DraftKings has reduced its 2026 adjusted EBITDA guidance to $175 million–$275 million, from its previous range of $700 million–$900 million. Revenue guidance was cut to $6.35 billion–$6.55 billion. The company reported third-quarter revenue growth of 16% to $1.33 billion, but its net loss widened to $468.7 million.
Prediction markets and marketing costs
DraftKings said it expects to invest $650 million–$700 million in its Predictions business during 2026. Sales and marketing expenditure rose 68% year on year to $605.7 million in Q3. Monthly unique payers increased 13% to 4.1 million, while average revenue per monthly unique payer rose 3% to $109. The company expects its core business to generate adjusted EBITDA of $875 million–$925 million in 2026, before the impact of Predictions investment.
What the numbers signal
The results show how aggressively expanding into a new product category can absorb cash even while the core sportsbook and iGaming business grows. Operators and affiliates should watch how promotional intensity, customer acquisition costs and prediction-market economics affect the company’s 2027 targets.