We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Monthly Unique Payers held at 4.8M, while ARPMUP jumped 43% on higher margins.
DraftKings sees 2026 revenues of $6.5B-$6.9B and EBITDA of $700M-$900M.
DraftKings Inc. (DKNG - Free Report) reported fourth-quarter 2025 results with earnings and revenues missing the Zacks Consensus Estimate. Meanwhile, both earnings and revenues increased on a year-over-year basis. Following the results, shares of DKNG declined 14.1% in the after-hours trading session yesterday.
The fourth-quarter performance was supported by strong revenue growth driven by higher customer engagement across its Sportsbook and iGaming offerings, continued expansion into new jurisdictions, and solid payer retention and acquisition trends. However, results were partially affected by higher sales and marketing expenses and increased investment in product and technology initiatives.
Inside the Headlines of DKNG’s Q4
In the fourth quarter, the company reported adjusted earnings per share (EPS) of 36 cents, missing the Zacks Consensus Estimate of 50 cents by 28%. DraftKings reported an adjusted EPS of 14 cents in the prior-year quarter.
Revenues of $1,989 million also missed the consensus mark of $1,990 million. However, the top line grew 42.8% on a year-over-year basis.
Other Operating Highlights of DKNG
During the quarter, Monthly Unique Payers (MUPs) remained unchanged year over year at 4.8 million average monthly unique paying customers. Excluding the impact of the Jackpocket acquisition, MUPs rose approximately 5% compared with the fourth quarter of 2024. Growth was driven by strong unique payer retention and customer acquisition across DraftKings' Sportsbook and iGaming product offerings.
The Average Revenue per MUP (ARPMUP) of $139 increased 43% year over year, driven by higher net revenue margin across both Sportsbook and iGaming.
DKNG’s Financial Information
As of Dec. 31, 2025, DraftKings had cash and cash equivalents of $1.13 billion compared with $788.3 million as of Dec. 31, 2024.
On a consolidated basis, adjusted property EBITDA totaled $343.2 million in the fourth quarter, up from $89.5 million reported in the year-ago quarter.
At the end of 2025, net cash provided by operating activities was $662.9 million, up from $417.8 million reported in the prior-year quarter.
DKNG’s FY25 Highlights
Revenues for 2025 came in at $6.05 billion compared with $4.77 billion reported in 2024.
Adjusted EBITDA in 2025 came in at $620 million compared with $181.3 billion reported in 2024.
In 2025, adjusted EPS came in at 66 cents compared with 24 cents reported in the previous year.
DKNG Unveils 2026 Guidance
DraftKings is anticipating its 2026 revenues to be between $6.5 billion and $6.9 billion. This outlook represents approximately 39.6% year-over-year growth.
Adjusted EBITDA is expected to be between $700 million and $900 million, up from $181.3 million reported in 2024.
The company delivered a trailing four-quarter earnings surprise of 173.7%, on average. APEI stock has moved up 52% in the past six months. The Zacks Consensus Estimate for APEI’s 2026 sales and EPS indicates an increase of 7.1% and 106.5%, respectively, from the year-ago levels.
New Oriental Education & Technology Group, Inc. (EDU - Free Report) currently flaunts a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 31.8%, on average. EDU stock has climbed 25.4% in the past six months.
The Zacks Consensus Estimate for EDU’s fiscal 2026 sales and EPS implies growth of 12% and 17.7%, respectively, from the year-ago levels.
Trip.com Group Limited (TCOM - Free Report) currently has a Zacks Rank of 2 (Buy). The company delivered a trailing four-quarter earnings surprise of 62.6%, on average. TCOM stock has declined 9.7% in the past six months.
The Zacks Consensus Estimate for Trip.com Group’s fiscal 2026 sales indicates growth of 14.1%, while the same for EPS implies a decline of 37.7% from the year-ago levels.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
DraftKings Q4 Earnings & Revenues Miss Estimates, Stock Down
Key Takeaways
DraftKings Inc. (DKNG - Free Report) reported fourth-quarter 2025 results with earnings and revenues missing the Zacks Consensus Estimate. Meanwhile, both earnings and revenues increased on a year-over-year basis. Following the results, shares of DKNG declined 14.1% in the after-hours trading session yesterday.
