DraftKings Inc. (DKNG)

Price$24.33Cached quoteAs of 2026-09-16 23:06 UTC

AI: Fair-priced

Price checkThe shares look reasonably priced, but current cash generation leaves little room for another stumble.

At the observed market capitalization of roughly $12.3 billion, DraftKings trades at about 19 times the roughly $651 million of free cash flow produced over the latest four quarters. Free cash flow means cash left after running and investing in the business. That is about a 5% cash return before considering stock awards. Stock compensation was about $324 million over those quarters, making the economic return less generous. For an 8% cash return, annual free cash flow would need to approach $1.0 billion, roughly 50% above recent levels. That supports a Fair-priced verdict, not a bargain. (marketwatch.com)

Big pictureLiquidity is adequate, but debt and weak tangible equity reduce the downside cushion for shareholders.

At June 30, unrestricted cash was $984 million against $1.26 billion of zero-coupon convertible notes, which pay no regular coupon, and a $593 million term loan. Current assets of $1.58 billion barely exceeded current liabilities of $1.55 billion, while $1.60 billion of goodwill exceeded $569 million of equity, leaving negative tangible book value. First-half buybacks of $154 million roughly matched $148 million of stock compensation; average basic shares were essentially flat year over year. On August 25, DraftKings added a $700 million secured term loan, largely to refinance 2028 convertibles, improving maturity flexibility but likely increasing cash interest. (sec.gov)

Business strengthCustomer demand remains strong, but profit and cash still swing with sports results and promotions.

Revenue rose 27% in 2025 to $6.05 billion; gross profit rose 37%, operating losses nearly disappeared, and operating cash flow reached $663 million with only $15 million of capital spending. Durability is less certain in 2026: first-half operating cash flow was only $63 million and the net loss was $47 million. Second-quarter sports volume rose 15% and paying users rose 9%, yet revenue fell 5% as customer-friendly outcomes and promotions reduced the share of sports volume kept as revenue to 6.8% from 8.7%. Online casino revenue still grew 7.5%. (sec.gov)

What could change the storyA durable cash breakthrough would make the shares cheap; persistent promotion spending would make them expensive.

Management kept 2026 guidance at $6.5-$6.9 billion of revenue and $700-$900 million of adjusted operating profit before interest, taxes, depreciation and specified exclusions, while saying the core business could produce about $1 billion before heavy Predictions investment. The bull case is that customer growth, normalized sports outcomes and the proprietary exchange lift free cash flow above $1 billion without increasing shares. The bear case is that higher gaming taxes, promotions and prediction-market spending keep free cash flow near $650 million while stock compensation stays above $300 million. Those are the clearest thresholds to watch. (sec.gov)

AI: News

Mixed second-quarter resultsDraftKings kept full-year guidance despite a weaker quarter, and investors focused on strong customer activity.

On August 6, DraftKings reported second-quarter revenue of $1.44 billion, down 5% year over year, and a $67.6 million net loss versus $157.9 million of profit a year earlier. Sports consumer volume rose 15%, and management kept 2026 revenue guidance at $6.5-$6.9 billion and adjusted operating earnings guidance at $700-$900 million. Shares finished about 8% higher the next session and roughly 10% above the pre-release close by August 10. The reaction suggests investors looked through outcome-driven weakness, although broader forces also contributed. (sec.gov)

Predictions exchange launchedDraftKings moved prediction trading onto its own exchange, aiming to improve product control and economics.

On June 26, DraftKings launched its proprietary DKeX prediction exchange inside its unified app, reporting about $3.4 billion of annualized consumer volume at the time. Owning the exchange can reduce third-party dependence, speed product changes and capture more of the economics from each trade. This matters because Predictions can reach customers beyond traditional sportsbook states, but it also requires substantial marketing and technology spending. I found no reliable single-day move attributable to this launch, so its importance is strategic rather than proven by immediate trading. (ir.aboutdraftkings.com)

Debt refinancing closedDraftKings extended borrowing capacity, but the refinancing trades some dilution risk for higher cash interest.

On August 25, DraftKings closed a $700 million secured term loan maturing in 2033 and replaced its $500 million revolving credit line with a $750 million line maturing in 2031. The new term loan costs the overnight benchmark rate plus two percentage points and is intended mainly to repurchase some 2028 convertible notes. That can reduce future share-conversion risk and push maturities outward, but increases secured, floating-rate debt. Shares fell 3.9% the next session; that timing does not prove the financing caused the decline. (ir.aboutdraftkings.com)

Related-party deal scrutinyA related-party marketing agreement raised governance questions while DraftKings is spending heavily on growth.

