DraftKings Q3 Loss Widens; Cuts Outlook as Predictions Spend Climbs

A deeper third-quarter loss and a cut to full-year targets sent DraftKings Inc. shares lower after the close Thursday, as the Boston sports-betting company poured more money into its Predictions event-contracts business, according to results it released and reporting by RTT News, Yahoo Finance, CNBC and Investing.com.

Revenue rose 16% to $1.329 billion from $1.144 billion a year earlier. Net loss widened to $468.7 million, or 94 cents a share, from $256.8 million, or 52 cents. Adjusted loss per share was 53 cents, versus 26 cents a year earlier, and adjusted EBITDA was a loss of $316.9 million, compared with a loss of $126.5 million, the company said. RTT News and Yahoo Finance, citing Street estimates, said both revenue and the adjusted loss missed consensus; Investing.com put the revenue shortfall against a $1.41 billion estimate and the adjusted loss against a 36-cent estimate.

Sportsbook, iGaming and customers

Sports revenue, which DraftKings defines to include sportsbook and prediction-markets activity, jumped 31.5% to $783.6 million. iGaming revenue rose 2.1% to $460.9 million. Other revenue fell 12.5% to $84.5 million. Monthly unique payers increased about 13% to 4.1 million, and average revenue per monthly unique payer rose about 3% to $109, the company said.

Chief Executive Jason Robins said more than 1.6 million customers have used Predictions year to date and called the quarter a pivotal moment for that offering. Chief Financial Officer Alan Ellingson said the core business is generating free cash flow that funds Predictions growth.

Guidance cut for 2026; 2027 outlook introduced

DraftKings lowered its 2026 revenue outlook to $6.35 billion to $6.55 billion and adjusted EBITDA to $175 million to $275 million, citing $650 million to $700 million of adjusted EBITDA investment in Predictions. Yahoo Finance said that replaced prior ranges of $6.5 billion to $6.9 billion in revenue and $700 million to $900 million in adjusted EBITDA. Core-business adjusted EBITDA for 2026 is still expected at $875 million to $925 million, the company said.

For 2027, DraftKings introduced revenue guidance of $7.35 billion to $7.75 billion and adjusted EBITDA of $800 million to $1.0 billion, including $250 million to $350 million of Predictions investment and $650 million to $750 million of Predictions revenue. Core revenue for 2027 is projected at $6.7 billion to $7.0 billion.

Shares fell 18.4% to $19.20 in after-hours trading, Yahoo Finance reported. CNBC put the decline at about 22%. DraftKings said it will host a conference call Friday morning.

Sources: RTT News, Yahoo Finance, CNBC, DraftKings Investor Relations, Investing.com