DraftKings (DKNG) Q3 2026 Earnings
How Did DKNG Stock React to Q3 2026 Earnings?
Did DKNG Beat Earnings? Q3 2026 Results
No. DraftKings reported Q3 2026 earnings of $-0.53 a share on Nov 6, 2026, missing the $-0.19 consensus estimate by 178.8%. Revenue was $1.3B against a $1.4B estimate.
DraftKings delivered a painful double miss in Q3 2026, with adjusted EPS of -$0.53 falling 178.80% short of the -$0.19 consensus estimate and revenue of $1.33 billion coming in 5.07% below the $1.40 billion Wall Street had expected, even as the top line grew 16.2% year over year. The culprit was unmistakable: sales and marketing expense surged to $605.66 million from $360.37 million a year earlier as the company aggressively courted customers for its new Predictions business, a federally regulated event-contract trading product under CFTC oversight, widening the adjusted EBITDA loss to $316.90 million from $126.49 million. Shares had already drifted near multi-year lows heading into the print, reflecting investor anxiety about the company's ability to balance growth spending with a credible path to profitability. Management cut full-year 2026 revenue guidance to $6.35 billion to $6.55 billion and adjusted EBITDA to $175 million to $275 million, while introducing 2027 targets of $7.35 billion to $7.75 billion in revenue and $800 million to $1.00 billion in adjusted EBITDA, with CEO Jason Robins framing next year as the payoff period for today's investment.
- Continued healthy customer engagement
- Higher Sportsbook net revenue margin; Sports Net Revenue Margin of 5.6% vs 5.2% a year earlier
- Sports Consumer Volume up 21.9% to $13.9 billion
- Monthly Unique Payers up approximately 13% to 4.1 million, reflecting retention and new customer acquisition across Sportsbook, iGaming and Predictions
- ARPMUP up approximately 3% to $109
- Sales and marketing expense rose to $605.7 million from $360.4 million, driving a wider operating loss
“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, on the earnings call
What Is DraftKings's Outlook?
**FY2026 (updated):** - Revenue guidance updated to $6.35 billion–$6.55 billion. - Adjusted EBITDA guidance updated to $175 million–$275 million, primarily reflecting increased Predictions investment of $650 million–$700 million. - Core-business Adjusted EBITDA expected at $875 million–$925 million, reflecting further iGaming investment and modestly customer-friendly sport outcomes. - Predictions revenue immaterial in 2026, as new customer promotions offset the lion's share of gross revenue. - Q4 Predictions Adjusted EBITDA investment of $175 million–$225 million. **FY2027 (introduced):** - Revenue guidance of $7.35 billion–$7.75 billion, which management describes as up 17% at the midpoint. - Adjusted EBITDA guidance of $800 million–$1.0 billion. - Core revenue of $6.7 billion–$7.0 billion, which management describes as up 4%–9% versus the FY2026 guidance midpoint. - Core Adjusted EBITDA of $1.15 billion–$1.25 billion. - Predictions revenue of $650 million–$750 million. - Predictions Adjusted EBITDA investment of $250 million–$350 million.
DKNG YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $1.3B | $1.1B | +16.2% |
| Operating Income | −$493.1M | −$2.6B | −81.4% |
| Net Income | −$468.7M | −$2.7B | −82.5% |
DKNG Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.