DraftKings announced several all-time company financial records in its second-quarter earnings report Wednesday, boosted by a return of “sportsbook-friendly” outcomes.
- Record Q2 for DraftKings: DraftKings reported all-time second-quarter records in revenue, net income, and adjusted EBITDA, driven by strong sportsbook margins and efficient customer growth.
- Sportsbook-Friendly Results Boost Profits: DraftKings credited about $110 million in added revenue to favorable May and June outcomes.
- Industrywide Momentum: The strong Q2 mirrors trends across major sportsbooks like BetMGM and Caesars.
DraftKings reported all-time second-quarter records in revenue, net income, and adjusted EBITDA. In a statement announcing its financials, DraftKings attributed the gains to “efficient” customer acquisitions, a higher structural hold percentage, and a resumption of sporting event results that favor bookmakers.
The No. 2 U.S. sportsbook by market share grew its revenue to $1.5 billion for the quarter, a 37% year-over-year increase from Q2 2024.
Net income improved from a loss of more than $32 million in the second quarter of 2024 to a gain of more than $150 million in 2025. Adjusted EBITDA nearly tripled, growing from roughly $128 million to just over $300 million during that same time.
The company also grew its sports betting handle 6% year-over-year, jumping from $10.8 million in Q2 2024 to nearly $11.5 million in 2025. The April-through-June period is perennially one of the U.S. sports betting industry’s lower-grossing quarters behind Q3 and Q4, which make up the bulk of the NFL and college football regular seasons.
FanDuel, the No. 1 operator by handle, reports its Q2 financials Thursday. Combined, the two are on pace to accept more bets in calendar year 2025 than all legal sportsbooks combined took in between 2018 and 2021.
Return to form
DraftKings’ financial results were the latest data point that showed sporting event outcomes returned to operators' favor in 2025’s second quarter. The company estimated May and June results contributed roughly $110 million in extra revenue, per its Q2 earnings presentation.
Sportsbooks typically benefit when underdogs cover or win outright and fare worse when favorites exceed expectations. Bettors tend to parlay favorites, meaning a lack of upsets can hurt a book’s bottom line.
DraftKings, like much of the rest of the industry, also sees an increasing percentage of its revenue from parlays. DraftKings’ second-quarter parlay handle mix increased 430 basis points year-over-year.
In just May and June, favorable outcomes for sportsbooks generated DraftKings $110 million in additional second-quarter revenue, per company release today
— Ryan Butler (@ButlerBets) August 6, 2025
The financial boosts mirror similarly strong results from other major sportsbooks including BetMGM and Caesars, both of which reported strong quarters from their respective sports betting platforms in recent weeks. State revenue reports released between April and June also showed higher-than-average hold percentages after a stretch of comparatively low margins for operators.
In October and December 2024, NFL favorites won outright at rates not seen in decades. The 2025 NCAA Men’s Basketball Tournament in March also saw an unusually strong run by favorites and a lack of major upsets that have long been associated with the tournament.
DraftKings and much of the rest of the industry attributed this stretch to lower-than-expected financial results in the fourth quarter of 2024 and 2025.
