DraftKings Shares Plunge 24.5% on Lowered 2026 EBITDA Guidance
Key Facts
DraftKings shares plunged 24.5% in premarket trading on November 6, 2026, after the company slashed its 2026 adjusted EBITDA guidance to $225 million. The company attributed the guidance cut to a $475 million investment in prediction markets.
The company reported a third-quarter 2026 adjusted loss of $0.53 per share, wider than the $0.13 loss expected by analysts, on revenue of $1.33 billion. DraftKings also issued initial 2027 guidance of $800 million to $1 billion, following a close of $23.11 for DKNG shares on November 4, 2026.
Latest Updates · 4
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Update: DraftKings attributed the reduction in its EBITDA guidance to plans for investing up to $700 million in its DraftKings Predictions segment this year. The announcement led to further declines in the stock during after-hours trading.
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Update: DraftKings attributed its lowered earnings guidance to significant investments in a new prediction market business. The company is making this strategic move to compete with platforms such as Kalshi and Polymarket.
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Update: DraftKings introduced its initial revenue guidance for fiscal year 2027, projecting a range of $7.35 billion to $7.75 billion. This forward-looking estimate provides the first outlook for the upcoming fiscal year alongside the revised 2026 projections.
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Update: DraftKings reported a third-quarter loss per share that missed analyst estimates by 17 cents. The company also issued new financial guidance alongside its quarterly results.