New York, Feb 13, 2026, 05:52 (ET) — Premarket
- DraftKings shares were indicated sharply lower in premarket trading after the company’s 2026 outlook came in below Wall Street estimates.
- Investors focused on the cost of building out DraftKings Predictions, the company’s push into federally regulated event contracts.
- Traders are watching the 8:30 a.m. ET earnings call and the company’s March 2 investor day for details on spending and margins.
DraftKings shares fell about 15% in premarket trading on Friday, setting the stock up for a steep drop after the online sports-betting company laid out a 2026 forecast that disappointed investors.
The move comes after DraftKings closed down 4.3% on Thursday at $25.16, extending a three-session losing streak in a broader down day for U.S. stocks. The shares are down about 53% from their 52-week high, according to market data.
What spooked traders wasn’t the past quarter so much as what comes next. DraftKings’ 2026 outlook points to heavier investment tied to its expansion into prediction markets — a newer battleground where platforms let users trade contracts on outcomes — and that spend is set to weigh on profitability targets investors had been penciling in.
DraftKings said late Thursday that fourth-quarter revenue rose 43% to $1.989 billion, and it posted record revenue and adjusted EBITDA — a profit measure before interest, taxes, depreciation and amortization. For 2026, it forecast revenue of $6.5 billion to $6.9 billion and adjusted EBITDA of $700 million to $900 million, with management pointing to investment in DraftKings Predictions. “We also see a massive, incremental opportunity in DraftKings Predictions,” Chief Executive Jason Robins said in the release. Chief Financial Officer Alan Ellingson said the company would share more detail at a virtual investor day on March 2. GlobeNewswire
Wall Street had been looking for more. Analysts were estimating 2026 revenue of about $7.32 billion and adjusted EBITDA just under $1.0 billion, and they also expected a bigger base of monthly unique payers, Bloomberg News reported. The number of payers was flat at 4.8 million in the quarter, below forecasts, the report said.
Barron’s reported DraftKings posted adjusted earnings per share of 36 cents, missing expectations, and highlighted Robins’ pitch that prediction markets could become a $10 billion annual gross revenue opportunity. Still, some analysts have questioned how quickly prediction markets can scale for sportsbook operators without pressuring the core business.
DraftKings is trying to thread a needle: keep the sportsbook humming while funding a second product line that could open doors in places where sports betting remains illegal. DraftKings Predictions operates through federally regulated event contracts, which are designed to pay out based on the outcome of an event — a structure that sits apart from state-by-state sports wagering rules.
But the bet carries obvious risks. Prediction markets are drawing scrutiny across the industry, and regulation could tighten just as companies ramp spending. On top of that, sports-betting results can swing with game outcomes, and a few rough months can hit margins even when customer activity looks fine.
Friday’s call will matter because investors want numbers, not slogans — how much the company plans to spend on Predictions, what it expects to earn from it, and whether marketing costs creep back up. They will also listen for any changes to the company’s assumptions around taxes and the competitive backdrop.
Next up is the earnings call at 8:30 a.m. ET, with management expected to face questions on the 2026 guide, the pace of investment in Predictions and whether payers rebound; the company’s March 2 investor day is the next fixed date on the calendar.
