DraftKings Inc. has achieved remarkable financial results for the second quarter of 2025, setting new company records for revenue, net income, and adjusted EBITDA. The U.S.-based digital sports entertainment and gaming giant posted a revenue of $1.51 billion, marking a 37% year-on-year increase and a $408 million gain from the same period in 2024. This stellar performance highlights the strength of DraftKings’ platform and its continued dominance in the growing online sports betting and iGaming markets.

Key Drivers of Q2 2025 Growth

The significant revenue boost can be attributed to a combination of factors, including robust customer engagement, efficient customer acquisition strategies, improved sportsbook hold percentages, and favorable outcomes in the sportsbook segment. The company’s net income for Q2 2025 reached $158 million, a considerable increase, while its adjusted EBITDA surged to $301 million, reflecting a 134.9% year-over-year improvement.

DraftKings’ CEO, Jason Robins, emphasized the company’s continued momentum, stating, “We set records for revenue, net income, and adjusted EBITDA in the second quarter, driven by an acceleration in revenue growth to 37% year-over-year.” The company’s performance exceeded analysts’ expectations, with Q2 revenue surpassing forecasts by 6%, and EBITDA coming in 23% higher than anticipated.

The company’s sportsbook segment was a major contributor to its growth, with revenue from this vertical climbing 45.3% to $997.9 million. DraftKings reported a sports betting handle of $11.5 billion, up 6.3% from the previous year, reflecting strong customer activity and efficient acquisition efforts. Additionally, the increase in the sportsbook hold percentage helped to boost revenue in this segment.

Meanwhile, the iGaming segment also showed healthy growth, with revenue increasing 22.6% to $429.7 million. As stated in the company’s press release, this performance continues the steady expansion of DraftKings’ online casino offerings, which are now available in five U.S. states, representing around 11% of the U.S. population. DraftKings also operates iGaming in Ontario, Canada, covering about 40% of the Canadian population.

Despite slower growth in sports betting handle compared to prior forecasts, DraftKings was able to maintain strong profit margins, which helped offset the modest growth in sports betting. This is indicative of the company’s improved operational efficiency and successful customer acquisition strategies.

Customer Acquisition and Engagement Trends

DraftKings’ Monthly Unique Payers (MUPs) grew to an average of 3.3 million in Q2 2025, a 6% increase from the same period last year. This growth is attributed to the company’s strong retention rates and effective customer acquisition strategies, bolstered by the recent acquisition of Jackpocket, a digital lottery platform. Excluding the Jackpocket impact, MUPs still grew by 5%.

Furthermore, DraftKings’ Average Revenue per MUP (ARPMUP) saw a significant 29% rise, reaching $151 in Q2 2025. This increase is largely attributed to better sportsbook performance and more efficient promotional spending. Excluding the impact of Jackpocket, ARPMUP increased by 30%, demonstrating the company’s ability to improve monetization strategies across its core offerings.

Looking ahead, DraftKings is maintaining its fiscal year 2025 revenue guidance of $6.2 billion to $6.4 billion, with the company expecting to reach the high end of this range due to the strong second-quarter performance and favorable outcomes in its sportsbook segment. The company also reaffirmed its adjusted EBITDA guidance for FY 2025, which is expected to range between $800 million and $900 million.

DraftKings remains on track to expand its presence, with the launch of mobile sports betting expected in Missouri, pending market access, licensure, and regulatory approvals. The company’s footprint already spans 25 states and Washington, D.C., covering about 49% of the U.S. population, along with iGaming offerings in five states and Ontario, Canada.

In addition to state expansion, DraftKings continues to invest in key growth initiatives to maximize long-term shareholder value. The company repurchased 6.5 million shares in the first half of 2025 as part of its ongoing stock repurchase program.

DraftKings’ future expansion plans include ongoing efforts to diversify its offerings, with potential acquisitions and product innovations on the horizon. On July 15, 2025, the company reportedly began discussions to acquire Railbird Exchange, a prediction market platform. While no deal has been finalized, this move signals DraftKings’ interest in exploring new verticals and broadening its service offerings.