DraftKings (DKNG) · Media & Streaming
DraftKings Q3 2026 earnings: summary, key numbers & outlook
Results filed 6 Nov 2026 · Quarter ended 30 Sep 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
DraftKings reported third quarter 2026 total revenue of $1,329 million, an increase of $185 million, or 16%, compared to $1,144 million during the same period in 2025.
DraftKings grew third quarter 2026 revenue 16% to $1,329 million, helped by healthy customer engagement and a higher Sportsbook net revenue margin of 5.6%. Monthly Unique Payers rose approximately 13% to 4.1 million. The company still lost money: net loss was $(468,720) thousand and Adjusted EBITDA was $(316,899) thousand, as sales and marketing spending rose sharply while it built out its Predictions offering.
Management cut its fiscal year 2026 Adjusted EBITDA range to $175 million to $275 million and introduced fiscal year 2027 revenue guidance of $7.35 billion to $7.75 billion. The main tension is that the core business is expected to fund Predictions, which requires Adjusted EBITDA investment of $650 million to $700 million in 2026. Predictions revenue is expected to stay immaterial in 2026, so the payoff depends on 2027.
Key numbers
- Total revenue · GAAP
- $1,329 million
- Net loss attributable to common stockholders · GAAP
- -$468.7M
- Basic and diluted loss per share · GAAP
- $(0.94)
- Adjusted Earnings (Loss) Per Share · non-GAAP
- $(0.53)
- Income (loss) from operations · GAAP
- -$493.1M
- Adjusted EBITDA · non-GAAP
- -$316.9M
- Net cash from operating activities (nine months) · GAAP
- $63.0M
an increase of $185 million, or 16%, compared to $1,144 million a year ago
versus $(256,788) a year ago
versus $(0.52) a year ago
versus $(0.26) a year ago
versus (271,890) a year ago
versus $(126,488) a year ago
versus $342,382 in the nine months ended September 30, 2025
| Segment or metric | Value | Change |
|---|---|---|
| Sports Revenue | $783.6M | 31.5% |
| Sports Net Revenue Margin | 5.6% | versus 5.2% a year ago |
| iGaming Revenue | $460.9M | 2.1% |
| Other Revenue | $84.5M | (12.5)% |
| Monthly Unique Payers | 4.1 million | increased approximately 13% |
| Average Revenue per MUP | $109 | increased approximately 3%, or $3 |
Where each number comes from
- Total revenue: “DraftKings reported total revenue of $1,329 million, an increase of $185 million, or 16%, compared to $1,144 million during the same period in 2025.”
- Net loss attributable to common stockholders: “Net income (loss) attributable to common stockholders | $(468,720) | $(256,788) | $(515,260) | $(132,716)”
- Basic and diluted loss per share: “Basic and diluted loss per share attributable to common stockholders | $(0.94) | $(0.52) | $(1.04) | $(0.27)”
- Adjusted Earnings (Loss) Per Share: “Adjusted Earnings (Loss) Per Share | $(0.53) | $(0.26) | $(0.26) | $0.27”
- Income (loss) from operations: “Income (loss) from operations | (493,129) | (271,890) | (555,456) | (167,577)”
- Adjusted EBITDA: “Adjusted EBITDA | $(316,899) | $(126,488) | $(34,449) | $276,785 Adjusted Earnings (Loss) Per Share”
- Net cash from operating activities (nine months): “Net cash flows provided by (used in) operating activities | $63,026 | $342,382”
- Sports Revenue: “Sports Revenue | 783,626 | 596,119 | 187,507 | 31.5% Sports Net Revenue Margin | 5.6% | 5.2% | N/A | N/A”
- Sports Net Revenue Margin: “Sports Revenue | 783,626 | 596,119 | 187,507 | 31.5% Sports Net Revenue Margin | 5.6% | 5.2% | N/A | N/A”
- iGaming Revenue: “iGaming Revenue | 460,923 | 451,300 | 9,623 | 2.1% Other Revenue | 84,514 | 96,600 | (12,086) | (12.5)%”
- Other Revenue: “iGaming Revenue | 460,923 | 451,300 | 9,623 | 2.1% Other Revenue | 84,514 | 96,600 | (12,086) | (12.5)%”
- Monthly Unique Payers: “Monthly Unique Payers (“MUPs”) increased approximately 13% to 4.1 million in the three months ended September 30, 2026, compared to the three months ended September 30, 2025.”
