Key Moments:
- DraftKings recorded $1.65 billion in revenue for Q1 2026, up 17% year-over-year
- The company posted net income of $21.1 million in Q1 2026, reversing a $33.8 million loss from Q1 2025
- DraftKings launched its standalone prediction market app in December
Strong First Quarter Performance
DraftKings began 2026 on a positive note, delivering first quarter revenue of $1.65 billion, representing a 17% rise compared to the prior year’s first quarter. The company attributed this growth to smart customer acquisition strategies, consistent player engagement, and improvements in Sportsbook margins.
Net income came in at $21.1 million for the period, a notable shift from the $33.8 million net loss reported in Q1 2025. CEO Jason Robins commented, “We are off to a fantastic start to the year as our first quarter results exceeded our expectations. Our core business is strong, and profitability is inflecting. That gives us the firepower to press our advantage in Predictions.”
User Metrics and Revenue Per Payer
The company disclosed it had 4.2 million monthly unique payers (MUPs) for Q1 2026, a decline of 4% year-over-year, which it attributed to its withdrawal from Texas lottery activities. Excluding the Texas effect, MUPs rose by 2%, underlining solid performance in Sportsbook and iGaming. Average revenue per payer for the quarter increased 21% to $131, largely due to improved Sportsbook net revenue margins.
CFO Alan Ellingson remarked, “The business continues to scale efficiently as we grow revenue, expand profitability, and invest in high-return opportunities.”
DraftKings maintained its guidance for full-year revenue in the $6.5 to $6.9 billion range and projected adjusted EBITDA between $700 and $900 million.
Market Footprint and Expansion
DraftKings now operates mobile sports betting in 27 states, Washington D.C., and Puerto Rico, which collectively cover 53% of the U.S. population. The company’s iGaming offerings are live in five states, comprising about 11% of the U.S. population. In Canada, DraftKings provides both Sportsbook and iGaming offerings in Ontario, reaching approximately 40% of the population there.
Financial Snapshot
For the first quarter of 2026, DraftKings reported $999 million in cash and equivalents, down from $1.1 billion as of the end of 2025. The company’s total assets stood at $4.3 billion, and liabilities were reported at $3.7 billion, resulting in stockholders’ equity of $605 million.
Operating cash flow showed an outflow of $48.4 million, which marked an improvement from the $119 million outflow in the same quarter last year. Financing activities led to a cash outflow of $121 million, reflecting treasury stock repurchases and loan repayments. The gains in profitability and adjusted EBITDA suggested improvement in the company’s financial stability and liquidity management.
| Financial Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenue | $1.65 billion | – |
| Net Income | $21.1 million | ($33.8 million) |
| Monthly Unique Payers | 4.2 million | – |
| Average Revenue Per Payer | $131 | – |
| Cash & Equivalents | $999 million | $1.1 billion (end of 2025) |
| Operating Cash Flow | ($48.4 million) | ($119 million) |
| Total Assets | $4.3 billion | – |
| Total Liabilities | $3.7 billion | – |
| Stockholders’ Equity | $605 million | – |
Strategic Push Into Prediction Markets
DraftKings has accelerated its bet on prediction markets, broadening its reach beyond traditional sportsbook and iGaming segments. Jason Robins stated, “With our Super App, market making capabilities, proprietary exchange, and combos coming together, we intend to establish a leadership position in Sports Predictions before year‑end.”
The company positioned prediction markets as a logical expansion, taking advantage of its technology infrastructure and established customer base. DraftKings introduced its standalone prediction market app in December, signaling its commitment to this strategic direction.
- Author
Daniel Williams
