Sportsbook and iGaming drive strong quarterly results and the platform gets more efficient.

Key Points:

• Revenue for Q2 2025 went up 37% since last year, landing at $1.5bn, while net income became $157.9m.
• Adjusted EBITDA reached $300.6m, increasing by 134.9%.
• Sportsbook revenue totalled $997.9m and iGaming brought $429.7m, up 22.6%.

DraftKings showed $1.5bn in Q2 2025 revenue, which is more than any past quarter and reflects a 37% higher amount than one year ago. Net income moved to $157.9m in this period; adjusted EBITDA was $300.6m, more than double from the previous year, up by 134.9%. The operator posted $150.6m in operating profit last year, and Q2 had $32.4m operating loss. DraftKings explained this shift using customer activity, higher hold rates, and sportsbook-friendly results.

Sportsbook drives growth while steady iGaming performance continues. The sportsbook segment provided $997.9m of total Q2 revenue, growing by 45.3%. Sports betting handle reached $11.5bn, rising 6.3%. The main drivers were efficient customer sign-ups and a good hold percentage. On the other hand, iGaming increased to $429.7m, which marks a 22.6% rise and holds steady. Revenue from other sources was $85m, up by 26.8%.

The company confirmed it expects full-year revenue between $6.2bn and $6.4bn, as first announced in May 2025, now likely hitting the top of the range. Adjusted EBITDA forecast for the year is still $800m to $900m. Good to know, DraftKings began to charge a fee of $0.50 for mobile and online sports bets in Illinois, copying FanDuel parent Flutter’s approach on new betting taxes.

Cost Management and State Rollout Highlighted

Operating expenses went up from last year, but revenue growth overtook spending. DraftKings pointed to wider profit margins because of more streamlined products and customer scale. DraftKings keeps spreading in the US sports betting market. Its service is live for mobile sports betting in 25 states and in Washington, DC, now reaching about 49% US population. iGaming runs in five states with Ontario, Canada still active. Next launches are planned for Missouri and Puerto Rico; Missouri is expected to give extra growth after success with the 2024 ballot vote.

Acquisition Talks and Strategy Shifts

DraftKings started talks about buying Railbird Exchange, a prediction market, on July 15. Railbird got a federal license, but so far, no agreement has been reached. DraftKings has not shared comments about these talks. Earlier, in May 2024, DraftKings took over Jackpocket, a lottery service. This acquisition brought more monthly users, but average revenue per monthly unique payer (ARPMUP) dropped due to how Jackpocket earns money. DraftKings had 4.3 million Monthly Unique Payers (MUPs) in Q1 2025, a 28% increase, though guidance for adjusted EBITDA was lower after weaker sports results in March.

Historical Numbers Give Context

In 2024, DraftKings closed with $4.8bn in revenue, up 30.1% for the year, and reached positive adjusted EBITDA of $181.3m for the first time. The Q2 2025 numbers build on that pace, reaching higher revenue and profits. Looking forward as DraftKings keeps its targets and pushes into more locations, efficiency in gaining customers and how states tax bets are important in late 2025.