Core Insights - DraftKings reported a record revenue of $1,989 million for Q4 2025, a 43% increase from $1,393 million in Q4 2024, driven by strong customer engagement and higher Sportsbook net revenue margin [2][3] - The company achieved positive net income for fiscal year 2025, with total revenue exceeding $6 billion, marking a 27% increase from the previous year [3] - DraftKings plans to invest in its DraftKings Predictions product to enhance customer experience and acquire new users [3] Financial Performance - Q4 2025 revenue was $1,989 million, up $596 million or 43% year-over-year [2] - Fiscal year 2025 revenue reached over $6 billion, a 27% increase compared to fiscal year 2024 [3] - Adjusted EBITDA for Q4 2025 was $343,202 thousand, compared to $89,454 thousand in Q4 2024 [17] Customer Metrics - Monthly Unique Payers (MUPs) remained stable at 4.8 million in Q4 2025, with a 5% increase when excluding Jackpocket [7] - Average Revenue per MUP (ARPMUP) was $139 in Q4 2025, reflecting a 43% increase from the same period in 2024 [7] Future Guidance - DraftKings provided fiscal year 2026 revenue guidance of $6.5 billion to $6.9 billion and Adjusted EBITDA guidance of $700 million to $900 million [7] - The guidance reflects expected investments in DraftKings Predictions and new jurisdiction launches [7] Market Presence - DraftKings operates mobile sports betting in 26 states and Washington, D.C., covering approximately 52% of the U.S. population [7] - The company is also active in iGaming in 5 states, representing about 11% of the U.S. population [7]

DraftKings Inc. (NASDAQ:DKNG) is one of the most oversold NASDAQ stocks to invest in. Bernstein cut the price target on DraftKings Inc. (NASDAQ:DKNG) to $32 from $41 on February 6, maintaining an Outperform rating on the shares. The rating update came ahead of the quarterly results, with the firm telling investors that it anticipates DraftKings Inc. (NASDAQ:DKNG) to deliver strong fiscal Q4 results this month, supported by favorable sports results. Despite this sentiment, Bernstein believes that this alone ...

Core Viewpoint - DraftKings Inc is set to report its fourth-quarter results, which may highlight both the potential and challenges of prediction markets in the sports betting industry [1] DraftKings Q4 Earnings Estimates - Analysts project DraftKings' Q4 revenue to reach $1.99 billion, an increase from $1.39 billion in Q4 2024 [2] - Expected earnings per share for Q4 are 38 cents, up from 14 cents per share in the same quarter last year [2] - The company has missed revenue estimates in six of the last ten quarters, including Q3, but has beaten earnings estimates in nine of the last ten quarters [2] Analyst Ratings and Price Targets - Bank of America views DraftKings favorably compared to competitors, particularly due to a lower betting handle on the Seattle Seahawks [3] - Recent analyst ratings include: - Canaccord Genuity: Buy rating, price target lowered from $54 to $50 - Stifel: Buy rating, price target lowered from $46 to $44 - Guggenheim: Buy rating, price target lowered from $45 to $42 - Morgan Stanley: Overweight rating, price target raised from $50 to $53 [8] Key Items to Watch in DraftKings Q4 Results - The focus during the conference call will likely be on prediction markets, as DraftKings is among several firms entering this space [4] - The results will be analyzed in the context of the recent Super Bowl, with insights expected on betting handle and new customer acquisition [5] - The company may discuss its DraftKings Prediction platform and a partnership with Crypto.com to enhance consumer offerings [6] Stock Price Action - DraftKings stock has decreased by 3.4% to $26.21, with a year-to-date decline of 26.5% and a 39.6% drop over the last 52 weeks [10]

Core Viewpoint - DraftKings Inc is set to report its fourth-quarter results, which may highlight both the potential and challenges of prediction markets in the sports betting industry [1] DraftKings Q4 Earnings Estimates - Analysts project DraftKings' Q4 revenue to reach $1.99 billion, an increase from $1.39 billion in Q4 2024 [2] - Expected earnings per share for Q4 are 38 cents, up from 14 cents per share in the same quarter last year [2] - The company has missed revenue estimates in six of the last ten quarters, including Q3, but has beaten earnings estimates in nine of the last ten quarters [2] Analyst Ratings and Price Targets - Bank of America views DraftKings favorably compared to competitors, particularly due to a lower betting handle on the Seattle Seahawks [3] - Recent analyst ratings include: - Canaccord Genuity: Maintained Buy rating, lowered price target from $54 to $50 [8] - Stifel: Maintained Buy rating, lowered price target from $46 to $44 [8] - Guggenheim: Maintained Buy rating, lowered price target from $45 to $42 [8] - Morgan Stanley: Maintained Overweight rating, raised price target from $50 to $53 [8] Key Items to Watch in DraftKings Q4 Results - The focus during the conference call will likely be on prediction markets, as DraftKings is among several firms entering this space [4] - The results will be analyzed in the context of the recent Super Bowl LX, although its outcomes will not directly impact this quarter [5] - Investors will be interested in insights regarding betting handle, customer acquisition, and the performance of the DraftKings Prediction platform [6][9] DraftKings Stock Price Action - DraftKings stock has decreased by 3.4% to $26.21, with a year-to-date decline of 26.5% and a 39.6% drop over the past 52 weeks [10]

