DraftKings : First Quarter 2026 Q1 2026 Presentation

Q1 2026 Earnings Presentation

May 7, 2026

We are confident in Predictions because we increasingly view the capabilities we have built in Sportsbook as a key advantage; they serve the same customers in the same live moments and leverage shared underlying infrastructure

4

Predictions, especially in Sports, is our focus; with our Super App, market making capabilities, and proprietary exchange coming together, we intend to establish a leadership position in Sports Predictions before year-end

3

Sportsbook revenue increased 24% YoY to t1.1B as handle grew and net revenue margin increased 140bps; Parlay handle mix increased nearly 300bps YoY

2

We are off to a fantastic start to the year; Q1 revenue increased 17% YoY and surpassed t1.6B while Adjusted EBITDA(1) increased 64% YoY to t168M

1

Current business highlights

We continue to expect FY 2026 revenue of t6.5B to t6.9B and Adjusted EBITDA of t700M to t900M

5

We achieved strong revenue and Adjusted EBITDA(1) growth in Q1

Millions of Dollars

Q1 h0h5 Q1 h0h6

Adjusted EBITDA Margin(1)

+17%

+64%

t168

t103

7%

10%

t1,646

t1,409

Revenue Adjusted EBITDA

We are making significant progress on our Predictions roadmap

Q3 2026

DRAFTKINGS PREDICTIONS LAUNCH

SUPER APP PREDICTIONS EMBED

COMBOS

Q2 2026

IN-HOUSE FCM

2026 PREDICTIONS ROADMAP

Q2 2026

Q3 2026

MARKET MAKING

CRYPTO.COM INTEGRATION

PROPRIETARY EXCHANGE

SUPER APP UPGRADE

The opportunity ahead in Sports(1) is massive

DraftKings Sports Net Revenue (Millions of Dollars)

Percent of the

U.t. Population Live with tports(h)

49%

5h%

t3,8h7

>95%

46%

th,903

39%

th,106

h9%

t1,033

t43h

h0h1 h0hh h0h3 h0h4 h0h5 h0h6E h030E

1. Sports is inclusive of Sportsbook and Sports Predictions.

2. Represents percentage of the U.S. population where DraftKings is live with Sportsbook or Sports Predictions as of year-end. | 6

APPENDIX

We continue to believe Predictions is an incremental opportunity

Almost All Sports Consumer Volume(1) is on Sportsbook in Competitive Sportsbook States(2)

Nearly 70% of Predictions Sports Consumer Volume(3) Comes from States Without Sportsbook

2%

98%

31%

69%

Leading Predictions Operator Regulated tportsbook Operators Non-tportsbook ttates tportsbook ttates

1. Reflects estimated Predictions Handle-Analog plus Sportsbook Industry Handle in fully competitive states across both mature and developing states in Q1 2026 per Eilers & Krejcik Gaming, Prediction Markets Monitor, Published 4/28/2026. Notably, share of total is not akin to cannibalization due to the potential for "Regulated Sportsbook Operators" and/or "Leading Predictions Operator" to grow customer wallets through improving customer experiences.

2. Competitive sportsbook states refers to the 17 states where more than 8 regulated sportsbook operators are live, representing 41% of the U.S. population.

Our Sportsbook Handle and Sportsbook revenue continue to increase on a YoY basis

Millions of Dollars

tportsbook Handle tportsbook Revenue

tportsbook Net Revenue Margin

t1h,943

t1h,001

t10,793

t10,365

t14,90h

t13,880

t11,475

t11,40h

t16,796

t14,083

t8,190

t8,84h

t7,359

t8,h9h

t6,1hh

t4,509

t4,553

t15h

th00 th14

t467

t40h

t516

t4h7

t761

t734

t687

t657

t8h5

t88h

t998

t596

t1,351

t1,095

Q1 h0hh Qh h0hh Q3 h0hh Q4 h0hh Q1 h0h3 Qh h0h3 Q3 h0h3 Q4 h0h3 Q1 h0h4 Qh h0h4

Q3 h0h4

Q4 h0h4 Q1 h0h5 Qh h0h5 Q3 h0h5 Q4 h0h5 Q1 h0h6

h.5%

4.4%

4.7%

5.7%

4.5%

7.0%

5.h%

5.9%

6.1%

6.4%

6.3%

5.5%

6.4%

8.7%

5.h%

8.0%

7.8%

Our iGaming revenue is continuing to grow on a YoY basis

Millions of Dollars

t500

t4h6 t4h3 t430

t451

t461

t35h

t370

t351

t361

th81

th88

th96

th57

th09

t174

t18h

Q1 h0hh Qh h0hh Q3 h0hh Q4 h0hh Q1 h0h3 Qh h0h3 Q3 h0h3 Q4 h0h3 Q1 h0h4 Qh h0h4 Q3 h0h4 Q4 h0h4 Q1 h0h5 Qh h0h5 Q3 h0h5 Q4 h0h5 Q1 h0h6

