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DraftKings Gears Up for Q3 Earnings: What's in the Offing?
ZACKS· 2025-11-04 17:26
Core Insights - DraftKings Inc. (DKNG) is set to report its third-quarter 2025 results on November 6, with expectations of a revenue increase but potential earnings pressure due to various factors [1][10]. Financial Estimates - The Zacks Consensus Estimate for DKNG's third-quarter adjusted loss per share has widened to 14 cents from 2 cents over the past month, compared to an adjusted loss of 60 cents in the same quarter last year [2]. - Revenue expectations are pegged at $1.24 billion, reflecting a 13.3% year-over-year increase [2][10]. Revenue Drivers - The anticipated revenue growth is attributed to ongoing product innovation, strong user engagement, and DKNG's leadership in online sports betting and iGaming [3]. - Live betting continues to be a significant growth driver, supported by industry-leading uptime and a variety of in-game wagering options, particularly during major sports seasons [4]. - DKNG's expansion into new jurisdictions, such as the mobile sportsbook launch in Missouri, is expected to contribute positively to revenue [5]. Cost Pressures - The company's bottom line may face pressure from rising tax burdens in key states, expansion-related expenses, and elevated marketing investments during the peak football season [6][10]. - New tax pass-through mechanisms and regulatory developments could also create temporary margin friction [7]. Earnings Prediction - Current models do not predict an earnings beat for DKNG, with an Earnings ESP of -100.00% and a Zacks Rank of 4 (Sell) [8][9].