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DraftKings Inc. DKNG Operating margin

Operating margin at other companies

MGM Resorts International logo
MGM Resorts InternationalMGM
5.2%-3.1pp
Flutter Entertainment logo
Flutter EntertainmentFLUT
-0.6%-7.4pp

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
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

Calculated from DraftKings Inc.’s reported figures.

Based on trailing twelve months.

The official record: DraftKings Inc.’s 10-Q, filed November 7, 2025, on SEC EDGAR. View the filing →

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Questions, answered.

What is DraftKings Inc.'s operating margin?
DraftKings Inc. (DKNG) reported operating margin of -5.6% in Q3 2025.
How has DraftKings Inc.'s operating margin changed year-over-year?
DraftKings Inc.'s operating margin increased by 49.6% year-over-year, from -11.2% to -5.6%.
What is the long-term trend for DraftKings Inc.'s operating margin?
Over 4 years (2020 to 2024), DraftKings Inc.'s operating margin has grown at a -44.8% compound annual growth rate (CAGR), from -137.2% to -12.8%.
What does operating margin mean?
The profit left from core operations for every dollar of sales, before interest and taxes.
How do you interpret operating margin?
Expanding operating margin shows operating leverage — revenue growing faster than the cost base. Compression points to rising overhead, pricing pressure, or investment ahead of revenue.
How does operating margin compare across companies?
Strong cross-company signal within a sector. Capital-light businesses sustain higher operating margins than capital-intensive ones.