DKNGCAUTIOUS

DKNG Gross Margin Analysis

42.3%

Higher than 55% of Consumer Cyclical sector peers

Updated 13h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after paying direct costs like production or service delivery—for DKNG, 42.3% means that for every dollar of sales, roughly 42 cents is gross profit.

Sector Performance

55th percentile

DKNG

42.3%

Sector Median

36.6%

Sector Avg

30.0%

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Deep Analysis

This sits above the sector median of 36.5%, placing DKNG in the 56th percentile among Consumer Cyclical peers, or slightly better than half of its competitors. Trend data is not available: the year-over-year change and quarter-over-quarter change are both listed as N/A, and the only historical value is the current 42.3%, so no direction can be determined. Because the current level is above the sector median yet not exceptionally high, and there is no trend to indicate improvement or deterioration, the risk profile is neutral—neither a clear strength nor a warning. The lack of trend history adds uncertainty, which aligns with the overall CAUTIOUS verdict rather than contradicting it, as a cautious stance typically avoids relying on a single data point.

Frequently Asked Questions

What does the Gross Margin tell investors about DKNG?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does DKNG's Gross Margin compare to its sector?

DKNG's Gross Margin of 42.3% compares to a Consumer Cyclical sector median of 36.6%, placing it in the 55th percentile.

Who are DKNG's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: RH (41.4%), CZR (50.3%), COLM (50.7%), AMZN (51.8%), AZO (52.2%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.