DKNGHIGH SIGNALFINANCIAL10-K

DKNG achieved a dramatic 97.4% improvement in operating losses (from -$609M to -$15.8M) while growing revenue 27% to $6.1B, signaling a major inflection point toward profitability.

This represents a transformational shift for DraftKings as the company approaches operating profitability while maintaining strong revenue growth, indicating successful execution of their path to sustainable profitability. The near-elimination of operating losses combined with robust cash flow generation suggests the business model is maturing and becoming financially sustainable.

Comparing 2026-02-13 vs 2025-02-14View on EDGAR →
FINANCIAL ANALYSIS

DraftKings delivered exceptional financial performance with revenue growing 27% to $6.1B while dramatically reducing operating losses by 97.4% to just -$15.8M, demonstrating strong operational leverage. Operating cash flow surged 58.7% to $663M and cash reserves increased 43% to $1.1B, providing strong liquidity, though stockholders' equity declined 37.5% to $632M amid higher liabilities. The overall picture signals a company reaching an inflection point toward profitability with strong cash generation and growth, though investors should monitor the equity decline and rising liabilities.

FINANCIAL STATEMENT CHANGES
Operating Income
P&L
+97.4%
-$609.0M→-$15.8M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Accounts Receivable
Balance Sheet
+82.5%
$57.8M→$105.6M

Receivables surged 82.5% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.

Operating Cash Flow
Cash Flow
+58.7%
$417.8M→$662.9M

Operating cash flow surged 58.7% — exceptional cash generation, highest quality earnings signal.

Capital Expenditure
Cash Flow
+50.9%
$10.2M→$15.4M

Capital expenditure jumped 50.9% — major investment cycle underway; assess returns on deployment.

Cash & Equivalents
Balance Sheet
+43%
$788.3M→$1.1B

Cash position surged 43% — strong cash generation or capital raise providing significant financial cushion.

Stockholders Equity
Balance Sheet
-37.5%
$1.0B→$631.5M

Equity declined sharply — large losses, buybacks, or write-downs reducing book value significantly.

Revenue
P&L
+27%
$4.8B→$6.1B

Revenue growing 27% — solid top-line momentum, watch margins for quality of growth.

Total Liabilities
Balance Sheet
+19.1%
$3.3B→$3.9B

Liabilities increased 19.1% — monitor debt-to-equity ratio and interest coverage.

Current Assets
Balance Sheet
+18.3%
$1.5B→$1.8B

Current assets grew 18.3% — improving short-term liquidity or inventory/receivables build.

LANGUAGE CHANGES
NEW — 2026-02-13
PRIOR — 2025-02-14
ADDED
As of February 10, 2026, there were 492,991,385 shares of the registrant s Class A common stock , par value $0.0001 per share, and 393,013,951 shares of the registrant s Class B common stock, par value $0.0001 per share, outstanding.
Management's Discussion and Analysis of Financial Condition and Results of Operations 48 Item 7A.
We provide users with online and retail sports betting (together, Sportsbook ), online casino ( iGaming ), daily fantasy sports ( DFS ), digital lottery courier, prediction markets and other product offerings.
Our mission is to make life more exciting by responsibly creating the world s favorite real-money games, betting experiences and event contracts trading.
We accomplish this by creating an environment where our users can find enjoyment and fulfillment through Sportsbook, iGaming, DFS, digital lottery courier and prediction markets as well as other product offerings.
We also make significant investments in sales and marketing and incentives to grow, retain, and monetize our paid user base, including personalized cross-product offers and promotions, and promote brand awareness to attract the skin-in-the-game sports fan.
We will continue to manage our fixed-cost base to achieve our target levels of profitability and focus our variable spend on marketing, user experience and support and regulatory compliance to become the product of choice for users and to maintain favorable relationships with regulators.
We also expect to improve our profitability over time as our revenue and gross profit expand as states mature and we optimize our variable marketing expenses and fixed cost structure.
Our path to increase profitability on an annual basis is based on the acceleration of positive contribution profit growth driven by increased revenue and gross profit generation from ongoing efficient customer acquisition, strong user retention, improved monetization from frequency and higher Net Revenue Margin, as well as scale benefits from investments in our product offerings and technology and general and administrative functions.
During the fiscal years ended December 31, 2025, 2024 and 2023, we had revenue of $6,054.5 million, $4,767.7 million and $3,665.4 million, respectively; average monthly unique payers ( MUPs ) of 4.0 million, 3.7 million and 2.7 million, respectively; average revenue per MUP ( ARPMUP ) of $125, $106 and $113, respectively; Sportsbook Handle of $53.6 billion, $48.1 billion and $37.4 billion, respectively; and Sportsbook Net Revenue Margin of 7.1%, 6.0% and 5.6%, respectively.
REMOVED
As of February 12, 2025, there were 489,956,221 shares of the registrant s Class A common stock , par value $0.0001 per share, and 393,013,951 shares of the registrant s Class B common stock, par value $0.0001 per share, outstanding.
Management's Discussion and Analysis of Financial Condition and Results of Operations 47 Item 7A.
2 PART I On May 5, 2022 (the GNOG Closing Date ), DraftKings Inc.
(formerly New Duke Holdco, Inc.) consummated the acquisition of Golden Nugget Online Gaming, Inc., a Delaware corporation (together with its subsidiaries unless the context requires otherwise, GNOG ), pursuant to a definitive agreement and plan of merger, dated August 9, 2021 (the GNOG Merger Agreement ), in an all-stock transaction (the GNOG Transaction ).
undertook a holding company reorganization whereby DraftKings Inc.
became the going-forward public company and the direct parent company of both DraftKings Holdings Inc.
(formerly DraftKings Inc.), a Nevada corporation ( Old DraftKings ), and GNOG.
is the registrant filing this Annual Report on Form 10-K as the successor registrant for Old DraftKings.
Unless otherwise indicated or the context otherwise requires, the terms DraftKings , the Company , we , us and our refer to DraftKings Inc.
(or, in respect of periods prior to the GNOG Closing Date, Old DraftKings), together with its consolidated subsidiaries.
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