Revenue Recognition
Deferred Revenue
The Company included deferred revenue within accounts payable and accrued expenses and liabilities to users in the consolidated balance sheets. The deferred revenue balances were as follows:
| | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Deferred revenue, beginning of the period | $ | 166,463 | | | $ | 174,212 | | | $ | 133,851 | |
| Deferred revenue, end of the period | $ | 174,750 | | | $ | 166,463 | | | $ | 174,212 | |
| Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period | $ | 165,209 | | | $ | 171,307 | | | $ | 129,246 | |
Deferred revenue primarily represents contract liabilities related to the Company’s obligation to transfer future value in relation to in period transactions in which the Company has received consideration. These obligations are primarily related to incentive programs and wagered amounts associated with unsettled or pending outcomes that fluctuate based on volume of activity. Such obligations are recognized as liabilities when awarded to users and are recognized as revenue when those liabilities are later resolved, in subsequent periods.
Revenue Disaggregation
We disaggregate revenue from contracts with customers by product vertical and geography, as we believe it best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.
Disaggregation of revenue for years ended December 31, 2025, 2024 and 2023 are as follows:
| | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Sportsbook | $ | 3,827,091 | | | $ | 2,902,857 | | | $ | 2,106,403 | |
| iGaming | 1,804,613 | | | 1,507,808 | | | 1,216,749 | |
| Other | 422,821 | | | 357,034 | | | 342,241 | |
| Total Revenue | $ | 6,054,525 | | | $ | 4,767,699 | | | $ | 3,665,393 | |
Sportsbook revenue includes online and retail sportsbook. Other revenue primarily includes DFS and digital lottery courier, prediction markets and, beginning in 2025, interest income of $25.6 million on customer deposits. Prior period amounts were not material. The opening and closing balances of the Company’s accounts receivable from contracts with customers were $57.8 million and $105.6 million, respectively, for the year ended December 31, 2025 and $47.5 million and $57.8 million, respectively, for the year ended December 31, 2024.
The following table presents the Company’s revenue by geographic region for the periods indicated:
| | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| United States | $ | 5,895,465 | | | $ | 4,649,136 | | | $ | 3,595,622 | |
International (1) | 159,060 | | | 118,563 | | | 69,771 | |
| Total Revenue | $ | 6,054,525 | | | $ | 4,767,699 | | | $ | 3,665,393 | |
No country or region represents greater than 10% of our total revenue as of the dates presented, other than the United States as presented above.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.