DraftKings Inc.

Good day and thank you for standing by. Welcome to the DraftKings Q2 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Mike DeLaglio, Senior Director of Investor Relations. Please go ahead.

Good morning, everyone, and thank you for joining us today. Certain statements we make during this call may constitute forward-looking statements that are subject to risks, uncertainties, and other factors as discussed further in our SEC filings that could cause our actual results to differ materially from our historical results or from our forecasts. We assume no responsibility to update forward-looking statements other than as required by law. During this call, management will also discuss certain non-GAAP financial measures that we believe may be useful in evaluating DraftKings operating performance. These measures should not be considered in isolation or as a substitute for DraftKings financial results prepared in accordance with GAAP. Reconciliation of these non-GAAP measures to the most directly comparable GAAP measures are available in our earnings release slide presentation and business update, which can be found on our website and in our quarterly report on Form 10Q filed at the SEC. Hosting the call today, we have Jason Robbins, co-founder and Chief Executive Officer of DraftKings, who will share some opening remarks and an update on our business. Following Jason's remarks, our Chief Financial Officer, Alan Ellingson, will provide a review of our financials. We will then open the line to questions. I will now turn the call over to Jason Robbins.

Thank you, Mike. Good morning, everyone, and thank you all for joining. DraftKings set records for revenue and adjusted EBITDA in the second quarter, as revenue growth accelerated to 37% year over year. We are pleased to be maintaining our fiscal year 2025 guidance, with revenue expected to be closer to the high end of our range, as strong underlying momentum in the business and sportsbook friendly outcomes in the second quarter position us to absorb an exciting new state launch. We are sharing five key takeaways today. First, we are in the early innings of adjusted EBITDA growth. Product enhancements are driving strong revenue growth, while prudent cost discipline and efficiency initiatives across the organization are delivering meaningful adjusted EBITDA margin expansion. Our second quarter adjusted EBITDA was over $300 million in double our prior record. Looking ahead, we have conviction in our profitability expanding further as we drive towards our 30% adjusted EBITDA margin target over time. Second, DraftKings is positioned for success this fall with the upcoming NFL and NBA seasons. We continue to innovate our number one rated sportsbook product delivering an experience that moves uniquely at the speed of sports. This manifests in a best in class live betting product, along with hyper flexible merchandising and social features that allow customers to engage with the biggest sports narratives as they unfold in real time. Third, sport outcomes tend to normalize over the long term, but typically benefit either the sportsbook or our customers in the short term. In May and June combined, sportsbook outcomes benefited the company and added $110 million to our revenue. Fourth, we continue to monitor events surrounding federally regulated prediction markets and are actively exploring ways to enhance shareholder value through this opportunity. As always, we value our relationships with both industry stakeholders and policymakers and we'll work collaboratively as we evaluate next steps. Fifth, we continue to allocate capital to target the highest risk adjusted returns and maximize shareholder returns over the long term. In the first two quarters of this year, we repurchased 6.5 million shares through our stock repurchase program while continuing to invest in organic growth initiatives. With that, I will turn it over to our chief financial officer, Alan Owens.