DraftKings Inc.DKNG
NasdaqGS•Consumer Cyclical•Gambling
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.
DraftKings Inc. (DKNG) reported trailing twelve months revenue of $6.29B as of March 2026, a 25.8% increase year-over-year. Quarterly revenue reached $1.65B, reflecting continued top-line momentum.
DraftKings Inc. generated $58.64M in TTM net income, with quarterly EBITDA of $77.51M. The operating margin expanded from -3.3% to 0.4%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (0.4%) and net margin (1.3%) indicates tight cost control with minimal non-operating drag. Net margin has improved from -2.4% a year ago, signaling stronger bottom-line efficiency.
DKNG trades at a P/E of 176.4x (a premium multiple) and a P/S of 1.6x. The price-to-book ratio of 17.1x indicates a significant premium over book value.
The company reported negative free cash flow of $-55.52M, indicating cash consumption over the period. The balance sheet shows $4.31B in total assets with $1.84B in long-term debt against $605.05M in stockholders equity for a debt-to-equity ratio of 3.0, a relatively leveraged position. Data based on the most recent quarterly reports.
Competitive analysis based on 17 quarters of fundamental data
Operating margins are under pressure, averaging -6.2%. The business may lack pricing power or face rising costs.'
ROE is low or negative, suggesting limited competitive advantage or capital allocation challenges.
6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (7 of 7 quarters up), with ~46.3% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 17 quarters
The company posted negative operating margins in recent quarters — core operations are unprofitable.
FCF consistently trails net income (avg 0.1x) — earnings may be inflated by non-cash items or aggressive accounting.
D/E ratio is 3.0 — dangerously high. The company is heavily leveraged and vulnerable to rising rates or cash flow dips.
Revenue is stable or growing over recent quarters — demand appears durable.
FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.
Shares outstanding rose 3.1% — mild dilution. Compare to earnings growth to assess net per-share impact.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation