DraftKings Misses Estimates, Cuts 2026 Guidance

The online gambling company reported third-quarter revenue of $1.329 billion and lowered its fiscal 2026 forecasts while introducing fiscal 2027 targets.

Updated on Nov. 5, 2026 in Gambling

Bold flat-color editorial illustration of a stack of poker chips with one chip slipping off the top, set against a solid cream field. — DraftKings missed Wall Street revenue estimates for the quarter and cut its fiscal 2026 forecasts while setting fiscal 2027 targets. AI Illustration. Upload story photo >

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DraftKings reported third-quarter 2026 revenue of $1.329 billion, up 16% year-over-year but short of the $1.398 billion Street consensus, along with an adjusted loss of 53 cents per share. The company lowered its fiscal 2026 revenue and adjusted EBITDA guidance and shares fell 18.4% to $19.20 in after-hours trading.

Why it matters

The revenue shortfall and reduced guidance signal pressure on the company's sportsbook and gaming core just as it expands into prediction markets. The company stated that its core business is helping to fund the Predictions business, making its performance a key test of whether that expansion can pay off.

Third-quarter revenue of $1.329 billion rose 16% year-over-year, while average monthly unique payers reached 4.1 million, up 13%, and average revenue per payer was $109, up 3%. More than 1.6 million customers have engaged with DraftKings Predictions in 2026, though the source does not break out Predictions revenue for the current period.

The players

DraftKings

DraftKings is a major U.S. online sportsbook and iGaming operator that has expanded into prediction markets through its Predictions business.

The details

DraftKings reported results after market close on Thursday, November 5, 2026, with an adjusted loss of 53 cents per share. The company revised fiscal 2026 revenue guidance to $6.35 billion to $6.55 billion and adjusted EBITDA guidance to $175 million to $275 million, and introduced fiscal 2027 guidance of $7.35 billion to $7.75 billion in revenue and $800 million to $1.0 billion in adjusted EBITDA.

Thursday, November 5, 2026: DraftKings reports third-quarter results after market close.
2026: Fiscal 2026 revenue and adjusted EBITDA guidance is revised downward.
2027: Fiscal 2027 guidance is introduced, with Predictions revenue projected at $650 million to $750 million.

Industry Dynamics

DraftKings is funding its Predictions business from its core sportsbook revenue, a structure that makes the company's overall financial health dependent on both lines succeeding at once. The guidance cut and fiscal 2027 Predictions projection of $650 million to $750 million show that the company is betting its near-term results on whether prediction markets can grow into a material revenue line.

Users in the United States who take part in DraftKings Predictions will see the product's growth continue to be prioritized, with fiscal 2027 revenue projected at $650 million to $750 million from that business. The guidance cut and stock decline do not change any terms the source describes for current customers.

The takeaway

The third-quarter results show that a company can grow revenue sharply and still miss expectations and cut guidance, so readers following the gambling sector should watch whether the Predictions business begins to offset pressure on the core sportsbook in coming quarters.