Q2 2025 Draftkings Inc Earnings Call Transcript
Key Points
- DraftKings Inc (DKNG) set records for revenue and adjusted EBITDA in Q2 2025, with revenue growth accelerating to 37% year-over-year.
- The company achieved over $300 million in adjusted EBITDA, doubling its prior record, and is on track to reach a 30% adjusted EBITDA margin target over time.
- DraftKings Inc (DKNG) is well-positioned for the upcoming NFL and NBA seasons, with continued innovation in its Sportsbook product.
- Sportsbook outcomes in May and June added $110 million to revenue, benefiting the company.
- The company repurchased 6.5 million shares through its stock repurchase program, indicating a focus on maximizing shareholder returns.
- Higher tax rates in New Jersey, Louisiana, and Illinois are expected to impact financial results.
- The potential launch of a predictions market offering is not included in the fiscal year 2025 guidance, indicating uncertainty in this area.
- The Illinois wager tax presents challenges, with potential impacts on market share and customer experience.
- DraftKings Inc (DKNG) faces competition in the iGaming space, particularly in attracting slots-first customers.
- The company is navigating uncharted territory with the Illinois per wager tax, which could have unforeseen impacts.
Good day and thank you for standing by. Welcome to the DraftKings Q2 2025 earnings conference call. (Operator Instructions) Please be advised that todayâs conference is being recorded.
I would now like to hand the conference over to your first speaker today, Mike Delalio, Senior Director of Investor Relations. Please go ahead.
Good morning, everyone, and thank you for joining us today. Certain statements we make during this call may constitute forward-looking statements that are subject to risks, uncertainties and other factors as discussed further in our SEC filings that could cause our actual results to differ materially from our historical results or from our forecasts. We assume no responsibility to update forward-looking statements other than as required by law.
During this call, management will also discuss certain non-GAAP financial measures that we believe may be useful in evaluating DraftKings operating performance. These measures should not be considered in isolation or as a
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