DraftKings stock jumps over 3% despite on strong user growth despite lowered guidance

Published 08/05/2025, 22:06
DraftKings stock jumps over 3% despite on strong user growth despite lowered guidance

BOSTON - DraftKings Inc. (NASDAQ:DKNG) reported first quarter 2025 results that missed analyst expectations on revenue but showed strong user growth, sending shares up 3.6% in early trading.

The sports betting and iGaming company posted revenue of $1.41 billion, up 20% YoY but below the consensus estimate of $1.46 billion. Adjusted earnings per share came in at $0.12, missing expectations of $0.20.

Despite the revenue miss, DraftKings saw its monthly unique payers jump 28% YoY to 4.3 million in Q1. Excluding the impact of its Jackpocket acquisition, unique payers still grew 11%.

"Recent product enhancements are driving outperformance in our core value drivers, and our customer metrics continue to be strong through an evolving macroeconomic environment," said CEO Jason Robins.

The company lowered its full-year 2025 revenue guidance to $6.2-$6.4 billion from $6.3-$6.6 billion previously, citing customer-friendly sports outcomes in March. The midpoint of the new range implies 32% YoY growth.

DraftKings also reduced its 2025 adjusted EBITDA forecast to $800-$900 million from $900 million-$1 billion.

The stock’s rise suggests investors are focusing on the strong user growth rather than the revenue miss and guidance cut. DraftKings continues to expand, now live with mobile sports betting in 25 states representing 49% of the U.S. population.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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