$DKNG · DraftKings Inc.
DraftKings reported Q3 FY2026 results: revenue of $1.329B, up 16% YoY from $1.144B, driven by Sportsbook net revenue margin and Predictions. GAAP net loss widened to $468.7M (-$0.94/share) from $256.8M (-$0.52/share) a year ago, while Adjusted EBITDA swung to -$316.9M from -$126.5M. Sales and marketing spend jumped to $605.7M from $360.4M. The company introduced FY2027 revenue guidance of $7.35B-$7.75B and Adjusted EBITDA of $800M-$1.0B, while trimming FY2026 Adjusted EBITDA guidance to $175M-$275M.
- Q3 revenue $1.329B, +16% YoY from $1.144B.
- Adjusted EBITDA swung to -$316.9M from -$126.5M a year ago.
- GAAP net loss widened to $468.7M (-$0.94/share) from $256.8M (-$0.52/share).
- Sales and marketing spend rose to $605.7M from $360.4M.
- FY2026 Adjusted EBITDA guidance cut to $175M-$275M on $650M-$700M Predictions investment.
Extended-hours trading shows DKNG at $18.48, down 21.44% versus the $23.52 regular close, signaling a sharp negative reaction to the widening losses and heavy Predictions spend.
DraftKings is trading near-term profitability for an aggressive Predictions buildout, cutting FY2026 EBITDA guidance while betting on a 2027 inflection.
DraftKings' aggressive Predictions investment mirrors broader online-gaming peers spending heavily on new verticals, trading near-term profitability for market share.
Rising sales and marketing costs and the $650M-$700M FY2026 Predictions investment are compressing Adjusted EBITDA, with core-business profitability offset by heavy promotional spend.