Core Viewpoint - DraftKings Inc is preparing for its fourth-quarter earnings report, with expectations of increased earnings and revenue compared to the previous year [1] Group 1: Earnings Expectations - DraftKings is anticipated to report earnings of 50 cents per share on revenue of $1.99 billion, marking an increase from the same quarter last year [1] - The company has historically seen positive post-earnings movements, finishing five of its last eight sessions higher, including an 8.6% increase in November [2] Group 2: Stock Performance - Despite the rise in sports betting, DraftKings stock has declined nearly 24% since the beginning of the year, hitting a two-year low of $25.01 on February 5 [3] - The stock was last observed at $26.28, down 3.1%, and has struggled to surpass resistance at the $37.50 level [3] Group 3: Market Dynamics - Short interest in DraftKings represents 7.8% of the stock's available float, indicating potential buying power in the event of a positive earnings report [4] - The stock's 14-day relative strength index (RSI) is at 27.7, indicating it is in "oversold" territory [4]

Core Viewpoint - Cathie Wood's ETFs sold 785,490 shares of DraftKings amid concerns over increased competition from prediction markets, although these fears may be exaggerated, suggesting there are better investment opportunities in the online betting sector than DraftKings at this time [1]. Company Overview - DraftKings, based in Boston, operates retail sports betting in 28 states and has a prediction markets app available in 38 states, also allowing online bets on casino games [2]. Financial Performance - DraftKings has a market capitalization of $13.5 billion and a forward price-to-earnings (P/E) ratio of 22x. In Q3, the company's revenue increased by 4% year-over-year to $1.14 billion, with an operational loss of $272 million, an improvement from a $298.6 million loss in Q3 of 2024. The company forecasts its 2025 EBITDA, excluding certain items, to be between $450 million and $550 million [3]. Market Trends - As of February 9, DraftKings' stock had decreased by 21% in 2026, while the S&P 500 Index rose by 1.75% during the same period [4]. - The popularity of prediction markets for sports betting has surged, particularly since Kalshi began allowing users to bet on sporting events, following a lack of federal opposition during the Trump administration [5]. - The decline in shares of sportsbook operators like DraftKings and Flutter indicates expectations of a shrinking market share for sportsbooks. Analysts have also reduced Flutter's Q4 adjusted earnings per share (EPS) estimates by 49% in the last three months [6]. Betting Activity - Total wagers on the Seahawks during this year's Super Bowl reached $1.5 billion, indicating substantial financial activity within major online sports-betting platforms [7].

Group 1 - DraftKings Inc. is currently facing challenges due to a lack of consolidation in the sports betting industry, particularly in key states like California, Florida, and Texas, which are crucial for its growth [1][3] - The stock is perceived as undervalued at its current price, but without regulatory changes in these states, the company may struggle to attract new customers and grow its account base [1][3] - The company is categorized as being "in the wilderness" until significant changes occur in the regulatory landscape, indicating uncertainty in its future performance [3] Group 2 - DraftKings operates in the digital sports entertainment and gaming sector, offering online sports betting, daily fantasy sports, and various iGaming products [3] - There is a belief that consolidation within the industry could potentially improve DraftKings' market position and stock performance [1][3]

I analyze securities based on value investing, an owner's mindset, and a long-term horizon. I don't write sell articles, as those are considered short theses, and I never recommend shorting.I was initially interested in a career in politics, but after reaching a dead-end in 2019 and seeing the financial drain this posed, I choose a path that would make my money work for me and protect me from more setbacks. This brought me to study value investing, in order to grow wealth with risk management in mind.From 2 ...

I analyze securities based on value investing, an owner's mindset, and a long-term horizon. I don't write sell articles, as those are considered short theses, and I never recommend shorting.I was initially interested in a career in politics, but after reaching a dead-end in 2019 and seeing the financial drain this posed, I choose a path that would make my money work for me and protect me from more setbacks. This brought me to study value investing, in order to grow wealth with risk management in mind.From 2 ...

Core Insights - The Super Bowl generated significant activity in prediction markets, with platforms like Kalshi and Polymarket seeing increased trading volumes despite not being able to advertise during the event [2][4]. Prediction Market Activity - Kalshi reported a total trading volume of $871 million, surpassing its previous daily record of $543 million, indicating a strong interest in prediction markets during the Super Bowl [3]. - Approximately 75% of Kalshi's trading volume was related to the Super Bowl, with prediction markets accounting for about 20% of the total wagers made at regulated sports books, which the American Gaming Association estimated to be around $1.76 billion [4][9]. User Experiences and Outcomes - One user on Polymarket reportedly made over $1.2 million from successful bets on the Seahawks, while another user won nearly $5,000 betting on celebrity appearances during the halftime show [5][9]. - A dispute arose regarding a Polymarket event contract related to performances at the Super Bowl, highlighting the complexities and ambiguities in defining what constitutes a "performance" [8].