DraftKings Inc. Class A Common Stock (DKNG)

FairStock Score: 32/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn consistent returns and sell at sensible prices. DraftKings does not yet pass that test. Revenue rose from $3.7B in fiscal 2023 to $4.8B in fiscal 2024 and $6.1B in fiscal 2025, which is real growth, but fiscal 2025 net income was only $3.7M after losses of $507.3M in fiscal 2024 and $802.1M in fiscal 2023. The latest filed quarter, fiscal Q2 2026, showed revenue of $1.4B and a net loss of $67.6M; fiscal Q1 2026 had net income of $21.1M, while fiscal Q3 2025 lost $256.8M. That is a lumpy record, not a steady compounding machine, and the figures do not yet prove a durable moat. Recent momentum is uneven: revenue growth is -4.58% and profit growth is -142.81%. Free cash flow of $497.4M and a 4.7% FCF yield are positives, but debt/equity of 3.36 and an Altman Z-score of -0.15 suggest little margin of safety. FairStock's Piotroski F-score of 2/9 confirms weak financial signals, and its FairStock Score of 32/100 reinforces caution. At the 2026-10-26 close of $21.22, FairStock shows P/B of 18.45, P/E of -60.63, and EV/EBITDA of 103.13—prices that require a lot of future improvement. With a $10.5B market cap, the market is paying up for growth, and a beta of 1.63 adds volatility. The FairStock category is TURNAROUND, because it returned to profit after a loss within three years, but I need evidence of durable profitability before calling it a bargain. The stock is speculative, not a Graham-style value.

In plain English: DraftKings runs online and retail sports betting, daily fantasy sports, and online casino games. It has grown revenue from $3.7 billion in fiscal 2023 to $6.1 billion in fiscal 2025, but profits have been thin or negative, including a $67.6 million net loss in fiscal Q2 2026. At $21.22, the price looks expensive compared with the company’s profits and the value of its assets, and the overall financial picture looks weak.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer