DraftKings Prepares to Report Q4 Results: Key Things to Watch

Core Insights - DraftKings Inc. (DKNG) is set to report its fourth-quarter 2025 results on February 12, with an earnings miss of 8.3% in the last quarter [2] Financial Estimates - The Zacks Consensus Estimate for fourth-quarter adjusted earnings per share has risen to 50 cents from 45 cents over the past 30 days, compared to an adjusted loss per share of 28 cents in the same quarter last year [3] - Revenue consensus is projected at $1.99 billion, reflecting a 42.9% year-over-year increase [3] Revenue Drivers - Strong sportsbook engagement, particularly around the NFL and early NBA seasons, is expected to have significantly contributed to fourth-quarter revenues, with increased customer activity and improved retention [4] - Continued acceleration in iGaming growth, driven by more active users and higher spending per customer, is likely to have provided a more stable revenue stream [5] - Marketing leverage and brand partnerships, especially with ESPN and NBCUniversal, have enhanced customer engagement and brand reach without substantial additional spending [6] Earnings Performance - Structural margin improvements, driven by a richer bet mix and disciplined promotional spending, are anticipated to have positively impacted earnings [7] - Operating leverage from previous investments in technology and customer management is expected to have limited cost growth despite increased volumes [7] Earnings Prediction Model - The current model does not predict an earnings beat for DraftKings, as it lacks a positive Earnings ESP and holds a Zacks Rank of 4 (Sell) [8][10]