DraftKings Lowers 2026 Forecast as Costs Rise

DraftKings has lowered its revenue and adjusted EBITDA forecasts for fiscal 2026. The company expects 2026 revenue of $6.35 to $6.55 billion. Its previous forecast was $6.5 to $6.9 billion. The adjusted EBITDA outlook was set at $175 to $275 million, while the previous range was $700 to $900 million.

Third-quarter revenue rose 16% to $1.33 billion. However, the adjusted EBITDA loss widened from $126.5 million to $316.9 million. The net loss reached $468.7 million, nearly doubling on an annual basis. Marketing and sales expenses rose 68% to $605.7 million.

The company attributed the main reason for the change to its investment in Predictions. Between $650 and $700 million is planned for Predictions. DraftKings said it expects its core business to generate $875 to $925 million in adjusted EBITDA. Predictions is expected to generate insignificant revenue in 2026, as customer promotions will cover most of its gross revenue. Only in the fourth quarter, $175 to $225 million in EBITDA investment is planned.

The company presents a more positive picture for 2027. A revenue range of $7.35 to $7.75 billion was announced. Of this, $6.7 to $7 billion is expected to come from the core business, and $650 to $750 million from Predictions.