DraftKings Q4 Earnings & Revenues Miss Estimates, Stock Down

DraftKings Inc. DKNG reported fourth-quarter 2025 results with earnings and revenues missing the Zacks Consensus Estimate. Meanwhile, both earnings and revenues increased on a year-over-year basis. Following the results, shares of DKNG declined 14.1% in the after-hours trading session yesterday.

The fourth-quarter performance was supported by strong revenue growth driven by higher customer engagement across its Sportsbook and iGaming offerings, continued expansion into new jurisdictions, and solid payer retention and acquisition trends. However, results were partially affected by higher sales and marketing expenses and increased investment in product and technology initiatives.

Inside the Headlines of DKNG’s Q4

In the fourth quarter, the company reported adjusted earnings per share (EPS) of 36 cents, missing the Zacks Consensus Estimate of 50 cents by 28%. DraftKings reported an adjusted EPS of 14 cents in the prior-year quarter.

DraftKings Inc. Price, Consensus and EPS Surprise

DraftKings Inc. price-consensus-eps-surprise-chart | DraftKings Inc. Quote

Revenues of $1,989 million also missed the consensus mark of $1,990 million. However, the top line grew 42.8% on a year-over-year basis.

Other Operating Highlights of DKNG

During the quarter, Monthly Unique Payers (MUPs) remained unchanged year over year at 4.8 million average monthly unique paying customers. Excluding the impact of the Jackpocket acquisition, MUPs rose approximately 5% compared with the fourth quarter of 2024. Growth was driven by strong unique payer retention and customer acquisition across DraftKings' Sportsbook and iGaming product offerings.

The Average Revenue per MUP (ARPMUP) of $139 increased 43% year over year, driven by higher net revenue margin across both Sportsbook and iGaming.

DKNG’s Financial Information

As of Dec. 31, 2025, DraftKings had cash and cash equivalents of $1.13 billion compared with $788.3 million as of Dec. 31, 2024.

On a consolidated basis, adjusted property EBITDA totaled $343.2 million in the fourth quarter, up from $89.5 million reported in the year-ago quarter.

At the end of 2025, net cash provided by operating activities was $662.9 million, up from $417.8 million reported in the prior-year quarter.

DKNG’s FY25 Highlights

Revenues for 2025 came in at $6.05 billion compared with $4.77 billion reported in 2024.

Adjusted EBITDA in 2025 came in at $620 million compared with $181.3 billion reported in 2024.

In 2025, adjusted EPS came in at 66 cents compared with 24 cents reported in the previous year.

DKNG Unveils 2026 Guidance

DraftKings is anticipating its 2026 revenues to be between $6.5 billion and $6.9 billion. This outlook represents approximately 39.6% year-over-year growth.

Adjusted EBITDA is expected to be between $700 million and $900 million, up from $181.3 million reported in 2024.

DKNG’s Zacks Rank & Key Picks

DraftKings currently has a Zacks Rank #4 (Sell).

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

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