Our unique customers continue to grow on a YoY basis

Unique Customers in the Prior Twelve Months(1) (Millions)

10.1

10.4 10.4

10.8 10.9

10.5

9.3

8.4

6.0 6.h

6.6

7.1

7.5

0.8 0.9

1.7 1.7 1.7 1.9 1.7 1.8 1.8 1.9 1.9 1.9 1.9

1.4

h.4 h.6

1. 3.4

   3.8 4.0

   4.4 4.5

   4.9

   5.h

   Q1 h017

   Q1 h018

   Q1 h019

   Q1

   h0h0

   Q1

   h0h1

   Q1

   h0hh

   Q1

   h0h3

   Q1

   h0h4

   Q1

   h0h5

   Q1

   h0h6

   (1) Includes customers who engaged only with the Jackpocket brand (and not the DraftKings or Golden Nugget Online Gaming brands) after DraftKings closed the acquisition of Jackpocket. Includes customers who engaged with Predictions.

   Non-GAAP Financial Measures

   This presentation includes Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Diluted Earnings (Loss) Per Share, and Adjusted Operating Expenses, which are non-GAAP financial measures that DraftKings uses to supplement its results presented in accordance with GAAP. The Company believes Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Diluted Earnings (Loss) Per Share, and Adjusted Operating Expenses are useful in evaluating its operating performance, similar to measures reported by its publicly-listed U.S. competitors, and regularly used by security analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Diluted Earnings (Loss) Per Share, and Adjusted Operating Expenses are not intended to be substitutes for any GAAP financial measures, and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.

   We define and calculate Adjusted EBITDA as net income (loss) before the impact of interest income or expense (net), income tax provision or benefit, and depreciation and amortization, and further adjusted for the following items: stock-based compensation; transaction-related costs; litigation, settlement and related costs; advocacy and other related legal expenses; gain or loss on remeasurement of warrant liabilities; and other non-recurring and non-operating costs or income. We define and calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by net revenue. We define and calculate Adjusted Diluted Earnings (Loss) Per Share as basic or diluted earnings (loss) per share attributable to common stockholders adjusted for the impact of amortization of acquired intangible assets; discrete tax benefits attributed to acquisitions; stock-based compensation; transaction-related costs; litigation, settlement and related costs; advocacy and other related legal expenses; gain or loss on remeasurement of warrant liabilities; and other non-recurring and non-operating costs or income. We define and calculate Adjusted Operating Expenses as the sum of sales and marketing expense, product and technology expense, and general and administrative expense before the impact of depreciation and amortization and further adjusted for the following items: stock-based compensation; transaction-related costs; litigation, settlement, and related costs; advocacy and other related legal expenses; and other non-recurring and non-operating costs or income.

   DraftKings includes these non-GAAP financial measures because they are used by management to evaluate the Company's core operating performance and trends and to make decisions regarding the allocation of capital and new investments. Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Diluted Earnings (Loss) Per Share and Adjusted Operating Expenses exclude certain expenses that are required in accordance with GAAP because they are non-recurring items (for example, in the case of transaction-related costs and advocacy and other related legal expenses), non-cash expenditures (for example, in the case of depreciation and amortization, remeasurement of warrant liabilities and stock-based compensation), or non-operating items which are not related to the Company's underlying business performance (for example, in the case of interest income and expense and litigation, settlement and related costs).

   Information reconciling forward-looking fiscal year 2026 Adjusted EBITDA guidance to its most directly comparable GAAP financial measure, net income (loss), is unavailable to DraftKings without unreasonable effort due to, among other things, certain items required for such reconciliation being outside of DraftKings' control and/or not being able to be reasonably predicted. Preparation of such reconciliation would require a forward-looking balance sheet, statement of income and statement of cash flow, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to the Company without unreasonable effort. DraftKings provides a range for its Adjusted EBITDA forecast that it believes will be achieved; however, the Company cannot provide any assurance that it can predict all of the components of the Adjusted EBITDA calculation. DraftKings provides a forecast for Adjusted EBITDA because it believes that Adjusted EBITDA, when viewed with DraftKings' results calculated in accordance with GAAP, provides useful information for the reasons noted above. However, Adjusted EBITDA is not a measure of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to net income (loss) or as an indicator of operating performance or liquidity.

