DraftKings Q1 revenue beats estimates, shares rise 4% despite slight earnings miss

DraftKings reported Q1 revenue of $1.65 billion, a 17% increase year-over-year and slightly above analyst expectations, driven by improved sportsbook margins and strong engagement in betting and iGaming. Adjusted earnings per share missed estimates at $0.20 versus $0.22 expected. The company saw a 4% decline in monthly unique payers due to exiting the Texas Lottery business, but excluding that, users grew 2%. DraftKings operates in 27 US states plus Washington, DC, Puerto Rico, and Ontario, Canada, and expects full-year 2026 revenue between $6.5 billion and $6.9 billion with adjusted EBITDA of $700 million to $900 million, signaling ongoing growth and profitability improvements.