DraftKings Inc. (DKNG) AI Stock Analysis

DraftKings Inc. is a digital sports entertainment and gaming company powering sports betting and gaming entertainment across 17 countries. The company operates its Sportsbook platform with mobile and retail betting operations across 18 states in the United States. In iGaming, DraftKings operates under its own brand in five states and manages Golden Nugget Online Gaming in three states. Internationally, it provides a daily fantasy sports product across six countries and 15 sports categories. DraftKings also operates the DraftKings Marketplace digital collectibles ecosystem and owns Vegas Sports Information Network (VSiN), a multi-platform sports media broadcast and content company.

DraftKings expanded annual revenue from $1.30B in FY2021 to $2.24B in FY2022, $3.67B in FY2023, $4.77B in FY2024, and $6.05B in FY2025, achieving a 5-year revenue CAGR of 58.0%. Gross margin improved from 38.7% in FY2021 to 41.3% in FY2025. After net losses of -$1.52B in FY2021, -$1.38B in FY2022, -$802.1M in FY2023, and -$507.3M in FY2024, the company recorded positive net income of $3.7M in FY2025 with an operating margin of -0.3%. For the trailing twelve months, revenue was $6.22B with a profit margin of -2.7% and EPS of -$0.35. In the latest quarter ending June 30, 2026, quarterly revenue fell 4.6% year-over-year while quarterly earnings rose 184.6%.

As of June 30, 2026, DraftKings held $983.9M in cash and short-term investments against total debt of $1.92B, resulting in net debt of $932.1M. Shareholders' equity stood at $569.4M, with total assets of $4.28B. The company recorded a current ratio of 1.02 and a debt-to-equity ratio of 3.36. In FY2025, operating cash flow reached $662.9M and free cash flow was $647.5M. Cash deployment in FY2025 included capital expenditures of $15.4M and share buybacks totaling $829.3M, while the share count increased 22.8% over five years.

DraftKings closed at $18.90 on October 16, 2026, with a market cap of $9.38B and an enterprise value of $11.48B. The stock trades at a forward P/E of 12.6x, compared to 14.1x for the median of its US-listed Consumer Cyclical peers. Its price-to-sales multiple is 1.5x, above the peer median of 0.7x, and its EV-to-EBITDA stands at 104.7x versus the peer median of 11.1x. Over the past year, DraftKings shares declined 46.3%, while the S&P 500 returned 16.8%. Over five years, the stock dropped 60.7% compared to an 83.0% gain for the benchmark.

Wall Street coverage consists of 26 Strong Buy, 5 Buy, 5 Hold, 1 Sell, and 0 Strong Sell ratings. The mean price target is $34.34, representing an 81.7% upside to the last close of $18.90. For the fiscal year ending December 31, 2026, analysts estimate revenue of $6.67B and EPS of $0.88, reflecting 33.8% earnings growth. For the following year, 14 analysts project revenue of $7.58B and EPS of $1.70. DraftKings has beaten EPS estimates in 1 of the last 4 quarters, with its next earnings date scheduled for November 5, 2026.

This page is an AI-written research summary of DraftKings Inc. (DKNG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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