicating a strategic focus on these areas [3] Market Dynamics - The comparison between exchange-based betting and traditional sports betting shows that exchange products hold a small market share in regions with both offerings [4] - In markets where both full-fledged sportsbooks and prediction markets exist, there is minimal volume migration from sportsbooks, suggesting that the prediction market may serve as an incremental addition rather than a replacement [5] - Current evidence indicates that the introduction of new products has not negatively impacted existing sportsbook numbers, which remain strong [6]

Core Insights - DraftKings reported Q3 CY2025 revenue of $1.14 billion, which was 4.4% year-on-year growth but fell short of market expectations of $1.21 billion, resulting in a 5.6% miss [7] - The company revised its full-year revenue guidance down to $6 billion from $6.3 billion, reflecting a 4.8% decrease [7] - DraftKings' adjusted EPS was -$0.26, aligning with analysts' consensus estimates [7] Company Overview - DraftKings is a digital sports entertainment and gaming company that began in daily fantasy sports [4] Revenue Growth - Over the last five years, DraftKings achieved a compounded annual growth rate of 62.4%, outperforming the average consumer discretionary company [5] - The company's annualized revenue growth of 28.8% over the last two years is below its five-year trend but indicates healthy demand [6] Financial Performance - Adjusted EBITDA for the quarter was -$126.5 million, significantly missing analyst estimates of -$68.74 million, resulting in an 11.1% margin [7] - Operating margin improved to -23.8% from -27.3% in the same quarter last year [7] - Free cash flow margin increased to 21.9% from 11.9% in the same quarter last year [7] Market Outlook - Analysts project revenue growth of 29% over the next 12 months, consistent with the company's two-year growth rate [8] - Monthly unique payers remained stable at 3.6 million, in line with the same quarter last year [7] - DraftKings' market capitalization stands at $13.86 billion [7] Shareholder Returns - The board of DraftKings authorized an increase in the share repurchase program from $1.0 billion to $2.0 billion, emphasizing a focus on maximizing shareholder returns [3]

Core Viewpoint - The sports-betting company is increasing its investments in prediction markets and expanding its operations into new states [1] Group 1 - The company is focusing on enhancing its prediction market capabilities [1] - The expansion into new states indicates a strategic growth initiative [1]

Core Insights - DraftKings reported a revenue of $1,144 million for Q3 2025, marking a 4% increase from $1,095 million in Q3 2024, driven by strong customer engagement and higher Sportsbook hold percentage [2][3] - The company anticipates a fiscal year 2025 revenue guidance of $5.9 billion to $6.1 billion, reflecting a year-over-year growth of 24% to 28% [7][5] - DraftKings plans to launch its new product, DraftKings Predictions, which is expected to provide significant incremental opportunities [3] Financial Performance - Revenue for Q3 2025 was $1,144 million, up $49 million from the previous year, with Sportsbook Handle increasing by 17% year-over-year in October [2][19] - Monthly Unique Payers (MUPs) rose by approximately 2% to 3.6 million in Q3 2025, with Average Revenue per MUP (ARPMUP) increasing to $106, a 3% rise compared to Q3 2024 [7][19] - Adjusted EBITDA for Q3 2025 was reported at $(126,488) thousand, compared to $(58,504) thousand in Q3 2024 [29] Strategic Developments - The company is live with mobile sports betting in 25 states and Washington, D.C., covering about 49% of the U.S. population, and plans to launch in Missouri pending regulatory approvals [6][12] - DraftKings has increased its share repurchase program from $1 billion to $2 billion, indicating a focus on maximizing shareholder returns [3][5] - The company is also expanding its iGaming footprint, currently operational in five states, representing approximately 11% of the U.S. population [12][6] Operational Metrics - Sportsbook Handle for Q3 2025 was $11.4 billion, a 10% increase from $10.4 billion in Q3 2024, while Sportsbook revenue decreased by 9.3% to $596 million [19][15] - iGaming revenue increased by 24.9% to $451 million, reflecting strong growth in this segment [19][15] - The total assets of DraftKings as of September 30, 2025, were $4.62 billion, up from $4.28 billion at the end of 2024 [11][10]

What DraftKings and FanDuel Prediction Market Plays Mean for the Sports Betting Biz► https://t.co/6Atxm9IKxV https://t.co/6Atxm9IKxV ...