   Reconciliation of GAAP Expenses to Non-GAAP Expenses

   Millions of Dollars

   GAAP Expenses

   Cost of Revenue

   GAAP Operating Expenses:

   Sales and Marketing Product and Technology General and Administrative Total

   Non-GAAP Expense Adjustments

   Cost of Revenue (a)

   (b)

   (d)

   (f)

   Non-GAAP Operating Expense Adjustments:

   Sales and Marketing (a)

   (d)

   Product and Technology (a)

   (d)

   General and Administrative (a) (c)

   (d)

   (e)

   (f)

   (a)

   31-Mar-26	31-Dec-25	30-Sep-25	30-Jun-25	31-Mar-25	31-Dec-24	30-Sep-24	30-Jun-24	31-Mar-24
   $949	$1,075	$784	$855	$844	$835	$742	$663	$710
   $402 $123 $166	$443 $134 $187	$360 $115 $157	$233 $108 $166	$344 $103 $164	$369 $112 $217	$340 $104 $208	$216 $93 $165	$341 $89 $174
   $1,640	$1,837	$1,416	$1,362	$1,455	$1,532	$1,394	$1,137	$1,314
   $0 ($38) ($29) $0	$0 ($36) ($33) $0	$0 ($34) ($27) $0	$0 ($36) ($25) $0	$0 ($43) ($23) $0	$0 ($39) ($23) $0	$0 ($56) ($29) $0	$0 ($36) ($20) $21	($1) ($29) ($18) $0
   ($9)	($10)	($9)	($9)	($10)	($14)	($10)	($8)	($5)
   ($1)	($1)	($1)	($1)	($1)	($1)	($1)	($1)	($1)
   ($23)	($29)	($21)	($19)	($14)	($32)	($23)	($24)	($18)
   ($2)	($2)	($2)	($2)	($2)	($2)	($2)	($2)	($2)
   ($33)	($65)	($43)	($56)	($55)	($64)	($54)	($59)	($70)
   $0	($6)	($7)	$0	$0	($2)	($1)	($19)	($5)
   ($2)	($2)	($3)	($2)	($2)	($2)	($2)	($2)	($3)
   $0	$0	$0	$0	$0	($41)	($20)	($11)	($9)
   ($25)	($8)	$0	$0	$0	($10)	($41)	$0	$0
   ($162)	($191)	($145)	($150)	($149)	($229)	($240)	($160)	($161)
   $883	$1,005	$724	$794	$778	$773	$657	$628	$662
   $391 $98 $106	$432 $103 $106	$351 $92 $104	$223 $88 $108	$333 $87 $108	$354 $78 $98	$329 $79 $89	$207 $67 $75	$335 $69 $87
   $1,478	$1,646	$1,271	$1,212	$1,306	$1,303	$1,154	$976	$1,153

   (b)

   (c)

   (d)

   (e)

   (f)

   Stock-based compensation expense

   Amortization of acquired intangible assets

   Transaction expenses Depreciation & amortization Litigation

   Other

   Total

   Adjusted Expenses

   Cost of Revenue

   Adjusted Operating Expenses:

   Sales and Marketing Product and Technology General and Administrative Total

   Totals may not sum due to rounding.

   Reconciliation of Net Income (Loss) to Adjusted EBITDA

   Thousands of Dollars

   Three Months Ended March 31, 2026 2025

   Revenue

   $

   1,646,076 $

   1,408,806

   Cost of revenue 949,385 843,803

   Sales and marketing

   401,734

   343,680

   • Adjusted EBITDA

     • We define and calculate Adjusted EBITDA as Net Income (Loss) before the impact of interest income and expense (net), income tax provision or benefit, and depreciation and amortization, and further adjusted for the following items: stock-based compensation; transaction-related costs; litigation, settlement and related costs; advocacy and other related legal expenses; gain or loss on remeasurement of warrant liabilities; and other non-recurring and non-operating costs or income; as described in the reconciliation.

   • Adjusted EBITDA Margin

     • We define Adjusted EBITDA Margin as Adjusted EBITDA divided by net revenue.

   Product and technology 123,176 103,260

   General and administrative

   165,934

   164,394

   Income (loss) from operations 5,847 (46,331)

   Other income (expense):

Gain (loss) on remeasurement of warrant liabilities

-

2,495

Interest income (expense), net (5,739) 4,395

Other gain (loss), net 22,814 22

Income (loss) before income tax and equity method investments

22,922

(39,419)

Income tax provision (benefit) 6,369 (5,600)

(Gain) loss from equity method investments

(4,517)

45

Net income (loss) attributable to common stockholders $ 21,070 $ (33,864)

Adjusted for:

Depreciation and amortization (1)

71,661

70,116

Interest (income) expense, net 5,739 (4,395)

Income tax (benefit) provision

6,369

(5,600)

Stock-based compensation (2) 65,215 78,846

Transaction-related costs (3)

-

-

Litigation, settlement, and related costs (4) - -

Advocacy and other related legal expenses (5)

26,363

-

Loss (gain) on remeasurement of warrant liabilities - (2,495)

Other non-recurring costs and non-operating costs (income) (6)

(28,565)

22

Adjusted EBITDA $ 167,852 $ 102,630

Adjusted EBITDA Margin 10.2% 7.3%

1. The amounts include the amortization of acquired intangible assets of $37.6 million and $42.7 million for the three months ended March 31, 2026 and 2025, respectively.

