DraftKings’ share price fell 12% in after-hours trading on Thursday, despite the company’s Q4 earnings report showing 43% year-on-year revenue growth. It met analyst expectations and managed a $136m profit compared to a net loss the previous year.
Monthly unique players excluding Jackpocket rose 5% compared to Q4 2024 and average revenue per user rose 43% to $139, which was attributed mostly to higher net revenue margins.
DraftKings also provided guidance for 2026, forecasting revenue of $6.5bn to $6.9bn, below Wall Street’s expectations, according to the Wall Street Journal.
In the earnings release, DraftKings CEO Jason Robins said the company plans to invest heavily to develop the best possible customer experience with its prediction product, which launched in December. Robins believes it has “the playbook to execute and win,” and that it will acquire millions of customers in the coming 12 months. DraftKings sees a “massive incremental opportunity” in this area.
DraftKings plans to gain an edge by rolling out an in-house market-making operation
The company’s share price has been hit hard since the emergence of standalone prediction sites like Kalshi and Polymarket. DraftKings plans to gain an edge by rolling out an in-house market-making operation, which could be a second “revenue engine” according to Robins. He sees a market potential of hundreds of millions of dollars in the years ahead.
