DraftKings has posted a 43% year-on-year (YoY) surge in Q4 2025 revenue to $2bn (£1.5bn), as the Boston-based giant attributed the bump to “continued healthy customer engagement [and] efficient acquisition”.
Management also pointed to a stronger sportsbook net revenue margin (8%) for driving top line growth.
Adjusted EBITDA rocketed from $89.5m to $343.2m, while monthly unique players were flat at 4.8 million.
Average revenue per user was $139, a 43% YoY jump, the firm revealed.
Yet despite what was a record quarter, the market reacted negatively after the operator’s full-year 2026 guidance fell short of analyst estimates.
DraftKings tumbled 15% in after-hours trading in New York after closing yesterday, 12 February, at $25.16, which was a fall of more than 4% on the day before the bell rang in New York. The stock is down 27% this year.
The founder-led operator expects revenue to land between $6.5bn and $6.9bn for full-year 2026. Analysts had forecast around $7.3bn.
DraftKings has also guided an adjusted EBITDA range of $700m to $900m.
In comparison, full-year 2025 revenue and adjusted EBITDA were $6.1bn and $620m, respectively.
Management said the guidance was reflective of its plans to invest in its prediction markets offering, DraftKings Predictions, and new market launches.
DraftKings added that it “assumes state tax rates will remain consistent with where they are today”.
Live in 39 US jurisdictions, DraftKings Predictions launched in December after the operator initially tapped Kalshi, a federally regulated designated contract market, to provide its markets to consumers.
A deal was then struck with Crypto.com to broaden the product offering just before Super Bowl LX on 8 February.
Robins said in a letter to shareholders that this integration had “an immediate upgrade in breadth and engagement”, as new player performance markets, golf, UFC and politics were added.
DraftKings said it plans to integrate its acquired Railbird asset “near the middle of this year”.
In a shareholder letter, DraftKings CEO and co-founder Jason Robins noted DraftKings Predictions delivered three times its prior record for daily trading volume on Super Bowl Sunday and achieved the second most downloads in its category on app stores.
The operator expects to “acquire millions of customers” and is targeting “hundreds of millions in annual revenue for DraftKings Predictions”.
Robins added the operator “intends to lead the predictions category”, while there were plans in the pipeline to launch market-making to boost liquidity on the exchange.
“DraftKings can lead market-making for sports contracts because we model sports probabilities exceptionally well and have the infrastructure to provide liquidity across a broad spectrum of contracts,” the CEO said.
“This creates two revenue engines for DraftKings in Predictions. First, transaction fees, as we own the customer relationship through DraftKings Predictions and offer a platform to trade across sports and non-sports.
“Second, trading economics from market-making and proprietary trading, on our own exchange and, where it makes sense, on other exchanges.”
In an analyst note, Citizens’ Jordan Bender said: “The announcement that DraftKings will start market-making for prediction markets is an opportunity we believe is not fully understood and could prove to be an upside catalyst for the stock.
“Market-making fees are lucrative and add a second source of revenue for the company that was absent this time last year.”
Citizens has placed a target price of $44 on DraftKings stock.
The post DraftKings shares slide 15% in after-hours trading despite 43% Q4 revenue jump first appeared on EGR Intel.
Lower than expected 2026 guidance impacts stock after business reports $2bn in revenue and plans to introduce market-making for its prediction markets platform
The post DraftKings shares slide 15% in after-hours trading despite 43% Q4 revenue jump first appeared on EGR Intel.