DKNG

DraftKings has reached the inflection point bulls have waited for. FY2025 revenue grew 27.0% to $6.05B — a five-year ramp from $2.24B in FY2022 — and the company crossed into nominal profitability with net income of $3.71M, versus losses of $1.52B (FY2021), $802M (FY2023), and $507M (FY2024). Operating income is essentially breakeven (-$15.8M from -$617M-class losses) and, more importantly, the business is now genuinely cash-generative: operating cash flow surged 58.7% to $663M against just $15.4M of capex. The asset-light, app-based model is finally throwing off real free cash flow as the customer base scales and promotional intensity moderates.

The balance sheet supports the story: $1.13B cash (+43%), with current assets ($1.82B) covering current liabilities ($1.76B). Confident in its trajectory, management bought back $572M of stock in FY2025 — an order-of-magnitude increase — signaling a pivot from cash-burning land-grab to capital return. The deep accumulated deficit (-$6.44B retained earnings) reflects the cost of building US market leadership in sports betting and iGaming, much of which is now behind the company.