Revenue for the fourth quarter increased 43% year over year to $1.99bn. Revenue for the full year was up 27% to $6.05bn.
The profitability swing was even more pronounced. Adjusted EBITDA for the quarter came in at $343.2m, an increase from $89.5m in the prior year period. For the full year, adjusted EBITDA rose to $620m, an increase from $181.3m in 2024.
The operating performance was also significantly better, with 2025 ending with an operating loss of $15.8m, which was much improved from the operating loss of $609m in 2024. Q4 itself posted an operating income of $151.8m, reversing last year’s operating loss.
Player Counts Were Flat, but Monetization Improved
The customer base, at least on the headline number, did not grow in the fourth quarter. Monthly unique players (MUPs) were flat year-over-year at 4.8 million. Excluding Jackpocket, MUPs were up 5%, implying underlying growth after adjusting for the mix effect.
What the fourth quarter really saw was growth in monetization, or revenue per user. Average revenue per MUP rose by 43%, or $139, driven by increased net revenue in both sportsbook and iGaming.
2026 Guidance Builds In Predictions Investment
For 2026, the firm guided revenue of $6.5bn-$6.9bn and adjusted EBITDA of $700m-$900m. It also indicated that these forecasts incorporate its plans for DraftKings Predictions and “line-of-sight” jurisdiction launches, and that it expects state tax rates to remain at current levels.
This Predictions strategy is more than a simple rebranding exercise. As was noted in the public reporting of the results, it aims to stretch beyond the sports focus and incorporate a prediction market element that requires a significant upfront spend.
The next milestone will be a virtual Investor Day on March 2nd, where further details on the operating model will be revealed by CFO Alan Ellingson.
What This Signals Going Into 2026
The takeaway from the company’s Q4 report is that improving margins can quickly translate into EBITDA and operating income acceleration at scale. The question for 2026 is how efficiently the company can fund Predictions and new launches without sacrificing the margin gains that drove the finish to the quarter.
