DraftKings shares fell 2.6% after the online sports betting company reported third-quarter revenue that missed analyst expectations, despite showing modest growth from the prior year.

The company posted revenue of $1.14 billion for the quarter ended September 30, 2025, up 4.4% from $1.09 billion in the same period last year but below the analyst consensus of $1.2 billion.

Adjusted earnings per share came in at -$0.26, beating expectations of -$0.32. The revenue shortfall was primarily attributed to customer-friendly sport outcomes that impacted Sportsbook revenue, which declined 9.3% YoY to $596.1 million despite a 10% increase in handle.

“This is the most bullish I have ever felt about our future,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder. “Underlying growth in the business is accelerating and we are excited to launch DraftKings Predictions in the coming months, which we view as a significant incremental opportunity.”

DraftKings lowered its full-year 2025 revenue guidance to $5.9-6.1 billion, below the consensus estimate of $6.19 billion. The company also revised its adjusted EBITDA guidance to $450-550 million for the fiscal year.

Monthly unique payers increased 2% to 3.6 million in the third quarter compared to the same period last year, while average revenue per monthly unique payer rose 3% to $106. The company’s iGaming segment showed strong performance with revenue increasing 24.9% YoY to $451.3 million.

DraftKings also announced that its board authorized an increase in its share repurchase program from $1.0 billion to $2.0 billion, signaling confidence in its long-term prospects despite the near-term revenue challenges.