DraftKings reported its This fall outcomes on Thursday, highlighting income development of 43%, largely attributable to report sports activities betting handles.
Within the three months between October and December final 12 months, the corporate accepted $16.8 billion of sports activities bets. Favorable sporting outcomes led to income of $1.35 billion, a rise of 63% from the identical interval in 2024.
Esports betting contributed to these numbers in 9 states, in addition to Ontario. The platform additionally mentioned its launch in Missouri was profitable, and is eyeing entry into extra states via DraftKings Predictions.
The corporate additionally presents fantasy esports contests and famous that income in its DFS section additionally grew.
“We closed 2025 on a excessive word. Fourth quarter income elevated 43% year-over-year and we achieved data for income and Adjusted EBITDA. Our core enterprise is robust as we enter 2026,” mentioned Jason Robins, DraftKings’ Chief Government Officer and Co-founder.
Inventory Value Falls Regardless of Earnings
General income in This fall reached $1.99 billion, up $596 million from This fall 2024. That led to complete income for 2025 exceeding $6 billion, up from $4.77 billion the earlier 12 months. The corporate was in a position to submit income for the primary time, reversing a web lack of $507 million in 2024 to income of $3.7 million.
Regardless of the constructive numbers, a lower-than-expected forecast for 2026 led to DK’s inventory value falling. The corporate tasks income of $6.5 to $6.9 billion for the 12 months, lower than the $7.3 billion predicted by analysts.
Consequently, the corporate’s share value fell from over $26 on Thursday to simply over $21 in prolonged buying and selling on the finish of the day.
Playing On Prediction Markets
One of many main focuses in Robins’ letter to shareholders was the corporate’s new vertical, DraftKings Predictions.
The platform launched on the finish of the 12 months and Robins mentioned it represents a “large, incremental alternative” to accumulate new prospects.
He added, “We plan to deploy development capital to construct the perfect buyer expertise in Predictions, and purchase tens of millions of consumers. We’ve got the playbook to execute and win.”
The corporate is betting large on success and has already given up a sports activities betting license in Nevada when launching the platform.
Robins mentioned he believes prediction markets provide a singular alternative to accumulate new customers and highlighted two sources of income from the rising business. Firstly, the corporate can take transaction charges from customers’ peer-to-peer trades, whereas its well-established buying and selling staff can even use each the DK platform and different exchanges to extend income.
Esports markets are usually not at the moment accessible on DraftKings Predictions, however because the platform expands, we might count on to see a spread of occasions turn into accessible. Rival platforms Kalshi and Polymarket have in depth protection of main esports tournaments.