Core Insights - ESPN has terminated its partnership with PENN Entertainment and has signed a new deal with DraftKings, making it the exclusive Official Sportsbook and Odds Provider of ESPN [1][7] - This shift highlights the competitive landscape of the U.S. sports betting market, particularly in light of recent scandals involving the NBA [3][5] Company Developments - The previous deal with PENN was valued at $1.5 billion over 10 years, with termination rights based on market share performance [4] - DraftKings' shares increased by nearly 1% following the announcement, while PENN's shares fell by over 6% [2][7] Market Context - The transition from PENN to DraftKings reflects the intense competition in the sports betting sector, especially as ESPN's betting platform struggled to compete with established players like DraftKings and FanDuel [3][4] - The change comes amid increased scrutiny of sports gambling practices, particularly following recent arrests related to NBA betting scandals [5][8]

Core Insights - Walt Disney Co. has signed a new multiyear deal with DraftKings Inc. to become the official betting site and odds provider for ESPN sports networks, replacing its previous partnership with Penn Entertainment Inc. [1] - The new agreement allows players to access DraftKings' sportsbook and daily fantasy contests through ESPN platforms starting December 1 [1] - Disney and Penn ended their 10-year $2 billion agreement due to a lack of significant market share capture in the sports betting sector [2] Group 1 - DraftKings' shares increased by 8.5% in early trading, while Penn's shares rose by 9.2%, indicating positive market reactions to the new deal [2] - The sports betting market, valued at $13.7 billion, is primarily dominated by DraftKings and FanDuel, with ESPN Bet struggling to gain traction [3][4] - ESPN Bet, which holds less than 3% of the mobile sports-betting market, will continue to be used for ESPN programming despite its low market share [4] Group 2 - Penn Entertainment will launch sports betting in the US under theScore Bet brand starting December 1, following the end of its partnership with Disney [4]

Core Viewpoint - DraftKings Inc is expected to provide insights on its competition with prediction markets and its recent acquisition during the upcoming third-quarter financial results announcement Financial Performance - Analysts estimate DraftKings will report third-quarter revenue of $1.23 billion, an increase from $1.09 billion in the same quarter last year [2] - The company is projected to report a loss of 40 cents per share, compared to a loss of 17 cents per share in the previous year's third quarter [3] - DraftKings has beaten revenue estimates in five of the last ten quarters and earnings per share estimates in nine of the last ten quarters [2][3] Analyst Ratings and Market Sentiment - Bank of America Securities analyst Shaun C. Kelley downgraded DraftKings from Buy to Neutral, lowering the price target from $48 to $35, citing challenges from prediction markets and other headwinds [4] - Other analysts have maintained their ratings but adjusted price targets downward, with BMO Capital lowering from $65 to $63 and Bernstein from $55 to $50 [7] Key Items to Watch - The discussion on prediction markets is anticipated to be a focal point during the earnings call, especially regarding the acquisition of Railbird Technologies [6][8] - The launch of a mobile app for event contracts, DraftKings Predictions, is expected to be highlighted, with investors looking for details on revenue opportunities [8] Industry Context - The American Gaming Association predicts $30 billion will be wagered on the 2025 NFL season, representing an 8.5% year-over-year increase, with DraftKings positioned as a major beneficiary [11] - The third quarter results may reflect the impact of unfavorable sports outcomes, particularly with many favorites winning, which could affect financial performance [11][12] Stock Performance - DraftKings stock closed down 2.41% to $27.92, reaching a new 52-week low of $27.89, and is down 23.1% year-to-date [13]

DraftKings Inc (NASDAQ:DKNG) just hit a Death Cross — and its billionaire backers are feeling the chill. DraftKings stock has tumbled nearly 20% in a month, just as the sports-betting giant prepares to report its third-quarter earnings on Thursday after the close. For investors like Ken Griffin and Cliff Asness, who loaded up on the stock earlier this year, the timing couldn't be worse.Track DKNG stock here.The Billionaires' Bad BeatCitadel's Griffin added big to his DraftKings position in the second quarte ...