DraftKings Inc. (NASDAQ:DKNG) shares are trading lower Friday after the company reported worse-than-expected third-quarter results Thursday after the market closed and lowered its fiscal 2026 guidance.
- DraftKings stock is testing key support levels. What’s behind DKNG weakness?
DraftKings Misses on EPS and Revenue as Net Loss Widens
DraftKings reported an adjusted loss of 53 cents per share, wider than the consensus estimate of a loss of 39 cents. The company also reported revenue of $1.329 billion, up 16% from a year earlier but, missing the consensus estimate of $1.398 billion. Sportsbook net revenue grew 36%, and net revenue margin expanded about 120 basis points to 6.4%. The net loss was $468.7 million, up from $256.8 million a year earlier, and adjusted EBITDA was a loss of $316.9 million, compared with a loss of $126.5 million.
Monthly unique payers rose about 13% to 4.1 million, and average revenue per monthly unique payer rose about 3% to $109. DraftKings is live with mobile sports betting in 27 states, Washington, D.C., and Puerto Rico, representing about 53% of the U.S. population.
“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,” said Jason Robins, DraftKings’ CEO and co-founder. He said more than 1.6 million customers have engaged with Predictions this year.
DraftKings Lowers 2026 Revenue Outlook, Issues 2027 Revenue Guidance
DraftKings lowered its fiscal 2026 revenue guidance to $6.35 billion to $6.55 billion from $6.50 billion to $6.90 billion, versus the consensus estimate of $6.672 billion. For fiscal 2027, DraftKings expects revenue of $7.35 billion to $7.75 billion, versus the consensus estimate of $7.597 billion.
“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,” said Alan Ellingson, DraftKings’ chief financial officer.
DraftKings Stock Tumbles
DKNG Price Action: At the time of publication, DraftKings stock is trading 24.20% lower at $17.83, according to data from Benzinga Pro.
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