DraftKings次季轉盈為虧 收入跌4.6%遜預期

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q 

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026 
or

☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from__________ to ___________.
Commission file number 001-41379 
 
DRAFTKINGS INC. 
(Exact name of registrant as specified in its charter)

Nevada87-2764212
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)

222 Berkeley Street, 5th Floor 
Boston, MA 02116 
(Address of principal executive offices) (Zip Code)
(617) 986-6744 
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report).
Securities Registered Pursuant to Section 12(b) of the Act:

Title of each class    Trading symbol    Name of each exchange on which registered
Class A Common Stock, $0.0001 par valueDKNGThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer 
☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ 
As of August 5, 2026, there were 496,454,048 shares of the registrant’s Class A common stock, par value $0.0001 per share, and 393,013,951 shares of the registrant’s Class B common stock, par value $0.0001 per share, outstanding.

DraftKings Inc.
Quarterly Report on Form 10-Q
For the Quarter Ended June 30, 2026
Table of Contents

Page
PART I. FINANCIAL INFORMATION
2

Item 1. Financial Statements
2

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
35

Item 3. Quantitative and Qualitative Disclosures About Market Risk
48

Item 4. Controls and Procedures
48

PART II. OTHER INFORMATION
49

Item 1. Legal Proceedings
49

Item 1A. Risk Factors
49

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
49

Item 3. Defaults Upon Senior Securities
50

Item 4. Mine Safety Disclosures
50

Item 5. Other Information
50

Item 6. Exhibits
50

1

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

DRAFTKINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except par value)

June 30, 2026
(Unaudited)December 31, 2025
Assets
Current assets:
Cash and cash equivalents$983,882 $1,127,545 
Restricted cash8,596 7,601 
Cash reserved for users395,030 469,449 
Accounts receivable82,079 105,577 
Prepaid expenses and other current assets107,436 104,837 
Total current assets1,577,023 1,815,009 
Property and equipment, net52,726 51,081 
Intangible assets, net837,441 889,201 
Goodwill1,597,647 1,597,647 
Operating lease right-of-use assets76,760 49,810 
Equity method investments30,312 18,938 
Deposits and other non-current assets105,470 109,098 
Total assets$4,277,379 $4,530,784 

Liabilities and Stockholders’ equity
Current liabilities:
Accounts payable and accrued expenses$689,247 $785,441 
Liabilities to users840,261 935,001 
Operating lease liabilities, current portion9,735 9,795 
Other current liabilities11,445 25,234 
Total current liabilities1,550,688 1,755,471 
Convertible notes, net of issuance costs1,260,421 1,259,096 
Term B Loan, net of issuance costs574,574 576,544 
Operating lease liabilities71,279 44,391 
Long-term income tax liabilities100,959 91,618 
Other long-term liabilities150,030 172,203 
Total liabilities$3,707,951 $3,899,323 
Commitments and contingent liabilities (Notes 5 and 13)

Stockholders’ equity:

Class A common stock, $0.0001 par value; 900,000 shares authorized as of June 30, 2026 and December 31, 2025; 541,503 and 533,296 shares issued and 495,978 and 495,053 outstanding as of June 30, 2026 and December 31, 2025, respectively
$53 $52 
Class B common stock, $0.0001 par value; 900,000 shares authorized as of June 30, 2026 and December 31, 2025; 393,014 shares issued and outstanding as of June 30, 2026 and December 31, 2025
39 39 
Treasury stock, at cost; 45,525 and 38,243 shares as of June 30, 2026 and December 31, 2025, respectively
(1,590,131)(1,392,433)
Additional paid-in capital8,607,037 8,424,833 
Accumulated deficit(6,484,058)(6,437,518)
Accumulated other comprehensive income36,488 36,488 
Total stockholders’ equity$569,428 $631,461 
Total liabilities and stockholders’ equity$4,277,379 $4,530,784 

