DraftKings Slashes 2026 EBITDA Outlook Amid Prediction-Market Spending

DraftKings cut its 2026 adjusted EBITDA outlook by nearly 72% at the midpoint as it funds a prediction-markets push, while its quarterly net loss widened to $469 million.

The sports betting company now expects 2026 adjusted EBITDA of $175 million to $275 million, down from $700 million to $900 million. Its revenue forecast fell to $6.35 billion to $6.55 billion from $6.5 billion to $6.9 billion.

DraftKings expects its prediction-markets business to reduce 2026 adjusted EBITDA by $650 million to $700 million, including an impact of $175 million to $225 million in the fourth quarter. New-user promotions are expected to offset most of the business’s gross trading revenue, limiting its revenue contribution this year.

Third-quarter revenue increased 16% year over year to $1.329 billion, but the net loss grew from $257 million a year earlier. The loss was 94 cents per share, compared with the 41-cent loss analysts expected. Sports betting revenue rose 31.5% to $784 million, while iGaming revenue increased 2.1% to $461 million.

After the results, DraftKings perpetual contracts on Hyperliquid fell as much as 26.9%, from about $23.46 to $17.16, before recovering to $18.34. They remained about 21.8% below the pre-earnings level. For 2027, DraftKings expects $650 million to $750 million in prediction-markets revenue, plans to invest $250 million to $350 million in expansion and projects adjusted EBITDA of $800 million to $1 billion.