DraftKings Expands Its Buyback Program: What's Driving the Shift?

Core Insights - DraftKings Inc. (DKNG) has expanded its share repurchase authorization from $1 billion to $2 billion, indicating a stronger commitment to shareholder returns [1][7] - The decision to increase the buyback program is based on business progress and improved cash flow visibility, rather than short-term market volatility [2][7] - DraftKings maintains its full-year 2025 adjusted EBITDA guidance of $450 million to $550 million, supported by stronger sportsbook economics and ongoing iGaming momentum [2][4] Financial Performance - DraftKings has repurchased 9.3 million shares under the buyback program, which is part of a balanced capital allocation strategy [3][7] - The company's stock has increased by 1.8% over the past three months, contrasting with an 11.7% decline in the industry [5] - DraftKings is currently trading at a forward 12-month price-to-sales (P/S) multiple of 2.37, which is below the industry average of 2.55 [8] Future Outlook - The expanded repurchase authorization suggests that capital returns are becoming a more integral part of DraftKings' operating model, reflecting confidence in cash generation durability [4] - The company is expected to report a significant earnings increase of 79.6% in 2026, while industry peers are projected to see smaller gains [12]