DraftKings shares dropped 18.4% to $19.20 in Thursday's after-hours trading after third-quarter results missed expectations and the company lowered fiscal 2026 guidance. DraftKings released the quarterly results after Thursday's market close. DraftKings shares had traded between $18.36 and $36.98 over the preceding 52 weeks.
DraftKings generated third-quarter revenue of $1,329 million, a 16% increase from a year earlier. Benzinga Pro data put the consensus revenue forecast at $1,398 million. DraftKings posted an adjusted loss of 53 cents per share, worse than the consensus forecast of a 39-cent loss. DraftKings recorded an average of 4.1 million monthly unique payers during the quarter, a 13% annual increase. Revenue per monthly unique payer averaged $109, a 3% increase from a year earlier.
DraftKings lowered fiscal 2026 revenue guidance from $6.5 billion to $6.9 billion to a new range of $6.35 billion to $6.55 billion. DraftKings reduced fiscal 2026 adjusted EBITDA guidance from $700 million to $900 million to a new range of $175 million to $275 million. DraftKings included a larger adjusted EBITDA investment in Predictions, totaling $650 million to $700 million, in the revised guidance.
DraftKings issued fiscal 2027 revenue guidance of $7.35 billion to $7.75 billion, implying 17% annual growth at the midpoint. DraftKings forecast fiscal 2027 adjusted EBITDA of $800 million to $1 billion. DraftKings included an adjusted EBITDA investment of $250 million to $350 million in Predictions within that forecast. DraftKings expects fiscal 2027 core business revenue of $6.7 billion to $7 billion. DraftKings expects Predictions to generate $650 million to $750 million in fiscal 2027 revenue.
DraftKings CEO Jason Robins said Predictions was now contributing meaningfully to business growth. Robins said more than 1.6 million customers had used DraftKings Predictions in 2026. Chief Financial Officer Alan Ellingson said the core business was helping finance Predictions, which Ellingson said offered attractive payback periods. Robins said DraftKings believed the company was positioned for an exceptional 2027.
DraftKings Q3 Revenue Misses Estimates, Shares Drop 18.4%
BenzingaShare
Summary
DraftKings shares dropped 18.4% to $19.20 in after-hours trading on November 6, 2026, after Q3 revenue of $1.329 billion missed the $1.398 billion estimate. The company posted a 53-cent adjusted loss per share, worse than expected. DraftKings also cut 2026 revenue guidance to $6.35 billion to $6.55 billion and adjusted EBITDA to $175 million to $275 million. The fear and greed index may reflect this sharp decline. However, 2027 revenue guidance was raised to $7.35 billion to $7.75 billion, with Predictions expected to generate $650 million to $750 million in revenue. Altcoins to watch could see shifts amid market sentiment.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.