DKNG - Q1 Review and Group Call Takeaways

Research evidence excerpt

DKNG - Q1 Review and Group Call Takeaways

in Q1) and more efficient marketing as primary drivers for

Market Cap ($M) $13,015 this dynamic.

ADTV 10,367,674

Shares Out (M) 510 Breaking down the World Cup opportunity. Mgmt is hopeful that the world cup can be a

Short Interest Ratio/% Of Float 8.6% beneficial event for the industry and particularly for DKNG given it's the only platform with a

Spanish language functionality. We think the World Cup (spread between Q2/Q3) could be a Enterprise Value ($M) $13,716

~$1B of handle opportunity for DKNG which would be bigger than the Super Bowl. Mgmt also Cash & Equivalents ($M) $1,135 sees opportunity on the customer acquisition front in attracting the soccer focused customer

Total Debt ($M) $1,836 as soccer is only 8th/9th largest sport on DKNGs. Marketing spend on the World Cup will

remain flexible enabling DKNG to invest based on real time data and CAC performance.

5 Page Document Cost side outlook. Mgmt was pleased with Q1 G&A costs down -1% Y/Y, as the company

becomes more efficient even as it continues to scale. Moving forward, mgmt expects modest

Reasons for this report Y/Y growth in G&A on a qtrly basis and ~$100M a qtr for P&T expenses. Mgmt did note that there is a lot of flexibility in its Sales & Marketing budget which ultimately depends on the

✓ Earnings Recap customer acquisition environment.

PM spend expectations. For 2026 DKNG has previously said that it expects to spend

$200-300M in PM investment. Of the $200-300M spend, mgmt expects the vast majority (~

$200M) to be on marketing with the remainder split between product and tech engineering.

Looking to 2027, mgmt as of now expects 2027 PM spend to be "not as high as $200-300M"

but could increase if the customer acquisition environment remains strong. As of today,