DraftKings has reported its financial results for the fourth quarter of 2025 and full-year, as revenue and adjusted EBITDA during the quarterly period achieved record highs after increasing 43% and 283.7%, respectively, to $2bn and $343.2m.
“We closed 2025 on a high note. 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,” DraftKings Co-Founder and CEO Jason Robins said.
“We also see a massive, incremental opportunity in DraftKings Predictions. We plan to deploy growth capital to build the best customer experience in Predictions, and acquire millions of customers. We have the playbook to execute and win.”
DraftKings recovers from prior year loss to build Q4 momentum
Following a $134.9m loss witnessed during Q4 2024, the operator managed to report a net income of $136.4m for the fourth quarter of 2025. DraftKings managed to increase revenue and net income despite a 28.7% increase in cost of revenue to nearly $1.1bn, as well as sales and marketing costs rising 20.1% to $442.6m.
DraftKings stated within the filing that positive year-over-year changes in net revenue, adjusted EBITDA and net income were primarily due to healthy customer engagement, efficient acquisition of new customers and higher sportsbook net revenue margin.
The operator also reported a 5% increase in monthly active users when excluding its Jackpocket product for Q4 2025, reaching 4.8 million users due to strong player retention and acquisition from DraftKings sportsbook and iGaming offerings.
Given the positive momentum built during Q4 2025, DraftKings introduced a fiscal year 2026 revenue guidance of $6.5bn to $6.9bn and an adjusted EBITDA range of between $700m and $900m. The ranges take expected investment in DraftKings Predictions into account, as well as line-of-sight jurisdictions launches and "disciplined planning as business conditions evolve.”
Was DraftKings FY2025 financial performance up to expectations?
While the fourth quarter of 2025 represented a record-setting period for the sports betting operator, DraftKings generated a net income of just $3.7m for FY2025, but still managed to produce an increase from the $507.3m loss reported during FY2024.
Net revenue for FY2025 increased 27% to nearly $6.1bn, while DraftKings’ adjusted EBITDA during the full-year period grew 242% for a total of $620m. Cost of revenue totaled $3.6bn during FY2025 and increased 20.6%, while expenses for sales & marketing and product & technology rose 9.1% and 15.8%, respectively, to $1.4bn and $459.9m.
“We are proud to have generated positive net income in fiscal year 2025. For the year, we increased revenue 27% to above $6bn, continued to grow adjusted EBITDA and repurchased 16 million shares,” DraftKings CFO Alan Ellingson said.
“We have built an efficient and powerful business model and are excited to share more detail at our virtual Investor Day on March 2.”
The future of DraftKings’ prediction markets product
After announcing the launch of DraftKings Predictions in late 2025, the operator recently partnered with Crypto.com on February 6 to begin offering player-specific sports event contracts for the first time, covering both the NBA and NFL.
“We’re continuing to build momentum behind DraftKings Predictions by leveraging our expertise across sports and technology and integrating additional CFTC-regulated exchanges like Crypto.com,” DraftKings Predictions SVP and GM Jeanine Hightower-Sellitto said.
“This collaboration meaningfully expands customer access to trade on sports and a broader range of prediction markets and also reinforces our focus on delivering a more comprehensive and engaging experience as the product continues to evolve.”
The extended offerings from Crypto.com will reportedly work in tandem with the current markets provided on DraftKings Predictions by CME Group, with the prediction markets platform also set to integrate Railbird Exchange “in the coming months.”
With DraftKings Predictions set to continue expanding in 2026, how will the offering compare to fellow prediction market products such as FanDuel Predicts and Fanatics Markets over the next few months?
DraftKings formed a new partnership with Mindway AI on January 5 to integrate the RG solution provider's Gamalyze tool, which evaluates real-time decision-making through a simulated card game
