DraftKings (DKNG) Q4 2025 earnings summary

Executive summary

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

• FY 2025 revenue increased 27% year-over-year to over $6B, Adjusted EBITDA more than tripled to $620M, and 16M shares were repurchased.

• Customer acquisition and engagement reached record levels, with MUPs at 4.8M in Q4 2025 and ARPMUP at $139, up 43% year-over-year.

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

• Missouri Sportsbook launch achieved the highest customer acquisition penetration and second-highest gross revenue per adult among recent state launches.

Financial highlights

• Q4 2025 Adjusted EBITDA margin expanded to 17%, up from 6% in Q4 2024.

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

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

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

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

Outlook and guidance

• Fiscal 2026 revenue guidance is $6.5B–$6.9B; Adjusted EBITDA guidance is $700M–$900M.

• Guidance reflects investments in predictions, new jurisdiction launches, and assumes stable state tax rates.

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

• Guidance is intentionally conservative to avoid missing targets, with upside potential from predictions and core business performance.