DraftKings CEO Jason Robins and CFO Alan Ellingson provided additional insights into the operator’s full-year 2025 results, prediction plans and outlook for the year ahead.
Opening the DraftKings Investor Call, Robins expressed pride and gratitude for what he labelled as a highly successful 2025 – as reflected in some notable financial upswings displayed in the operator’s full financial report. Continuing, he labelled prediction markets as a “massive incremental opportunity,” wasting no time to address the predictions subject – which dominated the bulk of the subsequent investors' Q&A section.
Looking backward
Leaning into this pivotal presentation, Robins is keen to underline the strength of DraftKings' core business, highlighting that, since FY 2022, customers have grown by 6 million, revenue by $4bn and EBITDA by almost $1bn.
Building on these reflective results with more recent, sector-specific figures from 2025, CFO Ellingson outlined revenue rises across fantasy, with sportsbook revenues also up 30% and iGaming revenues up 20%. The operator’s financial head also explained that lottery revenue benefited from a stronger jackpot environment – and this growth has also been achieved while launching DraftKings’ fifth vertical in predictions.
Regarding sportsbook, specifically, 2025’s fourth and final quarter saw revenue rise 54%, handle growth hit 13% and sportsbook net revenue margin reached 8%, with parlay basis points also improving year-over-year. Ellingson also outlined that overall hold % reached 12%, with FY25 sportsbook handle growing 11% year-over-year to $54bn.
Nevertheless, among these encouraging figures, CFO Ellingson expressed particular pride in the generation of positive net income for the full year.
Jumping back in to reflect on the operator’s burgeoning predictions progress, Robins stated that DraftKings is “not yet seeing a discernible impact from predictions on its revenue,” with January 2026 sportsbook handle “very slightly” influenced by the new vertical – also accelerating by 4% year-over-year.
Thinking forward
Robins moves on to clearly underline that, with regards to guidance, he would rather set it lower than expected and exceed every quarter than vice versa – stating “shame on us” for having what he remarks was an “incredibly successful” 2025, and still missing the financial guidance.
Missing numbers again is not acceptable and not something I intend to do
With that in mind, FY 2026 guidance sees the operator expect to generate between $6.5bn-$6.9bn in revenue and between $700m and $900m adjusted EBITDA. Ellingson also stated that the company assumes tax rates will remain consistent with where they currently lie in the US.
Predictions: What changed?
Moving on to address prediction markets, Robins described them as a “massive incremental opportunity” being approached with “urgency.” DraftKings expects to emerge as the leader in the growing category, underlines the company CEO, and anticipates significant improvements in this division as they are targeting hundreds of millions in revenue in the years ahead from this sector.
Predictions is the most exciting new growth opportunity since PASPA was struck down in 2018
Analysts estimate predictions could represent a $10bn yearly revenue opportunity in time. DraftKings’ goal is to lead the sector and the company views the CFTC Chair’s current direction as constructive. Railbird is set to be integrated in the middle of this year.
Interestingly, Robins also responded candidly to an investor’s query on why the company is so much more aggressively leaning into predictions now, questioning what has changed in recent months that gives confidence in the investment?
Robins highlighted that part of this has been thanks to a ‘lean-in’ from the CFTC. He stated they observed a change from the previous Chair’s non-comment, hands-off approach – with the regulatory body now affirming the sector as one that they intend to defend, issue guidelines and regulations on. Robins states: “Anything that creates a stable regulatory environment that allows us to operate more freely is a great upside for us when you combine that with the growth potential that we’re seeing from the market.
“It’s clearly a big opportunity and we’re incredibly well positioned. If there was anything holding us back, it was regulatory uncertainty – which has now been cleared up by the CFTC.”
DraftKings’ share price has dropped almost 12% since the release of its financial results yesterday
