DKNGDraftKings Inc.

$24.80

Is the business good?

How good a business is DKNG?

DraftKings Inc. earns −10.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.

−10.0%

Return on invested capital · cost of capital 9.0% · 19 points below what the capital costs: growth destroys value

Operating margin
−2.9%

Operating margin · Consumer Cyclical median 8.4% · 12 months to Q2 2026

Share count, year on year
−6.3%

Share count, year on year · bought back, each share owns more of the company

Gross margin
41%

Gross margin

Operating margin by fiscal year
YearOperating margin
FY2020−137%
FY2021−120%
FY2022−67%
FY2023−22%
FY2024−13%
FY2025−0.26%
Details
Gross margin12 months to Q2 2026
41%
Operating margin12 months to Q2 2026
−2.9%
Net margin12 months to Q2 2026
−2.7%
Free cash flow margin
10%
Revenue, trailing twelve months
$6.22B
Free cash flow, trailing twelve months
$651M
Net income, trailing twelve months
−$167M
Return on invested capitaloperating profit after tax ÷ debt + equity − cash
−10.0%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.