DraftKings jumps 7% on record earnings as Robins teases prediction market launch

Summary

DraftKings reported record second-quarter results and saw its shares jump about 7% in after-hours trading. CEO Jason Robins told shareholders the company is “actively exploring” prediction markets but stopped short of confirming a 2025 launch, citing regulatory uncertainty and a desire for a measured approach. Financially, DraftKings posted strong revenue and adjusted EBITDA gains, while maintaining full-year guidance.

Author

Punchy: Record quarters and a hint at a new product make this worth a quick read — the company is firing on multiple cylinders while staying cautious on regulation.

Source

Source: https://igamingbusiness.com/sports-betting/draftkings-jumps-2025-second-quarter-earnings/

Key Points

• Revenue for Q2: $1.51bn, up 37% year-on-year and modestly above analyst estimates.
• Sportsbook handle: $11.5bn, a 6% increase versus Q2 2024.
• Adjusted EBITDA: $300.6m, more than double the prior-year quarter and a company record.
• EPS: adjusted EBITDA per share $0.38, slightly below the $0.42 analysts expected.
• Guidance maintained: FY2025 revenue $6.2bn–$6.4bn and adjusted EBITDA $800m–$900m.
• Product hint: Robins said DraftKings is “actively exploring” prediction markets but will take a measured approach amid regulatory scrutiny; no 2025 launch confirmed and the product isn’t included in FY2025 guidance.
• Strategic moves: DraftKings has discussed potential deals (eg Railbird) and is monitoring litigation trends around prediction markets before moving forward.
• Customer and unit metrics: Monthly unique payers 3.3m (+6% YoY); ARPMUPS $151 (+29.1% YoY).
• Share repurchases: 6.5m shares bought in H1 under a previously authorised $1bn programme.
• Costs: Sales & marketing remained high at $233.2m for the quarter.
• Trading: Stock rose ~7% after-hours on the results and is up roughly 50% since April.

Why should I read this?

Because it’s the quick version of what matters: DraftKings not only posted record profits but also signalled a possible strategic expansion into prediction markets — a product that could reshape trading and betting if regulators allow it. If you follow sports-betting stocks, industry shifts or regulatory risk, this saves you time and flags where to watch next.