DraftKings stock ticked up about 6% in after-hours trading Wednesday after the sportsbook reported its second profitable quarter as a public company.
For the quarter ending in June, DraftKings reported revenue of $1.51 billion, beating consensus estimates of $1.43 billion. Earnings per share were $0.30, trailing consensus estimates of $0.41. DraftKings’ only previous profitable quarter was Q2 of 2024, when it reported earnings per share of $0.12. The company went public in April 2020.
While DraftKings typically updates its full-year guidance at quarterly intervals, the company kept its prior 2025 revenue and EBITDA projections in place. The company said that guidance now includes the anticipated impact of higher tax rates in New Jersey, Louisiana and Illinois, and the launch of its sportsbook in Missouri.
DraftKings’s quarterly presentation also makes direct reference to the possibility of the company eventually offering its own futures market product, something CEO Jason Robins discussed with Sportico earlier this year. In the section on full-year guidance, the company said its numbers “do not include the potential launch of a prediction markets offering.”
“We continue to monitor events surrounding federally regulated prediction markets and are actively exploring ways to enhance shareholder value through this opportunity,” Robins said in a separate letter to shareholders published Wednesday. “As always, we value our relationships with both industry stakeholders and policy makers and will work collaboratively as we evaluate next steps.”
In its push toward profitability, the company’s marketing costs are of particular interest to investors. DraftKings reported $233.2 million in “sales and marketing” for the quarter, an 8% increase from the same quarter last year ($215.7 million) and a 12% increase from the second quarter of 2023 ($207.5 million).
DraftKings’ customer base is also growing. The company reported 3.3 million average monthly users, up 6% from 3.1 million in Q2 of 2024 and 57% from 2.1 million in Q2 in 2023. Average revenue from those users jumped to $151. That’s up 29% from the same quarter in 2022 ($117) and 10% from 2023 ($137).
These numbers—like most of the company’s year-over-year comparisons—are not abnormal for the company at this stage. As sports betting and iGaming moves state by state across the U.S., the size of DraftKings’ geographical footprint (and the maturity of each market) grows with each quarter.
DraftKings stock is up 22% so far this year, and 11% over the past month.
(This story and headline have been updated after the conclusion of Wednesday’s after hours trading session to reflect current stock price changes.)