DraftKings Stock Plummeted 15% After Hours –What Is Driving Such A Selloff?

• DraftKings in Q4 reported revenue of $1,989 million, an increase of 43%, compared to the same period in 2024.
• The increase in the Q4 2025 revenue was driven primarily by continued healthy customer engagement, efficient acquisition of new customers, and higher Sportsbook net revenue margin. 

DraftKings shares nosedived in after-market hours on Thursday after its full year 2026 forecast fell short of expectations and disappointed investors. 

It said it is expecting fiscal year 2026 revenue to be in the range of $6.5 billion to $6.9 billion, compared to analysts’ estimates of $7.3 billion, as per data from fiscal.ai. 

Q4 Highlights

DraftKings for the three months ended December 31, 2025, reported revenue of $1,989 million, an increase of $596 million, or 43%, compared to $1,393 million during the same period in 2024.

The increase in the company’s fourth quarter 2025 revenue was driven primarily by continued healthy customer engagement, efficient acquisition of new customers, and higher Sportsbook net revenue margin, according to the company. 

“We closed 2025 on a high note. Fourth quarter revenue increased 43% year-over-year and we achieved records for revenue and Adjusted EBITDA,” said Robins. 

DraftKings’ Average Revenue per MUP (“ARPMUP”) was $139 in the fourth quarter of 2025, representing a 43% increase compared to the same period in 2024. The increase was primarily due to higher net revenue margin across both Sportsbook and iGaming.

How Did Stocktwits Users React?

Retail sentiment around DKNG trended in ‘bullish’ territory amid ‘extremely high’ message volume. 

One user said that the stock will fall further to $14 on Friday.

Another user said that they are buying the stock despite noting that revenue guidance is bad. 

Shares in the company have fallen 50% over the past year. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.