Behind a 43% year-over-year revenue increase during the fourth quarter of 2025, DraftKings ended the fiscal year with profits of $6.05 billion.
Key Takeaways
- Sports betting produced $1.9 billon in Q4 revenue.
- DraftKings’ Adjusted EBITDA for the fiscal year 2025 spiked a massive 242%.
- The company said it wasn’t affected by other prediction markets.
The sports betting and iGaming operator announced on Thursday that the final three months of 2025 produced $1.99 billion in revenue, up from $1.39 billion during the same period in 2024. DraftKings attributed the quarterly profit increase to “continued healthy customer engagement, efficient acquisition of new customers, and higher sportsbook net revenue margin,” the company said.
Sportsbooks nationwide did very well against NFL bettors as numerous jurisdictions set revenue records in October, November, and December, driving DraftKings’ strong finish.
“We closed 2025 on a high note. Fourth quarter revenue increased 43% year-over-year, and we achieved records for revenue and Adjusted EBITDA,” Jason Robins, DraftKings CEO and co-founder, said. “Our core business is strong as we enter 2026.”
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Big profits
DraftKings’ online casino contributed a record $500 million to the total Q4 revenue, and the sportsbook handle during the meat of the NFL season rose 13% to $16.8 billion. The final quarter of 2025 produced sports betting revenue of $1.3 billion, a 63% year-over-year increase.
The company recorded a positive Adjusted EBITDA in Q4 of $343 million, up from $89.4 during the same quarter in 2024.
FY 2025 revenue was up 27%, and DraftKings produced an Adjusted EBITDA of $620 million, a 242.5% year-over-year increase. It’s also the first year that DraftKings has produced a positive net income since the company went public in 2020.
DraftKings reported an unadjusted profit of $136.4 million for the fourth quarter of 2025, albeit a $3.7 million profit for 2025 overall. pic.twitter.com/a2vpZYKohp
— Geoff Zochodne (@GeoffZochodne) February 12, 2026
DraftKings hasn’t seen a “discernible” business impact from prediction markets.
“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,” 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 2nd.”
Q4 developments
DraftKings reported a 5% year-over-year increase in Monthly Unique Players (MUP) for its sportsbook and iGaming products in Q4, while revenue per MUP spiked 43% to $139, primarily because of a higher net revenue margin, the company said.
DraftKings launched sports betting in Missouri, its 26th U.S. state, with strong customer acquisition.
DraftKings' Missouri sports betting launch saw its highest customer acquisition penetration and second-highest gross revenue per adult of any of its 18 state/jurisdiction launches since 2021, per $DKNG release
— Ryan Butler (@ButlerBets) February 12, 2026
The operator also kicked off a new era in late Q4 with DraftKings Predictions, a trading exchange available in 28 states.
“We also see a massive, incremental opportunity in DraftKings Predictions,” Robins said. “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 anticipates hundreds of millions of dollars in revenue from its prediction platform.
2026 guidance
Heading into 2026, DraftKings projected FY revenue to fall between $6.5 billion and $6.9 billion. The company also suggested an Adjusted EBITDA guidance range of $700 million to $900, well above 2025’s final figures.
This includes the expected investments Robins mentioned in DraftKings Predictions, as well as other jurisdictional launches and evolving business conditions, if tax rates to operate in states remain at the current percentages.