See accompanying notes to unaudited condensed consolidated financial statements.
2

DRAFTKINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in thousands, except per share data)

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Revenue$1,443,235 $1,512,507 $3,089,311 $2,921,313 
Cost of revenue891,782 854,559 1,841,167 1,698,362 
Sales and marketing322,536 233,187 724,270 576,867 
Product and technology127,649 108,417 250,825 211,677 
General and administrative169,442 165,700 335,376 330,094 
Income (loss) from operations(68,174)150,644 (62,327)104,313 
Other income (expense):
Interest income (expense), net(7,434)665 (13,173)5,060 
Gain (loss) on remeasurement of warrant liabilities— (5,851)— (3,356)
Other gain (loss), net3,750 24,459 26,564 24,481 
Income (loss) before income tax and equity method investments(71,858)169,917 (48,936)130,498 
Income tax provision (benefit)(1,797)11,790 4,572 6,190 
(Gain) loss from equity method investments(2,451)191 (6,968)236 
Net income (loss) attributable to common stockholders$(67,610)$157,936 $(46,540)$124,072 

Earnings (loss) per share attributable to common stockholders:
Basic$(0.14)$0.32 $(0.09)$0.25 
Diluted$(0.14)$0.30 $(0.09)$0.23 

See accompanying notes to unaudited condensed consolidated financial statements.
3

DRAFTKINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited)
(Amounts in thousands)

Class A Common StockClass B Common StockAdditional
Paid-in CapitalAccumulated
DeficitAccumulated 
Other
Comprehensive
IncomeTreasury Stock AmountTotal Stockholders’ 
Equity

SharesAmountSharesAmount
Balances at December 31, 2025495,053 $52 393,014 $39 $8,424,833 $(6,437,518)$36,488 $(1,392,433)$631,461 
Exercise of stock options1,773 — — — 3,315 — — — 3,315 
Stock-based compensation— — — — 72,144 — — — 72,144 
Purchase of treasury stock for RSU withholding(1,002)— — — — — — (24,303)(24,303)
Restricted stock unit vesting3,228 1 — — — — — — 1 
Purchase of treasury stock under Stock Repurchase Program(3,288)— — — — — — (98,640)(98,640)
Net income (loss)— — — — — 21,070 — — 21,070 
Balances at March 31, 2026495,764 $53 393,014 $39 $8,500,292 $(6,416,448)$36,488 $(1,515,376)$605,048 
Exercise of stock options107 — — — 752 — — — 752 
Stock-based compensation— — — — 86,586 — — — 86,586 
Purchase of treasury stock for RSU withholding(738)— — — — — — (19,177)(19,177)
Shares issued under Employee Stock Purchase Plan460 — — — 9,987 — — — 9,987 
Restricted stock unit vesting2,229 — — — — — — — — 
Purchase of treasury stock under Stock Repurchase Program(2,254)— — — — — — (55,578)(55,578)
Shares issued for contingent consideration410 — — — 9,420 — — — 9,420 
Net income (loss)— — — — — (67,610)— — (67,610)
Balances at June 30, 2026495,978 $53 393,014 $39 $8,607,037 $(6,484,058)$36,488 $(1,590,131)$569,428 

4

Class A Common StockClass B Common StockAdditional
Paid-in CapitalAccumulated
DeficitAccumulated 
Other
Comprehensive
IncomeTreasury Stock AmountTotal Stockholders’ 
Equity

