DraftKings (NASDAQ: DKNG) revenue jumps 16% but net loss deepens in third quarter

Posted by Donna Armstrong on Nov 6th, 2026

What happened

DraftKings Inc. (NASDAQ: DKNG) grew third-quarter revenue 16.2% year over year to $1.33 billion. Its net loss widened to $468.72 million from $256.79 million a year earlier.

Management credited healthy customer engagement and a higher Sportsbook net revenue margin. Sports revenue, which the filing defines to include prediction markets, rose 31.5% to $783.63 million. iGaming revenue rose 2.1% to $460.92 million. Monthly Unique Payers rose about 13% to 4.1 million. Average Revenue per MUP rose about 3%, or $3, to $109.

For 2026, DraftKings guides revenue of $6.35 billion to $6.55 billion and Adjusted EBITDA of $175 million to $275 million. The company says that range mainly reflects Adjusted EBITDA investment in Predictions of $650 million to $700 million. For 2027 it introduced revenue guidance of $7.35 billion to $7.75 billion and Adjusted EBITDA guidance of $800 million to $1.0 billion.

Key numbers

Metric	Latest	Change	Source
Q3 2026 revenue	$1.33 billion	from $1.14 billion, +16.2%	SEC 8-K Item 2.02, Ex. 99.1
Q3 2026 net loss	$468.72 million	from $256.79 million	SEC 8-K Item 2.02, Ex. 99.1
Q3 net margin	-35.3%	from -22.4%, -12.8 percentage points	Calculated from SEC 8-K
Monthly Unique Payers	4.1 million	+13%	SEC 8-K Item 2.02, Ex. 99.1
FY2026 Adjusted EBITDA guidance	$175 million to $275 million		SEC 8-K Item 2.02, Ex. 99.1
FY2027 revenue guidance	$7.35 billion to $7.75 billion		SEC 8-K Item 2.02, Ex. 99.1

Read more: DraftKings (DKNG) company research

Why it matters

Growth is not reaching the bottom line. By OptimistFi's calculation, net margin worsened to -35.3% from -22.4% a year earlier, a decline of about 12.8 percentage points, because the loss grew faster than revenue. Sales and marketing expense rose to $605.66 million from $360.37 million.

OptimistFi has argued that DraftKings can turn legal wagering into higher-margin cash flow without reigniting subsidy wars. The filing says new customer promotions will offset most of Predictions gross revenue in 2026. This quarter tests that claim and leaves the case mixed.

The core business offers a counterweight. DraftKings expects core Adjusted EBITDA of $875 million to $925 million in 2026 and $1.15 billion to $1.25 billion in 2027. The CFO says core free cash flow funds Predictions at attractive payback periods. Net cash from operations for nine months fell to $63.03 million from $342.38 million.

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What's next

DraftKings holds a conference call and audio webcast on Friday, Nov. 6, from 8:30 a.m. to 9:15 a.m. ET.

The company expects fourth-quarter Adjusted EBITDA investment in Predictions of $175 million to $225 million. For 2027 it expects Predictions revenue of $650 million to $750 million against investment of $250 million to $350 million. Spending above those ranges, or revenue below, would weaken the case.