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Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioDraftKings released its Q4 results on Thursday, highlighting 43% revenue growth. The company ended 2025 in net positive, but its stock price dropped as its forecast for 2026 fell below analyst expectations.
Revenue rose to $1.989 billion, $596 million more than the final quarter of 2024. In a press release, CEO Jason Robins noted this was a record for the company, with adjusted EBITDA also reaching record highs of $343.2 million.
While this exceeded Wall Street expectations, the company’s outlook for 2026 did not. Analysts had forecast revenue of $7.32 billion for the coming year, but DraftKings tempered those expectations, with a guidance range of $6.5 billion to $6.9 billion. Adjusted EBITDA guidance is $700 to $900 million, below analyst estimates of $980.6 million.
As a result, the betting giant’s stock price fell around 17%, dropping from over $26 on Thursday to just over $21 in extended trading after the figures were released.
Prediction Markets Take Center Stage
Robins commented, “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.”
That core business is changing. In a letter to shareholders, Robins wrote more about DraftKings Predictions than the company’s core business.
DraftKings noted that Monthly Unique Payers (MUPs) were unchanged year-over-year at 4.8 million. Excluding the Jackpocket online lottery product, sports and casino players rose 5%.
The company launched its predictions app in December, and Robins said the new venture represents a “massive, incremental opportunity” to acquire new customers.
He added, “We plan to deploy growth capital to build the best customer experience in Predictions, and acquire millions of customers. We have the playbook to execute and win.”
The predictions market looks competitive with rival platforms Kalshi and Polymarket already well-established, and state regulators challenging the legality of operators. DraftKings appears unperturbed and has expanded its offerings through a partnership with Crypto.com, another established platform.
2025 Finally Brings Profit
For the year, DraftKings posted net income of $3.71 million, marking its first year in the positive. In the letter to shareholders, Robins noted, “The business is scaling in a durable way. Since fiscal year 2022, we have grown customers by nearly 6 million, revenue by roughly $4 billion, and Adjusted EBITDA by more than $1 billion.”
DraftKings: Annual Net Income / Loss (USD millions)
| Fiscal Year | Net Income / (Loss) |
|---|---|
| 2021 | -$1,523 M (loss) |
| 2022 | -$1,378 M (loss) |
| 2023 | -$802 M (loss) |
| 2024 | -$507 M (loss) |
| 2025 | $3.7 M (profit) |
For 2025, sportsbook revenue grew 30%, with the final quarter particularly strong. The company reported revenue of $1.6 billion for Q4, up 63% from Q4 2024. This was largely driven by sportsbook-friendly results, leading to a hold of 12%.
Revenue from igaming also increased by 20%, and the company hopes more states will follow Maine in legalizing online casinos. Robins added, “We expect our revenue and Adjusted EBITDA to grow for years to come.”
The main target is DraftKings Predictions. Robins noted the two revenue engines for the segment: transaction fees from users trading on the platform and in-house trading on both the DK platform and other exchanges.
Kalshi and Polymarket have been busy recruiting traders with sportsbook experience for their in-house trading teams. With a well-established group of sportsbook market makers already in place, DraftKings believes this gives the company the edge needed to beat the competition. Investors may need further convincing.
