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DraftKings Inc. DKNG Payments to Develop Software

Payments to Develop Software at other companies

International Business Machines logo
International Business MachinesIBM
$159M+5.3%
SS&C Technologies logo
SS&C TechnologiesSSNC
$62M+31.9%
Wayfair logo
WayfairW
$29M-23.7%
Willis Towers Watson logo
Willis Towers WatsonWTW
-$13M-141%
Avery Dennison logo
Avery DennisonAVY
$7.7M+1.3%
Take-Two Interactive Software logo
Take-Two Interactive SoftwareTTWO
$170.4M+38.9%

Other financials

Income statement

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Revenue$1.6B+16.8%
Gross profit$696.7M+23.3%
Operating income$5.8M+113%
Net income$21.1M+162%
EPS (diluted)$0.03+143%

Balance sheet

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Cash & equivalents$1.4B-10.2%
Total debt$664.0M-0.6%
Total equity$605.0M-30.7%
Total assets$4.3B-4.6%

Cash flow

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Operating cash flow-$48.4M+59.3%
CapEx$7.1M+168%
Free cash flow-$55.5M+54.4%

Valuation

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Market cap$13.09B-35.4%
Enterprise value$12.37B-36.4%
P/E223.3×
P/S2.1×-2.0×

Profitability

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Gross margin41.8%+3.5pp
Operating margin-5.6%-1.9pp
Net margin0.9%+0.5pp
FCF margin11.3%+4.2pp

Returns & leverage

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Return on equity7.9%+4.3pp
Debt / equity1.1×+0.3×
Current ratio-0.2×

Where this comes from

Reported directly by DraftKings Inc. in its filing.

Tagged under the XBRL concept us-gaap:PaymentsToDevelopSoftware.

The official record: DraftKings Inc.’s 10-Q, filed May 8, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is DraftKings Inc.'s payments to develop software?
DraftKings Inc. (DKNG) reported payments to develop software of $37.07M in Q1 2026.
How has DraftKings Inc.'s payments to develop software changed year-over-year?
DraftKings Inc.'s payments to develop software increased by 18.6% year-over-year, from $31.25M to $37.07M.
What is the long-term trend for DraftKings Inc.'s payments to develop software?
Over 4 years (2021 to 2025), DraftKings Inc.'s payments to develop software has grown at a 29.6% compound annual growth rate (CAGR), from $46.54M to $131.15M.
What does payments to develop software mean?
Cash invested in building or improving software products and internal digital systems.
How do you interpret payments to develop software?
Increased spending signals a commitment to innovation and product development, whereas a decrease may indicate a shift toward maintenance or reduced R&D focus.
How does payments to develop software compare across companies?
High for SaaS and digital platform companies; often compared as a percentage of total revenue.