DraftKings Q3 2026 earnings review

Revenue rose 16.2% but missed consensus, and FY Adj. EBITDA guide was cut.

DraftKings · Q3 2026 · Published Nov 6, 2026 · By DeepCell AI · Sources

DraftKings Q3 2026 earnings review

Quarter ended September 30, 2026

For information only, not investment advice. No rating or price target.

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1 · DraftKings (DKNG) Q3 2026 earnings review

Revenue rose 16.2% but missed consensus, and FY Adj. EBITDA guide was cut

  1. 1.Revenue rose 16.2% to $1,329.1M, below Benzinga Pro consensus $1,398.0M
  2. 2.Adjusted EBITDA loss widened to -$316.9M; Adj. EPS -$0.53 vs consensus -$0.39
  3. 3.MUPs rose 13.0% to 4.1M; ARPMUP rose to $109.00
  4. 4.FY26 Adj. EBITDA guide mid cut to $225M from prior mid $800M; FY27 guide introduced
  5. 5.After hours Nov 5: $17.90, -23.9% vs close $23.52 (not a close)

Note: ARPMUP is average revenue per monthly unique payer. Adjusted EBITDA and Adj. EPS follow company definitions. After-hours is not a close. Prior FY guide from Yahoo/Benzinga attribution.Source: DraftKings IR / BusinessWire, Nov 5, 2026; Benzinga Pro via Yahoo Finance, Nov 5, 2026; Yahoo Finance and CNBC prices; analysis of company data

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2 · Executive summary

Revenue missed Benzinga Pro consensus by 4.9%, and Adj. EPS missed by -$0.14

Q3 2026 results vs. Benzinga Pro consensus

MetricActualConsensusVarianceResult
Revenue$1,329.1M$1,398.0M-$68.9M / -4.9%Miss
Adjusted EPS-$0.53-$0.39-$0.14 / +35.9%Miss

Share price, Nov 4 close, Nov 5 close and Nov 5 after-hours (Yahoo Finance; CNBC)

MeasureNov 4 closeNov 5 closeNov 5 after-hoursAH vs close
DraftKings (Nasdaq)$23.11$23.52$17.90-23.9%

Note: Benzinga Pro via Yahoo Finance, Nov 5. TradingView cross-check: revenue $1.39B, EPS $(0.41). After-hours CNBC 6:38 PM EST; not a close. Dark red marks a Miss.Source: DraftKings IR / BusinessWire, Nov 5, 2026; Benzinga Pro via Yahoo Finance, Nov 5, 2026; TradingView pre-release estimates; Yahoo Finance and CNBC prices; analysis of company data

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3 · Q3 results vs. consensus

FY27 revenue guide midpoint of $7,550M implies 17% growth vs the FY26 mid

FY 2026 and FY 2027 company guidance

MetricLowHighMidpoint
FY26 revenue$6,350M$6,550M$6,450M
FY26 Adj. EBITDA$175M$275M$225M
FY27 revenue$7,350M$7,750M$7,550M
FY27 Adj. EBITDA$800M$1,000M$900M

FY26 composition (company)

MetricLowHighMid
Core Adj. EBITDA$875M$925M$900M
Predictions investment (mid)——$675M

Note: FY27 includes Predictions revenue of $650–750M and Predictions Adj. EBITDA investment of $250–350M. No Q4-only guide was issued.Source: DraftKings IR / BusinessWire, Nov 5, 2026; DraftKings business update, Nov 5, 2026; analysis of company data

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4 · FY 2026 and FY 2027 guidance

Revenue rose 16.2% to $1,329.1M, while the Adjusted EBITDA loss widened

  1. Sports revenue led growthSports revenue rose 31.5% to $783.6M.
  2. Payers roseMUPs rose 13.0% to 4.1 million.
  3. Marketing rose sharplySales and marketing rose 68.1% to $605.7M.

Key figures in $M and YoY % for Q3 2026 vs. Q3 2025

$M unless notedQ3 2025Q3 2026YoY
Revenue$1,144.0M$1,329.1M16.2%
Operating income (loss)-$271.9M-$493.1Mn.m.
Net income (loss)-$256.8M-$468.7Mn.m.
Adjusted EBITDA-$126.5M-$316.9Mn.m.
Diluted EPS-$0.52-$0.94n.m.

Note: GAAP figures as reported. Adjusted EBITDA is non-GAAP. n.m. means not meaningful for loss comparisons.Source: DraftKings IR / BusinessWire, Nov 5, 2026; analysis of company data

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5 · Q3 key financials

Sports revenue rose 31.5% to $783.6M, or 59.0% of total

Revenue by line

$M, Q3 2025 vs. Q3 2026

LineQ3 2025Q3 2026YoY
Sports$596.1M$783.6M31.5%
iGaming$451.3M$460.9M2.1%
Other$96.6M$84.5M(12.5%)
Total revenue$1,144.0M$1,329.1M16.2%
Sports Consumer Volume rose 21.9%“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.” Jason Robins, CEO

Note: Sports Net Revenue Margin rose to 5.6% from 5.2%. Other includes Predictions and remaining offerings.Source: DraftKings IR / BusinessWire, Nov 5, 2026; analysis of company data

6

6 · Revenue by line

7 · Revenue by product line

8 · Customer metrics

Adjusted EBITDA loss widened to -$316.9M as sales and marketing rose -$245.3M

Adjusted EBITDA bridge

$M, Q3 2025 to Q3 2026

$M · Q3 2025: -$126M$M · Revenue: $185M$M · S&M: -$245M$M · Other: -$130M$M · Q3 2026: -$317MQ3 2025RevenueS&MOtherQ3 2026-$400M-$200M$0M$200M-$126M$185M-$245M-$130M-$317M
S&M rose to $605.7M, or 45.6% of revenue

Note: Bridge uses revenue change and the S&M increase as the main opex swing; other cost lines are omitted for scale. Not a full GAAP bridge.Source: DraftKings IR / BusinessWire, Nov 5, 2026; analysis of company data

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9 · Adjusted EBITDA bridge

Sports net revenue margin rose 40 bps to 5.6%, while Adj. EBITDA margin fell

Sports NRM and Adj. EBITDA margin

% of revenue / handle, Q3 2025 vs. Q3 2026

Sports NRM · Q3 2025: 5.2%Sports NRM · Q3 2026: 5.6%Adj. EBITDA margin · Q3 2025: -11.1%Adj. EBITDA margin · Q3 2026: -23.8%Q3 2025Q3 20260%5%10%15%20%5.2%5.6%

Sports NRMAdj. EBITDA margin

Adj. EBITDA margin was (23.8%), from (11.1%)

Note: Sports Net Revenue Margin is sports revenue divided by Sports Consumer Volume. Adj. EBITDA margin is Adj. EBITDA divided by revenue.Source: DraftKings IR / BusinessWire, Nov 5, 2026; analysis of company data

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10 · Margin analysis

Cash was $1,100.9M at Sep 30, with $154.2M of buybacks in 9M 2026

Quarterly revenue and FY26 guidance midpoint

$M

$M · Q3 2025: $1,144M$M · Q3 2026: $1,329M$M · FY26 guide mid: $6,450MQ3 2025Q3 2026FY26 guide mid$0M$2,000M$4,000M$6,000M$7,000M$1,144M$1,329M$6,450M
9M operating cash flow was $63.0M; Q3-only FCF was not disclosed

Note: FCF is free cash flow. Cash flow statement is nine-months only in the release. Buybacks are under the Stock Repurchase Program.Source: DraftKings IR / BusinessWire, Nov 5, 2026; analysis of company data

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11 · Cash and capital returns

FY26 Adj. EBITDA guide midpoint fell -$575.0M to $225M, mainly on Predictions investment

FY 2026 guidance vs. prior company ranges

$M

MetricPrior midNew midChange
Revenue$6,700M$6,450M-$250.0M
Adjusted EBITDA$800M$225M-$575.0M
Core Adj. EBITDA (new)—$900M—
Predictions Adj. EBITDA investment of about $675M in FY26

Note: Prior ranges $6.5–6.9B revenue and $700–900M Adj. EBITDA as attributed in Yahoo/Benzinga coverage of the release. Core and Predictions split from the company release.Source: DraftKings IR / BusinessWire, Nov 5, 2026; Prior company guidance ranges cited in Yahoo/Benzinga, Nov 5, 2026; DraftKings business update, Nov 5, 2026; analysis of company data

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12 · FY guidance cut

Term B loans rose to $1,251.3M, while convertible notes fell to $942.1M

Cash and debt

$M, Dec 31, 2025 vs. Sep 30, 2026

$MDec 31, 2025Sep 30, 2026
Cash and cash equivalents$1,127.5M$1,100.9M
Convertible notes, net$1,259.1M$942.1M
Term B Loans, net$576.5M$1,251.3M
Stockholders equity$631.5M$179.6M
Total convertibles and Term B loans reached $2,193.5M

Note: Equity fell as accumulated deficit rose with year-to-date losses and treasury stock purchases.Source: DraftKings IR / BusinessWire, Nov 5, 2026; analysis of company data

13

13 · Balance sheet and debt

FY26 Adj. EBITDA guide mid of $225M hinges on Predictions spend and sports outcomes

Indicator
What to watch
Implication
Q3 reading
Predictions investment
Payback and regulation
FY26 investment ~$675M
1.6M+ Predictions customers YTD
Sports hold
Customer-friendly outcomes
Guide cites modest CF outcomes
Sports NRM 5.6%
iGaming promotions
Near-term margin vs growth
Net revenue +2% on +7% gross
iGaming revenue $460.9M
Marketing spend
S&M intensity
S&M 45.6% of revenue
S&M $605.7M

