DraftKings (DKNG) Stock: What to Expect from Thursday’s Earnings Report

TLDR

• DraftKings reports Q4 earnings Thursday after market close with analysts expecting $0.09 EPS and $1.99 billion in revenue
• Stock hit a two-year low of $25.01 on Feb. 5 and closed down 3% Wednesday at $26.28, down 23.8% year-to-date
• Company launched DraftKings Predictions platform to compete with prediction markets and enter states without legal sports betting
• Analysts believe prediction market impact is overblown, estimating they take only 5% of total legal sports betting handle
• Short interest at 7.8% of float could fuel rally if earnings beat expectations, while RSI of 27.7 signals oversold conditions

DraftKings reports its fourth-quarter earnings after the market closes Thursday. Analysts surveyed by FactSet project earnings per share of $0.09 and revenue of $1.99 billion.

DraftKings Inc., DKNG

Zacks Research estimates higher earnings of 50 cents per share on the same $1.99 billion in revenue. Both figures would represent increases from the year-ago quarter.

The stock closed down 3% Wednesday at $26.28. Shares have dropped 23.8% since the start of 2026.

Recent Price Action and Technical Indicators

DraftKings hit a two-year low of $25.01 on Feb. 5. The stock has struggled to break above the $37.50 resistance level in recent months.

The 14-day relative strength index sits at 27.7, putting shares in oversold territory. This technical reading suggests the stock may be due for a bounce.

Short interest stands at 7.8% of the available float. That represents nearly three days’ worth of pent-up buying power that could fuel a rally if earnings surprise to the upside.

Options traders are pricing in a 15.9% move following the report. That’s much higher than the stock’s average post-earnings swing of 5.3%.

DraftKings has closed higher in five of its last eight post-earnings sessions. The stock jumped 8.6% after its November report.

The Prediction Markets Question

DraftKings CEO Jason Robins told shareholders three months ago he was “the most bullish” he’d ever been about the company’s future. The stock is down 6% since those comments.

Investor concerns about prediction markets have weighed on DraftKings and FanDuel parent Flutter Entertainment. These platforms allow betting in states without legal sports betting.

DraftKings launched its own prediction market platform called DraftKings Predictions. The move serves dual purposes: defending market share and entering new states.

The platform also lets DraftKings build a customer database in states that may legalize sports betting later. The company can then transition those users to its sportsbook.

Third Bridge analyst Alex Smith doesn’t expect DraftKings to fully commit to prediction markets near-term. Regulatory uncertainty remains high and demand is unproven beyond major sporting events.

Sports events drive 89% of Kalshi’s fee revenue in 2025. Kalshi and Polymarket dominate the prediction market space.

Citizens analyst Jordan Bender wrote in January that prediction market impact appears overblown. His estimates suggest these platforms take roughly 5% of total legal sports betting handle.

Bender noted that one bad Monday Night Football game could have the same EBITDA impact as the entire prediction market sector currently has. The comment puts the competitive threat in perspective.

Thursday’s earnings call will likely address how DraftKings Predictions is performing. Management’s tone on the platform will signal how seriously the company views the prediction market threat going forward.

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