DraftKings reports Q3 loss and cuts 2026 outlook as Predictions spending rises
+1 new source since this summary was written
DraftKings reported Q3 2026 revenue of $1.33bn, up 16%, alongside a $468.7m net loss and a $316.9m adjusted EBITDA loss. It reduced FY2026 revenue guidance to $6.35bn-$6.55bn and adjusted EBITDA guidance to $175m-$275m, citing heavier investment in its Predictions offering. For 2027, DraftKings introduced revenue guidance of $7.35bn-$7.75bn and adjusted EBITDA guidance of $800m-$1bn.
Why it matters
The lower 2026 revenue and adjusted EBITDA ranges weaken DraftKings' near-term earnings outlook and reflect substantially higher spending on Predictions. The company expects its core business to generate adjusted EBITDA of $875m-$925m in 2026, while Predictions is expected to contribute immaterial revenue that year.
Key facts
- 1DraftKings' Q3 2026 revenue rose 16% to $1.33bn, while its net loss reached $468.7m and its adjusted EBITDA loss was $316.9m. next.io
- 2FY2026 revenue guidance was reduced to $6.35bn-$6.55bn from $6.5bn to $6.9bn. next.io
- 3FY2026 adjusted EBITDA guidance was cut to $175m-$275m from $700m to $900m, reflecting an expected $650m to $700m investment in Predictions. next.io
- 4DraftKings introduced FY2027 revenue guidance of $7.35bn-$7.75bn and adjusted EBITDA guidance of $800m-$1bn. next.io
- 5More than 1.6 million customers had engaged with Predictions year-to-date, according to DraftKings CEO Jason Robins. next.io
Open questions
- The materials report different per-share loss figures on an unclear basis: -$0.53 in versus 94 cents per share in.
Summary written by AlphAI AI Desk from 20 of 36 sources. Not investment advice. Figures are as stated by the linked sources.