DraftKings slides after posting an unprofitable quarter despite solid top-line growth

For the three months ended September 30, 2026, DraftKings reported total revenue of $1,329 million, an increase of $185 million, or 16%, compared to $1,144 million during the same period in 2025. The increase in the Company’s third quarter 2026 revenue was driven primarily by continued healthy customer engagement and higher Sportsbook net revenue margin.

“The third quarter marked a pivotal moment for DraftKings, as the Predictions offering we have been building is now powering meaningful growth for our business,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder. “More than 1.6 million customers have engaged with Predictions year-to-date, and combined with the strength of our core, we believe we are set up for an exceptional 2027.”

“Our core business continues to generate significant free cash flow, which we are deploying to fund growth in our Predictions business at attractive payback periods,” said Alan Ellingson, DraftKings’ Chief Financial Officer. “We are introducing fiscal year 2027 revenue guidance of $7.35 billion to $7.75 billion, an increase of 17% year-over-year at the midpoint, and Adjusted EBITDA guidance of $800 million to $1.0 billion, which includes $300 million of Adjusted EBITDA investment in Predictions at the midpoint.”

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