DraftKings (NASDAQ:DKNG) is preparing to release its quarterly earnings on Thursday, 2026-02-12. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect DraftKings to report an earnings per share (EPS) of $0.38.

The announcement from DraftKings is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Performance in Previous Earnings

In the previous earnings release, the company beat EPS by $0.05, leading to a 8.65% increase in the share price the following trading session.

Here's a look at DraftKings's past performance and the resulting price change:

Quarter	Q3 2025	Q2 2025	Q1 2025	Q4 2024
EPS Estimate	-0.31	0.34	0.12	-0.15
EPS Actual	-0.26	0.38	0.12	0.14
Price Change %	9.00	0.00	2.00	15.00

Market Performance of DraftKings's Stock

Shares of DraftKings were trading at $27.12 as of February 10. Over the last 52-week period, shares are down 42.58%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.

Analysts' Take on DraftKings

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on DraftKings.

The consensus rating for DraftKings is Buy, derived from 10 analyst ratings. An average one-year price target of $45.5 implies a potential 67.77% upside.

Peer Ratings Overview

The analysis below examines the analyst ratings and average 1-year price targets of MGM Resorts International, Churchill Downs and Sportradar Gr, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for MGM Resorts International, with an average 1-year price target of $39.33, suggesting a potential 45.02% upside.
• Analysts currently favor an Outperform trajectory for Churchill Downs, with an average 1-year price target of $128.67, suggesting a potential 374.45% upside.
• Analysts currently favor an Buy trajectory for Sportradar Gr, with an average 1-year price target of $31.33, suggesting a potential 15.52% upside.

Overview of Peer Analysis

The peer analysis summary offers a detailed examination of key metrics for MGM Resorts International, Churchill Downs and Sportradar Gr, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
DraftKings	Buy	4.43%	$359.94M	-29.48%
MGM Resorts International	Neutral	8.35%	$1.85B	11.50%
Churchill Downs	Outperform	8.67%	$204.30M	3.67%
Sportradar Gr	Buy	14.45%	$186.71M	2.32%

Key Takeaway:

DraftKings ranks highest in Revenue Growth among its peers. It has the lowest Gross Profit margin. DraftKings has the lowest Return on Equity compared to its peers.

About DraftKings

DraftKings got its start in 2012 as an innovator in daily fantasy sports. Then, following a Supreme Court ruling in 2018 that allowed states to legalize online sports wagering, the company expanded into online sports and casino gambling, where it generally holds the number-two or -three revenue share position across states where it competes. DraftKings is now live with online or retail sports betting in 28 states and i-gaming in 5 states, with both products available to around 40% of Canada's population. In 2024, sports revenue was 61% of total sales, i-gaming 32%, and fantasy and lottery 7%. The company plans to launch a predictive event platform in late 2025 and also operates a non-fungible token commission-based marketplace and develops and licenses online gaming products.

Understanding the Numbers: DraftKings's Finances

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: DraftKings's remarkable performance in 3 months is evident. As of 30 September, 2025, the company achieved an impressive revenue growth rate of 4.43%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: DraftKings's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -22.45%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): DraftKings's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -29.48%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): DraftKings's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -5.64%, the company may face hurdles in achieving optimal financial returns.

Debt Management: DraftKings's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 2.6.

To track all earnings releases for DraftKings visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.