DraftKings(US:DKNG)2025-11-07 12:07Revenue Performance - Total revenue for the three months ended September 30, 2025, was $1,144,019, a 4.4% increase from $1,095,490 in the same period of 2024[226] - Total revenue for the nine months ended September 30, 2025, was $4,065,332, a 20.5% increase from $3,374,927 in the same period of 2024[226] - Revenue increased by $690.4 million, or 20.5%, to $4,065.3 million in the nine months ended September 30, 2025, compared to $3,374.9 million in the same period of 2024[268] Net Loss and Income - Net loss for the three months ended September 30, 2025, was $(256,788), compared to a net loss of $(293,688) in the same period of 2024[226] - Net income (loss) attributable to common stockholders improved by $36.9 million, or 12.6%, to $(256.8) million for the three months ended September 30, 2025, from $(293.7) million in 2024[257] - Net loss decreased by $239.7 million to a net loss of $132.7 million in the nine months ended September 30, 2025, compared to a net loss of $372.4 million in the same period of 2024[280] Unique Payers and Revenue Metrics - Monthly Unique Payers (MUPs) increased by 1.5% in the three months ended September 30, 2025, compared to the same period in 2024[238] - Average Revenue per MUP (ARPMUP) increased by $3 or 3.0% for the three months ended September 30, 2025, compared to the same period in 2024[239] Sportsbook Performance - Sportsbook Handle increased by $1.0 billion, or 10.0%, to $11.4 billion in the three months ended September 30, 2025, from $10.4 billion in the same period of 2024[242] - Sportsbook Handle increased by $3.6 billion, or 10.9%, to $36.8 billion in the nine months ended September 30, 2025, from $33.2 billion in the same period of 2024[242] - Sportsbook Net Revenue Margin decreased by 1.1 percentage points to 5.2% in the three months ended September 30, 2025, from 6.3% in the same period of 2024[243] iGaming and Other Revenue - iGaming revenue for the three months ended September 30, 2025, was $451,300, a 24.9% increase from $361,460 in the same period of 2024[242] - iGaming revenue increased by $89.8 million, or 24.9%, to $451.3 million for the three months ended September 30, 2025, compared to $361.5 million for the same period in 2024[244] - Other revenue for the nine months ended September 30, 2025, was $284,953, a 32.5% increase from $215,055 in the same period of 2024[242] - Other revenue rose by $19.5 million, or 25.3%, to $96.6 million for the three months ended September 30, 2025, primarily due to interest income on customer deposits[245] Cost and Expenses - Cost of revenue increased by $41.6 million, or 5.6%, to $784.1 million for the three months ended September 30, 2025, driven by revenue growth and higher variable expenses[258] - Cost of revenue increased by $366.5 million, or 17.3%, to $2,482.4 million in the nine months ended September 30, 2025, from $2,115.9 million in the same period of 2024[270] - Cost of revenue as a percentage of revenue increased by 0.8 percentage points to 68.5% for the three months ended September 30, 2025, compared to 67.8% in 2024[259] - Sales and marketing expense increased by $40.9 million, or 4.6%, to $937.2 million in the nine months ended September 30, 2025, from $896.3 million in the same period of 2024[273] - Product and technology expense increased by $41.3 million, or 14.5%, to $326.4 million in the nine months ended September 30, 2025, from $285.1 million in the same period of 2024[274] - General and administrative expense decreased by $60.6 million, or 11.1%, to $486.9 million in the nine months ended September 30, 2025, from $547.5 million in the same period of 2024[275] Cash Flow and Financing - Cash and cash equivalents as of September 30, 2025, were $1,228.3 million, sufficient to meet current working capital and capital expenditure requirements for at least twelve months[281] - The cash and cash equivalents at the end of the period increased to $1,708.2 million as of September 30, 2025, compared to $1,156.5 million at the end of the same period in 2024[288] - The company experienced a net increase in cash and cash equivalents of $377.9 million during the nine months ended September 30, 2025, contrasting with a decrease of $466.9 million in the prior year[288] - Cash received from borrowing under the Term B Facility amounted to $588.1 million, contributing to a net cash provided by financing activities of $151.7 million for the nine months ended September 30, 2025, compared to a cash outflow of $71.4 million in 2024[291] - Stock repurchase program authorized up to $1.0 billion, with 8.2 million shares repurchased for $314.0 million in the nine months ended September 30, 2025[287] Interest Expense - The company experienced a significant increase in interest expense, with a net expense of $19.6 million for the three months ended September 30, 2025, compared to an income of $8.3 million in 2024[257] - Interest expense net recorded was $14.5 million in the nine months ended September 30, 2025, compared to $36.3 million of net interest income in the same period of 2024[276] Accounting and Risk - There were no changes to the critical accounting estimates discussed in the 2024 Annual Report, indicating consistency in financial reporting practices[294] - The company has not experienced significant changes in exposure to market risk during the nine months ended September 30, 2025[295] - Commitments and contingencies as of September 30, 2025, are summarized in the unaudited condensed consolidated financial statements[292]