# DraftKings (DKNG) Q3 2026 earnings

Results filed 2026-11-06 for the quarter ended 2026-09-30. Source page: https://earnings.opennash.com/companies/dkng/2026-q3/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1883685/000188368526000039/0001883685-26-000039-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Total revenue | $1,329 million | an increase of $185 million, or 16%, compared to $1,144 million a year ago | GAAP |
| Net loss attributable to common stockholders | $(468,720) | versus $(256,788) a year ago | GAAP |
| Basic and diluted loss per share | $(0.94) | versus $(0.52) a year ago | GAAP |
| Adjusted Earnings (Loss) Per Share | $(0.53) | versus $(0.26) a year ago | non-GAAP |
| Income (loss) from operations | (493,129) | versus (271,890) a year ago | GAAP |
| Adjusted EBITDA | $(316,899) | versus $(126,488) a year ago | non-GAAP |
| Net cash from operating activities (nine months) | $63,026 | versus $342,382 in the nine months ended September 30, 2025 | GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Sports Revenue | 783,626 | 31.5% |
| Sports Net Revenue Margin | 5.6% | versus 5.2% a year ago |
| iGaming Revenue | 460,923 | 2.1% |
| Other Revenue | 84,514 | (12.5)% |
| Monthly Unique Payers | 4.1 million | increased approximately 13% |
| Average Revenue per MUP | $109 | increased approximately 3%, or $3 |

## 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

1. **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%.
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.
3. **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.
4. **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.
5. **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.

## 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.