Fourth Quarter 2025 HighlightsFor the three months ended December 31, 2025, DraftKings reported revenue of $1,989 million, an increase of $596 million, or 43%, compared to $1,393 million during the same period in 2024. The increase in the Company's fourth quarter 2025 revenue was driven primarily by continued healthy customer engagement, efficient acquisition of new customers, and higher Sportsbook net revenue margin.
"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," said Jason Robins, DraftKings' Chief Executive Officer and Co-founder. "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."
"We are proud to have generated positive net income in fiscal year 2025. For the year, we increased revenue 27% to above $6 billion, continued to grow Adjusted EBITDA, and repurchased 16 million shares," said Alan Ellingson, DraftKings' Chief Financial Officer. "We have built an efficient and powerful business model and are excited to share more detail at our virtual Investor Day on March 2nd."
Continued Healthy Growth in Customer Retention, Acquisition, and Engagement
Monthly Unique Payers ("MUPs") was unchanged year-over year at 4.8 million average monthly unique paying customers in the fourth quarter of 2025. Excluding Jackpocket, MUPs increased 5% compared to the same period in 2024, reflecting strong unique payer retention and acquisition across DraftKings' Sportsbook and iGaming product offerings.
Average Revenue per MUP ("ARPMUP") was $139 in the fourth quarter of 2025, representing a 43% increase compared to the same period in 2024. The increase was primarily due to higher net revenue margin across both Sportsbook and iGaming.
Detailed financial data and other information for the fourth quarter of 2025 is available in the financial statements set forth below under the caption "Financial Results."
Fiscal Year 2026 Guidance
DraftKings is introducing a fiscal year 2026 revenue guidance range of $6.5 billion to $6.9 billion and a fiscal year 2026 Adjusted EBITDA guidance range of $700 million to $900 million. The Company's guidance ranges reflect expected investment in DraftKings Predictions, line-of-sight jurisdictions launches, and disciplined planning as business conditions evolve. The Company assumes state tax rates will remain consistent with where they are today.
The Company's guidance ranges for fiscal year 2026 exclude potential variance related to sport outcomes and therefore does not include the modest benefit from year-to-date sport outcomes.
Mobile Sports Betting and iGaming Footprint
DraftKings is live with mobile sports betting in 26 states and Washington, D.C., which collectively represent approximately 52% of the U.S. population.
DraftKings is also live with iGaming in 5 states, which collectively represent approximately 11% of the U.S. population.
DraftKings is live with its Sportsbook and iGaming products in Ontario, Canada, which represents approximately 40% of Canada's population.
Webcast and Conference Call DetailsAs previously announced, DraftKings will host a conference call and audio webcast tomorrow, Friday, February 13, 2026, from 8:30 a.m. to 9:15 a.m. ET, during which management will discuss the Company's results and provide commentary on business performance. A question-and-answer session will follow the prepared remarks.
To listen to the audio webcast and live question and answer session, please visit DraftKings' investor relations website at investors.draftkings.com. A live audio webcast of the earnings conference call will be available on the Company's website at investors.draftkings.com, along with a copy of this press release, the Company's Annual Report on Form 10-K, an earnings presentation and a letter to shareholders. The audio webcast will be available on the Company's investor relations website until 11:59 p.m. ET on March 31, 2026.
Financial ResultsDraftKings' fourth quarter and full-year 2025 financial results, as well as the financial results for the respective comparative periods, are presented below:
DRAFTKINGS INC.CONSOLIDATED BALANCE SHEETS(Amounts in thousands, except par value)
December 31,
2025
2024
Assets
Current assets:
Cash and cash equivalents
$
1,127,545
$
788,287
Restricted cash
7,601
16,499
Cash reserved for users
469,449
525,407
Accounts receivable
105,577
57,839
Prepaid expenses and other current assets
104,837
145,729
Total current assets
1,815,009
1,533,761
Property and equipment, net
51,081
50,550
Intangible assets, net
889,201
933,121
Goodwill
1,597,647
1,555,116
Operating lease right-of-use assets
49,810
74,917
Equity method investments
18,938
13,200
Deposits and other non-current assets
109,098
123,060
Total assets
$
4,530,784
$
4,283,725
Liabilities and Stockholders' equity
Current liabilities:
Accounts payable and accrued expenses
$
785,441
$
661,245
Liabilities to users
935,001
979,453
Operating lease liabilities, current portion
9,795
10,993
Other current liabilities
25,234
3,300
Total current liabilities
1,755,471
1,654,991
Convertible notes, net of issuance costs
1,259,096
1,256,429
Term B Loan, net of issuance costs
576,544
—
Operating lease liabilities
44,391
67,660
Warrant liabilities
—
22,033
Long-term income tax liabilities
91,618
76,375
Other long-term liabilities
172,203
195,611
Total liabilities
$
3,899,323
$
3,273,099
Stockholders' equity:
Class A common stock, $0.0001 par value; 900,000 shares authorized as of December 31, 2025 and 2024; 533,296 and 504,722 shares issued and 495,053 and 489,071 outstanding as of December 31, 2025 and 2024, respectively
$
52
$
48
Class B common stock, $0.0001 par value; 900,000 shares authorized as of December 31, 2025 and 2024; 393,014 shares issued and outstanding as of December 31, 2025 and 2024
39
39
Treasury stock, at cost; 38,243 and 15,651 shares as of December 31, 2025 and 2024, respectively
(1,392,433
)
(563,146
)
Additional paid-in capital
8,424,833
7,978,425
Accumulated deficit
(6,437,518
)
(6,441,228
)
Accumulated other comprehensive income
36,488
36,488
Total stockholders' equity
631,461
1,010,626
Total liabilities and stockholders' equity
$
4,530,784
$
4,283,725
DRAFTKINGS INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)(Amounts in thousands, except per share amounts)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Revenue
$
1,989,193
$
1,392,772
$
6,054,525
$
4,767,699
Cost of revenue
1,074,506
834,644
3,556,947
2,950,561
Sales and marketing
442,643
368,602
1,379,880
1,264,920
Product and technology
133,555
112,063
459,912
397,114
General and administrative
186,729
216,642
673,603
764,103
Income (loss) from operations
151,760
(139,179
)
(15,817
)
(608,999
)
Other income (expense):
Interest income (expense), net
(5,428
)
8,020
(19,941
)
44,300
Gain (loss) on remeasurement of warrant liabilities
3,870
3,337
4,747
