# DraftKings (DKNG.US)

Canonical: https://gigainvestors.com/s/DKNG

Analysis as of: 2026-10-16T07:28:02.436Z. Financial observations: FY2017–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $19.31 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 9 years

- Years with declining revenue: 0

- Years with a net loss: 8

- Operating margin variation: 0.84×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.38×

- FY2018: -0.34×

- FY2019: -0.45×

- FY2020: -1.37×

- FY2021: -1.20×

- FY2022: -0.67×

- FY2023: -0.22×

- FY2024: -0.13×

- FY2025: -0.00×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -453.4%

- ROIC, second-lowest year: -2112.4%

- Typical minus recent gross margin: 3.1 pp

- Typical gross margin (annual median): 41.3%

- Recent gross margin (lower of latest and 3-year median): 38.1%

- Years with nonpositive capital: 4

- Capital spending / revenue: 4.6%

- ROIC including acquisitions, ten-year median: -83.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -1024.6%

- FY2018: 0.0%

- FY2019: -453.4%

- FY2020: -204.3%

- FY2021: -539.7%

- FY2022: -264.3%

- FY2023: -2112.4%

- FY2024: -20872.4%

- FY2025: -0.4%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$3.5B

- Net income, five-year total: -$4.2B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -3.6 pp

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: -$1.5B

- FY2022: -$1.3B

- FY2023: -$714M

- FY2024: -$247M

- FY2025: $264M

### management: fail

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -453.4% vs -2112.4%

- Per-share earnings: -0.45 to -1.04 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 11.7%

- Diluted shares, 5-year annual growth: 11.7%

- Per-share value change: -$0.59

- Per-share value, starting three-year median: -$0.45

- Per-share value, ending three-year median: -$1.04

- Buybacks concentrated in cheaper years (correlation): 0.43

- Average buyback yield: 1.2%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- ROIC, first three-year median: -453.4%

- ROIC, last three-year median: -2112.4%

Chart: Earnings per share; fiscal year observations.

- FY2017: -$0.41

- FY2018: -$0.45

- FY2019: -$0.77

- FY2020: -$4.03

- FY2021: -$3.78

- FY2022: -$3.06

- FY2023: -$1.71

- FY2024: -$1.04

- FY2025: $0.01

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -14.5%

- Receivables to sales index (DSRI): 0.69×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 51.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 178.67×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 3.94×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 7.0%

- FY2018: -10.2%

- FY2019: -29.1%

- FY2020: -26.0%

- FY2021: -27.1%

- FY2022: -18.6%

- FY2023: -20.3%

- FY2024: -21.6%

- FY2025: -14.5%

## Holders

## Price story

Down 60% since Aug 2025 · "The rise of prediction markets is disrupting DraftKings(NASDAQ: DKNG) business model." (nasdaq.com, Jun 2026) · sales +27%

Story as of 2026-10-16T09:58:38.604Z; price observation 2026-10-15.

- 2025-05-09: DraftKings (NasdaqGS:DKNG) Revises Revenue Guidance Despite Narrowing Net Losses ([finance.yahoo.com](https://finance.yahoo.com/news/draftkings-nasdaqgs-dkng-revises-revenue-175113421.html))

- 2025-06-02: DraftKings stock drops on new Illinois betting tax ([finance.yahoo.com](https://finance.yahoo.com/news/draftkings-stock-drops-illinois-betting-115331883.html))

- 2025-08-27: DraftKings (DKNG) Is Up 6.0% After Securing Direct Statewide Mobile Betting Approval in Missouri ([finance.yahoo.com](https://finance.yahoo.com/news/draftkings-dkng-6-0-securing-101328792.html))

- 2025-11-06: DraftKings Cuts Sales Outlook as It Ramps Up Prediction Markets Investments ([finance.yahoo.com](https://finance.yahoo.com/m/495cf82f-730f-3db8-a6a3-8a6f85e2825e/draftkings-cuts-sales-outlook.html))

- 2026-02-13: Stock Market Today, Feb. 13: DraftKings Falls After 2026 Revenue Outlook Misses Expectations ([finance.yahoo.com](https://finance.yahoo.com/news/stock-market-today-feb-13-222036897.html))

- 2026-03-23: DraftKings Faces Growing Pressure As Prediction Markets Reshape Betting Outlook ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/draftkings-faces-growing-pressure-prediction-220719901.html))

### Sales · FY2024–2025

sales +27%; source https://www.sec.gov/Archives/edgar/data/1772757/000177275722000007/deac-20211231.htm; observed 2022-02-18.

- FY2017: $192M 

- FY2018: $226M 

- FY2019: $323M 

- FY2020: $615M 

- FY2021: $1.3B 

- FY2022: $2.2B 

- FY2023: $3.7B 

- FY2024: $4.8B 

- FY2025: $6.1B 

### Gross margin · FY2025

gross margin 41.3%; source https://www.sec.gov/Archives/edgar/data/1772757/000177275722000007/deac-20211231.htm; observed 2022-02-18.

