DraftKings’ $469 Million Loss Overshadows 16% Revenue Gain

$1.329 billion

Quarterly revenue

−$468.7 million

Net loss

16.2%

Revenue growth

Boston-based DraftKings reported a third-quarter net loss attributable to common stockholders of $468.7 million, compared with $256.8 million a year earlier, despite revenue rising 16.2% to $1.329 billion. The November 5 DraftKings earnings release paired that wider loss with heavier investment in its Predictions offering and a new set of 2027 forecasts.

The central tension is not whether sales grew—they did—but how much spending accompanies that growth. DraftKings’ financial statements show sales and marketing costs of $605.7 million, up from $360.4 million in the comparable quarter. The period ended September 30, so the numbers are a quarterly operating record, not a measure of November betting activity.

By the numbers: expenses grew faster than sales

Using the unrounded figures in the release, TBR calculates that revenue increased by $185.044 million, or 16.18%, while sales and marketing increased by $245.294 million, or 68.07%. The marketing increase alone was about $60.3 million greater than the revenue increase. That comparison does not allocate every marketing dollar to a product; it shows the scale of the expense change.

The GAAP operating loss widened to $493.129 million from $271.890 million. The net loss attributable to common stockholders increased by $211.932 million, or approximately 82.53%. Operating loss and net loss are different lines in the statements and should not be interchanged when describing the quarter.

Adjusted EBITDA was a loss of $316.899 million, compared with a loss of $126.488 million a year earlier. That is an adjusted, non-GAAP measure, not the same as the $468.720 million GAAP net loss. Both deteriorated, even though the company’s measures of customer activity and revenue increased.

Sports drove growth; iGaming moved more slowly

Sports revenue increased to $783.626 million from $596.119 million, a reported 31.5% gain. DraftKings defines that category to include online sportsbook, retail sportsbook and prediction markets revenue. Labeling the entire category as conventional sportsbook revenue would therefore miss part of its stated definition.

iGaming revenue was $460.923 million, up 2.1%, while other revenue fell 12.5% to $84.514 million. The sports category’s $187.507 million increase exceeded the company’s total $185.044 million revenue increase because the decline in other revenue offset part of the combined gains. That is a TBR reconciliation of the disclosed category changes.

Monthly unique payers rose approximately 13% to 4.1 million, and average revenue per monthly unique payer increased roughly 3% to $109, according to the company. The customer and monetization measures move in the same direction as total revenue, but neither establishes whether the incremental customers will be profitable over their full relationship with DraftKings.

Analysis: Predictions complicates the outlook

DraftKings updated 2026 revenue guidance to $6.35 billion–$6.55 billion and adjusted EBITDA guidance to $175 million–$275 million. Management said the update primarily reflected increased adjusted EBITDA investment in Predictions of $650 million–$700 million. It expects Predictions revenue to be immaterial in 2026 because new-customer promotions offset most gross revenue.

For 2027, the company introduced revenue guidance of $7.35 billion–$7.75 billion and adjusted EBITDA guidance of $800 million–$1.0 billion. Within those forecasts, it expects Predictions revenue of $650 million–$750 million and adjusted EBITDA investment of $250 million–$350 million. These are management projections, not earned revenue or assured profit.

Chief Financial Officer Alan Ellingson said cash generated by the core business is funding Predictions growth. That is management’s explanation of the strategy. The financial statements do not turn the expected payback from that spending into an established fact, and the release cautions that regulation, competition and execution can affect outcomes.

The stock reaction and the Boston connection

Yahoo Finance’s November 5 earnings account reported a 23% after-hours decline immediately following the announcement, while our November 6 premarket report described a decline of more than 20% at its later snapshot. Those are differently timed observations, not conflicting claims about a final Friday closing return.

DraftKings’ November 6 SEC current report confirms the November 5 earnings announcement and lists principal executive offices at 222 Berkeley Street in Boston. The company is part of the local public-company earnings picture tracked in our Boston earnings guide, but its reported revenue and losses reflect the consolidated business, not Massachusetts alone.

The result leaves a measurable distinction for the next reporting cycle: customer activity and sports revenue increased, while marketing expense and losses increased faster. Whether Predictions spending generates the forecast revenue will require subsequent results. The current release establishes the cost of the expansion and management’s intended path, not proof that the investment has already paid off.

Sources

• DraftKings: Q3 2026 results and statements (November 5)
• SEC: DraftKings current report (November 6)
• Yahoo Finance: DraftKings earnings account (November 5, 7:34 p.m. EST)