US operator DraftKings has reported a strong second quarter for 2025, posting record revenue and profitability that sent its share price climbing in
US operator DraftKings has reported a strong second quarter for 2025, posting record revenue and profitability that sent its share price climbing in after-hours trading. The company generated revenue of $1.51 billion for the three months ending 30th June, up 37% from the prior year and slightly ahead of analyst expectations.
Even more significantly, the company demonstrated strong operational leverage, with adjusted EBITDA more than doubling year-on-year to a company record of $300.6 million, compared to $127.9 million in Q2 2024. The positive results were aided by a favourable run of sports outcomes in the latter part of the quarter, which added approximately $110 million to revenue, and a 430 basis point increase in its parlay mix.
Beyond the strong financial results, the key strategic takeaway from the company’s investor communications was its clear interest in the emerging prediction markets vertical. In a letter to shareholders, and later on the earnings call, CEO Jason Robins confirmed that DraftKings is “actively exploring ways” to enter the space.
However, Robins stressed a cautious and “measured approach,” indicating the company is in “monitor mode” as it observes the complex regulatory landscape surrounding the product. This comes just weeks after reports surfaced that DraftKings had engaged in acquisition talks with Railbird Exchange, a trading platform that received a designated contract market licence from the Commodity Futures Trading Commission (CFTC) in June.
DraftKings’ caution is informed by the ongoing legal battles in the US over the governance of prediction markets. Kalshi, a leading platform in the space, is currently in a legal dispute, arguing that its CFTC approval provides it with federal preemption over state-level gambling laws. This position is being strongly contested by numerous state attorneys general, who maintain that such products constitute sports betting and fall under their regulatory remit.
When asked about this, Robins indicated that DraftKings would continue to monitor these developments before committing to a launch. Other industry leaders, including the CEOs of BetMGM and Penn Entertainment, have also recently stated that they do not plan to be first-movers in the space until there is greater regulatory clarity.
The operator’s growth was supported by solid underlying player metrics. Average Monthly Unique Payers (MUPs) grew by 6% to 3.3 million. More importantly, the company showed strong monetization, with the Average Revenue Per Monthly Unique Player (ARPMUP) increasing by 29% to $151.
DraftKings maintained its full-year guidance for 2025, with revenue expected to be between $6.2 billion and $6.4 billion and adjusted EBITDA in the range of $800 million to $900 million. However, Robins noted that previous long-term forecasts for 2026 have been impacted by recent tax rate increases in several US states.
