DraftKings reported its This fall outcomes on Thursday, highlighting income progress of 43%, largely because of file sports activities betting handles.
Within the three months between October and December final yr, 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 by 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 information for income and Adjusted EBITDA. Our core enterprise is powerful as we enter 2026,” mentioned Jason Robins, DraftKings’ Chief Government Officer and Co-founder.
Inventory Worth Falls Regardless of Earnings
Total income in This fall reached $1.99 billion, up $596 million from This fall 2024. That led to whole income for 2025 exceeding $6 billion, up from $4.77 billion the earlier yr. The corporate was in a position to put up earnings for the primary time, reversing a web lack of $507 million in 2024 to earnings of $3.7 million.
Regardless of the constructive numbers, a lower-than-expected forecast for 2026 led to DK’s inventory worth falling. The corporate initiatives income of $6.5 to $6.9 billion for the yr, lower than the $7.3 billion predicted by analysts.
Consequently, the corporate’s share worth fell from over $26 on Thursday to only 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 yr and Robins mentioned it represents a “huge, incremental alternative” to accumulate new prospects.
He added, “We plan to deploy progress capital to construct one of the best buyer expertise in Predictions, and purchase tens of millions of shoppers. We have now the playbook to execute and win.”
The corporate is betting massive on success and has already given up a sports activities betting license in Nevada when launching the platform.
Robins mentioned he believes prediction markets supply a novel 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 group also can use each the DK platform and different exchanges to extend earnings.
Esports markets are usually not presently accessible on DraftKings Predictions, however because the platform expands, we’d anticipate to see a variety of occasions change into accessible. Rival platforms Kalshi and Polymarket have in depth protection of main esports tournaments.
