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Key Takeaways
- DraftKings shares rebounded from early losses Friday after the company posted weaker-than-expected earnings, but offered a strong outlook for 2025.
- The online betting site said it lowered its current-year outlook because of “very customer-friendly” betting outcomes early in the period.
- With Friday’s gains, DraftKings shares have climbed over 13% since the start of the year.
DraftKings (DKNG) shares rebounded from early losses Friday after the company posted weaker-than-expected earnings, but offered a strong outlook for 2025.
CEO Jason Robins wrote in a letter to shareholders that the company expects full-year 2025 revenue of between $6.2 billion and $6.6 billion, representing a 27% to 35% jump from its lowered fiscal 2024 projections, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $900 million to $1 billion.
The CEO added the company expects further upside in fiscal year 2026 and beyond, despite short-term headwinds, saying “the overall trajectory of our business is strong.”
DraftKings reduced its current-year outlook to $4.85 billion to $4.95 billion from $5.05 billion to $5.25 billion, and adjusted EBITDA to $240 million to $280 million from $340 million and $420 million, citing NFL game wagering outcomes that were “very customer-friendly early in the fourth quarter.”
In the fiscal third quarter, DraftKings reported a loss of 60 cents per share, with revenue soaring 38.7% year-over-year to $1.1 billion. Both figures missed analysts’ estimates.
Shares of DraftKings were up 1% in Friday afternoon trading and have climbed about 13% since the start of the year.
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