Revenue still grew 16% to $1.33 billion in the three months to September 30, led by a 32% rise in sports revenue to $783.6 million as sports consumer volume increased 22% to $13.9 billion and net revenue margin improved to 5.6%. iGaming revenue edged up 2% to $460.9 million, and monthly unique players rose 13% to 4.1 million. However, sales and marketing costs jumped 68% to $605.7 million, and the adjusted EBITDA loss widened to $316.9 million from $126.5 million.
DraftKings now expects 2026 revenue of $6.35 billion to $6.55 billion, down from $6.5 billion to $6.9 billion, and adjusted EBITDA of $175 million to $275 million, compared with $700 million to $900 million previously. The core business is still forecast to deliver $875 million to $925 million in adjusted EBITDA, but the company plans to invest $650 million to $700 million in Predictions this year, which is expected to bring in little revenue in 2026 as promotions offset most of what it earns.
Jason Robins, Founder and CEO of DraftKings, stated:
“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. More than 1.6 million customers have engaged with Predictions year-to-date.”
For 2027, DraftKings is guiding for revenue of $7.35 billion to $7.75 billion, including $650 million to $750 million from Predictions, and adjusted EBITDA of $800 million to $1 billion.
