Key Highlights

  • Quarterly sales hit USD 1.329 billion, a 16% gain over USD 1.144 billion, as the net loss grew to USD 468.7 million from USD 256.8 million.
  • Management now expects 2026 adjusted EBITDA of USD 175 million to USD 275 million, with USD 650 million to USD 700 million of Predictions outlay baked in.
  • Stripping out Predictions, core profit is pegged at USD 875 million to USD 925 million, while 2026 sales are guided between USD 6.35 billion and USD 6.55 billion.
  • After-hours declines on Thursday spanned roughly 18% to 24.66% depending on the published reading, and one wrap put the drop at 22.24% later on.

Revenue Climbs 16% as the Loss Widens

Third-quarter 2026 numbers from DraftKings (NASDAQ:DKNG) arrived on Thursday, November 5, 2026. Sales climbed 16% to USD 1.329 billion on stronger customer engagement and a richer sportsbook margin, yet an earlier estimate near USD 1.37 billion had been floated in coverage. Adjusted EBITDA was a loss of USD 316.9 million against a loss of USD 126.5 million a year earlier, and the adjusted loss per share reached USD 0.53 versus USD 0.26. Monthly unique payers climbed roughly 13%, reaching 4.1 million, while Revenue per payer edged up about 3% to USD 109. Its lineup spans online sports wagering and casino titles, plus a Predictions product that keeps expanding.

Predictions Spending Resets the Profit Path

Predictions is a newer product where the company pays heavily through promotions to win customers, a deliberate Acquisition push that front-loads cost, so revenue is expected to stay immaterial in 2026 while costs land now. The 2026 Predictions outlay, according to management, falls between USD 650 million and USD 700 million, with USD 175 million to USD 225 million arriving in the fourth quarter. Earlier published coverage of the second-quarter update had cited adjusted EBITDA of USD 700 million to USD 900 million, a steep cut from the new USD 175 million to USD 275 million range. Over 1.6 million customers have engaged with the product in 2026, management noted.

2027 Targets and the Risks Behind the Drop

Looking ahead to 2027, management framed revenue within USD 7.35 billion to USD 7.75 billion, with adjusted EBITDA landing between USD 800 million and USD 1.0 billion, with roughly USD 300 million of Predictions spend at the midpoint. The company also projects that Predictions will bring in between USD 650 million and USD 750 million in that year. Downside factors include stubborn promotional costs, possible changes to prediction-market and sports-betting rules, and sportsbook results that swing with game outcomes. After-hours prices sit on light volume, so Thursday's decline may not carry into the regular session, and the next checkpoints are fourth-quarter spending and early 2027 execution.

Where Things Stand

This selloff reflects a profit reset rather than weak sales. DraftKings (NASDAQ:DKNG) still grew revenue 16%, but the 2026 adjusted EBITDA outlook was trimmed to USD 175 million to USD 275 million as the company front-loads Predictions costs. Ex-Predictions profit of USD 875 million to USD 925 million suggests the base Business remains in the black on company figures, while the 2027 path relies on Predictions revenue arriving. Readings of the drop ranged from about 18% to 24.66%, and regular trading could change that picture. Watch fourth-quarter Predictions outlays and the regular-session reaction.