DraftKings reported a jump in sales during the fourth quarter and shared ambitious investment plans for its prediction markets platform.
The online sports betting operator on Thursday said revenue rose 43% to $1.99 billion, in line with analysts’ expectations. Its sales outlook for the year came in lighter than expected, though, as it plans to put more money in DraftKings Predictions.
In 2026, the Boston-based company expects revenue to be $6.5 billion to $6.9 billion, compared with consensus estimates of $7.29 billion. The guidance includes DraftKings’ planned investments in prediction markets, as well as launches in new jurisdictions.
Shares fell 16% to $20.99 in after-hours trading.
“We also see a massive, incremental opportunity in DraftKings Predictions,” Chief Executive Jason Robins said.
DraftKings launched a prediction markets product in December amid investor concerns that privately owned prediction market companies would eat into its market share. Robins said he plans to deploy capital to build “the best experience in Predictions,” with a goal of acquiring millions of customers.
DraftKings swung to a profit of $136.4 million, or 25 cents a share, in the fourth quarter, compared with a loss of $134.9 million, or 28 cents a share, a year earlier.
Analysts expected earnings of 9 cents a share, according to FactSet. The jump in sales was primarily driven by consumer engagement, acquisition of new customers and a higher net revenue margin in its sportsbook, DraftKings said.
Monthly unique players on DraftKings was unchanged year-over-year. Average revenue per monthly player was $139, up 43% from the year before.
