Financial Data and Key Metrics Changes - In Q4 2025, revenue grew 43% year-over-year to nearly $2 billion, with Adjusted EBITDA reaching $343 million, four times the prior year period [5][14] - Adjusted EBITDA margin expanded by over 1,000 basis points year-over-year to 17% [5][14] - For the fiscal year 2025, revenue increased 27% year-over-year to above $6 billion, and Adjusted EBITDA more than tripled to over $600 million [7][17] Business Line Data and Key Metrics Changes - Fantasy revenue increased as Pick6 began to scale [14] - Sportsbook revenue increased over 30% year-over-year, with a standout Q4 where revenue rose 64% year-over-year to $1.4 billion [15] - iGaming revenue grew by 20% due to expanded offerings [15] - Lottery revenue benefited from a stronger jackpot environment and the rollout of new games [15] Market Data and Key Metrics Changes - Sportsbook handle increased 11% year-over-year to $54 billion, with a total potential payout across all open wagers of $2.5 trillion [16] - In January, Sportsbook handle increased 4% year-over-year, despite two consecutive months of Sportsbook-friendly outcomes [8] Company Strategy and Development Direction - The company is focusing on the predictions market as a significant growth opportunity, expecting to capture a $10 billion annual gross revenue opportunity [10] - Plans to integrate Railbird and launch a market-making division to enhance customer experience and liquidity [12][13] - The company aims to lead the predictions category while maintaining strong positions in existing markets [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the predictions market, citing a stable regulatory environment as a key factor [22][23] - The company anticipates continued revenue and Adjusted EBITDA growth for many years, with a focus on customer acquisition and retention [8][17] - Management acknowledged the importance of optimizing promotional spending and improving customer monetization [40][68] Other Important Information - The company repurchased 16 million shares during the fiscal year and plans to remain active in share repurchases as Adjusted EBITDA grows [5][17] - The company reported positive net income for the first time, indicating improved operational efficiency [17] Q&A Session Summary Question: Discussion on prediction markets and investment confidence - Management highlighted regulatory clarity from the CFTC as a significant factor in their increased focus on prediction markets, viewing it as a major growth opportunity [22][23] Question: Guidance on revenue deceleration - Management explained that the guidance reflects a conservative approach, with expectations for sports betting handle and promotional strategies factored in [25][26] Question: Competitive environment and promotional intensity - Management characterized the current promotional environment as rational, with no significant uptick in promotional activity from smaller operators [71][86] Question: Customer demographics in prediction markets - Management noted that prediction market players tend to be from states like California and Texas, resembling existing customer profiles [90][91] Question: Impact of promotional spending on revenue - Management indicated that promotional spending would be strategically managed, with flexibility to adjust based on customer acquisition and retention metrics [88][86]

