BOSTON, Feb 12, 2026, 17:10 (EST)
- DraftKings shares dropped after hours, with its 2026 outlook falling short of what analysts had anticipated.
- Fourth-quarter revenue jumped sharply, and the company said 2025 finished in the black.
- DraftKings pointed to ramped-up spending on its Predictions product, with an eye on rolling it out in 2026.
Shares of DraftKings dropped roughly 13% in after-hours action Thursday, with investors balking at the company’s 2026 forecast, which landed softer than they’d hoped. The sports-betting firm’s new outlook prompted the selloff, despite a stronger-than-expected Q4. (Investing)
Online betting companies are facing the forecast at a challenging point. Years of expansion—sparked by fresh state openings and aggressive marketing—have now given way to calls for tighter margins and more predictable earnings.
DraftKings is pushing into prediction markets—contracts tied to outcomes—with an eye on rivals and regulators circling the space. Those spending calls now play directly into the stock’s narrative, no longer just a footnote.
DraftKings reported a 43% jump in fourth-quarter revenue, hitting $1.989 billion. Net income attributable to common shareholders reached $136.4 million, putting the company in the black for 2025. Adjusted EBITDA came in at $343.2 million, while adjusted diluted earnings were 36 cents per share. “Our core business is strong as we enter 2026,” said CEO Jason Robins. CFO Alan Ellingson added that he was “proud to have generated positive net income” in 2025. For 2026, DraftKings projected revenue between $6.5 billion and $6.9 billion and sees adjusted EBITDA in the $700 million to $900 million range. (GlobeNewswire)
At $6.7 billion, the midpoint for revenue lands under the $7.3 billion consensus that Seeking Alpha highlighted. (Seeking Alpha)
StockStory noted that DraftKings’ adjusted EBITDA guidance landed at $800 million at the midpoint—well shy of the roughly $981 million analysts had penciled in. Monthly unique payers came in at 4.8 million, which barely budged from last year’s mark for the same quarter. (StockStory)
U.S. sportsbooks are slogging it out for the same pool of bettors, as flat payer growth makes clear. DraftKings reported a gain in revenue per payer, citing stronger net revenue margins across sportsbook and in iGaming, its online casino arm.
Flutter Entertainment’s FanDuel and BetMGM—backed by MGM Resorts and Entain—are stepping up their efforts in online casino gaming, a business that tends to offer more stability than sports betting. But a surge in promotions could put pressure on margins in short order.
ARK Invest, run by Cathie Wood, pared back its stake in DraftKings just before the Super Bowl, according to Barchart. (Barchart)
DraftKings flagged that its 2026 outlook doesn’t factor in unpredictable sports results—swings from bettors’ wins or losses can be dramatic—and rests on the idea that state tax rates won’t budge. Should regulators clamp down harder on prediction markets, or if tax rates climb, another revision may be on the table.
DraftKings plans to go over the results during a conference call Friday.
