DraftKings Inc.: Miss — EPS -$0.53, Revenue $1.33B
Earnings MissQ3 2026 · After-market
Did DraftKings Inc. (DKNG) beat earnings?
No, DraftKings Inc. (DKNG) missed Wall Street analyst expectations for Q3 2026, reporting lower-than-expected EPS and lower-than-expected revenue.
Earnings Per Share-112.00% surprise
-$0.53Actual
Expected: -$0.25
vs. year ago -103.8%
Total Revenue-4.38% surprise
$1.33BActual
Expected: $1.39B
vs. year ago +16.2%
Released Nov 05 · 4:15 PM ET
Earning Report
| Metric | Q3 2026 | Q3 2025 | YoY Change % |
|---|---|---|---|
| Revenue | $1.33B | $1.14B | +16.2% |
| Revenue detail — reported lines | |||
| └─Sports Revenue | $783.63M | $596.12M | +31.5% |
| └─iGaming Revenue | $460.92M | $451.30M | +2.1% |
| └─Other Revenue | $84.51M | $96.60M | -12.5% |
| Net Loss | $(468,720K) | $(256,788K) | - |
| Basic and diluted EPS | $(0.94) | $(0.52) | - |
| Adjusted Earnings (Loss) Per Share | $(0.53) | $(0.26) | - |
Financial Outlook / Guidance
| Metric | Q4 2026 Outlook | FY27 Outlook | |
|---|---|---|---|
| Guidance | Guidance | Expected | |
| Revenue | — | $7.35B-$7.75B (+17% YoY | $7.59BIn-Line |
| Adjusted EBITDA | — | $800M-$1.0B | — |
| Core Business Revenue | — | $6.7B-$7.0B (+4-9% YoY | — |
| Core Business Adjusted EBITDA | — | $1.15B-$1.25B | — |
| Predictions Revenue | — | $650M-$750M | — |
| Predictions Adjusted EBITDA Investment | $175M-$225M | $250M-$350M | — |
Q4 2026 Outlook
- Revenue
- Guidance—
- Adjusted EBITDA
- Guidance—
- Core Business Revenue
- Guidance—
- Core Business Adjusted EBITDA
- Guidance—
- Predictions Revenue
- Guidance—
- Predictions Adjusted EBITDA Investment
- Guidance$175M-$225M
FY27 Outlook
- Revenue
- Guidance$7.35B-$7.75B(+17% YoYExpected$7.59BIn-Line
- Adjusted EBITDA
- Guidance$800M-$1.0BExpected—
- Core Business Revenue
- Guidance$6.7B-$7.0B(+4-9% YoYExpected—
- Core Business Adjusted EBITDA
- Guidance$1.15B-$1.25BExpected—
- Predictions Revenue
- Guidance$650M-$750MExpected—
- Predictions Adjusted EBITDA Investment
- Guidance$250M-$350MExpected—
Business Highlights
- ➤Predictions offering is powering meaningful business growth.
- ➤More than 1.6 million customers engaged with Predictions year-to-date.
- ➤Customer retention and acquisition remained strong across Sportsbook, iGaming and Predictions.
- ➤Mobile sports betting is live in 27 states, Washington, D.C., and Puerto Rico.
- ➤Mobile sports betting footprint represents approximately 53% of the U.S. population.
- ➤iGaming is live in 5 states, representing approximately 11% of the U.S. population.
- ➤Sportsbook and iGaming offerings reach Canadian provinces representing approximately 51% of the population.
- ➤DraftKings operates federally regulated event contracts through DraftKings Predictions under CFTC oversight.
- ➤Daily fantasy sports platform is available in 44 states, Washington, D.C., and certain Canadian provinces.
- ➤DraftKings is an official partner of the NHL, PGA TOUR, WNBA, NASCAR, NBA and MLB.
Management Commentary
Jason Robins, Chief Executive Officer and Co-founder
“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. More than 1.6 million customers have engaged with Predictions year-to-date, and combined with the strength of our core, we believe we are set up for an exceptional 2027.”
Alan Ellingson, Chief Financial Officer
“Our core business continues to generate significant free cash flow, which we are deploying to fund growth in our Predictions business at attractive payback periods. We are introducing fiscal year 2027 revenue guidance of $7.35 billion to $7.75 billion, an increase of 17% year-over-year at the midpoint, and Adjusted EBITDA guidance of $800 million to $1.0 billion, which includes $300 million of Adjusted EBITDA investment in Predictions at the midpoint.”