Fantasy sports and betting company DraftKings (NASDAQ: DKNG) will be reporting results this Thursday afternoon. Here’s what to expect.
DraftKings beat analysts’ revenue expectations by 5.9% last quarter, reporting revenues of $1.51 billion, up 36.9% year on year. It was a strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates. It reported 3.3 million users, up 6.5% year on year.
Is DraftKings a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting DraftKings’s revenue to grow 10.6% year on year to $1.21 billion, slowing from the 38.7% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.26 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. DraftKings has missed Wall Street’s revenue estimates five times over the last two years.
Looking at DraftKings’s peers in the gaming solutions segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Rush Street Interactive delivered year-on-year revenue growth of 19.7%, beating analysts’ expectations by 4.3%, and Accel Entertainment reported revenues up 9.1%, topping estimates by 0.5%. Rush Street Interactive traded down 6.8% following the results.
Read our full analysis of Rush Street Interactive’s results here and Accel Entertainment’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the gaming solutions stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 7% on average over the last month. DraftKings is down 18.8% during the same time and is heading into earnings with an average analyst price target of $50.23 (compared to the current share price of $28.40).
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