DraftKings Q1 2025 Summary: Revenue Rises 20%, Adjusted EBITDA Surges Despite Net Loss

DraftKings reported Q1 2025 revenue of $1.41 billion, up 20% year-over-year, driven by strong customer engagement, product enhancements, and the Jackpocket acquisition. Despite a net loss of $33.9 million, Adjusted EBITDA soared to $102.6 million, from $22.4 million a year ago.

Key Metrics:
• Monthly Unique Payers (MUPs): 4.3 million (+28%)
• ARPMUP: $108 (down 5% due to Jackpocket mix; +7% excluding it)
• Sportsbook Revenue: $882 million (+20%)
• iGaming Revenue: $423 million (+14.5%)

Outlook (Lowered):
• FY 2025 revenue guidance: $6.2B–$6.4B (was $6.3B–$6.6B)
• FY 2025 Adjusted EBITDA guidance: $800M–$900M (was $900M–$1B)

DraftKings repurchased 3.7 million shares in Q1 and has a strong cash position of $1.1 billion. Sportsbook is now live in 25 U.S. states + D.C. and iGaming in 5 states, plus Ontario.

DraftKings to Release First Quarter 2025 Results on May 8, 2025 and Host Conference Call on May 9, 2025

DraftKings has amended its credit agreement, securing a new $600 million Term B loan facility. The loan, maturing in 2032, will be used for general corporate purposes. The borrowing entity, DK Crown Holdings Inc., will make quarterly principal payments totaling 1% per year, with the remaining balance due at maturity. The interest rate is set at either Term SOFR plus 1.75% or ABR plus 0.75%. If the loan is repaid within six months due to a repricing event, a 1% prepayment fee applies.

The agreement includes guarantees from DraftKings’ wholly-owned domestic subsidiaries and is secured by the company's and its subsidiaries' assets. It also contains customary financial covenants, including restrictions on debt, mergers, dividends, and investments. DraftKings is required to maintain a public corporate credit rating as long as the loan is outstanding.

The company announced this financing in a press release on March 4, 2025, and filed the amendment details with the SEC as part of its regulatory disclosures.