Key Highlights

  • DraftKings reported third-quarter Revenue of USD 1.329 billion, up 16% from USD 1.144 billion, while the net loss widened to USD 468.7 million from USD 256.8 million.
  • The 2026 adjusted EBITDA outlook is now USD 175 million to USD 275 million, after USD 650 million to USD 700 million of planned Predictions investment.
  • Excluding Predictions, core adjusted EBITDA is expected at USD 875 million to USD 925 million, and 2026 revenue is guided to USD 6.35 billion to USD 6.55 billion.
  • Extended-session losses on Thursday ranged from about 18% to 24.66% in published readings, with one wrap citing 22.24% later in the session.

Revenue Grows 16% While the Loss Widens

DraftKings (NASDAQ:DKNG) reported third-quarter 2026 results on Thursday, November 5, 2026. Revenue of USD 1.329 billion rose 16%, helped by customer engagement and a higher sportsbook net revenue margin, but coverage cited a pre-report estimate near USD 1.37 billion. Adjusted EBITDA was a loss of USD 316.9 million versus a loss of USD 126.5 million a year ago, and the adjusted loss was USD 0.53 a share against USD 0.26. Monthly unique payers rose about 13% to 4.1 million, and average revenue per payer rose about 3% to USD 109. The company runs online sports betting, casino games and a growing Predictions offering.

How Predictions Spending Reset the Profit Outlook

Predictions is a newer product line where the company is paying heavily for customers through promotions, so revenue is expected to be immaterial in 2026 while the costs land now. Management put 2026 Predictions Investment at USD 650 million to USD 700 million, including USD 175 million to USD 225 million in the fourth quarter. Published coverage of the second-quarter update had cited an adjusted EBITDA range of USD 700 million to USD 900 million, so the new range of USD 175 million to USD 275 million is a sharp reduction. DraftKings (NASDAQ:DKNG) said more than 1.6 million customers have engaged with Predictions this year.

2027 Targets and Risks Behind the Selloff

For 2027 the company guided revenue to USD 7.35 billion to USD 7.75 billion and adjusted EBITDA to USD 800 million to USD 1.0 billion, including about USD 300 million of Predictions investment at the midpoint. It sees Predictions revenue of USD 650 million to USD 750 million that year. The risks are plain: promotional costs may stay high, regulation of prediction markets and sports betting can change, and sportsbook results swing with game outcomes. Extended-session quotes also trade on thin volume, so the Thursday drop may not match the regular session. DraftKings (NASDAQ:DKNG) next faces the fourth-quarter spend and the first read on 2027 execution.

Where Things Stand

The slide came from a profit reset, not a revenue collapse. DraftKings (NASDAQ:DKNG) grew revenue 16% but cut its 2026 adjusted EBITDA outlook to USD 175 million to USD 275 million because Predictions costs are being absorbed up front. Core Earnings of USD 875 million to USD 925 million show the base Business is still profitable on the company numbers, while the 2027 targets depend on Predictions revenue arriving. The size of the drop varied from about 18% to 24.66% across readings and could shift in regular trading. Watch the fourth-quarter Predictions spend and the regular-session reaction.