DraftKings delivered strong growth to close 2025, but investors focused on what the company said about 2026.and they didn’t like the shape of it. The company reported fourth-quarter revenue of $1.989 billion, up 43% year over year, and full-year 2025 revenue of $6.055 billion.
Growth stayed strong, but the 2026 spending plan got louder
The market reaction wasn’t about whether DraftKings is still growing. It was about the pace of profit improvement versus the cost of expanding into new areas. DraftKings guided to 2026 revenue of $6.5 billion to $6.9 billion, and adjusted EBITDA of $700 million to $900 million, ranges that landed softer than many investors expected.
Guidance is where public companies get judged. If investors think a business is moving from “growth story” to “mature earner,” they want cleaner visibility. DraftKings is telling them it still intends to invest heavily, even with the core sportsbook looking more established than it was a few years ago.
Prediction markets are in the budget and investors want proof
DraftKings also tied its outlook to investment in newer initiatives, including its prediction markets push. Management’s pitch is that these products can reach customers in states where traditional sports betting is not available, and can add another growth lane without relying only on promo-heavy sportsbook expansion.
That’s where skepticism comes in. Building a second “sports outcomes” product line isn’t free, and investors want to know whether it brings truly new users,or just shifts the same users into a different wrapper. DraftKings’ investor day on March 2 now matters more because it’s a chance to show how the spend turns into durable revenue.
DraftKings didn’t lose the market because it had a bad quarter. It lost the market because it asked investors to be patient again.
