Overview
- DraftKings posted fourth‑quarter revenue of $1.99 billion in line with estimates, and shares fell about 15% after‑hours on the guidance.
- The company forecast 2026 revenue of $6.5–$6.9 billion versus roughly $7.3 billion expected, and projected adjusted EBITDA of $700–$900 million versus a $981 million consensus.
- DraftKings launched its Predictions platform in Q4 and plans to monetize it through trading fees and a new market‑making arm, with Railbird exchange integration planned for Q2 2026.
- Management characterizes Predictions as a multi‑billion‑dollar opportunity, reports no discernible impact on its sportsbook, and notched its first full‑year net profit at $3.7 million.
- Analysts highlight a limited near‑term threat from prediction markets at roughly 5% of legal handle, with industry data showing Kalshi derived 89% of 2025 fee revenue from sports.