DraftKings’ revenue increases by 43% to nearly $2 billion in fourth quarter
DraftKings on Thursday reported revenue of $1.9 billion, an increase of $596 million for the fourth quarter, or 43%, compared to $1.4 billion during the same period in 2024.
According to a news release, the increase in the company’s fourth-quarter revenue was driven primarily by continued healthy customer engagement, efficient acquisition of new customers, and higher sportsbook net revenue margin.
“We closed 2025 on a high note,” said Jason Robins, DraftKings’ CEO and Co-Founder, in a statement. “Fourth-quarter revenue increased 43% year-over-year and we achieved records for revenue and Adjusted EBITDA. Our core business is strong as we enter 2026.
“We also see a massive, incremental opportunity in DraftKings Predictions (the company’s prediction-style platform). We plan to deploy growth capital to build the best customer experience in Predictions and acquire millions of customers. We have the playbook to execute and win.”
“We are proud to have generated positive net income in fiscal year 2025,” said DraftKings’ Chief Financial Officer Alan Ellingson. “For the year, we increased revenue 27% to above $6 billion, continued to grow Adjusted EBITDA, and repurchased 16 million shares.”
Monthly Unique Payers (“MUPs”) was unchanged year-over year at 4.8 million average customers in the fourth quarter. Excluding Jackpocket, MUPs increased 5% compared to the same period in 2024.
The Average Revenue per MUP was $139 in the fourth quarter, a 43% increase compared to the same period in 2024. The increase was primarily because of higher net revenue margin across sportsbook and igaming.
DraftKings’ introduced a fiscal year 2026 revenue guidance range of $6.5 billion to $6.9 billion and a fiscal year 2026 Adjusted EBITDA guidance range of $700 million to $900 million. The ranges reflect expected investment in DraftKings Predictions, line-of-sight jurisdictions launches, and disciplined planning as business conditions evolve. The company assumes state tax rates will remain consistent with where they are today.
DraftKings’ guidance ranges for fiscal year 2026 exclude potential variance related to sport outcomes and does not include the modest benefit from year-to-date sport outcomes.
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The Backstory
How DraftKings got here
DraftKings’ latest quarter caps a two-year stretch defined by scale, mix shifts and tighter unit economics. A year ago, the company reported fourth-quarter revenue of US$1.4 billion, propelled by heavy customer acquisition and the integration of lottery app Jackpocket. That surge came with a lower average revenue per player as Jackpocket’s users carried lighter spend and customer-friendly sports outcomes dented sportsbook hold. The business now points to a different driver: stronger net revenue margins and a more profitable mix across sportsbook and igaming, alongside more disciplined promotions.
The strategic throughline is familiar across U.S. online gambling. Operators spent 2023 and much of 2024 buying growth with bonuses and ads. As state markets matured and marketing normalized, leaders tightened reinvestment and leaned into product upgrades like live betting and parlay features that deepen engagement and boost hold. DraftKings’ guidance signals confidence that these levers, plus new products such as its Predictions platform, can lift profitability even as it pursues scale.
The comparison base helps. Last year’s fourth quarter reflected a jump in monthly unique players tied to Jackpocket and football seasonality but also a lower per-player yield. The latest results flip that story: stable user counts, higher revenue per user and improved margin, a pattern consistent with a market exiting its subsidy phase.
Shifting from land grab to operating leverage
DraftKings’ pivot mirrors a broader industry reset. BetMGM, the joint venture between MGM Resorts and Entain, told investors it exited 2024 with accelerating revenue and expects to be profitable in 2025. MGM said the unit posted US$552 million in net revenue for the year, up 28%, while narrowing quarterly losses as promotions moderated and igaming grew. Management framed 2024 as a rebuild year with a tighter strategy and improving run rates.