The fourth-quarter performance was supported by strong revenue growth driven by higher customer engagement across its Sportsbook and iGaming offerings, continued expansion into new jurisdictions, and solid payer retention and acquisition trends. However, results were partially affected by higher sales and marketing expenses and increased investment in product and technology initiatives.
Inside the Headlines of DKNG’s Q4
In the fourth quarter, the company reported adjusted earnings per share (EPS) of 36 cents, missing the Zacks Consensus Estimate of 50 cents by 28%. DraftKings reported an adjusted EPS of 14 cents in the prior-year quarter.
DraftKings Inc. Price, Consensus and EPS Surprise
DraftKings Inc. price-consensus-eps-surprise-chart | DraftKings Inc. Quote
Revenues of $1,989 million also missed the consensus mark of $1,990 million. However, the top line grew 42.8% on a year-over-year basis.
Other Operating Highlights of DKNG
During the quarter, Monthly Unique Payers (MUPs) remained unchanged year over year at 4.8 million average monthly unique paying customers. Excluding the impact of the Jackpocket acquisition, MUPs rose approximately 5% compared with the fourth quarter of 2024. Growth was driven by strong unique payer retention and customer acquisition across DraftKings' Sportsbook and iGaming product offerings.
The Average Revenue per MUP (ARPMUP) of $139 increased 43% year over year, driven by higher net revenue margin across both Sportsbook and iGaming.
DKNG’s Financial Information
As of Dec. 31, 2025, DraftKings had cash and cash equivalents of $1.13 billion compared with $788.3 million as of Dec. 31, 2024.
On a consolidated basis, adjusted property EBITDA totaled $343.2 million in the fourth quarter, up from $89.5 million reported in the year-ago quarter.
At the end of 2025, net cash provided by operating activities was $662.9 million, up from $417.8 million reported in the prior-year quarter.
DKNG’s FY25 Highlights
Revenues for 2025 came in at $6.05 billion compared with $4.77 billion reported in 2024.
Adjusted EBITDA in 2025 came in at $620 million compared with $181.3 billion reported in 2024.
In 2025, adjusted EPS came in at 66 cents compared with 24 cents reported in the previous year.
DKNG Unveils 2026 Guidance
DraftKings is anticipating its 2026 revenues to be between $6.5 billion and $6.9 billion. This outlook represents approximately 39.6% year-over-year growth.
Adjusted EBITDA is expected to be between $700 million and $900 million, up from $181.3 million reported in 2024.
DKNG’s Zacks Rank & Key Picks
DraftKings currently has a Zacks Rank #4 (Sell).
Here are some better-ranked stocks from the Consumer Discretionary sector:
American Public Education, Inc. (APEI - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
The company delivered a trailing four-quarter earnings surprise of 173.7%, on average. APEI stock has moved up 52% in the past six months. The Zacks Consensus Estimate for APEI’s 2026 sales and EPS indicates an increase of 7.1% and 106.5%, respectively, from the year-ago levels.
New Oriental Education & Technology Group, Inc. (EDU - Free Report) currently flaunts a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 31.8%, on average. EDU stock has climbed 25.4% in the past six months.
The Zacks Consensus Estimate for EDU’s fiscal 2026 sales and EPS implies growth of 12% and 17.7%, respectively, from the year-ago levels.
Trip.com Group Limited (TCOM - Free Report) currently has a Zacks Rank of 2 (Buy). The company delivered a trailing four-quarter earnings surprise of 62.6%, on average. TCOM stock has declined 9.7% in the past six months.
The Zacks Consensus Estimate for Trip.com Group’s fiscal 2026 sales indicates growth of 14.1%, while the same for EPS implies a decline of 37.7% from the year-ago levels.