2. Reflects stock-based compensation expenses resulting from the issuance of awards under incentive plans.

3. Includes capital markets advisory, consulting, accounting and legal expenses related to the evaluation, negotiation, and consummation of transactions and offerings that are under consideration, pending, or completed, as well as integration costs related to acquisitions.

4. Primarily includes external legal costs related to litigation and litigation settlement costs deemed unrelated to our ordinary-course business operations.

   
   
   

5. Reflects non-recurring and non-ordinary course costs relating to advocacy efforts primarily in pursuit of legalization of DraftKings offerings. For the three months ended March 31, 2026, this spend primarily relates to legislative efforts for legalizing iGaming, supporting a ballot measure for legalizing Sportsbook, and other advocacy activities related to certain states. Advocacy and legal expenses incurred in the ordinary course of business have not been adjusted in this measure.

6. Primarily includes the change in fair value of certain assets and liabilities, including contingent consideration, as well as our equity method share of investee's gains and losses and other costs relating to non-recurring and non-operating items.

   | 14

   Reconciliation of Adjusted Diluted Earnings Per Share

   Dollars

   t0.03

   t0.13

   t0.07

(t0.05)

t0.01

t0.h0

GAAP Diluted EPt ttock-based Compensation Amort. of Acquired

Intangible Assets

Other Non-GAAP Adj.(1)

Tax Impact of Adjusting Items

Adjusted Diluted EPt(h)

Note: Weighted average number of shares used to calculate Adjusted Diluted Earnings (Loss) Per Share for Q1 2026 was 511 million; totals may not add due to rounding.

1. Includes adjustments for transaction-related costs, litigation, settlement, and related costs, advocacy and other related legal expenses, (gain) loss on remeasurement of warrant liabilities, and other non-recurring and non-operating costs (income).

2. Adjusted Diluted Earnings (Loss) per share is a non-GAAP financial measure.

| 15

DraftKings Share Count Detail

Thousands

Common Shares Outstanding (31-Mar-26)	495,764
Vested Stock Options @ TSM(1)	11,222
Memo: Vested Stock Options	15,843

Diluted Shares Outstanding (With Vested Stock Options @ TSM) 506,986

Fully Diluted Shares Outstanding 506,986

Table is not reflective of GAAP diluted share count given GAAP diluted share count includes unvested restricted stock units and out-of-the-money shares underlying DraftKings' convertible notes. Table does not include shares of Class B common stock, which have no economic or participating rights.

(1) Based on Treasury Stock Method ("TSM"); assumes DraftKings Class A share price as of May 6th 2026 and a weighted average strike price of $10.13 per stock option.

Comparison of Monthly Unique Payers and Average Revenue per MUP

	Three months ended March 31,
	2026(1)	2025
Monthly Unique Payers ("MUPs") (in millions)	4.2	4.3
Average Revenue per MUP ("ARPMUP") (in whole dollars)	$131	$108

• Monthly Unique Payers ("MUPs")

  • We define MUPs as the number of unique paid users per month who had one or more real-money, paid engagements across one or more of our Sportsbook, iGaming, Fantasy, Lottery, Prediction Markets, or other consumer offerings via our technology. For reported periods longer than one month, we average the MUPs for the months in the reported period.

  • MUPs is a key indicator of the scale of our online gaming user base and awareness of our brand.

  • We believe that year-over-year growth in MUPs is generally indicative of the long-term revenue growth potential of our online gaming product offerings, although MUPs in individual periods may be less indicative of our longer-term expectations.

• Average Revenue per MUP ("ARPMUP")

  • We define and calculate ARPMUP as the average monthly revenue for a reporting period, divided by the average number of MUPs for the same period.

  • ARPMUP represents our ability to drive usage and monetization of our product offerings.

  • We use ARPMUP to analyze comparative revenue growth and measure customer monetization and engagement trends.

(1) Excluding DraftKings' lottery vertical, monthly unique payers ("MUPs") increased 2% year-over-year to 3.9 million and average revenue per MUP ("ARPMUP") increased 15% year-over-year to $141 in the first quarter of 2026.