DraftKings Posts 43% Q4 Revenue Growth, Turns Profitable as 2026 Investment Ramps
CEO Jason Robins said DraftKings is entering 2026 with “massive incremental opportunity” following a record-breaking 2025.
DraftKings reported Q4 2025 revenue of $1.99 billion, up 43% year-over-year, marking its strongest quarter on record and contributing to full-year revenue exceeding $6.05 billion.
Growth was driven primarily by sportsbook margin expansion and sustained iGaming contribution, alongside disciplined customer acquisition spend and stable engagement levels.
The company also delivered positive net income for fiscal 2025, a structural inflection point that underscores its transition from aggressive customer acquisition to disciplined profitability.
“We closed 2025 on a high note,” Robins said.
“Our core business is strong as we enter 2026.”
Customer Metrics Show Strong Monetization
Despite Monthly Unique Players remaining stable at 4.8 million, DraftKings significantly increased monetisation:
- Average Revenue per MUP jumped 43% to $139
- Growth came from margin expansion across Sportsbook and iGaming
- Retention and acquisition remained healthy
This signals stronger value extraction per user rather than raw user expansion.
2026 Outlook: Aggressive Investment Phase
DraftKings introduced 2026 revenue guidance of $6.5–$6.9 billion, alongside Adjusted EBITDA guidance of $700–$900 million.
A key strategic focus will be DraftKings Predictions, a federally regulated event contracts platform that Robins describes as a “massive incremental opportunity.”
Management signalled it will redeploy growth capital to scale the product, positioning event contracts as both an acquisition engine and a potential hedge against traditional sportsbook margin volatility.
Geographic Footprint Snapshot
DraftKings is currently live with:
- Mobile sports betting in 26 U.S. states + Washington D.C.
- iGaming in 5 U.S. states
- Sportsbook + iGaming in Ontario, Canada
Combined reach:
- 52% of the U.S. population for sports betting
- 11% for U.S. iGaming
- 40% of Canada via Ontario
Industry Significance
As iGaming News Today observes, DraftKings’ Q4 performance highlights three broader iGaming trends:
- Margin optimization over pure user growth
- Rising profitability in regulated U.S. markets
- Expansion into new product verticals beyond traditional betting
The pivot toward federally regulated event contracts signals a strategic expansion beyond conventional sportsbook economics and could redefine how operators compete for high-value, financially literate customers.
Source (Official Only): DraftKings Q4 2025 Earnings Release
For Latest News, visit: iGamingNewsToday
Follow our LinkedIn Page for Latest Post Notifications: igamingnewstoday
