NEW YORK, Feb 12, 2026, 19:03 EST — After-hours
- DKNG down about 15% in after-hours trading, after closing at $25.16
- DraftKings guides 2026 revenue $6.5-$6.9 bln; adjusted EBITDA $700-$900 mln
- Focus shifts to Friday’s earnings call and the March 2 investor day for details on the Predictions push
DraftKings (DKNG.O) shares were down about 15% at $21.39 in late after-hours trading on Thursday, after the company posted results and a 2026 outlook that investors read as a heavier spend year. The stock traded as low as $20.86 in the extended session, after hours. (Public)
The selloff matters because the market has started to reward betting firms that can show more predictable earnings, not just handle growth. DraftKings is trying to push margins higher, but it is also stepping into a new arena that will take money.
That arena is prediction markets — contracts that pay out based on whether an event happens. DraftKings has said its DraftKings Predictions unit offers federally regulated “event contracts” under oversight of the Commodity Futures Trading Commission, and it has a virtual investor day set for March 2. (GlobeNewswire)
In regular trading, DraftKings stock closed down 4.33% at $25.16. The Nasdaq Composite fell about 2%, and DraftKings volume ran to roughly 27.5 million shares, more than double its 50-day average, MarketWatch data showed. (MarketWatch)
DraftKings said fourth-quarter revenue rose 43% to $1.989 billion, helped by customer engagement and higher sportsbook net revenue margin. It forecast 2026 revenue of $6.5 billion to $6.9 billion and adjusted EBITDA — a measure of operating profit — of $700 million to $900 million, and said those ranges reflect expected investment in DraftKings Predictions; the company added that its outlook excludes swings tied to sports outcomes and assumes state tax rates stay where they are. Chief executive Jason Robins said, “Our core business is strong as we enter 2026,” while CFO Alan Ellingson said the company generated positive net income in 2025 and repurchased 16 million shares. (GlobeNewswire)
Wall Street had been looking for more. DraftKings earned 36 cents a share in the quarter, below estimates for 39 cents, while analysts surveyed by FactSet expected roughly $7.3 billion in 2026 revenue and about $981 million of adjusted EBITDA, Barron’s reported. (Barron’s)
The message in the guidance was hard to miss: the company is willing to spend into Predictions even as it works to keep sportsbook and iGaming profitability moving the right way. That can be a good trade if customer growth comes through; it can also stretch the timeline investors have been shrinking.
A Form 4 filing showed co-founder Matthew Kalish, president of DraftKings North America, had 28,309 restricted stock units vest on Feb. 9, with 8,663 shares withheld by the company to cover taxes. (SEC)
The Predictions race is getting crowded. FanDuel and CME Group launched a platform in five states late last year, and Reuters reported that DraftKings also launched its own prediction markets platform with CME as the exchange venue at launch. (Reuters)
But the downside case is not just about spending. Prediction markets sit in a fog of rules: multiple U.S. states and Native American tribes are suing Kalshi, Reuters Breakingviews reported, underscoring how quickly court fights or regulators can slow adoption even when demand is there. (Reuters)
Next up is Friday’s earnings call, when investors will press management on how much of the 2026 gap is deliberate investment versus softer demand. The bigger checkpoint after that is the March 2 investor day, where DraftKings has promised more detail on its framework and capital allocation priorities.
