DraftKings closed 2025 with its first year of positive net income, a milestone that arrived after five years of losses and a $6.4 billion accumulated deficit. The core business crossed into sustained profitability, with adjusted EBITDA climbing to $620 million and revenue growing to $6.05 billion. That margin of safety, while thin, changed the strategic calculus for the management team. The shift from survival mode to expansion mode marks a different kind of company.
The company has spent the early months of 2026 converting that profitability into a strategic wager. The $1 billion core EBITDA target is the anchor, and the Predictions allocation is the bet. Q2 revenue slipped 5% year over year, though handle rose 15% to a record. Customer-friendly sport outcomes removed an estimated $80 million from the top line. The question for investors is whether the Predictions platform, the Super App integration, and the DKeX exchange can compound the core sportsbook advantage before the 2028 convertible note matures. In practical terms, the next twelve months define the company's entire equity story.