NEW YORK, Feb 12, 2026, 19:03 EST — After-hours
- DKNG slid roughly 15% after hours, following a close at $25.16.
- DraftKings projects 2026 revenue in the $6.5 billion to $6.9 billion range, with adjusted EBITDA targeted between $700 million and $900 million.
- Attention is turning to Friday’s earnings call, with investors also eyeing the March 2 investor day for more on the Predictions initiative.
DraftKings (DKNG.O) slid roughly 15% to $21.39 in late after-hours moves on Thursday, following results and a 2026 forecast that signaled bigger spending to investors. Shares touched $20.86 at their lowest point during the extended session. 1
Why does the selloff sting? Investors have shifted focus—now, betting companies get Wall Street’s favor if they deliver steadier earnings, not just customer growth. DraftKings, for its part, is working on lifting margins. But it’s also jumping into a fresh market, and that’s going to be costly.
Prediction markets are the focus here—trading contracts tied to the outcome of specific events. DraftKings, through its DraftKings Predictions arm, says it’s offering federally regulated “event contracts” under the CFTC’s watch. The company’s virtual investor day is coming up on March 2. 2
DraftKings shares ended Thursday off 4.33% at $25.16. The Nasdaq Composite lost close to 2%. Trading in DraftKings was heavy—about 27.5 million shares changed hands, more than twice its 50-day average, according to MarketWatch data. 3
DraftKings reported a 43% jump in fourth-quarter revenue to $1.989 billion, crediting strong customer engagement and a lift in sportsbook net revenue margins. Looking ahead, the company projects 2026 revenue will land between $6.5 billion and $6.9 billion, with adjusted EBITDA in a $700 million to $900 million range. Those targets, DraftKings said, account for planned spending on DraftKings Predictions and exclude the impact of sports result volatility, assuming state tax rates remain unchanged. “Our core business is strong as we enter 2026,” said CEO Jason Robins. CFO Alan Ellingson noted positive net income for 2025 and said the company bought back 16 million shares. 4
Wall Street wanted stronger numbers. DraftKings posted 36 cents per share for the quarter, missing the 39-cent consensus. FactSet analysts had pegged 2026 revenue at about $7.3 billion and adjusted EBITDA near $981 million, Barron’s noted. 5
The guidance made it clear: the company plans to keep investing in Predictions, even while pushing sportsbook and iGaming profits in the right direction. That bet works if customer numbers climb, but it could also drag out the timeline investors have been trying to tighten.
DraftKings North America president and co-founder Matthew Kalish saw 28,309 restricted stock units vest on Feb. 9, according to a Form 4. Of those, the company withheld 8,663 shares to pay taxes. 6
Competition in the Predictions space keeps heating up. Late last year, FanDuel teamed up with CME Group to roll out a platform in five states. DraftKings, too, joined the fray—Reuters reports it debuted its own prediction markets platform, also using CME as its launch exchange. 7
But there’s more to the downside than just spending. Prediction markets operate under a confusing patchwork of rules—Kalshi, for instance, is facing lawsuits from several U.S. states and Native American tribes, Reuters Breakingviews noted. Court battles or regulatory moves can drag things out fast, even if there’s plenty of demand. 8
Friday brings the earnings call, and investors are likely to grill management on what portion of the 2026 gap stems from planned investment, and how much reflects weaker demand. Looking ahead, the bigger milestone is the March 2 investor day. DraftKings has said it will lay out more on its framework and how it’s thinking about capital allocation.
