DraftKings (NASDAQ:DKNG) Posts Quarterly Earnings Results, Misses Estimates By $0.20 EPS

DraftKings (NASDAQ:DKNG) posted its quarterly earnings data on Thursday. The company reported $0.25 earnings per share for the quarter, missing the consensus estimate of $0.45 by ($0.20), Briefing.com reports. The business had revenue of $1.99 billion for the quarter, compared to the consensus estimate of $1.96 billion. DraftKings had a negative net margin of 4.90% and a negative return on equity of 22.84%. The business’s revenue for the quarter was up 42.8% on a year-over-year basis. During the same quarter last year, the business posted ($0.28) EPS.

DraftKings Trading Down 4.3%

Shares of NASDAQ DKNG opened at $25.16 on Friday. The business has a 50 day simple moving average of $32.46 and a 200 day simple moving average of $36.41. DraftKings has a 52 week low of $25.01 and a 52 week high of $53.61. The stock has a market cap of $12.52 billion, a price-to-earnings ratio of -44.14, a PEG ratio of 0.52 and a beta of 1.67. The company has a debt-to-equity ratio of 2.51, a quick ratio of 1.09 and a current ratio of 1.10.

Insiders Place Their Bets

In other DraftKings news, insider R Stanton Dodge sold 52,777 shares of DraftKings stock in a transaction that occurred on Tuesday, January 20th. The shares were sold at an average price of $32.01, for a total value of $1,689,391.77. Following the completion of the sale, the insider directly owned 500,000 shares in the company, valued at $16,005,000. The trade was a 9.55% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 51.19% of the company’s stock.

Institutional Investors Weigh In On DraftKings

Several institutional investors and hedge funds have recently modified their holdings of DKNG. IHT Wealth Management LLC increased its holdings in shares of DraftKings by 4.1% during the second quarter. IHT Wealth Management LLC now owns 6,271 shares of the company’s stock valued at $269,000 after acquiring an additional 248 shares in the last quarter. Orion Porfolio Solutions LLC grew its position in DraftKings by 3.1% during the 3rd quarter. Orion Porfolio Solutions LLC now owns 10,608 shares of the company’s stock valued at $397,000 after purchasing an additional 321 shares during the last quarter. Centaurus Financial Inc. increased its stake in DraftKings by 4.1% during the 3rd quarter. Centaurus Financial Inc. now owns 10,511 shares of the company’s stock valued at $393,000 after purchasing an additional 410 shares in the last quarter. Rafferty Asset Management LLC raised its holdings in DraftKings by 1.8% in the second quarter. Rafferty Asset Management LLC now owns 23,629 shares of the company’s stock worth $1,013,000 after buying an additional 421 shares during the last quarter. Finally, Integrated Wealth Concepts LLC lifted its stake in shares of DraftKings by 5.9% in the first quarter. Integrated Wealth Concepts LLC now owns 9,460 shares of the company’s stock worth $314,000 after buying an additional 524 shares in the last quarter. Institutional investors and hedge funds own 37.70% of the company’s stock.

Trending Headlines about DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Revenue and profitability momentum — DraftKings reported ~43% year‑over‑year revenue growth for Q4 and said it delivered record revenue and adjusted EBITDA, and reported positive net income for the quarter. DraftKings Reports Fourth Quarter Revenue Growth of 43%
• Positive Sentiment: Longer‑term growth initiatives — Management emphasized aggressive investment plans for its prediction‑markets product in the 2026 outlook, signaling potential new revenue engines beyond sports betting. DraftKings Shares Lofty Prediction Markets Goals in 2026 Outlook
• Neutral Sentiment: Quarterly metric analysis available — Several writeups provide deeper dives into KPIs and comparatives vs. Street and year‑ago figures for investors who want detail on customer trends and margins. DraftKings (DKNG) Reports Q4 Earnings: What Key Metrics Have to Say
• Neutral Sentiment: Analyst views mixed — Some firms trimmed price targets ahead of earnings (e.g., Bernstein cut its PT from $41 to $32 but kept an Outperform rating), reflecting divergent views on growth vs. margin sustainability. What is the Street Saying About DraftKings Inc. (DKNG)?
• Neutral Sentiment: Short‑interest data appears unreliable in recent summaries (reported as zero/NaN) and shouldn’t be treated as a clear signal. (Company filings and exchange reports are better sources.)
• Negative Sentiment: EPS missed expectations — DraftKings missed consensus EPS in the quarter (reports show $0.36 vs. a Zacks consensus of $0.50 and other summaries cited $0.20 vs. $0.45), which disappointed investors given the revenue strength. DraftKings (DKNG) Misses Q4 Earnings and Revenue Estimates
• Negative Sentiment: FY‑2026 revenue guidance below Street — Management set FY‑2026 revenue around $6.5B–$6.9B versus consensus near $7.3B, a notable shortfall that likely pressured the shares. (Guidance and slides in the company release.) DraftKings Q4 2025 Press Release / Slide Deck

Analyst Ratings Changes

Several research firms have weighed in on DKNG. Weiss Ratings reiterated a “sell (d-)” rating on shares of DraftKings in a research report on Wednesday, January 21st. Morgan Stanley lifted their price target on DraftKings from $50.00 to $53.00 and gave the company an “overweight” rating in a report on Friday, January 16th. Truist Financial downgraded DraftKings from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, February 3rd. JPMorgan Chase & Co. decreased their price objective on DraftKings from $51.00 to $42.00 and set an “overweight” rating for the company in a research report on Monday, November 10th. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $52.00 target price on shares of DraftKings in a report on Wednesday, November 19th. Twenty-three investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $45.79.

DraftKings Company Profile

DraftKings Inc is a leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting and iGaming products. The company provides an integrated platform where users can participate in daily fantasy contests, place wagers on professional sports events, and enjoy a range of online casino-style games. DraftKings’ proprietary technology supports real-time odds, live scoring and advanced analytics to enhance the user experience across mobile and desktop applications.

Founded in 2012 by co-founders Jason Robins, Matthew Kalish and Paul Liberman, DraftKings began as a daily fantasy sports provider and rapidly expanded into regulated sports betting following legislative changes in the United States.