How does DraftKings (DKNG) make money?

DraftKings (DKNG) primarily makes money through Product and Service, Other, which accounts for 100% of total revenue. For TTM through Q1 2026, DraftKings generated $6.29B in total revenue with a net profit margin of 0.9%.

What is DraftKings (DKNG) gross profit margin?

DraftKings (DKNG) reported a gross profit margin of 41.8% for TTM through Q1 2026, equivalent to $2.63B in gross profit. This means DraftKings retains 41.8% of each revenue unit after direct costs of production.

What is DraftKings (DKNG) operating profit margin?

DraftKings (DKNG) reported an operating profit margin of 0.6% for TTM through Q1 2026, equivalent to $36.36M in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

What is DraftKings (DKNG) net profit margin?

DraftKings (DKNG) reported a net profit margin of 0.9% for TTM through Q1 2026, equivalent to $58.64M in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

How much does DraftKings (DKNG) invest in R&D?

DraftKings (DKNG) invested $479.83M in research and development in TTM through Q1 2026 (7.6% of total revenue). R&D spending reflects investment in future products, services, and technologies.

How much does DraftKings (DKNG) spend on capital expenditures?

DraftKings (DKNG) spent $54.92M on capital expenditures in TTM through Q1 2026 (0.9% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.

What is DraftKings (DKNG) free cash flow?

DraftKings (DKNG) generated $678.52M in free cash flow for TTM through Q1 2026 (10.8% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

What is DraftKings (DKNG) effective tax rate?

DraftKings (DKNG) had an effective tax rate of 21.7% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

Where does DraftKings (DKNG) generate most of its revenue?

Geographically, 97.4% of DraftKings (DKNG) revenue came from UNITED STATES in the most recent annual filing. The full regional split is shown in the revenue-by-geography table on this page.

How DraftKings (DKNG) Makes Money: A Visual Guide

DraftKings (DKNG) generated $6.29B in revenue, earning $58.64M in net profit (0.9% margin). Its largest revenue source is Product and Service, Other (100% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

In TTM through Q1 2026, DraftKings (DKNG) generated 97.4% of revenue from UNITED STATES, followed by Non-US (2.6%).

DraftKings (DKNG) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported February 13, 2026).

DraftKings (DKNG) Revenue by Geography — FY 2025 (period end December 31, 2025)

Quarterly geographic data is unavailable for this period, so the table reflects the company's last annual disclosure (FY 2025 (period end December 31, 2025)). The income statement above uses TTM through Q1 2026, so regional dollars and percentages will not match line-for-line.

UNITED STATES
Revenue
$5.90B
% of total
97.4%
Non-US
Revenue
$159.06M
% of total
2.6%
Total
Revenue
$6.05B
% of total
100%

Region	Revenue	% of total
UNITED STATES	$5.90B	97.4%
Non-US	$159.06M	2.6%
Total	$6.05B	100%

View DraftKings (DKNG) revenue history

Frequently asked questions

How does DraftKings (DKNG) make money?: DraftKings (DKNG) primarily makes money through Product and Service, Other, which accounts for 100% of total revenue. For TTM through Q1 2026, DraftKings generated $6.29B in total revenue with a net profit margin of 0.9%.
What is DraftKings (DKNG) gross profit margin?: DraftKings (DKNG) reported a gross profit margin of 41.8% for TTM through Q1 2026, equivalent to $2.63B in gross profit. This means DraftKings retains 41.8% of each revenue unit after direct costs of production.
What is DraftKings (DKNG) operating profit margin?: DraftKings (DKNG) reported an operating profit margin of 0.6% for TTM through Q1 2026, equivalent to $36.36M in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is DraftKings (DKNG) net profit margin?: DraftKings (DKNG) reported a net profit margin of 0.9% for TTM through Q1 2026, equivalent to $58.64M in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does DraftKings (DKNG) invest in R&D?: DraftKings (DKNG) invested $479.83M in research and development in TTM through Q1 2026 (7.6% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does DraftKings (DKNG) spend on capital expenditures?: DraftKings (DKNG) spent $54.92M on capital expenditures in TTM through Q1 2026 (0.9% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is DraftKings (DKNG) free cash flow?: DraftKings (DKNG) generated $678.52M in free cash flow for TTM through Q1 2026 (10.8% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is DraftKings (DKNG) effective tax rate?: DraftKings (DKNG) had an effective tax rate of 21.7% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.
Where does DraftKings (DKNG) generate most of its revenue?: Geographically, 97.4% of DraftKings (DKNG) revenue came from UNITED STATES in the most recent annual filing. The full regional split is shown in the revenue-by-geography table on this page.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
Where do segment and geographic numbers come from?: Product-segment shares come from the same TTM income statement that powers the Sankey chart. Geographic splits are first rebuilt from the four most recent quarterly geographic-segmentation filings so they align with the same TTM window; if quarterly geo data is missing, we fall back to the latest annual disclosure (the table heading shows which one is in use).
When was this data last updated?: Based on company filings through TTM through Q1 2026.