📊 AI Stock Rating — Summary

DraftKings Inc. reported a revenue of $1.14 billion for the quarter ending September 30, 2025. Despite a significant net loss of $256.8 million, the company managed a free cash flow of $247.9 million, indicating strong cash generation capabilities from operations, a 26% of revenue FCF margin. Year-over-year revenue growth remains robust, driven primarily by expanding market presence and customer base. The price targets, with a consensus of $49.45, suggest potential upside. Analysts' positive outlook underscores potential growth in the burgeoning online sports betting market. The company's ability to generate cash flow while expanding its market reach speaks to its operational efficiency, even while not achieving profitability. Long-term viability is supported by a healthy cash position of $1.71 billion, providing resilience against the current liabilities. With no dividends paid out and stock buybacks of $102.84 million, shareholder return initiatives are concentrated on price performance and strategic investments. Analyst valuations suggest the stock may be favorably positioned for future appreciation.

AI Score Breakdown

Revenue Growth — Score: 8/10

DraftKings continues to exhibit strong revenue growth, driven by expansion in the online gaming and sports betting markets. The quarterly growth reflects solid increases in user engagement and market penetration.

Profitability — Score: 4/10

The company is not currently profitable, with a net loss of $256.8 million. While operating cash flow is positive, achieving profitability remains a challenge due to high growth expenses.

Cash Flow Quality — Score: 7/10

Stable operating cash flow and free cash flow generation demonstrate financial flexibility. Positive FCF is notable given the strategic investments and absence of dividends.

Leverage & Balance Sheet — Score: 6/10

DraftKings maintains a reasonable debt level with net debt of $100.79 million and a strong cash position. The balance sheet indicates sufficient economic resilience.

Shareholder Returns — Score: 6/10

While there are no dividends, strategic buybacks of $102.84 million and potential appreciation reflected in strong analyst price targets suggest a focus on capital growth and value enhancement. Market performance over the relevant period suggests some upward pricing potential.

Analyst Sentiment & Valuation — Score: 7/10

Analyst targets up to $63 were favorable relative to the stock's market pricing at the time, indicating potential value. The stock's valuation metrics imply that it was competitive with sector peers, anticipating growth.

⚠ AI-generated — informational only, not financial advice.