DraftKings Announces 17% YoY Revenue Growth in Q1 Amid Improved Sportsbook Margins

(AsiaGameHub) –   DraftKings announced first-quarter 2026 revenue of $1.65 billion, marking a 17% increase compared to the same period last year, driven by strong performance in both sportsbook and iGaming segments, along with enhanced sportsbook margins.

Sportsbook revenue grew by 24.1% to $1.09 billion, while iGaming revenue rose 8.9% to $461.3 million. The total sportsbook handle for the quarter was $14.08 billion, up from $13.88 billion in Q1 2025, with the sportsbook net revenue margin expanding from 6.4% to 7.8%.

The company reported a net profit of $21.1 million attributable to shareholders, a significant improvement from the $33.9 million net loss recorded in the previous year. Adjusted EBITDA surged to $167.9 million, compared to $102.6 million in the prior-year period.

Monthly unique payers declined by 4% year over year to 4.2 million, primarily due to reduced lottery play revenue following DraftKings’ exit from the Texas market in 2025; however, the combined monthly unique payer count across both sportsbooks and iGaming increased by 2%.

Average revenue per unique payer for the month climbed 21%, reaching $131, reflecting stronger sportsbook operations and sustained engagement with digital wagering products.

DraftKings reaffirmed its full-year 2026 guidance, projecting revenue between $6.5 billion and $6.9 billion and consolidated adjusted EBITDA of $700 million to $900 million.

The company continues to offer mobile sports betting in 27 U.S. states, Washington D.C., and Puerto Rico, covering approximately 53% of the U.S. population. iGaming services are currently available in five U.S. states, while DraftKings maintains sportsbook and other offerings in Ontario.

Jason Robins, DraftKings’ Chief Executive Officer and Co-founder, stated:

We have started the year exceptionally well, as our first-quarter results surpassed our expectations. Our core business remains robust, and profitability is showing clear signs of improvement. This positions us to aggressively pursue leadership in Sports Predictions. With our Super App, market-making capabilities, proprietary exchange, and combos now converging, we aim to solidify our position as a leader in Sports Predictions before the end of the year.

As of March 31, 2026, DraftKings held approximately $999.4 million in cash or cash equivalents and reported total assets of $4.31 billion on its balance sheet, which includes $1.26 billion in convertible debt and a term loan of $575.6 million.

Alan Ellingson, DraftKings’ Chief Financial Officer, commented:

The business is scaling efficiently as we drive revenue growth, expand profitability, and invest in high-return opportunities. We continue to forecast fiscal year 2026 revenue of $6.5 billion to $6.9 billion and Adjusted EBITDA of $700 million to $900 million.

The results highlight the ongoing expansion of North America’s regulated online gambling sector and demonstrate that operators remain focused on customer retention, margin optimization through sports wagering, and entry into new regulated markets.