SharesAmountSharesAmount
Balances at December 31, 2024489,071 $48 393,014 $39 $7,978,425 $(6,441,228)$36,488 $(563,146)$1,010,626 
Exercise of stock options1,268 — — — 3,396 — — — 3,396 
Stock-based compensation — — — — 100,380 — — — 100,380 
Exercise of warrants182 — — — 8,973 — — — 8,973 
Purchase of treasury stock for RSU withholding(1,519)— — — — — — (74,318)(74,318)
Restricted stock unit vesting11,001 — — — — — — — — 
Purchase of treasury stock under Stock Repurchase Program(3,664)— — — — — — (142,278)(142,278)
Net income (loss)— — — — — (33,864)— — (33,864)
Balances at March 31, 2025496,339 $48 393,014 $39 $8,091,174 $(6,475,092)$36,488 $(779,742)$872,915 
Exercise of stock options736 — — — 2,908 — — — 2,908 
Stock-based compensation— — — — 89,792 — — — 89,792 
Exercise of warrants74 — — — 2,212 — — — 2,212 
Purchase of treasury stock for RSU withholding(780)— — — — — — (27,534)(27,534)
Shares issued under Employee Stock Purchase Plan218 — — — 6,900 — — — 6,900 
Shares issued for contingent consideration110 — — — 4,962 — — — 4,962 
Restricted stock unit vesting2,226 — — — — — — — — 
Purchase of treasury stock under Stock Repurchase Program(2,872)— — — — — — (100,463)(100,463)
Net income (loss)— — — — — 157,936 — — 157,936 
Balances at June 30, 2025496,051 $48 393,014 $39 $8,197,948 $(6,317,156)$36,488 $(907,739)$1,009,628 

See accompanying notes to unaudited condensed consolidated financial statements.
5

DRAFTKINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Amounts in thousands)
Six Months Ended June 30,
20262025
Cash Flows from Operating Activities:
Net income (loss) attributable to common stockholders$(46,540)$124,072 
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities:
Depreciation and amortization152,003 135,415 
Non-cash interest (income) expense, net2,451 939 
Stock-based compensation147,769 163,547 
(Gain) loss on remeasurement of warrant liabilities— 3,356 
(Gain) loss from equity method investments(6,968)236 
Deferred income taxes(215)96 
Other non-cash (gain) loss, net(26,303)(16,422)
Change in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable23,498 (11,111)
Prepaid expenses and other current assets(4,009)(7,625)
Deposits and other non-current assets2,220 2,759 
Accounts payable and accrued expenses(95,746)(98,441)
Liabilities to users(94,740)(254,484)
Long-term income tax liability9,341 7,953 
Other long-term liabilities240 4,615 
Net cash flows provided by (used in) operating activities$63,001 $54,905 
Cash Flows from Investing Activities:
Purchases of property and equipment$(11,671)$(6,963)
Cash paid for internally developed software costs(75,064)(60,414)
Cash paid for gaming market access and licenses(1,992)(2,234)
Other investing activities(4,717)(4,667)
Net cash flows provided by (used in) investing activities$(93,444)$(74,278)
Cash Flows from Financing Activities:
Proceeds from Term B Loan, net$— $588,116 
Repayment of Term B Loan principal(3,000)(1,500)
Purchase of treasury stock for RSU withholding(43,480)(101,852)
Purchase of treasury stock under Stock Repurchase Program(154,218)(242,741)
Proceeds from exercise of stock options4,067 6,304 
Proceeds from shares issued under Employee Stock Purchase Plan9,987 6,900 
Other financing activities— (2,093)
Net cash flows provided by (used in) financing activities$(186,644)$253,134 
Net increase (decrease) in cash and cash equivalents, restricted cash, and cash reserved for users(217,087)233,761 
Cash and cash equivalents, restricted cash, and cash reserved for users at the beginning of period1,604,595 1,330,193 
Cash and cash equivalents, restricted cash, and cash reserved for users at the end of period$1,387,508 $1,563,954 

Disclosure of cash and cash equivalents, restricted cash, and cash reserved for users
Cash and cash equivalents$983,882 $1,261,969 
Restricted cash8,596 4,616 
Cash reserved for users395,030 297,369 
Cash and cash equivalents, restricted cash, and cash reserved for users at the end of period$1,387,508 $1,563,954 

