DraftKings Earnings and Guidance Weigh on Shares
DraftKings earnings showed strong revenue and EBITDA growth but conservative fiscal guidance spurred a steep share decline and tightened trader positioning.
KEY TAKEAWAYS
- Q4 revenue rose 43% to $2.0B and adjusted EBITDA was $343M.
- FY 2026 guidance set revenue at $6.5-$6.9B and adjusted EBITDA at $700-$900M.
- Shares closed down about 13.5% following the conservative guidance.
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DraftKings Inc. (DKNG) reported strong revenue growth and higher adjusted EBITDA for Q4 2025 on Feb. 12, 2026, but its conservative guidance for fiscal 2026 sent shares sharply lower the following day.
Quarter Results and Profitability
DraftKings posted Q4 2025 revenue of $2.0 billion, up 43% from $1.4 billion a year earlier. Adjusted EBITDA rose to $343 million from $89 million, reflecting improved profitability. Net income turned positive at $136 million, compared with a loss of about $135 million in Q4 2024.
Average revenue per monthly unique payer increased to $139 from $97, signaling stronger monetization. Monthly unique payers totaled 4.8 million, essentially flat year over year and up 5% excluding Jackpocket. For the full year 2025, the company reported revenue of $6.1 billion, adjusted EBITDA of $620 million, and net income of roughly $4 million.
Guidance, Cash Position, and Market Reaction
DraftKings forecasted fiscal 2026 revenue between $6.5 billion and $6.9 billion, with adjusted EBITDA of $700 million to $900 million. This outlook assumes investments in the DraftKings Predictions product, expansion into new jurisdictions, and broader market growth.
The company ended 2025 with $1.1 billion in cash and cash equivalents, up from $788 million at the end of 2024. It repurchased 16 million shares during the year.
Sports betting was live in 26 states plus the District of Columbia, covering about 52% of the U.S. population. iGaming operated in five states, and Ontario's sports betting covered roughly 40% of that province’s population.
Shares closed down about 13.5% at the market close on Feb. 13, 2026, as investors weighed the cautious 2026 targets against the quarter’s gains. Management will provide further detail at a virtual Investor Day on March 2, 2026.
