DraftKings delivered its strongest quarterly results to date in Q2 2025, beating Wall Street forecasts with $1.51 billion in revenue 37% year-over-year increase and $408 million jump over Q2 2024.
Net income reached $158 million, while adjusted EBITDA surged to $301 million, surpassing the company’s entire 2024 EBITDA.
The impressive growth was driven by enhanced customer engagement, improved sportsbook hold rates, and favorable betting outcomes.
Monthly Unique Payers (MUPs) grew 6% to 3.3 million compared to the same period last year. Even without contributions from its recent Jackpocket acquisition, MUPs still saw a 5% year-over-year increase.
Average Revenue per MUP (ARPMUP) climbed to $151-up 29% from last year, or 30% when excluding Jackpocket. This was largely due to higher sportsbook margins and more efficient promotional spending. Notably, the company significantly reduced its promotional outlay in online sports betting, reflecting stronger operating leverage as mature markets become more profitable.
CEO Jason Robins highlighted the results as evidence of the company’s strategic progress, while CFO Alan Ellingson revealed that DraftKings repurchased 6.5 million shares in H1 2025.
Citizens analyst Jordan Bender noted this was the first quarter in nearly two years where DraftKings substantially outperformed consensus estimates, beating revenue projections by 6% and EBITDA by 23%.
Gaming margins outperformed by 60 basis points, contributing an estimated $110 million in extra revenue and $75-80 million in EBITDA. Though sports betting handle rose only 6%-slightly under prior guidance-strong margins helped offset the slower pace.
DraftKings’ iGaming segment also performed well, increasing revenue by 22.6% to $429.7 million, in line with analyst expectations. With iGaming now active in five states, the company covers about 11% of the U.S. population for online casino offerings.
DraftKings’ mobile sportsbook is live in 25 states plus Washington DC, reaching around 49% of the U.S. population, and is also operational in Ontario, Canada.
Looking ahead, the company reaffirmed its 2025 revenue guidance of $6.2-$6.4 billion and now anticipates landing at the higher end of that range. Adjusted EBITDA guidance remains between $800–$900 million, with expectations centered near the midpoint-driven by continued momentum and upcoming launches in new markets like Missouri.
