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DraftKings DKNG

DraftKings scores weak on business quality (4.0 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$19.58Oct 9, 2026
Business qualityWeak
Next earningsOct 30, 2026, after the close
Insiders, 90 daysQuiet

Why it matters

  1. What DraftKings does

    DraftKings operates digital sports betting and iGaming platforms, making money when users wager on online sportsbooks and casino games.

  2. What it does best

    DraftKings scales user acquisition faster than traditional casino peers, capturing top decile revenue growth at 27% with $6.2B in revenue.

  3. The main risk

    Heavy reliance on promotional spending and aggressive user acquisition leaves the business vulnerable if state-by-state legalization stalls or taxes rise.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Operating margins sit in the bottom decile of its sector at -2.9% alongside a -26% ROE, proving profitability lags behind raw scale.

MoatWeak

Low switching costs limit the moat to temporary brand-name recognition and consumer app habits rather than deep structural stickiness.

GrowthFast

Revenue grew 27% to $6.2B, accelerating off historical bases as online sports betting adoption broadens across new state jurisdictions.

Financial healthWeak

Debt-to-equity sits high at 2.9x with negative interest coverage, weighed down by $1.8B in total debt and ongoing net losses.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

No open market buys or unplanned sales by executives or directors.

Our sealed record on DKNG

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is DKNG a good business?

DraftKings scores weak on the Cluenex quality check (4.0 of 10), measured against its own industry. Profitability is weak, moat weak, growth fast and financial health weak.

Are insiders buying DKNG?

In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.

When does DKNG report earnings?

Oct 30, 2026, after the close.

For members

See DKNG today

  • Today's verdict on DKNG, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “DraftKings (DKNG)”, https://cluenex.com/stocks/dkng/, data as of Oct 10, 2026.