TLDR
- DraftKings fell 25% after hours to $17.60 following its Q3 report.
- The company cut 2026 revenue guidance to $6.45 billion from $6.7 billion.
- Heavy spending on its Predictions business drove the weaker outlook.
- Sportsbook revenue rose 36%, and iGaming revenue rose 7%.
- The stock was down 20% in premarket trading Friday.
DraftKings (DKNG) stock fell 25% in after-hours trading Thursday, reaching $17.60 after its third-quarter report. The drop followed a cut to the company’s 2026 revenue outlook.
The company posted a loss of 94 cents per share on revenue of $1.33 billion. FactSet analysts had expected a loss of 41 cents on revenue of $1.39 billion.
Investing.com put the adjusted loss at 53 cents, against an estimate of 36 cents. Revenue was still up 16% from a year ago.
DRAFTKINGS $DKNG Q3’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $1.33B (Est. $1.4B) 🔴; +16% YoY
🔹 EPS: -$0.94 (Est. -$0.39) 🔴
🔹 Adj. EPS: -$0.53Customers & Assets:
🔹 MUPs: 4.1M; +13% YoYFY26 Guide:
🔹 Revenue: $6.35B-$6.55B (Est. $6.67B) 🔴
🔹 Adj. EBITDA: $175M-$275MFY27… pic.twitter.com/BdVXlQdpk8
— Wall St Engine (@wallstengine) November 5, 2026
Full-year revenue guidance now sits at $6.45 billion, down from $6.7 billion. The range is $6.35 billion to $6.55 billion, and analysts had expected $6.65 billion.
Predictions Spending Weighs on the Outlook
The cut comes from heavier investment in DraftKings Predictions. Adjusted EBITDA expenses for the segment are projected at $650 million to $700 million this year.
Third-quarter adjusted EBITDA was negative $316.9 million. A year earlier, it was negative $126.5 million.
The 2027 adjusted EBITDA outlook is $800 million to $1 billion. Analysts were looking for about $1.12 billion.
CEO Jason Robins said DraftKings is now the clear number three predictions exchange by total volume. Kalshi and Polymarket hold the top two spots.
He expects $700 million in predictions revenue next year. He also said predictions revenue will be “immaterial” in 2026, since new customer promotions will offset most of it.
New-customer sign-ups rose 13% year over year. Robins said non-sports contracts, especially crypto-linked ones, have been a major growth driver.
DraftKings keeps the whole operation in-house, writing its own contracts and owning the exchange. Flutter, the parent of FanDuel, uses Crypto.com’s contracts.
The legal picture is unclear, with the Supreme Court asked to review a dispute over oversight of sports event contracts. Freedom Capital Markets analyst Nick McKay wrote that if sports contracts are prohibited, the sportsbook business would flourish again.
Core Business Held Up Before the Sell-Off
Net sportsbook revenue rose 36% from a year earlier. iGaming revenue rose 7%.
iGaming is live in only five states, compared with 29 for mobile sports betting. Even so, it produced 35% of quarterly revenue.
Robins closed his shareholder letter with a line: “We have never had more ways to win.” Investors did not seem to agree on Thursday night.
The stock had climbed about 20% in the six weeks before the report. Investing.com tied the run to favorable election results, especially in Texas, and hopes for lighter regulatory pressure.
The after-hours price sits near the 52-week low of $18.35. In premarket trading Friday, DraftKings was down 20%.
