DraftKings Q4 Revenue Jumps 42.8%, EPS of $0.36 Misses Estimate
DraftKings posted Q4 revenue of $1.99 billion, up 42.8% year-over-year, and delivered EPS of $0.36 versus a $0.28 loss a year ago, missing the $0.50 estimate. ARPMUP rose to $139 but MUPs fell to 4.8 million, iGaming revenue beat at $500 million and “other” revenue lagged at $138 million.
1. Q4 Financial Results
DraftKings reported revenue of $1.99 billion for the quarter ended December 2025, marking a 42.8% increase year-over-year. EPS came in at $0.36 compared to a $0.28 loss in Q4 2024, though it fell short of the $0.50 consensus estimate.
2. Key Operational Metrics
Average revenue per monthly unique payer climbed to $139, surpassing the $123.86 analyst estimate, while total monthly unique payers declined to 4.8 million versus a 5.13 million forecast, reflecting mixed user engagement trends.
3. Segment Performance
Sportsbook revenue remained at $1.35 billion in line with projections, iGaming revenue exceeded forecasts at $500.18 million, and “other” revenue dipped to $137.87 million, falling short of the $151.53 million estimate and highlighting shift in revenue mix.
4. Market Reaction
Shares have fallen 23.4% over the past month versus a 0.3% drop for the S&P 500, reflecting investor concern after the earnings miss; the company carries a Zacks Rank #4 (Sell), signaling potential near-term underperformance.