AI Takeaway
DraftKings achieved its first-ever annual net profit of $3.7M in FY2025, driven by 27% revenue growth to $6.05B and a dramatic narrowing of operating losses to just -$15.8M, while generating $662.9M in operating cash flow.
Revenue
$6.05B
++26.99% YoY
EPS (Basic)
$0.01
++100.95% YoY
Operating Income
$-15.82M
++97.40% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue grew from $4.77B to $6.05B in FY2025, reflecting strong customer acquisition, increased handle, and expanding market share across sports betting and iGaming verticals. This growth rate significantly outpaces the prior year's trajectory.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating loss narrowed dramatically from -$609.0M to just -$15.8M (a 97.4% improvement), signaling that DraftKings is approaching sustainable operating profitability as revenue scale absorbs fixed and variable cost structures.
Source: Source: 10-K Income Statement (XBRL Financial Data)
DraftKings posted net income of $3.7M in FY2025 versus a net loss of -$507.3M in the prior year, representing a 100.7% YoY improvement and marking the company's first profitable fiscal year on a GAAP basis.
Source: Source: 10-K Income Statement (XBRL Financial Data)
2 more insights available
Upgrade to unlockDebt-to-equity ratio stands at 6.18x, while stockholders' equity declined 37.5% YoY from $1.01B to $631.5M. The aggressive share buyback program ($571.5M) is a primary driver of equity reduction, increasing financial leverage and vulnerability to adverse market conditions.
Source: Source: 10-K Balance Sheet (XBRL Financial Data)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.25 versus the $0.15 analyst consensus — a +68.1% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $6.05B | $4.77B | +26.99% |
Cost of Revenue | $3.56B | $2.95B | +20.55% |
Operating Income | $-15.82M | $-609M | +97.40% |
Net Income | $3.71M | $-507.29M | +100.73% |
EPS (Basic) | $0.01 | $-1.05 | +100.95% |
EPS (Diluted) | $-0.01 | $-1.05 | +99.05% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $4.53B | $4.28B | +5.77% |
Current Assets | $1.82B | $1.53B | +18.34% |
Total Liabilities | $3.9B | $3.27B | +19.13% |
Current Liabilities | $1.76B | $1.65B | +6.07% |
Stockholders' Equity | $631.46M | $1.01B | -37.52% |
Cash & Equivalents | $1.13B | $788.29M | +43.04% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $662.86M | $417.77M | +58.67% |
Investing Cash Flow | $-166M | $-566.6M | +70.70% |
Financing Cash Flow | $-222.46M | $-144.47M | -53.99% |
Share Buybacks | $571.53M | $48.07M | +1089.02% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | -0.3% | -12.8% | +12.51% |
Net Margin | 0.1% | — | — |
ROE | 0.6% | — | — |
ROA | 0.1% | — | — |
Current Ratio | $1.034 | — | — |
Debt to Equity | $6.175 | — | — |
Yes, DraftKings achieved its first-ever annual GAAP net profit of $3.7M in FY2025, compared to a net loss of -$507.3M in the prior year. Basic EPS turned positive at $0.01, though diluted EPS remained slightly negative at -$0.01 due to dilutive securities.
DraftKings revenue grew 27.0% year-over-year to $6.05B in FY2025, up from $4.77B in the prior year. This growth reflects continued expansion of its customer base and increased betting activity across sports betting and iGaming markets.
The headline takeaway is DraftKings' historic first annual net profit of $3.7M and near-breakeven operating performance with an operating loss of just -$15.8M (vs. -$609M prior year). The company also generated $662.9M in operating cash flow and aggressively repurchased $571.5M in shares, signaling management confidence in the business trajectory.
Key risks include high financial leverage with a debt-to-equity ratio of 6.18x, a very thin net margin of 0.06% that could easily turn negative, and a tight current ratio of 1.03x that limits liquidity flexibility. Regulatory risk from state-by-state sports betting legalization also remains a significant business risk.
DraftKings' financial health improved significantly in FY2025 with $1.13B in cash (up 43% YoY), $662.9M in operating cash flow, and its first-ever net profit. However, the balance sheet shows elevated leverage at 6.18x debt-to-equity and stockholders' equity declined 37.5% to $631.5M, largely due to $571.5M in share buybacks.