DraftKings Inc.

Worth knowing

• Stock pay outran buybacks. Stock-based pay expense $1.1B vs $620M spent repurchasing shares over the 3 fiscal years to 2025.

  Over three fiscal years DraftKings recorded $1.1B of stock-based pay expense and spent $620M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years DraftKings recorded $1.1B of stock-based pay expense and spent $620M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.

• Much more borrowing than peers. Debt is 3.4× equity vs a peer median of 0.5×.Debt is 3.4× equity vs peers 0.5×.

  Debt is 3.4× shareholders' equity, against a peer median of 0.5×, among the highest 10% of its peer group.Debt is 3.4× shareholders' equity, vs peers 0.5×, among the highest 10% of its peer group.

• Operating loss narrowing. Operating margin -0.3% in 2025, the smallest loss relative to revenue of the last 6 years.

  DraftKings still lost money on operations in 2025 (margin -0.3%), but that was its smallest operating loss relative to revenue in the 6 years of filings we have.

• Valuation signals disagree. Cheaper than 50% of peers on free cash flow, but only 0% on earnings.

  Relative to its free cash flow, DraftKings looks cheaper than 50% of peers; relative to its earnings, cheaper than only 0%. The valuation score blends the two, so look at which measure fits this business best.