On August 26, Fortune reported that DraftKings had approved up to $30 million over three years of marketing work with HardScope, a company wholly owned by former president and cofounder Matthew Kalish, with commissions up to 14%. DraftKings said its independent audit committee approved the arrangement and spending is optional. Shares fell 3.9% that session, but refinancing news and a weaker market backdrop overlapped, so attribution is uncertain. The amount is modest relative to revenue; the larger investor issue is oversight and capital discipline. (fortune.com)

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Revenue

2020

2021

2022

2023

2024

2025

Net income

2020

2021

2022

2023

2024

2025

Free cash flow

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2020

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2025

Financial statements

	2025	2024	2023	2022	2021	2020
Revenue	$6.05B	$4.77B	$3.67B	$2.24B	$1.30B	$614.5M
Gross profit	$2.50B	$1.82B	$1.37B	$756.2M	$501.9M	$267.9M
Gross margin	41.25%	38.11%	37.46%	33.75%	38.72%	43.60%
Research & development	$459.9M	$397.1M	$355.2M	$318.2M	—	—
Operating expenses	$2.51B	$2.43B	$2.16B	$2.27B	$2.06B	$1.11B
Operating income	−$15.8M	−$609.0M	−$789.2M	−$1.51B	−$1.56B	−$843.3M
Operating margin	−0.26%	−12.77%	−21.53%	−67.48%	−120.49%	−137.22%
EBITDA	$259.7M	−$338.1M	−$587.3M	−$1.34B	−$1.44B	−$765.8M
EBITDA margin	4.29%	−7.09%	−16.02%	−59.92%	−111.15%	−124.62%
Net income	$3.7M	−$507.3M	−$802.1M	−$1.38B	−$1.52B	−$1.23B
Net profit margin	0.06%	−10.64%	−21.88%	−61.50%	−117.53%	−200.45%
Basic EPSper basic share	$0.01	-$1.05	-$1.73	-$3.16	-$3.78	-$4.03
Diluted EPSper diluted share	-$0.01	-$1.05	-$1.73	-$3.16	-$3.78	-$4.03

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

7.52%of listed shares

CIBC Bancorp USA Inc.37.32M shares · Jun 30, 2026

View holders

Top 20 reported holders of DKNG
Holder	% owned
CIBC Bancorp USA Inc.	7.52%37.32M shares
AQR CAPITAL MANAGEMENT LLC	5.98%29.67M shares
Jupiter Topco LLC	5.10%25.27M shares
Capital World Investors	5.00%24.8M shares
BlackRock, Inc.	4.63%22.96M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.35%21.57M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	3.87%19.19M shares
NORGES BANK	2.39%11.85M shares
SPRUCE HOUSE INVESTMENT MANAGEMENT LLC	1.95%9.65M shares
GEODE CAPITAL MANAGEMENT, LLC	1.92%9.52M shares
PointState Capital LP	1.81%8.99M shares
STATE STREET CORP	1.69%8.36M shares
MASSACHUSETTS FINANCIAL SERVICES CO /MA/	1.49%7.41M shares
BAILLIE GIFFORD & CO	1.45%7.18M shares
Kalish Matthew	≈1.27%6.32M shares
MORGAN STANLEY	1.24%6.17M shares
Atlas Venture Advisors, Inc.	1.07%5.32M shares
FMR LLC	1.02%5.07M shares
AMERIPRISE FINANCIAL INC	1.02%5.06M shares
Contour Asset Management LLC	0.93%4.62M shares

Percentages use 495.98M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys3$3.25M disclosed value

Sells (SEC code S)94$326.93M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 11, 2026Form 4 · 10b5-1	Dodge R StantonChief Legal Officer	SellClass A Common Stock	8.2K	$29.97	$245.4K	556.3K
Jun 11, 2026Form 4 · 10b5-1	Dodge R StantonChief Legal Officer	SellClass A Common Stock	54.3K	$29.64	$1.61M	564.4K
May 20, 2026Form 4 · 10b5-1	Bradbury ErikChief Accounting Officer	SellClass A Common Stock	862	$25.33	$21.8K	38.2K
May 18, 2026Form 4	Levin WoodrowDirector	SellClass A Common Stock	34.2K	$25.71	$880.2K	29.8K
Mar 13, 2026Form 4 · 10b5-1	Moore JocelynDirector	SellClass A Common Stock	2.1K	$25.60	$55.0K	1.4K