Note: Analytical watch points, not company targets. Regulatory status of prediction markets remains a stated risk.Source: DraftKings IR / BusinessWire, Nov 5, 2026; DraftKings business update, Nov 5, 2026; analysis of company data

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14 · Key risks to guidance

15 · Appendix: Revenue detail

16 · Appendix: Profit and costs

17 · Appendix: Guidance detail

Appendix: cash flow and capital

ClaimEvidenceCalculation
Cash held near $1.1B$1,100.9M at Sep 30Balance sheet
9M operating cash flow$63.0MCash flow statement, 9M only
9M share repurchases$154.2M under repurchase programFinancing activities
Term B and convertiblesTotal $2,193.5MBalance sheet

Source: DraftKings IR / BusinessWire, Nov 5, 2026; analysis of company data

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18 · Appendix: Cash and shares

Appendix: operating expense and non-GAAP detail

GAAP operating costs, $M and YoY %

$M unless notedQ3 2025Q3 2026YoY
Cost of revenue$784.1M$900.0M14.8%
Sales and marketing$360.4M$605.7M68.1%
Product and technology$114.7M$137.4M19.8%
General and administrative$156.8M$179.1M14.3%

Non-GAAP results, $M

$M unless notedQ3 2025Q3 2026YoY
Adjusted EBITDA-$126.5M-$316.9Mn.m.
Adjusted EPS ($)-$0.26-$0.53n.m.
Stock-based compensation$72.5M$86.0M18.7%
Advocacy and related legal$0.0M$12.8Mn.m.

Note: Adjusted EBITDA reconciles from net loss for D&A, interest, tax, SBC, advocacy and other items. COR YoY omitted in the left table stub for space.Source: DraftKings IR / BusinessWire, Nov 5, 2026; analysis of company data

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19 · Appendix: Opex and non-GAAP

Appendix: sources

  • IR release, Nov 5, 2026 — https://ir.aboutdraftkings.com/news/news-details/2026/DraftKings-Reports-Third-Quarter-Revenue-Growth-of-16/default.aspx
  • BusinessWire mirror — https://www.businesswire.com/news/home/20261105003897/en/DraftKings-Reports-Third-Quarter-Revenue-Growth-of-16
  • Business update PDF (shareholder letter) — https://s21.q4cdn.com/869500724/files/doc_earnings/2026/q3/generic/BU-Q3-26.pdf
  • Prior FY26 guide ranges as attributed: Yahoo Finance / Benzinga, Nov 5, 2026 — https://finance.yahoo.com/markets/stocks/articles/draftkings-stock-dives-q3-miss-214320755.html
  • Consensus: Benzinga Pro via Yahoo Finance, Nov 5, 2026 — https://finance.yahoo.com/markets/stocks/articles/draftkings-stock-dives-q3-miss-214320755.html; cross-check TradingView — https://www.tradingview.com/news/tradingview:56afbca8f0847:0-dkng-q3-26-earnings-eps-estimate-is-0-41-usd/
  • Share price: Yahoo Finance DKNG closes, Nov 4 and Nov 5, 2026 — https://finance.yahoo.com/quote/DKNG/history/
  • After-hours (not a close): CNBC DKNG quote, Nov 5, 2026, 6:38 PM EST — https://www.cnbc.com/quotes/DKNG

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20 · Sources

Important disclosures and disclaimer

For information only. This presentation is provided for information only. It is not investment, legal, tax or accounting advice, and it is not an offer, or a solicitation of an offer, to buy or sell any security.

No recommendation. It carries no rating, price target or buy, sell or hold view, and it was prepared without regard to any reader's investment objectives, financial situation or needs.

Sources and accuracy. Company figures come from DraftKings' November 5, 2026 earnings release and business update. Prior FY 2026 guidance ranges are as attributed in Yahoo Finance / Benzinga coverage of the release. Consensus (Benzinga Pro; TradingView) and prices (Yahoo Finance; CNBC after-hours) are third-party data. Q3-only free cash flow was not disclosed. We have not independently verified third-party data.

Forward-looking statements. Company guidance, consensus estimates and the watch items in this deck are forward-looking. Actual results may differ materially.

Past performance. Past results, including those for Q3 2026, are not a reliable indicator of future results.

Non-GAAP measures. Adjusted EBITDA and Adjusted EPS follow DraftKings' definitions and may not be comparable with other companies' measures. The release reconciles them to GAAP.

No liability. No liability is accepted for any direct or indirect loss arising from the use of this presentation or its contents.

No affiliation. This presentation is not affiliated with, reviewed or endorsed by DraftKings Inc. and does not represent its views.

How it was made. The deck was built with DeepCell, with figures linked to a model in the file. Readers should check the original release and consult a qualified adviser before any investment decision.

Date of analysis. The analysis reflects information available as of November 5, 2026, US Eastern time, with the Nov 5 close and after-hours quote. It will not be updated for later events.

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21 · Disclosures

Sources

Not investment advice; no rating or price target.

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