DraftKings Inc.

Hello, everyone. Thank you for joining us and welcome to the DraftKings first quarter 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Michael Delaglio, Vice President 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. Reconciliations 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 10-Q filed with 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. We are off to a fantastic start this year. Our first quarter results exceeded our expectations and we continue to expect fiscal year 2026 revenue of $6.5 billion to $6.9 billion and adjusted EBITDA of $700 million to $900 million. In the first quarter, revenue increased 17% year over year and surpassed $1.6 billion. Adjusted EBITDA increased 64% year over year to $168 million. If not for our significant investment in predictions in the launch of Sportsbook in Arkansas, our adjusted EBITDA would have exceeded $200 million. Profitability is inflecting in our core business. That gives us the firepower to press our advantage in predictions. Predictions, especially in sports, is a strategic priority for DraftKings. This category is still in its first inning, and we believe DraftKings is best positioned to define it. We are planning significant investment in the coming months to improve our offering, build liquidity, and scale customer acquisition. We intend to execute with urgency and establish a leadership position in sports predictions before year end. At our investor day in March, we laid out a clear strategy, one nationwide super app to win in sports. Already, we are delivering on our plan. Predictions is now live in our flagship app, and as a result, our predictions customer acquisition cost declined by more than 80% in April. Within predictions, we have more than double markets available to trade, which is driving predictions volume per customer above sportsbook handle per customer. In April, our annualized predictions consumer volume exceeded $1 billion, and our annualized total volume traded exceeded $2.3 billion, an increase of 38% and 43% month over month, respectively. We have also launched market making, which unlocks access to an additional layer of the value chain. Market making is already generating a positive return for us. In the coming weeks, we expect to launch our proprietary exchange and begin offering combos. Together, these moves will accelerate innovation, improve the customer experience, and strengthen our economics. We are confident in sports predictions because we increasingly view our sportsbook capabilities as a key advantage. Sports predictions and sportsbooks serve the same customers in the same live moments and leverage a shared underlying infrastructure. Whether the customer experience is structured as a bet or a contract, success still comes down to compelling markets, pricing, liquidity, trust, and a seamless customer experience. That is why our sustainable advantage has made us a leader in Sportsbook and positioned us to lead in sports predictions too. Beginning next quarter, we will report sports revenue, which will combine Sportsbook and sports predictions. This best reflects how we plan to operate the business. The opportunity ahead in sports is massive. At Investor Day, we laid out a path to a $55 billion to $80 billion gross revenue opportunity by 2030, along with at least a 30% long-term adjusted EBITDA margin. Predictions is an important part of this opportunity, broadening our reach, strengthening our sports platform, and driving meaningful incremental adjusted EBITDA over time. Experience and discipline matter in this category. Early third-party data suggests that predictions customers are experiencing losses more quickly than sportsbook customers. reinforcing the importance of trust, consumer protections, and operator discipline. We have spent more than a decade building and managing these ecosystems, from fantasy to sportsbook to iGaming, and we will apply that same discipline to predictions. We will grow predictions the right way through data-driven decisions, constructive engagement with industry stakeholders, and a focus on markets that uphold the integrity of sports, strengthen customer trust, and align with our standards for responsible engagement. Our super app, market-making capabilities, proprietary exchange, and combos are coming together ahead of the World Cup. Our roadmap is clear, our execution is real, and we intend to establish a leadership position in sports predictions by year-end. With that, I will turn it over to our Chief Financial Officer, Alan Ellingson.