DraftKings Prepares to Report Q4 Results: Key Things to Watch

DraftKings Inc. DKNG is scheduled to report fourth-quarter 2025 results on Feb. 12, after the closing bell. In the last reported quarter, the company registered an earnings miss of 8.3%.

DKNG’s Estimates Trend

The Zacks Consensus Estimate for fourth-quarter adjusted earnings per share has increased to 50 cents from 45 cents in the past 30 days. In the prior-year quarter, the company reported an adjusted loss per share of 28 cents. For revenues, the consensus mark is pegged at $1.99 billion, indicating a 42.9% year-over-year increase.

What Might Have Shaped DKNG’s Q4 Results?

DraftKings’ fourth-quarter revenues are likely to have been supported by strong underlying sportsbook engagement momentum, particularly around the NFL and early NBA seasons. Management highlighted that total sportsbook handle accelerated into October, with year-over-year growth stepping up meaningfully compared with prior quarters. This reflected higher customer activity, improved retention and increased betting frequency, aided by product enhancements that made wager construction faster and more intuitive. The continued rise in parlay participation, especially across marquee sports, is likely to have lifted gross gaming revenues by increasing both handle depth and theoretical margin, even as short-term sports outcomes fluctuated.

Another meaningful revenue tailwind in fourth-quarter 2025 is likely to have come from continued iGaming acceleration. The company noted that iGaming growth strengthened through the back half of 2025, driven by increases in both active users and spend per customer. Improved personalization, better cohort-level promotional targeting and fresh proprietary content are likely to have been carried into the fourth quarter, helping sustain strong net revenue per user. With iGaming less exposed to sports outcome volatility, its expanding contribution might have provided a steadier and more predictable revenue stream during the quarter.

In addition, marketing leverage and brand partnerships are likely to have played a growing role in fourth-quarter 2025 revenue generation. DraftKings entered the quarter with exclusive media relationships in place, most notably with ESPN and NBCUniversal, which expanded brand reach and customer engagement without requiring heavy incremental spend. Early indicators pointed to improved share in key leagues, particularly the NBA, suggesting these partnerships enhanced top-of-funnel efficiency and helped attract higher-value customers during peak seasonal demand in fourth-quarter 2025.

From an earnings perspective, structural margin improvement is likely to have been the primary driver. A richer bet mix, led by a higher proportion of parlays and more disciplined promotional spending, might have supported stronger sportsbook hold over normalized outcomes. At the same time, operating leverage from prior-year investments, especially in technology, data analytics and customer lifecycle management, is likely to have limited cost growth despite higher volumes. Combined with improving iGaming profitability and a more measured approach to new initiatives such as prediction markets, these factors are likely to have contributed to improved adjusted EBITDA performance in the fourth quarter relative to earlier periods.

What Does the Zacks Model Unveil for DKNG?

Our proven model does not predict an earnings beat for DraftKings this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

DKNG’s Earnings ESP: DraftKings has an Earnings ESP of +4.00% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank of DKNG: The company carries a Zacks Rank #4 (Sell) at present.

Stocks to Consider

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around.

Amer Sports, Inc. AS has an Earnings ESP of +5.69% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Amer Sports is expected to register a 58.8% increase in earnings for the to-be-reported quarter. The average surprise being 78%, Amer Sports reported better-than-expected earnings in each of the trailing four quarters.

Acushnet Holdings Corp. GOLF has an Earnings ESP of +10.05% and a Zacks Rank #3 at present.

For the to-be-reported quarter, Acushnet’s earnings are expected to decline 1200%. Acushnet reported better-than-expected earnings in two of the trailing four quarters and missed twice, the average surprise being 26.4%.

PENN Entertainment, Inc. PENN currently has an Earnings ESP of +7.03% and a Zacks Rank of 3.

For the to-be-reported quarter, PENN’s earnings are expected to increase 54.6%. PENN reported better-than-expected earnings in two of the trailing four quarters and missed twice, the average surprise being 59.1%.

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This article originally published on Zacks Investment Research (zacks.com).

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