DraftKings (DKNG) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NasdaqGS•Consumer Cyclical•Gambling

AverageMetricSide Score: 45/100

ProfitabilityProfit11/30

GrowthGrowth23/25

Balance SheetBalance5/25

Cash QualityCash6/20

Price & Volume

Market Cap $12.80B

DraftKings Inc. operates as a digital sports entertainment and gaming company in the United States and internationally. The company offers online and retail sports betting, daily fantasy sports, digital lottery couriers, prediction markets, and other products, as well as retails sportsbooks. It also provides iGaming, or online casino products, which includes blackjack, roulette, baccarat and slot machines. In addition, the company engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators. DraftKings Inc. was founded in 2011 and is headquartered in Boston, Massachusetts.

Moat Signals

Competitive analysis based on 17 quarters of fundamental data

Pricing Power

Weak Moat

Operating margins are under pressure, averaging -6.2%. The business may lack pricing power or face rising costs.'

Competitive Advantage

Weak Moat

ROE is low or negative, suggesting limited competitive advantage or capital allocation challenges.

Cash Generation

Moderate Moat

6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.

Demand Durability

Strong Moat

TTM revenue has grown consistently (7 of 7 quarters up), with ~46.3% growth over the period. Strong demand durability.

Risk Signals

Data-driven red flags and warnings across 17 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

FCF consistently trails net income (avg 0.1x) — earnings may be inflated by non-cash items or aggressive accounting.

Leverage Risk

Red Flag

D/E ratio is 3.0 — dangerously high. The company is heavily leveraged and vulnerable to rising rates or cash flow dips.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Watch

FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.

Share Dilution

Watch

Shares outstanding rose 3.1% — mild dilution. Compare to earnings growth to assess net per-share impact.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $6.29B
Q. Revenue: $1.65B
TTM EBITDA: $313.39M
TTM Op. Income: $36.36M
Q. Op. Income: $5.85M
TTM Net Income: $58.64M
Q. Net Income: $21.07M
EPS: $0.04
Shares Out.: $494.35M

$6.29B in TTM revenue grew 25.8% YoY, reaching $1.65B last quarter. TTM EBITDA of $313.39M and TTM operating income of $36.36M shows growth is flowing through. Net income of $58.64M TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 42.3%
EBITDA Margin: 4.7%
Op. Margin: 0.4%
Net Margin: 1.3%

Op. margin of 0.4% is up 3.6% YoY — cost efficiency is improving. Net margin at 1.3% and gross margin of 42.3% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 218.2x
P/S Ratio: 2.0x
P/B Ratio: 21.2x

At 218.2x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 2.0x and P/B of 21.2x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $4.31B
Cash: $999.40M
Long-Term Debt: $1.84B
Book Value: $605.05M
D/E Ratio: 3.0
Debt/EBITDA: 23.7

With $4.31B in assets and $1.84B in long-term debt, the D/E of 3.0and book value of $605.05M — indicates elevated leverage — the company has significant financial risk and may struggle in a downturn.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $-48.44M
Free Cash Flow: $-55.52M
FCF Margin: -0.9%
FCF / Net Income: -2.6

FCF of $-55.52M on $-48.44M in operating cash flow. The FCF / Net Income ratio of -0.9x shows cash consumption — the business is not yet self-funding.

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DraftKings (DKNG) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NasdaqGS•Consumer Cyclical•Gambling

AverageMetricSide Score: 45/100

ProfitabilityProfit11/30

GrowthGrowth23/25

Balance SheetBalance5/25

Cash QualityCash6/20

Price & Volume

Market Cap $12.80B

Moat Signals

Competitive analysis based on 17 quarters of fundamental data

Pricing Power

Weak Moat

Operating margins are under pressure, averaging -6.2%. The business may lack pricing power or face rising costs.'

Competitive Advantage

Weak Moat

ROE is low or negative, suggesting limited competitive advantage or capital allocation challenges.

Cash Generation

Moderate Moat

6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.

Demand Durability

Strong Moat

TTM revenue has grown consistently (7 of 7 quarters up), with ~46.3% growth over the period. Strong demand durability.

Risk Signals

Data-driven red flags and warnings across 17 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

FCF consistently trails net income (avg 0.1x) — earnings may be inflated by non-cash items or aggressive accounting.

Leverage Risk

Red Flag

D/E ratio is 3.0 — dangerously high. The company is heavily leveraged and vulnerable to rising rates or cash flow dips.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Watch

FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.

Share Dilution

Watch

Shares outstanding rose 3.1% — mild dilution. Compare to earnings growth to assess net per-share impact.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $6.29B
Q. Revenue: $1.65B
TTM EBITDA: $313.39M
TTM Op. Income: $36.36M
Q. Op. Income: $5.85M
TTM Net Income: $58.64M
Q. Net Income: $21.07M
EPS: $0.04
Shares Out.: $494.35M

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 42.3%
EBITDA Margin: 4.7%
Op. Margin: 0.4%
Net Margin: 1.3%

Op. margin of 0.4% is up 3.6% YoY — cost efficiency is improving. Net margin at 1.3% and gross margin of 42.3% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 218.2x
P/S Ratio: 2.0x
P/B Ratio: 21.2x

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $4.31B
Cash: $999.40M
Long-Term Debt: $1.84B
Book Value: $605.05M
D/E Ratio: 3.0
Debt/EBITDA: 23.7

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $-48.44M
Free Cash Flow: $-55.52M
FCF Margin: -0.9%
FCF / Net Income: -2.6

FCF of $-55.52M on $-48.44M in operating cash flow. The FCF / Net Income ratio of -0.9x shows cash consumption — the business is not yet self-funding.