DraftKings announced its Q2 2025 earnings, setting a new historical high with revenues reaching $1.5 billion, a 37% increase year-over-year. Net income surged to $157.9 million, up 147.5% from the same period last year, with adjusted EBITDA reaching $300.6 million, a 134.9% increase. This performance reflects the company's exceptional customer engagement and operational efficiency.
The sports betting sector contributed $997.9 million, up 45.3%, driving overall revenue growth, while iGaming revenue grew a solid 22.6% to $429.7 million. Other revenues increased by 26.8%, reaching $85 million. DraftKings reiterated its full-year 2025 revenue forecast of $6.2 billion to $6.4 billion, expecting to hit the higher end of the range, with an adjusted EBITDA target of $800 million to $900 million.
The company noted that despite increased operational expenses, revenue growth significantly outpaced costs, greatly improving profit margins. DraftKings now offers mobile sports betting services in 25 states and the District of Columbia, covering nearly half of the U.S. population, with iGaming operations continuing to expand in five states and Ontario, Canada. New markets such as Missouri and Puerto Rico are brewing potential for growth.
Additionally, DraftKings is in talks to acquire the federally licensed prediction market platform Railbird Exchange, actively exploring new areas. The previous acquisition of the digital lottery platform Jackpocket, although driving user growth, led to a decrease in ARPM.
In 2024, DraftKings' revenue reached $4.8 billion, a 30.1% increase year-over-year, and achieved a positive adjusted EBITDA for the first time, amounting to $181.3 million. The strong growth momentum continued into Q2 2025, with future focus on customer acquisition efficiency and state tax policies.
