DKNG Q4 Revenue Up 42.8% But Misses EPS; Shares Drop 8.5% Post-Earnings

DraftKings (NASDAQ:DKNG) reported Q4 CY2025 revenue of $1.99 billion, up 42.8% year-over-year and in line with Wall Street estimates. However, non-GAAP EPS of $0.36 missed by 12.5% of the consensus, and full-year revenue guidance of $6.7 billion is 8.2% below estimates. The stock fell 8.5% to $23.02 in after-hours trading following the results. Supporting context: DraftKings’ 5-year revenue CAGR was 56.6%, but 2-year annualized growth slowed to 28.5%. The company’s operating margin expanded to 7.6% in Q4, up 17.6 pp yoy, and EPS is expected to rise 95.3% to $0.60 in FY2026. Analysts project 20.6% revenue growth over the next 12 months. The full-year EPS trend turned positive over the last five years, but the company remains at negative 5.8% margin over the last two years due to a large expense base and inefficiency.