Penn Entertainment made a similar case from a different starting point. Its digital arm, Penn Interactive, reported a sharp jump to US$275 million in fourth-quarter revenue, up from US$31.5 million a year earlier, with full-year revenue nearing US$1 billion. Despite customer-friendly outcomes pressuring sportsbook results, Penn said disciplined bonus spending and online casino momentum lifted both revenue and adjusted EBITDA versus the prior year. The message tracks with DraftKings’ emphasis on margin expansion and cost control over pure user growth.
These peers highlight what is at stake: market share remains fluid, but the economics are improving as operators push live betting, same-game parlays and cross-sell to casino. DraftKings’ investment in Predictions aims to widen the top of the funnel with a lower-cost, high-frequency product that could convert casual users into higher-value sportsbook or casino customers over time.
Suppliers and data set the pace
Behind the operators, technology partners are posting their own gains. Sports data and integrity firm Sportradar reported a 22% rise in fourth-quarter revenue to €307 million and 26% for the full year, with U.S. revenue up 41% in the quarter. The company credited a broader content portfolio and product innovation, while acknowledging a currency hit that nudged it to a modest quarterly loss. For operators, richer data and faster feeds underpin live betting growth and higher hold. As in-play volume rises, the pricing edge often shifts from promotional budgets to product sophistication. DraftKings’ push to extend its lead in live betting fits this trajectory, suggesting continued spend on tech and trading even as marketing remains disciplined.
Vendor health also matters for cash flow. Sportradar’s jump in free cash flow and share repurchases adds confidence that data costs are scalable, which can support margin expansion at the operator level if pricing remains rational. If competition among suppliers intensifies, operators could benefit from better economics or faster innovation cycles that lift engagement without proportional increases in promo spend.
International cues on currency, regulation and retention
Outside the United States, results from Codere Online offer a read on macro and regulatory crosswinds. The Madrid-based operator posted a 5% increase in fourth-quarter net gaming revenue to €52.6 million, with Spain up 10% and Mexico flat due to a sharp peso devaluation that masked underlying constant-currency growth. Monthly active players rose in Mexico and Spain, but fell in smaller markets. The takeaway is instructive for U.S. operators with multi-state tax exposures and growing media outlays: FX, taxes and advertising restrictions can swing reported outcomes even as engagement stays healthy.
Regulatory overhangs also affect capital markets access, as Codere’s Nasdaq extension showed. While U.S. leaders like DraftKings benefit from deeper liquidity and predictable state-by-state oversight, expansion plans still depend on new jurisdiction launches, stable tax rates and consistent enforcement. DraftKings’ guidance assumes tax rates hold steady, an explicit nod to the risk that higher levies or advertising rules could slow operating leverage.
Another lesson from Europe and Latin America is retention. Operators that build sticky casino ecosystems tend to withstand promotional pullbacks better than pure-play sportsbooks. That dynamic is visible in BetMGM’s igaming outperformance and Penn’s online casino growth. DraftKings’ commentary around cross-sell echoes this, with product breadth easing the trade-off between cutting bonuses and keeping users engaged.
The throughline to today’s numbers
Last year’s fourth-quarter snapshot for DraftKings — US$1.4 billion in revenue, a bigger user base and lower average revenue per player — reflected the costs of expansion and a less favorable betting slate. The latest quarter suggests the company converted that scale into stronger unit economics, helped by improved sportsbook margins and heavier igaming contribution. Competitors are reporting the same direction of travel, reinforcing that the post-subsidy era is here.
The stakes are clear. With state launches slowing, growth hinges on extracting more value from existing customers, widening the funnel with lower-cost entry products and holding the line on promotions. Suppliers are arming operators with better live betting tools and data speed, amplifying hold without the drag of giveaways. International peers remind the market that currency, regulation and tax policy can quickly reshape reported gains.
If DraftKings can sustain higher per-user revenue while seeding Predictions as a feeder for its core app, the company gains operating leverage without sacrificing growth. The competitive backdrop — BetMGM pursuing profitability, Penn scaling digital revenue and Sportradar investing behind in-play — will test that thesis. For now, the industry’s pivot from land grab to margins is showing up in the numbers.
