DraftKings (DKNG) closed out FY 2025 with Q4 revenue of US$1.99b and basic EPS of US$0.28, while trailing twelve month EPS edged into positive territory at US$0.01 on revenue of US$6.05b. This helped set the tone for a results season where profitability is firmly in focus.

The company has seen quarterly revenue move from US$1.39b in Q4 2024 to US$1.99b in Q4 2025, with basic EPS shifting from a loss of US$0.28 per share to earnings of US$0.28 per share over the same period. This puts the current quarter in the context of a year marked by swings between profit and loss. With reported earnings growth and revenue momentum now feeding into slightly positive trailing margins, the key question for investors is how durable this earnings profile looks as the business continues to scale.

See our full analysis for DraftKings.

With the headline numbers on the table, the next step is to see how these results line up against the most widely held market narratives around DraftKings, and where the new data challenges those stories.

Two profitable quarters in 2025, but earnings still choppy

• Across FY 2025, DraftKings swung between profit and loss, with net income excluding extra items ranging from a loss of US$293.7 million in Q3 2024 to earnings of US$157.9 million in Q2 2025 and US$136.4 million in Q4 2025. Trailing 12 month net income sat near break even at US$3.7 million on US$6.1b of revenue.
• Bulls point to this move into positive earnings and the forecast 41.4% annual earnings growth as evidence that profitability is becoming more established, yet the quarterly pattern still shows alternating profits and losses. This means:
  • Optimistic views about structurally higher margins need to account for the fact that two of the last four quarters, Q1 and Q3 2025, still showed losses despite revenue between US$1.1b and US$1.4b.
  • The tiny trailing 12 month EPS of about US$0.01 and the US$3.7 million net income sit a long way from bullish expectations that earnings could reach into the billions over the next few years.

Over two profitable quarters, bulls argue that recent positive EPS is the early proof point for their longer term earnings story, but these numbers still leave a wide gap to the ambitious outcome they are working from. 🐂 DraftKings Bull Case

Revenue growth vs richer P/S multiple

• Revenue over the trailing 12 months reached about US$6.1b compared with US$4.8b a year earlier. The data indicates revenue is forecast to grow around 12.2% per year, while the current P/S of 1.8x sits above both the 1.4x peer average and the 1.6x US Hospitality average.
• Bears argue that paying a higher P/S for DraftKings is risky if growth or margins disappoint, and the figures here give them some support and some pushback at the same time:
  • The forecast revenue growth rate of roughly 12.2% per year is higher than the cited 10.3% US market rate, which challenges the idea that growth is already stalling relative to the wider market.
  • At the same time, the richer 1.8x P/S multiple leaves less room if that growth or margin improvement comes in closer to the more cautious revenue and earnings paths that bearish analysts have in mind.

Skeptics warn that paying above peer and industry P/S multiples only makes sense if the growth story plays out close to the higher end of expectations, and this set of numbers shows why they keep a close eye on how revenue and margins develop from here. 🐻 DraftKings Bear Case

DCF fair value vs current price gap

• On the valuation side, the data you have here shows a DCF fair value of about US$78.49 a share versus a current price of US$21.76, while analysts in this dataset are grouped around a price target of US$40.52. Both approaches imply a sizeable gap between modelled value and where the stock trades today.
• Consensus narrative leans on strong forecast earnings and revenue growth to justify that valuation gap, but the recent reported numbers also highlight a few practical constraints:
  • Earnings over the last 12 months are only just positive at US$3.7 million, and that period includes a one off loss of US$13.2 million plus a high debt load, both of which can weigh on how quickly any valuation case can be reflected in reported profit.
  • The step up from break even trailing earnings to the profit levels embedded in long term models is therefore one of the key bridges investors will watch as they compare the current share price to both the DCF fair value and the analyst target in the data.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for DraftKings on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers differently? If this data points you in another direction, you can shape that view into your own narrative in just a few minutes, Do it your way

A great starting point for your DraftKings research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

See What Else Is Out There

DraftKings is only just break even on trailing earnings, with choppy quarterly profits, a richer 1.8x P/S multiple and a high debt load.

If that mix of thin profits and leverage feels a bit tight for your comfort, take a look at our solid balance sheet and fundamentals stocks screener (45 results) to find companies where financial strength does more of the heavy lifting.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.