DraftKings Misses Q4 Earnings Estimates by $0.25 EPS

Shares of the sports betting and fantasy sports company fall after reporting weaker-than-expected quarterly results.

Published on Feb. 12, 2026

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DraftKings (NASDAQ:DKNG) reported its fourth quarter financial results on Thursday, missing analysts' consensus earnings estimates by $0.25 per share. The company posted earnings of $0.20 per share, well below the expected $0.45 per share. DraftKings had a negative net margin of 4.90% and a negative return on equity of 22.84% for the quarter.

Why it matters

DraftKings' disappointing earnings results raise concerns about the company's ability to maintain profitability and growth in the competitive sports betting and fantasy sports market. The miss could put pressure on the stock price and raise questions about the company's long-term prospects.

The details

DraftKings reported revenue of $855 million for the fourth quarter, up 43% year-over-year, but fell short of the $872 million expected by analysts. The company cited higher operating expenses, including increased marketing and technology costs, as factors contributing to the earnings miss.

  • DraftKings reported its Q4 2025 earnings results on Thursday, February 12, 2026.

The players

DraftKings

An American digital sports entertainment and gaming company that specializes in daily fantasy sports, sports betting, and iGaming products.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

The takeaway

DraftKings' Q4 earnings miss highlights the challenges the company faces in maintaining profitability and growth in the competitive sports betting and fantasy sports market. Investors will be closely watching the company's guidance and ability to control costs going forward.