$1,329M Revenue, 4.1M Monthly Payers, 5.6% Sports Margin: DraftKings Posts Q3 2026 Growth Under Robins and Ellingson

DraftKings has reported total revenue of $1,329 million for the third quarter of 2026, an increase of $185 million, or 16%, on the $1,144 million it recorded in the same period a year earlier. The company said the rise was driven primarily by continued healthy customer engagement and a higher Sportsbook net revenue margin.

The results, announced on 5 November 2026, also mark a shift in how the operator frames its growth. DraftKings is now pointing to its newer Predictions offering as a central engine of momentum, while continuing to expand across Sportsbook and iGaming.

DraftKings Q3 2026 revenue rises 16% to $1,329 million

Total revenue reached $1,329 million for the three months ended 30 September 2026, up from $1,144 million a year earlier. Within that, Sports Revenue came in at $783.6 million, up 31.5% year on year, while iGaming Revenue rose 2.1% to $460.9 million. Other Revenue was $84.5 million, down 12.5% on the same quarter in 2025.

DraftKings Monthly Unique Payers climb 13% to 4.1 million

Monthly Unique Payers increased approximately 13% to 4.1 million, which the company attributed to strong payer retention and new customer acquisition across its Sportsbook, iGaming and Predictions offerings. Average Revenue per MUP rose approximately 3%, or $3, to $109, primarily due to an improvement in Sportsbook net revenue margin, which climbed to 5.6% from 5.2%.

DraftKings Predictions draws 1.6 million customers year to date

The clearest change in DraftKings’ messaging is the prominence of Predictions. The company said more than 1.6 million customers have engaged with the 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,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder. “More than 1.6 million customers have engaged with Predictions year-to-date, and combined with the strength of our core, we believe we are set up for an exceptional 2027.”

Chief Financial Officer Alan Ellingson tied the investment case directly to the company’s cash generation. “Our core business continues to generate significant free cash flow, which we are deploying to fund growth in our Predictions business at attractive payback periods,” he said.

DraftKings posts a $468.7 million net loss as investment rises

The revenue growth comes alongside heavy investment in the business. DraftKings reported a net loss attributable to common stockholders of $468.7 million for the quarter, compared with $256.8 million a year earlier, and a basic and diluted loss per share of $0.94. Adjusted EBITDA was negative $316.9 million.

The company has been direct about the reason. It updated its fiscal 2026 revenue guidance to a range of $6.35 billion to $6.55 billion and its fiscal 2026 Adjusted EBITDA guidance to a range of $175 million to $275 million, pointing to increased Adjusted EBITDA investment in Predictions alongside further investment in iGaming growth. The near-term cost of expanding these categories is being carried now, with the company positioning the return for later periods.

DraftKings 2027 guidance targets $7.35 billion to $7.75 billion in revenue

DraftKings introduced fiscal 2027 revenue guidance of $7.35 billion to $7.75 billion, an increase of 17% year on year at the midpoint, with Adjusted EBITDA guidance of $800 million to $1.0 billion. That range includes $300 million of Adjusted EBITDA investment in Predictions at the midpoint, underlining how central the category has become to the company’s forward plan.

The company also confirmed its operational footprint: live with mobile sports betting in 27 states, Washington D.C. and Puerto Rico, iGaming in five states, and Sportsbook and iGaming across Canadian provinces representing around 51% of the Canadian population.

What DraftKings Q3 2026 results signal for US operators

For operators across the sector, the most telling signal in this update is where DraftKings is now placing its focus. A product that sat on the edge of the company’s story a year ago has become the centrepiece of both the quarterly narrative and the 2027 guidance. DraftKings has set out a clear view: it believes prediction markets, combined with the strength of its core Sportsbook and iGaming business, set it up for what it calls an exceptional 2027. The wider market will be watching how quickly that investment converts into the returns the company is forecasting.

Source: DraftKings Inc.