DraftKings (DKNG) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, February 13, 2026 astatine 8:59 AM CST 40 min read

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Friday, Feb. 13, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — Jason Robins

• Chief Financial Officer — Alan Ellingson

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Jason Robins, Co-Founder and Chief Executive Officer of DraftKings Inc., who volition stock immoderate opening remarks and an update connected our business. Following Jason's remarks, our Chief Financial Officer, Alan Ellingson, volition supply a little reappraisal of our financials. We volition past unfastened the enactment to questions. I volition present crook the telephone implicit to Jason Robins. Thank you, Mike. We closed 2025 connected a precocious note, mounting caller quarterly records for gross and adjusted EBITDA. Fourth 4th gross grew 43% twelvemonth implicit twelvemonth to astir $2,000,000,000. Adjusted EBITDA was $343,000,000, 4x the anterior twelvemonth period. Adjusted EBITDA borderline expanded by much than 1,000 ground points twelvemonth implicit twelvemonth to 17%.

We repurchased different 8,000,000 shares during the quarter, and we expect to stay with repurchases arsenic our adjusted EBITDA continues to grow. We are successful a beardown position. Our sustainable advantages successful product, technology, trust, and selling proceed to thrust higher LTV and businesslike lawsuit acquisition. AI and instrumentality learning amplify each 1 by making our products better, our level faster, user spot stronger, and selling much efficient. The effect is predictable and improving cohort economics, reinforcing our condemnation that we person built an businesslike and almighty semipermanent concern model. We are excited to stock much details astatine our virtual Investor Day connected March 2. Now we instrumentality our adjacent step.

Predictions is rapidly processing into a monolithic incremental opportunity, and we are moving with urgency. We expect to look arsenic the person successful this nascent category. We program to deploy maturation superior to physique the champion lawsuit acquisition successful predictions and get millions of customers. This year, we expect important step-function improvements to our predictions, including the integration of Railbird and motorboat for our Market Making division. We are targeting hundreds of millions successful yearly gross for DraftKings Inc. predictions successful the years ahead. We judge determination is overmuch much upside implicit the agelong term. This should construe to meaningful incremental adjusted EBITDA. In predictions, we person the playbook to execute and win.

Before I spell deeper connected predictions, I privation to item the spot of our halfway business. In fiscal twelvemonth 2025, we grew gross 27% twelvemonth implicit twelvemonth to supra $6,000,000,000. Adjusted EBITDA much than tripled to implicit $600,000,000 and exceeded the precocious extremity of the guidance scope we provided successful November. We reported affirmative nett income for the archetypal clip and repurchased 16,000,000 shares during the fiscal year. The concern is scaling successful a durable way. Since fiscal twelvemonth 2022, we person grown customers by astir 6,000,000, gross by astir $4,000,000,000, and adjusted EBITDA by much than $1,000,000,000. Every twelvemonth has been amended than the past due to the fact that our LTV flywheel continues to improve,