DraftKings reported third-quarter income of $1.33 billion for 2026, up 16% from $1.14 billion a 12 months earlier, supported by stronger buyer exercise and a better sportsbook web income margin.
Monthly distinctive payers elevated about 13% to 4.1 million, whereas common income per payer rose 3% to $109. Sportsbook web income margin improved from 5.2% in Q3 2025 to five.6%.
The firm additionally reported an Adjusted EBITDA lack of $316.9 million. Revenue got here beneath analysts’ expectations of about $1.39 billion, whereas adjusted loss per share reached $0.53 in contrast with expectations for a $0.25 loss.
“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,” mentioned 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.”
Predictions Spending Weighs on 2026 Outlook
DraftKings now expects full-year 2026 income of between $6.35 billion and $6.55 billion, with Adjusted EBITDA starting from $175 million to $275 million.
The up to date outlook displays $650 million to $700 million in anticipated Adjusted EBITDA funding in Predictions. Of that quantity, $175 million to $225 million is scheduled for the fourth quarter.
Management expects Predictions income to stay immaterial in 2026 as a result of buyer promotions will take in a lot of the gross income generated.
The product’s annualized complete buying and selling quantity reached $56.8 billion by October after rising fivefold from July. Consumer quantity accounted for $10.1 billion.
DraftKings reported an 11.1% take price and mentioned it captured 65.6% of gross income. October annualized run-rate adjusted gross revenue reached $350 million, with an 18% promotion price.
“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,” mentioned Alan Ellingson, DraftKings’ Chief Financial Officer, in the company’s press release. “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.”
DraftKings expects its core enterprise to generate 2026 Adjusted EBITDA of between $875 million and $925 million.
Sports Revenue Leads Quarterly Growth
Sportsbook and Predictions shopper quantity reached $13.9 billion throughout Q3, up 22% year-on-year.
Combined sports activities betting and Predictions income rose 31.5% to $784 million. DraftKings’ sportsbook is dwell in 27 states, Washington, D.C. and Puerto Rico.
Its win margin for the primary 9 months of 2026 remained at 6.7%, unchanged from the identical interval final 12 months.
iGaming income elevated 2.1% to $460.9 million in Q3. For the primary 9 months of 2026, on-line on line casino income was up 6.1%.
The quarter additionally included DraftKings’ launch of sportsbook and iGaming operations in Alberta. The firm at the moment provides iGaming in 5 US states.
2027 Guidance Includes Larger Predictions Contribution
DraftKings expects 2027 income of between $7.35 billion and $7.75 billion and Adjusted EBITDA of $800 million to $1 billion.
Core income is projected at $6.7 billion to $7 billion, with core Adjusted EBITDA anticipated to achieve $1.15 billion to $1.25 billion.
Predictions income is forecast at $650 million to $750 million subsequent 12 months, whereas deliberate Adjusted EBITDA funding within the product ranges from $250 million to $350 million.
The firm’s Q3 working margin was detrimental 37.1%, in contrast with detrimental 23.8% a 12 months earlier. Free money stream fell to detrimental $82.13 million from optimistic $283 million.
DraftKings shares fell 23% to $18.08 instantly after the report.
