DraftKings (DKNG) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue grew 43% year-over-year to nearly $2 billion, with Adjusted EBITDA quadrupling to $343 million and positive net income reported for the first time.

• Fiscal year 2025 revenue increased 27% to over $6 billion, Adjusted EBITDA more than tripled to $620 million, and 16 million shares were repurchased.

• Customer acquisition, engagement, and monetization improved, with record Monthly Unique Payers (MUPs) and ARPMUP growth.

• Launched predictions as a new vertical, targeting hundreds of millions in annual revenue in coming years.

• Missouri Sportsbook launch achieved highest customer acquisition penetration and strong revenue per adult among recent launches.

Financial highlights

• Q4 2025 Adjusted EBITDA margin expanded to 17%, up over 1,000 basis points year-over-year.

• Q4 2025 net income was $136 million, compared to a net loss of $135 million in Q4 2024.

• Sportsbook Q4 revenue increased 64% year-over-year to $1.4 billion; handle growth accelerated to 13%.

• iGaming revenue reached $500 million in Q4 2025, continuing a steady upward trend.

• Cash and cash equivalents at year-end 2025 were $1.13 billion, up from $788 million at year-end 2024.

Outlook and guidance

• Fiscal year 2026 revenue guidance is $6.5–$6.9 billion; Adjusted EBITDA guidance is $700–$900 million.

• Guidance reflects investments in predictions, new jurisdiction launches, and conservative planning.

• No revenue from predictions included in 2026 guidance; spend on predictions expected in tens of millions, mainly for headcount and marketing.

• Guidance includes startup costs for Maine iGaming and Alberta.

• Growth capital will be deployed to enhance the Predictions customer experience and drive customer acquisition.