Supplemental Disclosure of Noncash Investing and Financing Activities:
Decrease in warrant liabilities from cashless exercise of warrants$— $11,185 
Shares issued for contingent consideration9,420 4,962 
Stock-based compensation capitalized to internally developed software costs13,553 11,955 
Supplemental Disclosure of Cash Activities:
(Decrease) increase in cash reserved for users$(74,419)$(228,038)
Cash paid for interest17,624 9,421 
Cash paid for income taxes, net of refunds2,440 8,186 

See accompanying notes to unaudited condensed consolidated financial statements.
6

DRAFTKINGS INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, except per share data, unless otherwise noted)

1.Description of Business
We are a digital sports and gaming company. We provide users with online and retail sports betting (together, “Sportsbook”), online casino (“iGaming”), daily fantasy sports (“Fantasy”), digital lottery courier (“Lottery”), prediction markets (“Prediction Markets”) and other offerings.
As of June 30, 2026, 39 U.S. states, the District of Columbia and Puerto Rico have some form of authorized sports betting. Of those 41 jurisdictions, 33 have legalized online sports betting. All 33 jurisdictions are live, and DraftKings operates in 29 of them. As of June 30, 2026, the U.S. jurisdictions with statutes legalizing iGaming are Connecticut, Delaware, Maine, Michigan, New Jersey, Pennsylvania, Rhode Island and West Virginia.
As of June 30, 2026, we operate our Sportsbook offering in Arizona, Arkansas, Colorado, Connecticut, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Missouri, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Puerto Rico, Tennessee, Vermont, Virginia, Washington, D.C., West Virginia, Wyoming, and Ontario, Canada, and we operate retail sportsbooks in Arizona, Colorado, Connecticut, Illinois, Iowa, Kansas, Kentucky, Louisiana, Michigan, Mississippi, New Hampshire, New Jersey, Washington, Wisconsin and Puerto Rico. As of June 30, 2026, we offer our iGaming offering in Connecticut, Michigan, New Jersey, Pennsylvania, West Virginia and Ontario, Canada. We also have arrangements in place with land-based casinos to expand operations into additional states upon the passing of relevant legislation, the issuance of related regulations and the receipt of required licenses.

2.Summary of Significant Accounting Policies and Practices
Basis of Presentation and Principles of Consolidation
These unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States (“U.S. GAAP”) for interim reporting. As such, certain notes or other information that are normally required by U.S. GAAP have been omitted if they substantially duplicate the disclosures contained in the Company’s annual audited consolidated financial statements. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and related notes as of and for the fiscal year ended December 31, 2025, which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as filed with the SEC on February 13, 2026 (the “2025 Annual Report”). These condensed consolidated financial statements are unaudited; however, in the opinion of management, they include all normal and recurring adjustments necessary for a fair presentation of the Company’s condensed consolidated financial statements for the periods presented. Results of operations reported for interim periods are not necessarily indicative of results for the entire year, due to seasonal fluctuations in the Company’s revenue as a result of the timing of various sports seasons, sporting events, and other factors.
All intercompany accounts and transactions are eliminated upon consolidation. Certain amounts, which are not material, in the prior year’s consolidated financial statements have been reclassified to conform to the current year’s presentation. 
Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2024, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2024-03, Income Statement–Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires disaggregated disclosure of income statement expenses. ASU 2024-03 does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU 2024-03 is effective for public business entities for annual periods beginning after December 15, 2026, with early adoption permitted. We are currently evaluating the impact of this standard on our disclosure of income statement expenses.
7

