How does DraftKings (DKNG) make money?

DraftKings (DKNG) generates revenue primarily from Product and Service, Other, which accounted for 100% of total revenue in TTM through Q1 2026. The company reported $6.29B in revenue and converted 0.9% of it into net profit, equivalent to roughly $58.6M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of DraftKings (DKNG)?

DraftKings (DKNG) reported a gross profit margin of 41.8% in TTM through Q1 2026, equivalent to $2.63B in gross profit on $6.29B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of DraftKings (DKNG)?

DraftKings (DKNG) reported an operating profit margin of 0.6% in TTM through Q1 2026, equivalent to $36.4M in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of DraftKings (DKNG)?

DraftKings (DKNG) reported a net profit margin of 0.9% in TTM through Q1 2026, equivalent to $58.6M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is DraftKings (DKNG) profitable?

Yes. DraftKings (DKNG) reported $58.6M in net income for TTM through Q1 2026, with a net profit margin of 0.9%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does DraftKings (DKNG) invest in research and development?

DraftKings (DKNG) invested $480M in research and development during TTM through Q1 2026, roughly 7.6% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

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

DraftKings (DKNG) spent $54.9M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 0.9% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does DraftKings (DKNG) generate?

DraftKings (DKNG) generated $679M in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 10.8%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of DraftKings (DKNG)?

DraftKings (DKNG) had an effective tax rate of 21.7% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

How DraftKings Makes Money: 2026 Visual Revenue Map

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

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 8, 2026).

DraftKings discloses geographic revenue only in annual filings. to view the full breakdown.

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Overview

DKNG Overview

Counters

Revenue Counter$199.51/s
Earnings Counter$1.86/s
Economic Scale> Fiji

Income Statement

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Capital Return

Buybacks6.98% TTM

How this company returns cash to shareholders — buybacks, dividends, and stock splits.

Forecast & Valuation

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Estimates$0.23 EPS
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Daily Price Character48.0% win rate