DraftKings Q3 Revenue Reaches $1.3 Billion on Customer Growth and Sportsbook Margins
DraftKings announced that revenue for the third quarter was $1.3 billion, an increase of $185 million, or 16%, compared to $1.1 billion during the same period in 2025. DraftKings is introducing fiscal year 2027 revenue guidance of $7.35 billion to $7.75 billion. DraftKings expects fiscal year Adjusted EBITDA from the core business of $875 million to $925 million.
SCCG Take — Core cash flow now funds adjacent product investment at defined payback periods. The scale of the predictions allocation will test whether new customer acquisition costs compress faster than current guidance assumes.
DraftKings reported third-quarter revenue of $1.3 billion. That figure reflects a 16% increase and $185 million in added revenue from the $1.1 billion recorded in the same period of 2025.
The operator cited continued healthy customer engagement and higher sportsbook net revenue margin as the primary drivers. It is live with mobile sports betting in 27 states, Washington D.C. and Puerto Rico, representing 53% of the U.S. population, and with iGaming in five states representing 11% of that population. Provinces covering 51% of the Canadian population also have access to its sportsbook and iGaming offerings.
Customer Metrics and Predictions Adoption
Monthly unique payers rose 13% to 4.1 million. Average revenue per monthly unique payer increased 3%, or $3, to $109 for the three months ended September 30. More than 1.6 million customers have engaged with the predictions product year-to-date.
DraftKings CEO and Co-Founder Jason Robins stated that the third quarter marked a pivotal moment because the predictions offering is now powering meaningful growth. Robins added that the core business continues to generate significant free cash flow that funds predictions expansion at attractive payback periods.
Updated Guidance Incorporates Predictions Investment
The operator introduced fiscal year 2027 revenue guidance of $7.35 billion to $7.75 billion, a 17% year-over-year increase at the midpoint. Adjusted EBITDA guidance is $800 million to $1 billion, including $300 million of Adjusted EBITDA investment in Predictions at the midpoint.
Current-year guidance was revised to reflect higher spending. The company now expects Adjusted EBITDA investment in prediction markets of $650 million to $700 million. Core business Adjusted EBITDA is projected at $875 million to $925 million. Predictions revenue will remain immaterial this fiscal year as new customer promotions offset most gross revenue. Fourth-quarter investment in Predictions is expected between $175 million and $225 million.
DraftKings closed at $23.52, up 1.8%, according to reporting by CDC Gaming.
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