DraftKings Inc.

Scaled, fast-growing online sports-betting/iGaming leader with strong free cash flow now reaching the profitability inflection.

Strengths

• $6.05B revenue growing 27% (78th pct), top-decile FCF ($647M, 92nd) and $1.1B cash; US Sportsbook/iGaming duopoly scale and proprietary platform
• Improving unit economics (Net Revenue Margin rising to 7.1%) and operating leverage as states mature

Risks

• Returns and margins still thin — net margin ~0%, operating margin -0.3%, ROE 0.6% (barely breakeven); net income declined YoY
• Heavy regulatory/tax exposure across jurisdictions and intense competition with promotional spend

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Chronic dilutionShare count +15%/yr over 3y (dilution, book value/share -68%)
• Strong balance sheetStrong balance sheet — $1.1B cash & investments
• Revenue declineRevenue -17.2% YoY