Financial Data and Key Metrics Changes - In Q4 2025, revenue grew 43% year-over-year to nearly $2 billion, with Adjusted EBITDA reaching $343 million, four times the prior year period [4][13] - Adjusted EBITDA margin expanded by over 1,000 basis points year-over-year to 17% [4][13] - For fiscal year 2025, revenue increased 27% year-over-year to above $6 billion, and Adjusted EBITDA more than tripled to over $600 million [6][16] Business Line Data and Key Metrics Changes - Fantasy revenue increased as the Pick Six product began to scale [13] - Sportsbook revenue rose over 30% year-over-year, with Q4 revenue increasing 64% year-over-year to $1.4 billion [14] - iGaming revenue grew by 20% due to expanded offerings [14] - Lottery revenue benefited from a stronger jackpot environment and the rollout of new games [14] Market Data and Key Metrics Changes - Sportsbook handle increased 11% year-over-year to $54 billion, with a total potential payout across all open wagers reaching $2.5 trillion [15] - In January, Sportsbook handle increased 4% year-over-year, despite sportsbook-friendly outcomes [7][15] Company Strategy and Development Direction - The company is focusing on the predictions market as a significant growth opportunity, targeting hundreds of millions in annual revenue in the coming years [5][9] - Plans include integrating Railbird and launching a market-making division to enhance customer experience and liquidity [11][12] - The company aims to lead the predictions category and is optimistic about regulatory developments that support this growth [9][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's efficiency and sustainability, expecting revenue and Adjusted EBITDA growth for many years [6][7] - The regulatory environment has improved, providing a stable backdrop for predictions, which is seen as a major growth area [20][21] - Management acknowledged the importance of customer acquisition and retention, with a focus on optimizing promotional strategies [38][39] Other Important Information - The company repurchased 16 million shares during fiscal year 2025 and plans to continue share repurchases as Adjusted EBITDA grows [4][16] - The company reported positive net income for the first time, indicating improved operational efficiency [16] Q&A Session Summary Question: Discussion on prediction markets and investment confidence - Management highlighted regulatory clarity from the CFTC as a key factor in their increased focus on prediction markets, viewing it as a significant growth opportunity [20][21] Question: Guidance on revenue deceleration - Management explained that the guidance reflects a conservative approach, with expectations of handle growth and net revenue margin improvements [24][25] Question: Revenue drivers for 2026 - Predictions are seen as an upside opportunity, with no revenue included in the guidance for 2026, focusing instead on customer acquisition costs [31] Question: Competitive environment and promotional intensity - Management characterized the current promotional environment as rational, with no significant uptick in promotional activity from competitors [70][85] Question: Legislative updates on prediction markets - Management noted that discussions around prediction markets are gaining traction in state legislatures, which could influence future legalization of online sports betting [72]

FY 2025 EARNINGS PRESENTATION February 12, 2026 | 1 Legal Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including statements about DraftKings Inc. ("DraftKings", the "Company", "we", "us", and "our") and its industry that involve substantial risks and uncertainties. All statements, other than statements of historical fac ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________. Nevada 87-2764212 222 Berkeley Street, 5th Floor Boston, MA 02116 (Address of principal executive offices) (Zip Code) (617) 986-6744 (Registrant's telep ...

Financial Performance - DraftKings reported fourth quarter revenue of $1,989 million, a 43% increase from $1,393 million in the same period of 2024[3]. - The company achieved positive net income of $136 million in Q4 2025, compared to a net loss of $135 million in Q4 2024[15]. - Adjusted EBITDA for Q4 2025 was $343 million, significantly up from $89 million in Q4 2024[17]. - Net income attributable to common stockholders for the year ended December 31, 2025, was $3.71 million, a significant improvement from a loss of $507.29 million in 2024[19]. - Adjusted EBITDA for the year ended December 31, 2025, was $619.99 million, compared to $181.31 million in 2024, reflecting a year-over-year increase of 242%[25]. - Cash flows provided by operating activities for 2025 were $662.86 million, up from $417.77 million in 2024, indicating a 58.6% increase[19]. - Adjusted diluted earnings per share for the year ended December 31, 2025, was $0.66, compared to $0.24 in 2024, marking a 175% increase[28]. User Engagement and Growth - Monthly Unique Payers (MUPs) remained stable at 4.8 million, with a 5% increase excluding Jackpocket compared to Q4 2024[8]. - Average Revenue per MUP (ARPMUP) rose to $139 in Q4 2025, reflecting a 43% increase year-over-year[8]. - DraftKings anticipates fiscal year 2026 revenue between $6.5 billion and $6.9 billion, with Adjusted EBITDA guidance of $700 million to $900 million[8]. - DraftKings plans to invest in DraftKings Predictions to enhance customer experience and acquire millions of new customers[4]. Cash Management and Investments - The company reported a cash and cash equivalents balance of $1.13 billion at the end of 2025, compared to $788.29 million at the end of 2024, representing a 43.7% increase[19]. - Cash paid for acquisitions in 2025 was $16.38 million, a significant decrease from $441.49 million in 2024, indicating a strategic reduction in acquisition spending[19]. - The company reported a net cash outflow from investing activities of $166.00 million in 2025, compared to a much larger outflow of $566.60 million in 2024, reflecting improved cash management[19]. - The company’s total liabilities to users decreased by $44.45 million in 2025, contrasting with an increase of $110.68 million in 2024, indicating better user liability management[19]. - The company’s cash reserved for users at the end of 2025 was $469.45 million, down from $525.41 million at the end of 2024, reflecting changes in user engagement and cash management strategies[19]. Tax and Compliance - A discrete income tax benefit of $14.6 million was recorded in 2025, compared to $87.3 million in 2024, both due to non-recurring partial releases of the U.S. valuation allowance[1]. - The estimated non-GAAP effective tax rate is 23% as of December 31, 2025, reflecting adjustments for non-GAAP profitability[1]. Market Presence and Operations - The company is live with mobile sports betting in 26 states and Washington, D.C., covering approximately 52% of the U.S. population[7]. - DraftKings is also operational in iGaming across 5 states, representing about 11% of the U.S. population[11]. - The Company operates in 29 states, Washington, D.C., Puerto Rico, and Ontario, Canada, with its sports betting operations and iGaming in five states and Ontario[2]. - DraftKings' daily fantasy sports product is available in 44 states and certain Canadian provinces[2]. - The Company owns Jackpocket, the leading digital lottery courier app in the U.S.[2]. - DraftKings is an official partner of major sports leagues including the NFL, NHL, and NBA, enhancing its market presence[2]. - The Company emphasizes responsible gaming and has developed educational tools for players[2]. Strategic Changes - The Company recorded amortization of acquired intangible assets of $36.3 million for Q4 2025 and $38.6 million for Q4 2024, totaling $149.3 million for the year ended 2025 and $159.8 million for 2024[1]. - The Company reported a $38.0 million gain related to contingent consideration in 2025, alongside various non-recurring expenses totaling $27.8 million for the discontinuance of the Reignmakers product offering in 2024[1]. - Forward-looking statements indicate potential risks including changes in laws, economic conditions, and litigation that could impact future performance[3].

