Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Draftkings Inc.

DKNG · Nasdaq · Services-Miscellaneous Amusement & Recreation

Fundamental quality

REASONABLE

74

out of 100

Draftkings Inc. earns a fundamental-quality score of 74 out of 100, profiling it as a company of reasonable quality. Its score rests mainly on its growth (revenue +55.8%/yr). Its weakest area is its profitability (net margin 0.9%). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

DraftKings is one of the two big U.S. online sportsbooks, alongside FanDuel. It grew state by state as betting was legalized, spending fortunes to acquire bettors ahead of the competition.

What will shape its future

  • New-state legalization (and the maturing of current ones), the map that defines its market.
  • The shift from acquiring customers to profiting from them: fewer promos, more margin.
  • Gaming taxes, which some states raise and can eat the margin overnight.

Breakdown by area

I.Growth
95

Revenue growth: 55.8%

II.Profitability
39

Net margin: 0.9% · ROE: 9.7%

III.Financial health
87

Net debt/EBITDA: -3.19x · FCF: 11.3%

Source: SEC EDGAR · TTM through 31/03/2026

The score combines growth, profitability and financial strength. Here its growth weighs in its favor, while its profitability drags it down the most.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Strengths

  • Revenue growing strongly (55.8% annualized).
  • It has turned profitable after years of losses.
  • Revenue rising without interruption since 2020.
  • Net cash position: more cash than debt.

Risks and weaknesses

  • Thin margins (net margin of 0.9%), little cushion for setbacks.
  • Erratic free cash flow, with several years in the red.

Historical evolution

YearRevenueNet incomeFree cash flowNet debt
2020615-1,232-206-1,817
20211,296-1,523-435-2,153
20222,240-1,378-658-1,309
20233,665-802-23-1,271
20244,768-507408-788
20256,0554648-1,128

Between 2020 and 2025, revenue went from $615M to $6,055M (+885%) and net income went from -$1,232M to $4M (+100%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

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Is Draftkings Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Draftkings Inc. a good company to invest in?

In terms of business quality, Draftkings Inc. scores 74 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Draftkings Inc. a profitable company?

Draftkings Inc. is profitable, with a net margin of 0.9%, though a thin one.

Does Draftkings Inc. have a lot of debt?

No. Draftkings Inc. has a net cash position: more cash than debt.

Is Draftkings Inc. growing?

Its revenue has grown 55.8% annualized in recent years, and without interruption since 2020.

Does Draftkings Inc. generate cash?

Yes. It converts about 11.3% of its revenue into free cash flow.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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