DraftKings Reports Strong Q1 2026 Growth

DraftKings reported revenue of $1.65 billion for the first quarter of 2026, marking a 17% increase compared to the same period last year, supported by continued growth across sportsbook and iGaming operations as well as stronger sportsbook margins.

Sportsbook revenue climbed 24.1% year-on-year to $1.09 billion, while iGaming revenue increased 8.9% to $461.3 million. During the quarter, sportsbook handle reached $14.08 billion, slightly above the $13.88 billion reported in Q1 2025. Sportsbook net revenue margin also improved, rising to 7.8% from 6.4% a year earlier.

The company posted net income attributable to common stockholders of $21.1 million, compared to a net loss of $33.9 million in the prior-year quarter. Adjusted EBITDA also grew significantly, reaching $167.9 million versus $102.6 million in Q1 2025.

Monthly unique payers declined 4% to 4.2 million. DraftKings stated that the decrease was mainly linked to lower lottery activity after the company exited the Texas market in 2025. Excluding lottery operations, sportsbook and iGaming monthly unique payers increased 2% year-on-year.

Average revenue per monthly unique payer rose 21% to $131, driven by stronger sportsbook performance and continued engagement across the operator’s digital betting products.

DraftKings reaffirmed its full-year 2026 guidance, expecting revenue between $6.5 billion and $6.9 billion, alongside adjusted EBITDA projected between $700 million and $900 million.

The company currently operates mobile sports betting in 27 US states, Washington D.C. and Puerto Rico, covering around 53% of the US population. Its iGaming products are active in five US states, while the operator also maintains sportsbook and iGaming operations in Ontario, Canada.

As of March 31, 2026, DraftKings reported approximately $999.4 million in cash and cash equivalents, with total assets of $4.31 billion. Its balance sheet included $1.26 billion in convertible notes and a term loan balance of $575.6 million.

The results reflect continued expansion across the North American online betting market, where operators remain focused on improving margins, retaining customers and growing within regulated jurisdictions.

Chief Executive Officer and Co-founder Jason Robins said the company had exceeded expectations during the first quarter, adding that DraftKings plans to strengthen its position in sports prediction products by leveraging its Super App, market-making tools, exchange capabilities and combination betting features.

Chief Financial Officer Alan Ellingson added that the company continues to scale efficiently while increasing profitability and investing in growth opportunities, while maintaining its full-year financial outlook unchanged.