DraftKings Reports $1.41B Q1 Revenue, Revises Full-Year Guidance Lower

DraftKings reported first-quarter revenue of $1.41 billion, up about 20% year-over-year but falling short of analyst expectations of $1.46 billion, with EPS at $0.12, missing estimates by $0.08. Despite missing revenue and EPS estimates, the company saw a 28% increase in Monthly Unique Payers (MUPs) to 4.3 million, aided by the acquisition of Jackpocket, though average revenue per user (ARPMUP) decreased by 5% due to lower Jackpocket ARPMUP. Excluding Jackpocket, both ARPMUP and MUPs increased, indicating strong core business growth. DraftKings updated its FY 2025 revenue guidance to $6.20B–$6.40B, slightly below consensus, but management noted that guidance would have been raised except for unfavorable sports outcomes in March. The company also reported a healthy balance sheet, repurchasing 3.7 million shares in Q1. DraftKings’ stock has underperformed recently, down over 16% in the past three months and nearly 20% over the last year, amid mixed market sentiment and earnings results.