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DraftKings reported third-quarter revenue of $1.3 billion, up 16% from a year earlier, according to CDC Gaming Reports. The company attributed the growth primarily to healthy customer engagement and higher sportsbook net revenue margins.
Revenue increased by $185 million from the $1.1 billion reported in the same period in 2025. DraftKings also updated its fiscal 2026 outlook and issued its first financial guidance for 2027.
DraftKings’ Paying Customer Base Grows 13%
Monthly unique payers rose about 13% to 4.1 million. Average revenue per monthly unique payer increased approximately 3%, or $3, to $109 for the three months ended Sept. 30.
The company said more than 1.6 million customers had engaged with its predictions offering year-to-date.
“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,” CEO and co-founder Jason Robins said.
Predictions Investment Shapes 2026 Outlook
DraftKings updated its fiscal 2026 revenue guidance to $6.4 billion–$6.6 billion and its adjusted EBITDA guidance to $175 million–$275 million.
The company said the updated guidance primarily reflects increased adjusted EBITDA investment in prediction markets, totaling $650 million–$700 million. It expects its core business to generate adjusted EBITDA of $875 million–$925 million for the year.
Predictions revenue is expected to be immaterial in 2026 because new-customer promotions will offset most gross revenue generated. DraftKings expects adjusted EBITDA investment in Predictions of $175 million–$225 million in the fourth quarter.
DraftKings Sets 2027 Revenue Guidance
For fiscal 2027, DraftKings forecast revenue of $7.35 billion–$7.75 billion, representing a 17% year-over-year increase at the midpoint, according to CFO Alan Ellingson.
Ellingson said the company is using free cash flow from its core business to fund growth in predictions.
DraftKings also projected 2027 adjusted EBITDA of $800 million–$1 billion. That guidance includes $300 million of adjusted EBITDA investment in Predictions at the midpoint.
More from playwv.com – DraftKings Faces State Reviews Over Responsible Gaming Practices – Emails Detail College Sports Lobbying Network, Including DraftKings Executive – DraftKings Sets Nov. 5 Release for Third-Quarter 2026 Results
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Source: As reported by CDC Gaming Reports.
