Financial Performance - DraftKings' Q2 2025 revenue reached a record $1.513 billion, a 37% year-over-year increase[7, 9] - Adjusted EBITDA for Q2 2025 also hit a record of $301 million, compared to $128 million in Q2 2024[7, 9] - The company is maintaining its FY 2025 revenue guidance of $6.2 billion to $6.4 billion and Adjusted EBITDA guidance of $800 million to $900 million[7] - Sportsbook net revenue increased 45% year-over-year[11] - iGaming net revenue increased 23% year-over-year[11] Key Metrics - Sportsbook handle increased 6% year-over-year[11] - Structural Sportsbook hold percentage increased by 100 basis points year-over-year[11] - Sportsbook promotional reinvestment improved nearly 600 basis points year-over-year as a percentage of Gross Gaming Revenue (GGR)[11] - Average Revenue per Monthly Unique Payer (ARPMUP) increased to $151 in Q2 2025 from $117 in Q2 2024[46] - Average Monthly Unique Payers (MUPs) reached 3.3 million in Q2 2025, compared to 3.1 million in Q2 2024[46] Product Innovation and Social Engagement - Over 1.5 million customers have engaged with the Live Bet Tracking tool in 2025[15] - Handle on the social platform increased 180% year-over-year in the first two quarters of 2025[15] - Engagement across social media handles increased over 200% year-over-year in Q2 2025, and Discord community membership grew over 400% year-over-year[15]

Core Insights - The company reported a solid start to 2025 with double-digit adjusted EBITDA growth across all activities, indicating strong operational performance and alignment with 2025 guidance targets [2][10][31] Financial Highlights - Revenue increased by 7.8% to €1,084 million, with adjusted EBITDA rising by 16.5% to €191 million, resulting in an EBITDA margin improvement of 120 basis points to 17.6% compared to Q1 2024 [8][15][56] - Adjusted net income grew by 10.5% to €81 million, while net income reached €36 million, a significant increase from €19 million in Q1 2024 [8][15][60] - Adjusted free cash flow conversion was approximately 79%, slightly down from 81% in Q1 2024 [8][61] Business Highlights - Content production and distribution revenue grew by 4.7% at constant exchange rates, driven by strong scripted deliveries and performance of superbrands [8][32][41] - Live experiences revenue decreased by 10.8% due to seasonality, with major show deliveries expected in the second half of 2025 [8][50][33] - Online sports betting and gaming revenue surged by 18.2%, with a 33% increase in Unique Active Players, supported by a robust sportsbook app and successful poker platform launch [8][12][53] Strategic Developments - The company announced a strategic alliance with Base and AWS to enhance its digital transformation and operational efficiency [18] - The merger of Shine Fiction and Banijay Studios France aims to strengthen the scripted content offering in France [19] - The acquisition of Lotchi and the launch of Banijay Live Studio are key initiatives to expand immersive live experiences [20][21] Market Outlook - The company anticipates mid-single digit organic revenue growth in content production and distribution, mid-teens growth in online sports betting and gaming, and mid-to-high single digit organic adjusted EBITDA growth for 2025 [35][36] - The impact of increased public levies on online gaming in France is expected to affect profitability, with an estimated €20 million reduction in adjusted EBITDA for 2025 [26][27]