DraftKings (DKNG) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 16.2% YoY to $1.329B; net loss widened to $468.7M and Adjusted EBITDA loss to $316.9M, amid higher marketing and Predictions investment.

• MUPs increased 12.9% to 4.1M and average revenue per MUP rose 2.9% to $109.

• More than 1.6M customers engaged with Predictions year to date; October annualized total volume traded reached $56.8B, more than 5x July.

• FY27 guidance calls for $7.35B–$7.75B revenue and $800M–$1.0B Adjusted EBITDA, including $250M–$350M of Predictions investment.

Financial highlights

• Q3 revenue was $1.329B, up 16.2% YoY; nine-month revenue rose 8.7% to $4.418B.

• Q3 operating loss was $493.1M versus $271.9M; net loss was $468.7M versus $256.8M, or $(0.94) per diluted share versus $(0.52).

• Q3 Adjusted EBITDA loss was $316.9M versus $126.5M; nine-month Adjusted EBITDA was a $34.4M loss versus $276.8M profit.

• Q3 Adjusted EPS was $(0.53) versus $(0.26); nine-month Adjusted EPS was $(0.26) versus $0.27.

Outlook and guidance

• FY26 guidance is $6.35B–$6.55B revenue and $175M–$275M Adjusted EBITDA; core Adjusted EBITDA is projected at $875M–$925M.

• FY26 Predictions investment is expected at $650M–$700M, including $175M–$225M in Q4; FY26 Predictions revenue is expected to be immaterial after promotions.

• FY27 guidance is $7.35B–$7.75B revenue and $800M–$1.0B Adjusted EBITDA, including $250M–$350M of Predictions investment.

• FY27 core revenue is projected at $6.7B–$7.0B, up 4%–9% versus the FY26 guidance midpoint; core Adjusted EBITDA is $1.15B–$1.25B.

• Management expects significant FY27 free cash flow after investment and Predictions to become an Adjusted EBITDA tailwind in 2028.