DraftKings Q3 revenue rises 16% to $1.33bn as net loss widens to $468.7m

DraftKings reported a 16% rise in revenue to $1.33bn in the quarter to 30 September 2026, while its net loss widened to $468.7m as spending on its Predictions business and marketing increased. The figures come from iGaming Future's report.

For affiliates and operators, the results show a US operator growing sportsbook revenue quickly while absorbing much higher marketing and Predictions costs.

What happened

Revenue for the quarter compared with $1.14bn in the same period of 2025. The company attributed the increase mainly to higher customer engagement and better sportsbook net revenue margins.

Profitability moved in the other direction:

• Net loss attributable to common stockholders was $468.7m, against $256.8m a year earlier.
• Adjusted EBITDA loss was $316.9m, compared with $126.5m in Q3 2025.
• Operating loss rose to $493.1m from $271.9m.
• Sales and marketing expenditure increased to $605.7m from $360.4m.

By segment, sports revenue rose 31.5% to $783.6m, with sports consumer volume up 21.9% to $13.9bn. Sportsbook net revenue margin improved to 5.6% from 5.2%. iGaming revenue grew 2.1% to $460.9m, while other revenue fell 12.5% to $84.5m.

Monthly Unique Payers increased by about 13% to 4.1 million, covering sportsbook, iGaming and Predictions customers. Average revenue per monthly unique payer rose 3% to $109, which the company linked mainly to the better sportsbook margins.

Revenue for the first nine months of 2026 was $4.42bn, up 8.7% from $4.07bn. Nine-month iGaming revenue rose 6.1% to $1.38bn. The nine-month net loss widened to $515.3m from $132.7m, and adjusted EBITDA swung from a positive $276.8m to a loss of $34.4m.

DraftKings ended September with about $1.1bn in cash and cash equivalents, against $1.13bn at the end of 2025.

The company updated its 2026 outlook to revenue of between $6.35bn and $6.55bn and adjusted EBITDA of between $175m and $275m. It said the revision mainly reflects Predictions investment, which it expects to need adjusted EBITDA spending of between $650m and $700m this year. The core business is expected to produce adjusted EBITDA of between $875m and $925m.

The company does not expect Predictions to contribute material revenue in 2026, as it forecasts that promotional spending will offset most gross revenue. The company expects Predictions investment of between $175m and $225m in the fourth quarter.

Chief executive Jason Robins said Predictions is now driving meaningful growth and that over 1.6 million customers have used it so far this year. Chief financial officer Alan Ellingson said the core business generates significant free cash flow that is being used to fund Predictions.

As of September 2026, DraftKings was running its mobile sportsbook across 27 US states plus Washington, DC and Puerto Rico, reaching about 53% of the US population. Its iGaming products were available in five states, about 11% of the population.

Why it matters

Affiliates working with US operators should check how marketing budgets and acquisition terms are changing, because sales and marketing spend at DraftKings rose from $360.4m to $605.7m year on year. Higher promotional intensity at DraftKings is likely to affect what other operators need to spend to compete for the same customers, and could shape the commercial terms they offer partners.

The growth mix is also relevant. Sports revenue rose 31.5% in the quarter, while iGaming revenue grew 2.1%, so sportsbook is currently driving the top line. Operators and affiliates focused on iGaming in regulated US states will want to see whether the company's stated additional investment in iGaming growth changes that balance.

The Predictions spend points to a competitive front that is separate from traditional sportsbook and casino. DraftKings expects promotional costs to absorb most of the gross revenue in 2026, which indicates the product is in an acquisition phase. Operators weighing their own entry could use these figures as a benchmark for the cost of building a customer base.

What's next

DraftKings introduced 2027 guidance of between $7.35bn and $7.75bn in revenue and between $800m and $1bn in adjusted EBITDA. Within that, the core business is forecast to deliver between $6.7bn and $7bn in revenue and between $1.15bn and $1.25bn in adjusted EBITDA.

Predictions is forecast to contribute between $650m and $750m in revenue in 2027, alongside adjusted EBITDA investment of between $250m and $350m.