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”). ASU 2025-06 changes the accounting for internal-use software under Accounting Standards Codification (“ASC”) 350-40. ASU 2025-06 clarifies when to begin capitalizing costs. ASU 2025-06 is effective for interim and annual periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact of this standard and do not expect this standard to have a material impact on our consolidated financial statements.
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (“ASU 2025-11”). ASU 2025-11 clarifies the applicability of interim reporting guidance and reorganizes and clarifies interim disclosure requirements under ASC 270, Interim Reporting, including the addition of a disclosure principle requiring disclosure of material events occurring since the most recent annual reporting period. ASU 2025-11 is effective for interim reporting periods within annual periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact of this standard and do not expect this standard to have a material impact on our consolidated financial statements.
In December 2025, the FASB issued ASU 2025-12, Codification Improvements (“ASU 2025-12”). ASU 2025-12 makes targeted amendments to various topics within the Accounting Standards Codification intended to clarify existing guidance and correct minor inconsistencies. ASU 2025-12 is effective for interim and annual reporting periods beginning after December 15, 2026, with early adoption permitted. Certain amendments require retrospective application. We are currently evaluating the impact of this standard and do not expect this standard to have a material impact on our consolidated financial statements.

3.Business Combinations
2025 Business Combinations
Acquisition of Railbird Technologies Inc. (“Railbird”) 
On October 21, 2025 (the “Railbird Acquisition Date”), the Company entered into a definitive agreement (the “Railbird Merger Agreement”) to acquire Railbird and its wholly owned subsidiary Railbird Exchange, LLC, a federally licensed exchange designated by the Commodity Futures Trading Commission (the “Railbird Transaction”). The acquisition provides a foundation for the Company’s entrance into Prediction Markets through regulated event contracts. 
Under the terms of the Railbird Merger Agreement and subject to certain exclusions contained therein, Railbird equityholders received closing consideration of approximately $18.3 million of cash consideration and approximately $28.7 million of equity consideration on the Railbird Acquisition Date, excluding contingent consideration. The present value of the contingent consideration of $37.8 million at the Railbird Acquisition Date, which is payable upon, and subject to, the achievement of certain performance targets, is included in Other long-term liabilities on the consolidated balance sheet.
Operating results for Railbird on and after the Railbird Acquisition Date are included in the Company’s condensed consolidated statements of operations for the six months ended June 30, 2026. The amount of revenue and earnings attributable to the Railbird business from the Railbird Acquisition Date through June 30, 2026, which is included within revenue and loss attributable to common stockholders in the Company’s condensed consolidated statements of operations, is not material. Pro forma financial information for the acquisition has not been presented because the impact of this acquisition was immaterial to our consolidated financial statements.
Preliminary Purchase Price Accounting for the Railbird Transaction

On the Railbird Acquisition Date, the Company acquired 100% of the equity interests of Railbird pursuant to the Railbird Merger Agreement. The following is a summary of the consideration issued or paid on the Railbird Acquisition Date:

Cash consideration$18,296 
Equity consideration (1)
28,708 
Contingent consideration (2) 
37,785 
Total consideration$84,789 

(1)Includes the issuance of approximately 0.9 million shares of DraftKings Inc.’s Class A common stock issued at $33.62 per share.
8

(2)The Company recorded a fair value estimate of the contingent consideration, as disclosed in “Note 6 – Fair Value Measurements”. Contingent payments have a maximum value of up to $200 million, 47.5% of which will be contingent consideration and 52.5% of which will be recorded as compensation under ASC 805, Business Combinations. The payments will be settled, at the Company’s option, in shares of the Company’s Class A common stock or in a combination of shares of the Company’s Class A common stock and cash; provided that, for each Railbird equityholder that is an accredited investor, shares of the Company’s Class A common stock will represent at least 70% of the contingent consideration such equityholder receives. The Company’s Class A common stock to be issued as contingent payment will be valued on the basis of a 30-day volume-weighted average price of the Company’s Class A common stock determined at or around the issuance thereof based on certain post-closing performance metrics.

The purchase price allocation for Railbird set forth herein is preliminary and subject to change within the measurement period, which will not extend beyond one year from the Railbird Acquisition Date. Measurement period adjustments will be recognized in the reporting period in which the adjustment amounts are determined and may include adjustments pertaining to intangible assets acquired and tax liabilities assumed, including the calculation of deferred tax assets and liabilities. Any such adjustments may be material.
The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed in connection with the consummation of the Railbird Transaction on the Railbird Acquisition Date. The values set forth below are preliminary, pending finalization of valuation analyses: 

Assets acquired:
Cash and cash equivalents$181 
Restricted cash1,734 
Intangible assets58,090 
Deposits and other non-current assets6 
Total identifiable assets acquired60,011 
Liabilities assumed:
Accounts payable and accrued expenses52 
Other long-term liabilities15,365 
Total liabilities assumed15,417 
Net assets acquired (a)44,594 
Purchase consideration (b)$84,789 
Goodwill (b) – (a)$40,195 

Goodwill represents the excess of the gross consideration transferred over the difference between the fair value of the underlying net assets acquired and the underlying liabilities assumed. Qualitative factors that contribute to the recognition of goodwill include certain intangible assets that are not recognized as separate identifiable intangible assets apart from goodwill. Intangible assets not recognized apart from goodwill consist primarily of benefits from securing buyer-specific synergies that increase revenue and profits and are not otherwise available to a market participant, as well as acquiring a talented workforce and cost savings opportunities. Goodwill recognized is not deductible for tax purposes. Goodwill associated with the Railbird Transaction is assigned as of the Railbird Acquisition Date to the Company’s prediction markets reporting unit, which was established in 2025 as a result of the launch of our Prediction Markets offering. 
The Company recorded an intangible asset for an operating license of $58.1 million that will be amortized over four years. We valued the operating license by using the income approach, specifically the with-and-without method, which isolates the cash flows attributable to the asset. The process for estimating the fair values of identifiable intangible assets requires the use of significant estimates and assumptions, including revenue growth rates and discount rates. We amortize definite-lived assets based on the pattern over which we expect to receive the economic benefit from these assets. 
Transaction Costs
For the year ended December 31, 2025, the Company incurred $5.5 million in advisory, legal, accounting and management fees in connection with the Railbird Transaction, which were included in general and administrative expenses on the Company’s consolidated statements of operations. We did not incur any such costs in the three and six months ended June 30, 2026 or June 30, 2025.
9

4.Intangible Assets
As of June 30, 2026, intangible assets, net consists of the following:

Weighted-Average Remaining Amortization PeriodGross Carrying AmountAccumulated AmortizationNet
Amortized intangible assets:
Developed technology3.0 years$586,082 $(378,726)$207,356 
Internally developed software2.3 years558,471 (304,042)254,429 
Gaming market access and licenses6.6 years288,824 (114,611)174,213 
Customer relationships5.0 years344,000 (164,244)179,756 
Trademarks, tradenames and other4.6 years38,890 (17,203)21,687 
Total$1,816,267 $(978,826)$837,441 

As of December 31, 2025, intangible assets, net consists of the following:

Weighted-Average Remaining Amortization PeriodGross Carrying AmountAccumulated AmortizationNet
Amortized intangible assets:
Developed technology3.4 years$586,409 $(338,358)$248,051 
Internally developed software2.3 years475,814 (254,285)221,529 
Gaming market access and licenses 6.7 years287,524 (91,575)195,949 
Customer relationships5.5 years344,000 (144,326)199,674 
Trademarks, tradenames and other5.1 years43,120 (19,122)23,998 
Total$1,736,867 $(847,666)$889,201 

Amortization expense was $75.3 million and $142.0 million for the three and six months ended June 30, 2026, respectively, and $60.8 million and $126.5 million for the three and six months ended June 30, 2025, respectively.

5.Current and Long-term Liabilities
Credit Agreement
On November 7, 2024, the Company entered into a credit agreement (as amended, the “Credit Agreement”) with various financial institutions, as lenders, and Morgan Stanley Senior Funding, Inc., as administrative agent and collateral agent, providing for a senior secured revolving credit facility of up to $500.0 million (the “Revolving Credit Facility”). The Revolving Credit Facility has a maturity date of November 7, 2029. 
Revolving loans under the Revolving Credit Facility bear interest at the Company’s election at either (i) Term SOFR (as defined in the Credit Agreement), plus an applicable margin ranging from 1.75% to 2.25% depending on the Company’s Net First Lien Leverage Ratio (as defined in the Credit Agreement) or (ii) a base rate that is equal to the greatest of (a) the federal funds rate plus 0.50%, (b) the prime rate and (c) Term SOFR for a one month interest period plus 1.00%, in each case plus an additional applicable margin ranging from 0.75% to 1.25% depending on the Company’s Net First Lien Leverage Ratio. In addition, the Company is required to pay a commitment fee quarterly in arrears ranging from 0.25% to 0.375% per annum of the unused portion of the Revolving Credit Facility depending on the Company’s Net First Lien Leverage Ratio. As of June 30, 2026, the Credit Agreement provided a Revolving Credit Facility of up to $500.0 million, and there was no principal outstanding thereunder. As of June 30, 2026, $11.9 million in letters of credit were issued under the Revolving Credit Facility, with $488.1 million available for borrowing.
On March 4, 2025, the Company entered into a first amendment to the Credit Agreement, providing for a new class of incremental term loans under the Credit Agreement in an aggregate principal amount of $600.0 million (the “Term B Facility” and, such term loans, the “Term B Loan”). The Term B Facility matures on March 4, 2032, and all unpaid borrowings, together with accrued and unpaid interest thereon, are repayable on such date (unless extended in accordance with the terms of the Credit Agreement). In addition, 1.00% of the aggregate outstanding principal amount of the Term B Loan is payable per annum in 
10

quarterly installments. In connection with the borrowing of the Term B Loan, the Company incurred $11.9 million of lender fees and $3.1 million of debt financing costs, which are being amortized through the maturity date. The amortization of debt issuance costs was $0.5 million and $1.0 million for the three and six months ended June 30, 2026, respectively, and $0.5 million and $0.7 million for the three and six months ended June 30, 2025, respectively, which is included in Interest income (expense), net on the Company’s condensed consolidated statements of operations.
The Term B Loan under the Term B Facility bears interest at the Company’s election at either (x) in the case of Term SOFR Loans, Term SOFR plus an applicable margin of 1.75% per annum, or (y) in the case of ABR Term Loans, ABR plus an applicable margin of 0.75% per annum (with each of the capitalized terms used in clauses (x) and (y) as defined in the Credit Agreement). As of June 30, 2026, the aggregate principal amount of the Term B Loan outstanding was $592.5 million, which bore interest at a weighted-average rate of 5.39% per annum. As of June 30, 2026, the fair value of the Term B Loan approximates the carrying value, which was calculated using quoted market prices for similar debt instruments and other observable market inputs, which is a Level 2 fair value measurement.
The performance of the Company’s obligations under the Credit Agreement is secured by a first-priority security interest on substantially all of its assets. The Credit Agreement contains customary representations and warranties and affirmative and negative covenants, including dividend restrictions, a public corporate credit rating requirement for so long as any Term B Loans are outstanding, and, with respect to the Revolving Credit Facility only, a financial covenant that the Company is required to maintain a Net First Lien Leverage Ratio not to exceed 4.50:1.00, which is tested only if the aggregate amount of (i) revolving loans outstanding and (ii) letters of credit outstanding under the Revolving Credit Facility in excess of a specified threshold (unless cash collateralized) is in excess of 40% of the total commitments under the Revolving Credit Facility. As of June 30, 2026, the Company was not required to test the covenant as the aggregate amount of the revolving loans outstanding and the letters of credit outstanding did not exceed 40% of the total commitments under the Revolving Credit Facility.
Converti