- FY2017: 83.5% 

- FY2018: 78.5% 

- FY2019: 67.9% 

- FY2020: 43.6% 

- FY2021: 38.7% 

- FY2022: 33.8% 

- FY2023: 37.5% 

- FY2024: 38.1% 

- FY2025: 41.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in gambling; annual sales are USD 6.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-18); FY2025: revenue 6054525000; grossProfit 2497578000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DKNG.US: DraftKings Inc. operates as a digital sports entertainment and gaming company in the United States and internationally. The company offers online and retail sports betting, daily fantasy sports, digital lottery couriers, prediction markets, and other products, as well as retails sportsbooks. It also provides iGaming, or online casino products, which includes blackjack, roulette, baccarat and slot machines. In addition, the company engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators. DraftKings Inc. was founded in 2011 and is headquartered in Boston, Massachusetts.

### Why customers stay

Margins ranged from 37.5% to 41.3% during 2023–25.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-18); FY2023: grossProfit / revenue = 37.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-18); FY2024: grossProfit / revenue = 38.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-18); FY2025: grossProfit / revenue = 41.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-18); 9-year return on capital observations [[2017,-10.245644932671864],[2018,0],[2019,-4.534153840128461],[2020,-2.0428715470290957],[2021,-5.396947477557877],[2022,-2.6431874396905073],[2023,-21.123721032660253],[2024,-208.72416919739698],[2025,-0.004007147428476995]]; median -4.534153840128461. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 4 of 9 years; bought back USD 829.3 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-18); FY2025: growth capex 0; upkeep 15352000; owner earnings 263846000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-18); Dividend observations: [[2017,0],[2018,0],[2019,71087000],[2020,308448000],[2021,1280201999],[2022,0],[2023,63221000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-18); FY2025: cash repurchases 829287000 USD.

### Are managers owners

Insiders own 8.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DKNG.US SharesStats.PercentInsiders = 8.616 percentage points; cache date 2026-10-16.

### What the price says

The price is 1.7 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2022-02-18); Closing price 19.31 USD; reporting-to-trading FX 1; FY2025 annual sales per share 11.380686090225565; price multiple 1.6967342607388687. FY2025 cash earnings/share 0.49595112781954886. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2019-07: $9.80 per share

- 2019-08: $9.85 per share

- 2019-09: $9.85 per share

- 2019-10: $10.08 per share

- 2019-11: $10.05 per share

- 2019-12: $10.70 per share

- 2020-01: $14.53 per share

- 2020-02: $16.02 per share

- 2020-03: $12.34 per share

- 2020-04: $19.46 per share

- 2020-05: $39.70 per share

- 2020-06: $33.26 per share

- 2020-07: $33.38 per share

- 2020-08: $35.36 per share

- 2020-09: $58.84 per share

- 2020-10: $35.40 per share

- 2020-11: $52.36 per share

- 2020-12: $46.56 per share

- 2021-01: $54.11 per share

- 2021-02: $61.53 per share

- 2021-03: $61.33 per share

- 2021-04: $56.66 per share

- 2021-05: $49.95 per share

- 2021-06: $52.17 per share

- 2021-07: $48.50 per share

- 2021-08: $59.29 per share

- 2021-09: $48.16 per share

- 2021-10: $46.59 per share

- 2021-11: $34.55 per share

- 2021-12: $27.47 per share

- 2022-01: $22.09 per share

- 2022-02: $23.68 per share

- 2022-03: $19.47 per share

- 2022-04: $13.68 per share

- 2022-05: $13.55 per share

- 2022-06: $11.67 per share

- 2022-07: $13.73 per share

- 2022-08: $16.06 per share

- 2022-09: $15.14 per share

- 2022-10: $15.80 per share

- 2022-11: $15.32 per share

- 2022-12: $11.39 per share

- 2023-01: $14.99 per share

- 2023-02: $18.86 per share

- 2023-03: $19.36 per share

- 2023-04: $21.91 per share

- 2023-05: $23.34 per share

- 2023-06: $26.57 per share

- 2023-07: $31.78 per share

- 2023-08: $29.65 per share

- 2023-09: $29.44 per share

- 2023-10: $27.62 per share

- 2023-11: $38.24 per share

- 2023-12: $35.25 per share

- 2024-01: $39.05 per share

- 2024-02: $43.32 per share

- 2024-03: $45.41 per share

- 2024-04: $41.56 per share

- 2024-05: $35.13 per share

- 2024-06: $38.17 per share

- 2024-07: $36.95 per share

- 2024-08: $34.50 per share

- 2024-09: $39.20 per share

- 2024-10: $35.32 per share

- 2024-11: $43.65 per share

- 2024-12: $37.20 per share

- 2025-01: $41.95 per share

- 2025-02: $43.86 per share

- 2025-03: $33.21 per share

- 2025-04: $33.29 per share

- 2025-05: $35.88 per share

- 2025-06: $42.89 per share

- 2025-07: $45.04 per share

- 2025-08: $47.98 per share

- 2025-09: $37.40 per share

- 2025-10: $30.59 per share

- 2025-11: $33.16 per share

- 2025-12: $34.46 per share

- 2026-01: $27.51 per share

- 2026-02: $23.84 per share

- 2026-03: $21.62 per share

- 2026-04: $23.32 per share

- 2026-05: $24.49 per share

- 2026-06: $25.26 per share

- 2026-07: $23.48 per share

- 2026-08: $24.29 per share

- 2026-09: $19.00 per share

- 2026-10: $19.31 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1772757/000177275722000007/deac-20211231.htm); period 2021-12-31, filed 2022-02-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.