DraftKings Reports $21.1m Net Profit in Q1 2026 After Hitting Higher Revenue Per User

DraftKings reported higher revenue and a second consecutive quarter of net profit during Q1 2026 as the company improves profitability across its operations. Revenue for the three months ending 31 March reached $1.65 billion, representing a 16.8% increase year-on-year. Adjusted EBITDA also rose 63.7% to $167.9 million.

The company achieved this growth despite a 4.2% decline in monthly unique payers, partly linked to its exit from the Texas lottery market last year. Excluding the lottery impact, MUPs increased by 2% due to stronger customer acquisition and retention.

Average revenue per payer increased by 5% to $108 during the quarter, showing the operator is generating more value from its existing customer base as the US online betting market matures.

Jason Robins, CEO and Co-founder of DraftKings, said: “We are off to a fantastic start to the year as our Q1 results exceeded our expectations. Our core business is strong, and profitability is inflecting.”

Alan Ellingson also commented on the revenue results. “The business continues to scale efficiently as we grow revenue, expand profitability, and invest in high-return opportunities,” 

Sportsbook margin expansion drives quarterly performance

Sportsbook remained the company’s primary growth driver, with revenue increasing 24.1% year-on-year to $1.09 billion. This was despite the betting handle rising only 1.5% to $14.08 billion. The margins went up from 6.4% to 7.8%. 

Furthermore, DraftKings recorded growth within iGaming, although at a slower pace compared to the sportsbook. iGaming revenue rose 8.9% to $461.3 million during the quarter and accounted for almost 28% of total group revenue. The figures further highlighted the importance of online casino operations to DraftKings’ wider business model.

DraftKings returns to profitability amid rising expenses

Although operating expenses increased across the business, revenue growth allowed DraftKings to remain profitable. The operator posted an operating profit of $5.8 million compared to a $46.3 million operating loss from the previous year.

After accounting for interest expenses and other income, DraftKings reported a pre-tax profit of $22.8 million compared to only $22,000 a year earlier. The company also benefited from $6.4 million in tax provisions while recording a $4.5 million loss from equity method investments.

Overall, DraftKings finished the quarter with a net profit of $21.1 million compared to a $33.9 million loss in Q1 2025. The company maintained its full-year guidance following the Q1 performance. DraftKings expects full-year revenue to range between $6.5 billion and $6.9 billion, while adjusted EBITDA is projected between $700 million and $900 million.

DraftKings targets stronger position in prediction markets

DraftKings used the Q1 report to outline its ambitions within the prediction markets sector. Robins said the strength of DraftKings’ sportsbook and iGaming operations provides the company with the resources to compete aggressively in the space.

According to the CEO, the company hopes to establish a leadership position in sports prediction markets before the year ends.  “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,” Robins stated.

Financial results from Q1 2026 reveal that DraftKings has hit another profitable quarter. This followed a boost in the average revenue per payer and revenue growth across the sportsbook and iGaming segments. Hopefully, the company achieves its aim of becoming a household name in the sports prediction markets within this year.