DraftKings reported third-quarter revenue of $1,329m on 5 November, up 16.2% from $1,144m a year earlier, as its sportsbook handled more bets at better margins. The bottom line moved the other way: the company posted a net loss of $468.7m, against $256.8m a year ago, as it spends to build its Predictions business.
The quarter in numbers
- Sportsbook handle: $13.90bn, up 21.9%.
- Sports revenue: $783.6m, up 31.5%, with net revenue margin rising to 5.6% from 5.2%.
- iGaming revenue: $460.9m, up 2.1%.
- Other revenue: $84.5m, down 12.5%.
- Monthly unique payers: 4.1m, up about 13%, with average revenue per payer of $109.
- Adjusted EBITDA: a loss of $316.9m, against a loss of $126.5m a year earlier. GAAP loss per share was $0.94.
DraftKings runs its online sportsbook in 27 states plus Washington DC and Puerto Rico, and online casino in five states. It also spent $12.8m in the quarter on advocacy for iGaming legislation and a sportsbook ballot measure.
Predictions is now the story
Predictions, the company’s offer of event contracts regulated by the CFTC rather than state gaming regulators, has had more than 1.6m customers so far this year. Jason Robins, CEO and Co-founder, said:
“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.”
CFO Alan Ellingson said the core business “continues to generate significant free cash flow” and that DraftKings is using it to fund Predictions growth.
Guidance for 2026 and 2027
For 2026, DraftKings now expects revenue of $6.35bn to $6.55bn and adjusted EBITDA of $175m to $275m. That figure includes $650m to $700m of Predictions investment; excluding it, the company expects core adjusted EBITDA of $875m to $925m.
Its first guidance for 2027 calls for revenue of $7.35bn to $7.75bn, around 17% growth at the midpoint, and adjusted EBITDA of $800m to $1.0bn. That includes about $300m of Predictions investment at the midpoint and Predictions revenue of $650m to $750m.
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The results land as prediction markets face growing legal resistance from states; Gamblita recently covered the Second Circuit’s refusal to shield Kalshi and Coinbase in New York and Connecticut. Genius Sports, which supplies data to US sportsbooks, raised its 2026 outlook earlier this week.
