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DraftKings shares fell more than 13% by the close of trading after the digital sports entertainment and gaming company issued a forecast that investors viewed as underwhelming. The decline came as attention shifted to DraftKings’ guidance for 2026.
DraftKings reported fourth-quarter revenue of $2 billion, up 43% year over year. The company said its mobile sports betting operations are live in 26 states and Washington, D.C., reaching about half of the U.S. population.
Customer metrics were mixed: average monthly unique paying customers were flat at 4.8 million, while average revenue per customer rose 43% to $139. DraftKings attributed the improvement to a higher mix of parlay bets and sportsbook-friendly sporting event outcomes.
Profitability improved significantly. DraftKings generated net income of $136 million, compared with a net loss of $135 million in the prior-year quarter. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 284% to $343 million.
Despite the quarterly gains, DraftKings’ outlook weighed on the stock. For full-year 2026, the company expects revenue of $6.5 billion to $6.9 billion and adjusted EBITDA of $700 million to $900 million. Wall Street had expected revenue of $7.3 billion.
The revenue shortfall raised concerns about intensifying competition, including from other sportsbook operators and from fast-growing prediction markets.
CEO Jason Robins said DraftKings views prediction markets as an opportunity rather than a threat. He said the company plans to deploy growth capital to build the best customer experience in predictions and to acquire millions of customers, adding that it has a “playbook to execute and win.”
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