Companies /Consumer Cyclical

DraftKings Inc - Class A

NASDAQ: DKNG Gambling
$23.71
▲ $0.05 (+0.21%) today
Markets closed · 4:36am ET

Q4 2025 Earnings

Reported Feb 13, 2026, 7:02am ET · SEC source
$0.36
Miss −12.47%
EPS · est. $0.41
$2.0B
Beat +0.04%
Revenue · est. $2.0B
+13.7%
Beating market
DKNG vs S&P since report
1 quarter
Consecutive EPS misses

Market Reaction

% change · around the report
−3%0+3%+6%Feb 13Feb 13report 7:02am ETearnings+0.1%+1.9%
−3%0+3%+6%Feb 13Feb 13earnings+0.1%+1.9%
DKNG +1.9%S&P 500 +0.1%
−3%0+3%+6%Feb 13Feb 13report 7:02am ETearnings+0.2%+1.9%
−3%0+3%+6%Feb 13Feb 13earnings+0.2%+1.9%
DKNG +1.9%NASDAQ +0.2%
0+8%+16%+24%Feb 12Feb 20report 7:02am ETearnings+1.4%+4.6%
0+8%+16%+24%Feb 12Feb 20earnings+1.4%+4.6%
DKNG +4.6%S&P 500 +1.4%
0+8%+16%+24%Feb 12Feb 20report 7:02am ETearnings+1.6%+4.6%
0+8%+16%+24%Feb 12Feb 20earnings+1.6%+4.6%
DKNG +4.6%NASDAQ +1.6%
+3.81%
Day of report
+2.74%
Next session
−0.97%
One week
+10.27%
30 days

S&P 500 over the same 30 days: −3.38%.

Did DKNG Beat Earnings? Q4 2025 Results

DraftKings capped fiscal 2025 with a standout fourth quarter, doubling Wall Street's earnings expectations and delivering its first full-year GAAP profit as the online betting giant's scale advantages came into sharp focus. The company posted Q4 adjusted diluted EPS of $0.36, well ahead of the $0.18 consensus estimate, while revenue climbed 42.8% year-over-year to $1.99 billion, edging past the $1.97 billion forecast. The key driver was a meaningful expansion in Sportsbook net revenue margin alongside efficient customer acquisition, which propelled Adjusted EBITDA to $343.20 million in the quarter, nearly four times the year-ago level. For the full year, DraftKings generated $6.05 billion in revenue and $619.99 million in Adjusted EBITDA, while recording a slim but historic positive GAAP net income of $3.71 million. Despite the strong results, shares fell sharply following the report, as investors weighed 2026 guidance of $6.50 billion to $6.90 billion in revenue against planned investment in DraftKings Predictions, a new federally regulated event contracts platform management views as a significant long-term growth opportunity.

Key Takeaways
  • Continued healthy customer engagement
  • Efficient acquisition of new customers
  • Higher Sportsbook net revenue margin
  • 43% increase in Average Revenue per MUP to $139
  • Higher net revenue margin across both Sportsbook and iGaming

“We closed 2025 on a high note. Fourth quarter revenue increased 43% year-over-year and we achieved records for revenue and Adjusted EBITDA. Our core business is strong as we enter 2026.”

DraftKings CEO, on the earnings call

Forward Guidance & Outlook

DraftKings introduced fiscal year 2026 revenue guidance of $6.5 billion to $6.9 billion and Adjusted EBITDA guidance of $700 million to $900 million. The guidance ranges reflect expected investment in DraftKings Predictions, line-of-sight jurisdiction launches, and disciplined planning as business conditions evolve. The company assumes state tax rates will remain consistent with current levels. The guidance ranges exclude potential variance related to sport outcomes and do not include the modest benefit from year-to-date sport outcomes.

DKNG YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$600.0M$1.2B$1.8B$1.4B$2.0BRevenue$558.1M$914.7MGross Profit$49.1M$151.8MOperating Income$45.3M$136.4MNet Income
$0$600.0M$1.2B$1.8BRevenueGross ProfitOperating IncomeNet Income

DKNG Revenue by Segment

Sportsbook
iGaming
Other Revenue

Figures from SEC filings and company reports. Not investment advice.