DraftKings Q1 Earnings Preview: Will March Madness, Super Bowl Help Set New Company Records?

Sports betting giant DraftKings Inc DKNG could show strength from wagers on the NFL Playoffs, Super Bowl and March Madness when it reports first-quarter financial results after market close Thursday.

Earnings Estimates: Analysts predict DraftKings will report first-quarter revenue of $1.44 billion, which would be a company record and up from $1.18 billion in last year's first quarter, according to data from Benzinga Pro.

The company has missed analyst estimates for revenue in three straight quarters, while beating estimates in six of the last 10 quarters overall.

Analysts predict DraftKings will report first-quarter earnings per share of 22 cents, up from 3 cents per share in last year's first quarter. The company has beaten analyst estimates for earnings per share in more than 10 straight quarters.

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What Analysts Are Saying: A lower hold during March Madness and pressure on 2025 guidance are items to watch in the earnings report, Bank of America analyst Shaun C. Kelley said in a recent investor note.

The analyst reiterated a Buy rating with a price target of $60 ahead of earnings.

Kelley reduced first-quarter EBITDA projections from $149 million to $120 million. The analyst also sees full-year EBITDA coming in lower with a ban on Texas Jackpocket. Another risk is new taxes in states like New Jersey, Maryland and North Carolina that could add to EBITDA concerns.

While the analyst sees strength for the company from the Super Bowl in the quarter, these risks and the rise of prediction markets create uncertainty around guidance.

Truist Securities analyst Barry Jonas highlighted DraftKings ranking number one in the app store for sports during the Super Bowl in a previous investor note. The company had $436 million in betting handle on the Super Bowl, setting a one-day record.

Jonas maintained a Buy rating with a price target of $50 ahead of the earnings report.

Here are other analyst ratings on DraftKings and their price targets:

• Mizuho: Maintained Outperform rating, lowered the price target from $62 to $59.
• Citigroup: Maintained Buy rating, lowered the price target from $65 to $55.
• TD Securities: Maintained Buy rating, lowered the price target from $60 to $55.
• Barclays: Maintained Overweight rating, lowered the price target from $60 to $50.

Key Items to Watch: The first quarter of the calendar year and DraftKings fiscal year is a big one for sports events with the NFL Playoffs, Super Bowl, March Madness, NCAA Football Playoffs and the ending of the NBA and NHL regular seasons.

Analysts and investors will be looking to see what the betting handle was for DraftKings and its hold, along with potential commentary on market share and how the company stacked up with competitors.

Other items that will be closely watched include monthly unique payers and average revenue per monthly unique payer. These figures were up 36% year-over-year and down 16% year-over-year respectively in the fourth quarter.

During the earnings call, the company may also be asked about its growing cash holdings and if any acquisition activity is on the table as the sports betting industry continues to see consolidation and Bet365 is exploring options.

After the fourth quarter, DraftKings raised its full-year 2025 revenue guidance to a range of $6.3 billion to $6.6 billion, up from a prior range of $6.2 billion to $6.6 billion, representing approximately 35% year-over-year growth.

Whether the company reiterates this guidance or adjusts will likely decide whether the stock moves up or down after the report.

DKNG Price Action: DraftKings stock is down 0.5% to $34.51 on Thursday versus a 52-week trading range of $28.69 to $53.61. DraftKings stock is down 5% year-to-date in 2025.

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