DraftKings Q4 Revenue Up 43%, EBITDA Beats But Guidance Disappoints
DraftKings posted Q4 CY2025 revenue of $1.99 B, up 42.8% y/y, with adjusted EBITDA of $343 M beating forecasts by 27.4% and non-GAAP EPS of $0.36 missing by 12.5%. It guided FY2026 revenue to $6.5–6.9 B and adjusted EBITDA to $700–900 M, both below consensus, sparking an 8.5% share drop.
1. Q4 CY2025 Financial Results
DraftKings reported fourth-quarter revenue of $1.99 billion, a 42.8% increase year-on-year. Adjusted EBITDA reached $343.2 million, beating analysts’ estimates by 27.4%, while non-GAAP EPS of $0.36 fell short of forecasts by 12.5%.
2. Fiscal 2026 Guidance
The company issued fiscal year 2026 revenue guidance between $6.5 billion and $6.9 billion, and adjusted EBITDA guidance of $700 million to $900 million. Both ranges sit below consensus estimates, reflecting expected investments in DraftKings Predictions and market expansion.
3. Market Reaction
Following the earnings release and conservative guidance, shares of DraftKings declined by approximately 8.5%. Investors cited the EPS miss and guidance shortfall as catalysts for the sell-off, despite strong EBITDA performance.