New York, Feb 13, 2026, 18:30 (ET) — After-hours
- DKNG sank roughly 13.5% on Friday, hit by the company’s newly released 2026 outlook.
- DraftKings plans to put money into DraftKings Predictions as it looks to move past its core sports betting business.
- U.S. markets will be closed Monday for Presidents Day. DraftKings’ next major event—investor day—comes up March 2.
DraftKings Inc (DKNG) tumbled 13.5% during Friday’s regular session, with shares slipping to $21.76 after hours. The online sports-betting company had just released its inaugural 2026 outlook. Roughly 65.8 million shares traded on the day.
DraftKings laid out its 2026 outlook, eyeing revenue between $6.5 billion and $6.9 billion and adjusted EBITDA in a range of $700 million to $900 million. The company attributed those figures to ongoing investment in DraftKings Predictions and its push into new markets. “Our core business is strong as we enter 2026,” said CEO Jason Robins. SEC
That guidance is key now, as investors shift their view of the sector—from chasing territory to focusing on cash flow. DraftKings wants some leeway on spending again. Analysts polled by Investopedia had pegged 2026 revenue at about $7.3 billion. “We plan to deploy growth capital to build the best customer experience in Predictions,” Robins said. Investopedia
DraftKings turned in fourth-quarter revenue of $1.989 billion, a 43% jump from the same period last year, with net income landing at $136.4 million, or 25 cents per share. Adjusted EBITDA hit $343 million. Monthly unique payers stuck at 4.8 million, but the average revenue per user climbed to $139. “We are proud to have generated positive net income in fiscal year 2025,” CFO Alan Ellingson said. The company also disclosed a buyback of 16 million shares last year. Businessinsider
One bullish voice on the Street hit the brakes, but didn’t walk away. Guggenheim trimmed its price target on DraftKings to $37, down from $42, sticking with a buy call. Analyst Curry Baker also slashed his 2026 revenue estimate to $6.87 billion and now sees adjusted EBITDA at $854 million.
DraftKings’ decision dragged down other U.S. gaming stocks. Penn Entertainment dropped 5.2% Friday. MGM Resorts slipped as well, MarketWatch data showed.
DraftKings Predictions operates via a subsidiary, rolling out “event contracts”—think yes/no bets on specific outcomes—regulated by the Commodity Futures Trading Commission (CFTC). The firm noted its 2026 guidance leaves out volatility from sports results, pointing out that performance can still veer sharply if bettors score significant wins.
Still, event contracts bring their own risks. Regulators could step in with stricter rules, or liquidity in these newer products might evaporate quickly. DraftKings is betting state tax rates won’t change and says it can keep a lid on spending to avoid letting investments eat into profits.
U.S. stock markets remain shut Monday, Feb. 16, for Presidents Day. Trading kicks off again Tuesday. That gives investors extra time to crunch DraftKings’ 2026 projections and weigh the outlay for Predictions.
DraftKings is set to hold its virtual investor day on March 2. Executives have pledged to lay out additional details on both strategy and targets. For DKNG, that’s the next milestone after Friday’s slide.
