DraftKings Q4 Revenue Achieves $2bn, Produces $3.7m Net Income for Fiscal Year

Fourth quarter 2025 net revenue for the operator demonstrates 43% year-over-year expansion. Full-year FY2025 net revenue rose 27% and totalled nearly $6.1bn across all operations.

Essential Highlights

• Both Q4 and FY2025 adjusted EBITDA for DraftKings experienced substantial increases during these periods. Numbers soared 283.7% and 242% respectively, reaching $343.2m and $620m in total value.
• Q4 2025 net revenue and adjusted EBITDA established new records for the operator’s history. Jason Robins, Co-Founder and CEO, validated these unprecedented quarterly achievements publicly.
• The operator identifies a ‘massive, incremental opportunity’ existing within DraftKings Predictions according to Robins. His confidence shows through stating ‘we have the playbook to execute and win’.

Financial results for DraftKings’ fourth quarter 2025 and full-year showcase impressive growth patterns. Quarterly revenue and adjusted EBITDA set new records after rising 43% and 283.7% respectively. Final figures reached $2bn and $343.2m for the three-month period ending December. Jason Robins, DraftKings Co-Founder and CEO, expressed satisfaction with the year’s conclusion. “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.” Robins emphasised future opportunities stating “We also see a massive, incremental opportunity in DraftKings Predictions.” His strategy involves deploying “growth capital to build the best customer experience in Predictions, and acquire millions of customers. We have the playbook to execute and win.”

DraftKings Reverses Previous Year Loss Building Q4 Strength

A dramatic turnaround occurred from Q4 2024’s $134.9m loss to profitability this quarter. Net income of $136.4m materialised for DraftKings during the fourth quarter of 2025. Strong performance emerged despite the cost of revenue surging 28.7% to nearly $1.1bn overall. Marketing and sales costs similarly expanded 20.1% to $442.6m throughout the quarter. The filing from DraftKings attributes positive changes to multiple operational factors working together. Customer engagement remained healthy while new customer acquisition proved efficient throughout the period. Higher sportsbook net revenue margins contributed to improved financial results across all metrics.

Active monthly users grew 5% excluding Jackpocket product contributions during Q4 2025 specifically. User numbers reached 4.8 million through effective player retention and strategic acquisition initiatives. Both sportsbook and iGaming products from DraftKings fuelled this quarterly user expansion. Strong Q4 2025 performance encouraged DraftKings to provide fiscal year 2026 financial guidance. The company projects revenue between $6.5bn and $6.9bn for next year’s operations. Expected adjusted EBITDA ranges from $700m to $900m including DraftKings Predictions investment plans. Guidance considers potential jurisdiction launches while maintaining “disciplined planning as business conditions evolve.”

DraftKings FY2025 Financial Results Match Company Expectations?

Record-breaking fourth quarter results capped an improving year for the sports betting operator. FY2025 net income totalled just $3.7m but represented a significant recovery from prior periods. The operator successfully reversed a $507.3m loss experienced throughout FY2024 operations entirely. Annual net revenue expanded 27% reaching nearly $6.1bn across FY2025 business segments collectively. Full-year adjusted EBITDA for DraftKings multiplied 242% and achieved $620m in total. Revenue costs accumulated to $3.6bn throughout FY2025, increasing 20.6% compared to the previous year. Marketing/sales and product/technology expenses grew 9.1% and 15.8%, reaching $1.4bn and $459.9m.

Alan Ellingson, DraftKings CFO, celebrated achieving “positive net income in fiscal year 2025” proudly. “For the year, we increased revenue 27% to above $6bn, continued to grow adjusted EBITDA and repurchased 16 million shares.” Ellingson highlighted their business model stating “We have built an efficient and powerful business model.” He promised investors “We are excited to share more details at our virtual Investor Day on March 2.”

DraftKings’ Prediction Markets Product Future Development

Late 2025 saw DraftKings unveil DraftKings Predictions to diversify its product portfolio strategically. February 6 brought a Crypto.com partnership enabling player-specific sports event contracts initially. NBA and NFL events became available through these new contract offerings immediately. Jeanine Hightower-Sellitto, DraftKings Predictions SVP and GM, discussed ongoing momentum-building efforts enthusiastically. “We’re leveraging our expertise across sports and technology and integrating additional CFTC-regulated exchanges like Crypto.com.” She elaborated on the benefits stating “This collaboration meaningfully expands customer access to trade on sports.” The partnership “reinforces our focus on delivering a more comprehensive and engaging experience as the product continues to evolve.”

Crypto.com’s extended offerings will operate alongside the current DraftKings Predictions markets from CME Group seamlessly. Railbird Exchange integration joins the platform’s roadmap “in the coming months” according to announcements. 2026 promises continued DraftKings Predictions expansion through strategic partnerships and technological integrations planned. Competition with FanDuel Predicts and Fanatics Markets will intensify over the upcoming months.