DraftKings Stock Dives on Q3 Miss, Lower Guidance: Company Sees Up to $750M in 2027 Prediction Markets Revenue

Sports betting company DraftKings Inc (NASDAQ:DKNG) reported third-quarter financial results Thursday after market close.

Here are the highlights.

DraftKings Q3 Financials

DraftKings reported third-quarter revenue of $1.329 billion, up 16% year-over-year. The revenue total missed a Street consensus estimate of $1.398 billion according to data from Benzinga Pro.

The company reported an adjusted loss of 53 cents per share, missing a Street estimate of a loss of 39 cents per share.

DraftKings averaged 4.1 million monthly unique payers in the quarter, up 13% year-over-year. The average revenue per monthly unique payer was $109 in the third quarter, up 3% year-over-year.

"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," DraftKings CEO Jason Robins said.

Robins said more than 1.6 million customers have engaged with DraftKings Predictions in 2026.

What’s Next for DraftKings

DraftKings Chief Financial Officer Alan Ellingson said the company’s core business is helping to fund the Predictions business, which offers "attractive payback periods."

The company introduced fiscal 2027 revenue guidance of $7.35 billion to $7.75 billion, which would be up 17% year-over-year at the midpoint. Adjusted EBITDA guidance is $800 million to $1.0 billion for fiscal 2027, which includes an adjusted EBITDA investment in Predictions of $250 million to $350 million.

Fiscal 2027 guidance includes a breakdown by the core business and predictions. Core revenue is expected to be $6.7 billion to $7.0 billion for fiscal 2027, while the company expects Predictions revenue of $650 million to $750 million.

DraftKings updated its fiscal 2026 revenue guidance to a range of $6.35 billion to $6.55 billion. This is down from prior guidance of $6.5 billion to $6.9 billion. For the fiscal year, adjusted EBITDA is now expected to be in a range of $175 million to $275 million. This is down from a prior range of $700 million to $900 million.

This guidance includes an increased adjusted EBITDA investment in Predictions of $650 million to $700 million.

"We believe we are set up for an exceptional 2027," Robins said.

DraftKings Stock Price Action

DraftKings stock is down 18.4% to $19.20 in after-hours trading Thursday versus a 52-week trading range of $18.36 to $36.98.

Photo by Lori Butcher via Shutterstock