DraftKings reported a profitable first quarter as sportsbook margin improved and its prediction market push began to move deeper into the company’s main app. Revenue rose 16.8% year over year to $1.65 billion, while net income reached $21.1 million after a loss of $33.9 million a year earlier.
Adjusted EBITDA rose to $167.9 million from $102.6 million in Q1 2025. That was a 64% increase, not the much higher growth rate implied by some early coverage using an incorrect prior-year comparison.
Sportsbook margin drove the quarter
Sportsbook revenue increased 24.1% to $1.09 billion, while iGaming revenue rose 8.9% to $461.3 million. DraftKings said the revenue gain was driven by customer acquisition, customer engagement and a higher sportsbook net revenue margin.
The sportsbook net revenue margin improved to 7.8% from 6.4% a year earlier. Management said parlay mix helped the margin, with parlay handle mix rising by nearly 300 basis points during the quarter.
Monthly unique payers fell 4% to 4.2 million, mainly because DraftKings exited the Texas lottery market in 2025. Excluding lottery, the company said monthly unique payers rose 2%. Average revenue per monthly unique payer increased 21% to $131.
Prediction markets move into the main app
DraftKings used the quarter to sharpen its prediction market strategy. CEO Jason Robins said the company has the “firepower” to invest in Predictions, with the product now live inside DraftKings’ flagship app.
In April, annualized Predictions consumer volume passed $1 billion, while annualized total volume traded topped $2.3 billion. DraftKings said both figures were up more than 35% from March.
The company also said Predictions customer acquisition costs fell by more than 80% in April after the product was moved into the main app. DraftKings has launched market making and expects to roll out its proprietary exchange and combo products in the coming weeks.
Guidance stays unchanged
DraftKings kept its full-year 2026 guidance unchanged. The company still expects revenue of $6.5 billion to $6.9 billion and adjusted EBITDA of $700 million to $900 million.
The unchanged guidance kept the tone measured despite the profitable quarter. DraftKings is now trying to show that prediction markets can add another growth line while its sportsbook and iGaming businesses keep carrying the financial base.
