DraftKings Inc. gave a forecast for 2027 earnings that missed the average analyst estimate, while also cutting its outlook for fiscal 2026. Third-quarter revenue also fell short of expectations, and the shares fell 19% in extended trading. The Boston-based sports-betting giant sees adjusted earnings before interest, tax, depreciation and amortization of $800 million to $1 billion, the company said in a statement Thursday. That is less than the $1.12 billion analysts were expecting on average, according to data compiled by Bloomberg.
For fiscal year 2026, the company now expects revenue of $6.35 billion to $6.55 billion and adjusted EBITDA of $175 million to $275 million. Previous guidance was for $6.5 billion to $6.9 billion in revenue and adjusted EBITDA of $700 million to $900 million. The new range primarily reflects increased adjusted EBITDA investment in predictions of $650 million to $700 million, the company said.
DraftKings and its chief rival Flutter Entertainment Plc.'s FanDuel have struggled with sports-betting outcomes that have been more favorable to their customers. They have also faced competition from a new generation of prediction-market operators such as Kalshi Inc. and Polymarket. Both FanDuel and DraftKings have launched their own prediction-market products, focusing on states where sports betting is not legal. Rolling out the new products is expensive, however, eating into company profits.
In the third quarter, DraftKings reported revenue of $1.33 billion, missing analysts' estimates of $1.39 billion. Monthly players increased 13% to 4.1 million, compared with analysts' average projections of 4 million.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing