Value Investor
Start free

DraftKings

DKNG on Nasdaq. DraftKings sells sports betting, casino games, and fantasy sports to people online. Market value $19.1bn.

Watch this stockFree. We tell you when something changes.

Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to December 2025.

We can't read total debt from the filing, so debt is left out.

Should I look at this?

Not a fit for our list right now

Why it could be worth it

What to watch out for

See Retail & consumer stocks that passed both tests

This is not advice. Check the numbers below.

Compare with another stock

Cash yield
past 12 months to June 2026
5.2%fair

For every $100 of what the whole company costs, it produced $5.16 of spare cash in the past 12 months. A savings account pays about $4.

Price to profit
past 12 months to June 2026
n/a

The filings do not give us enough to work this out.

Return on capital
five annual reports to December 2025
n/a

The filings do not give us enough to work this out.

Quality score: 50 of 100. Price score: 28 of 100. Our list needs 70 on quality and 60 on price.

$19.75 a share, 7% above its 1-year low

Over the past year the price has ranged from $18.52 to $36.98.

Pays no dividend

Prices from Tuesday’s close (6 October).

Five years of cash, in billions

-0.7
-0.1
0.3
0.5
0.5
202220232024202512 monthsto Jun '26
Revenue
$2.2bn$3.7bn$4.8bn$6.1bn
Operating margin
-67.5%-21.5%-12.8%-0.3%
Debt to equity
n/an/an/an/a
Shares outstanding
0.44bn0.46bn0.48bn0.50bn

Health checks

  • Free cash flow positive2 of 4 years
  • Accounting looks honest (Beneish)Not enough data
  • Financial strength (Piotroski)7 of 7 checks we could run
  • Profit backed by cash (accruals)No
  • DebtUnknown
  • Revenue growth, five yearsStrong, 39.3% a year
  • Buying back its own sharesNo, 14% more shares since 2022

The quarter to June 2026

How the business did, compared with the same quarter a year earlier.

  • Sales: $1.4 billion last quarter, down 5% on a year ago.
  • A loss of $68 million, after a profit of $158 million a year ago.
  • It loses 3 cents on each $1 of sales, compared with 6 cents a year earlier.
  • Spare cash over the past 12 months: $505 million, up from $390 million.
  • 6% fewer shares than a year ago. Each share owns a bit more of the company.
  • Sales grew on a year ago in 3 of the last 4 quarters.
Sales by quarter
Sales by quarter
Quarter toAmount
September 2024$1.1bn
December 2024$1.4bn
March 2025$1.4bn
June 2025$1.5bn
September 2025$1.1bn
December 2025$2.0bn
March 2026$1.6bn
June 2026$1.4bn
Profit by quarter
Profit by quarter
Quarter toAmount
September 2024-$294m
December 2024-$135m
March 2025-$34m
June 2025$158m
September 2025-$257m
December 2025$136m
March 2026$21m
June 2026-$68m

From the company's quarterly reports to the SEC.

Dates

Next results (estimated)
n/a
Last annual report (10-K)
13 February 2026
Next quarterly (estimated, 10-Q)
6 November 2026

Who owns it

1 long-term investor we follow owns it, unchanged from 1 last quarter. 692 funds in all.

Jun '25
Dec '25
Jun '26
Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

5 investors own more than 5%.

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

In the last 12 months, 2 insiders bought $3m of shares on the open market. 6 sold $23m, $22m of it under preset trading plans.

  • Moore Jocelyn
    Director
    Sold
    under a preset trading plan
    Date
    19 August 2026
    Shares
    10,759
    Price
    $24.05
    Value
    $258,754
  • Dodge R Stanton
    Chief Legal Officer
    Sold
    under a preset trading plan
    Date
    11 June 2026
    Shares
    62,500
    Price
    $29.68
    Value
    $2m
  • Bradbury Erik
    Chief Accounting Officer
    Sold
    under a preset trading plan
    Date
    20 May 2026
    Shares
    862
    Price
    $25.33
    Value
    $21,834
  • Levin Woodrow
    Director
    Sold
    Date
    18 May 2026
    Shares
    34,234
    Price
    $25.71
    Value
    $880,156
  • Moore Jocelyn
    Director
    Sold
    under a preset trading plan
    Date
    13 March 2026
    Shares
    2,150
    Price
    $25.60
    Value
    $55,040
  • Liberman Paul
    See Remarks, Director
    Sold
    under a preset trading plan
    Date
    11 March 2026
    Shares
    484,417
    Price
    $25.16
    Value
    $12m
  • Bradbury Erik
    Chief Accounting Officer
    Sold
    under a preset trading plan
    Date
    3 March 2026
    Shares
    2,883
    Price
    $24.56
    Value
    $70,800
  • Bradbury Erik
    Chief Accounting Officer
    Sold
    under a preset trading plan
    Date
    19 February 2026
    Shares
    7,268
    Price
    $22.50
    Value
    $163,530
  • SLOAN HARRY
    Director
    Bought
    Date
    17 February 2026
    Shares
    100,000
    Price
    $21.85
    Value
    $2m
  • Dodge R Stanton
    Chief Legal Officer
    Sold
    under a preset trading plan
    Date
    20 January 2026
    Shares
    52,777
    Price
    $32.01
    Value
    $2m

From Form 4 filings: insiders must report trades in their own company's shares within two days.

Warning signs in its filings

Problems the company itself reported to the SEC, in its own words.

None of the serious warning signs we check for were found. 1 thing worth knowing.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 13 Feb 2026, plus the 10-Q filed 7 Aug 2026 and 8 later 8-Ks.

  • Changed auditor

    Worth knowing

    The company changed its auditor (the firm that checks its books) in the last two years.

    “On September 23, 2026, upon the completion of an evaluation process, the Audit Committee (the “Audit Committee”) of the Board of Directors of DraftKings Inc. (the “Company”) (i) dismissed BDO USA, P.C. (“BDO”) as the Company’s current independent registered public accounting firm”

    From an 8-K filed 25 September 2026: Change of auditor. Read it in the filing

A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.

What could go wrong

Cheap for a reason is the question the numbers cannot answer.

Whether the price already reflects the risks is what the deep dive is for.

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
Create a free account to run it

Your first deep dive is free.

What a finished deep dive looks like

Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.