DraftKings Q1 revenue grows 16.8% to $1.6bn, generates $21.1m net income

DraftKings has reported its financial results for Q1 2026, as net revenue for the operator increased 16.8% year-over-year to $1.6bn, while net income totaled $21.1m and grew from the $33.9m loss witnessed during the first quarter of 2025. 

“We are off to a fantastic start to the year as our first quarter results exceeded our expectations. Our core business is strong, and profitability is inflecting,” DraftKings Co-Founder and CEO Jason Robins said. 

“That gives us the firepower to press our advantage in Predictions. With our Super App, market making capabilities, proprietary exchange and combos coming together, we intend to establish a leadership position in Sports Predictions before year-end.”

Despite the excitement from Robins, DraftKings also reported a 4% decrease in monthly unique players for Q1 2026, said to reflect the operator’s decision to pull its lottery business out of Texas. 

FanDuel also reported a decrease in monthly active players for the quarterly period, although Amy Howe’s departure from the organization dominated headlines on May 6. 

Along with increases in total revenue and net income, DraftKings also generated a 63.6% increase in adjusted EBITDA to nearly $167.9m. DraftKings reported a $5.8m income from operations for Q1 2026, following a $46.3m loss reported for the prior year period. 

The operator’s sportsbook handle totaled $14.1bn and increased 1.5%, while sportsbook revenue for DraftKings grew 24.1% to $1.1bn. iGaming operations accounted for an additional $461.3m, equating to growth of 8.9%. 

DraftKings’ cost of revenue grew 12.5% to $949.4m, as sales and marketing and product and technology expenses totaled $401.7m and $123.2m, respectively, increasing by 16.9% and 19.3%. General and administrative efforts cost DraftKings just over $165.9m, rising 0.9%. 

Ahead of the region’s imminent online casino and sports betting regulation, DraftKings unveiled its intentions to launch sports betting and online casino operations in the province of Alberta, Canada on April 16. 

The launch will introduce DraftKings’ products into its second Canadian province and 34th regional jurisdiction across North America.

DraftKings also reduced its total liabilities during Q1 2026 by 5% to $3.7bn, while the operator’s stock price was set at $25.22 per share, representing an increase of 5.4% at the time of close on May 7.