DraftKings Inc. reported record fourth‑quarter 2025 revenue of $1.989 billion, a 43% year‑over‑year increase from $1.393 billion in Q4 2024. Adjusted EBITDA reached $343 million, the highest quarterly figure in the company’s history, while GAAP earnings per share of $0.25 beat the consensus estimate of $0.18. Monthly unique payers averaged 4.8 million and average revenue per payer rose 43% to $139, underscoring strong customer engagement and effective monetization.
The revenue growth was driven by a 43% increase in Sportsbook revenue to $1.35 billion and a 43% rise in iGaming revenue to $500.18 million. The company’s higher sportsbook net revenue margin and efficient acquisition of new customers contributed to the record earnings, while the expanded mix of high‑margin iGaming products helped lift the adjusted EBITDA margin to 17% year‑over‑year.
For fiscal 2026, DraftKings guided total revenue of $6.5 billion to $6.9 billion, below the consensus estimate of $7.32 billion, and adjusted EBITDA of $700 million to $900 million, also below analyst expectations. Management said the conservative outlook reflects planned investment in its DraftKings Predictions platform and expansion into additional jurisdictions, as well as potential regulatory headwinds that could temper near‑term growth.
"We closed 2025 on a high note. Fourth quarter revenue increased 43% year‑over‑year and we achieved records for revenue and Adjusted EBITDA. Our core business is strong as we enter 2026," said CEO Jason Robins. He added, "We also see a massive, incremental opportunity in DraftKings Predictions. We plan to deploy growth capital to build the best customer experience in Predictions and acquire millions of customers. We have the playbook to execute and win." CFO Alan Ellingson noted, "We have built an efficient and powerful business model and are excited to share more detail at our virtual Investor Day on March 2nd."
Investors focused on the lower‑than‑expected FY2026 guidance, which may have tempered enthusiasm. The guidance signals a cautious outlook amid the need to fund the DraftKings Predictions initiative and navigate regulatory uncertainties, while still maintaining confidence in long‑term growth and margin expansion.
DraftKings reported its first GAAP net income for fiscal 2025, repurchased 16 million shares, and continues to expand its mobile sports betting footprint to 26 U.S. states and Washington D.C., covering roughly 52% of the U.S. population. iGaming is available in five states, representing about 11% of the U.S. population.
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