Core Insights - DraftKings reported $1.99 billion in revenue for Q4 2025, a year-over-year increase of 42.8% [1] - The EPS for the same period was $0.36, compared to -$0.28 a year ago, indicating a significant improvement [1] - The revenue reported was a slight miss of -0.02% against the Zacks Consensus Estimate, while the EPS fell short by -28% compared to the consensus estimate of $0.50 [1] Financial Performance Metrics - Average Revenue per Monthly Unique Payer (ARPMUP) was $139.00, exceeding the average estimate of $123.86 from two analysts [4] - Monthly Unique Payers (MUPs) totaled 4.8 million, below the average estimate of 5.13 million from two analysts [4] - Revenue from Sportsbook was $1.35 billion, matching the average estimate from three analysts [4] - Revenue from Other sources was $137.87 million, falling short of the average estimate of $151.53 million from three analysts [4] - Revenue from iGaming reached $500.18 million, surpassing the average estimate of $483.41 million from three analysts [4] Stock Performance - DraftKings shares have declined by -23.4% over the past month, contrasting with a -0.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

DraftKings (DKNG) came out with quarterly earnings of $0.36 per share, missing the Zacks Consensus Estimate of $0.5 per share. This compares to a loss of $0.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -28.00%. A quarter ago, it was expected that this company would post a loss of $0.24 per share when it actually produced a loss of $0.26, delivering a surprise of -8.33%.Over the last four quarters, the company has not bee ...

Core Viewpoint - The sports-betting company identifies a significant growth opportunity in the expanding field of prediction markets [1] Group 1 - The company perceives "a massive, incremental opportunity" in the prediction markets sector, indicating a strong potential for revenue growth [1]

DraftKings Earnings Miss Wall Street's Expectations - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# DraftKings Earnings Miss Wall Street's Expectations. The Stock Is Falling Sharply.ByNick DevorShareResize---ReprintsSince its last report, D ...

Core Insights - The online sports betting operator experienced a 43% increase in sales during the fourth quarter [1] - The company announced ambitious investment plans for its prediction markets platform [1] Sales Performance - The operator reported a significant 43% jump in sales in the fourth quarter [1] Investment Plans - The company shared plans for substantial investments aimed at enhancing its prediction markets platform [1]