- Average Revenue per MUP: “Average Revenue per MUP (“ARPMUP”) increased approximately 3%, or $3, to $109 for the three months ended September 30, 2026, compared to the three months ended September 30, 2025”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q3 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $1.3B | +16.2% | −7.9% |
| Operating income | -$493.1M | −81.4% | −623.3% |
| Net income | -$468.7M | −82.5% | −593.3% |
| Diluted EPS | -$0.94 | −80.8% | −571.4% |
| Free cash flow | -$43.7M | — | — |
| Operating margin | -37.1% | −13.3 pts | −32.4 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Revenue | fiscal year 2026 | $6.35 billion to $6.55 billion |
| Adjusted EBITDA | fiscal year 2026 | $175 million to $275 million |
| Adjusted EBITDA investment in Predictions | fourth quarter of fiscal 2026 | $175 million to $225 million |
| Revenue | fiscal year 2027 | $7.35 billion to $7.75 billion |
| Adjusted EBITDA | fiscal year 2027 | $800 million to $1.0 billion |
| Core business revenue | fiscal year 2027 | $6.7 billion to $7.0 billion |
| Predictions revenue | fiscal year 2027 | $650 million to $750 million |
| Adjusted EBITDA investment in Predictions | fiscal year 2027 | $250 million to $350 million |
Key takeaways
Revenue grew 16% on sports strength
Total revenue was $1,329 million versus $1,144 million a year ago. Sports Revenue rose 31.5% as Sports Net Revenue Margin reached 5.6% from 5.2%.
Predictions spending deepened the quarterly loss
Net loss was $(468,720) thousand and Adjusted EBITDA was $(316,899) thousand, versus $(126,488) thousand a year ago. Sales and marketing expense was $605,664 thousand versus $360,370 thousand.
Fiscal 2026 Adjusted EBITDA guidance now $175-$275 million
Management cited Adjusted EBITDA investment in Predictions of $650 million to $700 million. Core business Adjusted EBITDA is expected at $875 million to $925 million.
Fiscal 2027 revenue guidance implies 17% growth
Revenue guidance is $7.35 billion to $7.75 billion, an increase of 17% year-over-year at the midpoint. Predictions revenue is expected at $650 million to $750 million.
Customer base expanded while iGaming stayed slow
Monthly Unique Payers rose approximately 13% to 4.1 million and ARPMUP rose to $109. iGaming Revenue grew only 2.1% to 460,923 thousand.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $1.4B * |
| Q1 2025 | $1.4B |
| Q2 2025 | $1.5B |
| Q3 2025 | $1.1B |
| Q4 2025 | $2.0B * |
| Q1 2026 | $1.6B |
| Q2 2026 | $1.4B |
| Q3 2026 | $1.3B |
Data
| Q1 2025 | -$0.07 |
| Q2 2025 | $0.30 |
| Q3 2025 | -$0.52 |
| Q1 2026 | $0.03 |
| Q2 2026 | -$0.14 |
| Q3 2026 | -$0.94 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | -10.0% |
| Q1 2025 | -3.3% |
| Q2 2025 | 10.0% |
| Q3 2025 | -23.8% |
| Q4 2025 | 7.6% |
| Q1 2026 | 0.4% |
| Q2 2026 | -4.7% |
| Q3 2026 | -37.1% |
Data
| Q4 2024 | $323.2M |
| Q1 2025 | -$121.7M |
| Q2 2025 | $169.6M |
| Q3 2025 | $283.0M |
| Q4 2025 | $316.5M |
| Q1 2026 | -$55.5M |
| Q2 2026 | $106.9M |
| Q3 2026 | -$43.7M |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
How did DraftKings perform in Q3 2026?
Revenue rose 16% to $1,329 million from $1,144 million a year ago. The company reported a net loss of $(468,720) thousand and Adjusted EBITDA of $(316,899) thousand.
What is DraftKings' fiscal 2026 guidance?
Revenue guidance is $6.35 billion to $6.55 billion and Adjusted EBITDA guidance is $175 million to $275 million. It reflects Predictions investment of $650 million to $700 million.
What is DraftKings' fiscal 2027 outlook?
Management guides revenue of $7.35 billion to $7.75 billion, up 17% at the midpoint. Adjusted EBITDA guidance is $800 million to $1.0 billion, including about $300 million of investment in Predictions at the midpoint.
How big is the Predictions business so far?
More than 1.6 million customers have engaged with Predictions year-to-date. Predictions revenue will be immaterial in fiscal 2026 because new customer promotions offset most gross revenue, with $250 million to $350 million of investment expected in 2027.
What happened to DraftKings' customer metrics and cash flow?
Monthly Unique Payers rose approximately 13% to 4.1 million, and ARPMUP rose approximately 3% to $109. Operating cash flow for the nine months was $63,026 thousand versus $342,382 thousand a year earlier.
Documents
SEC filing