DraftKings shares sink 24 percent on guidance cut

DraftKings cut its 2026 adjusted EBITDA guidance to 175 million to 275 million dollars, from 700 million to 900 million, to fund 650 million to 700 million dollars of spending on its prediction markets business, and the shares fell 24 percent after hours.

Why it matters: The cut is the clearest price yet put on the prediction market land grab: a federally regulated event contracts business that will bring in no meaningful revenue this year is absorbing most of the core sportsbook's expected profit.

Data as of DraftKings third quarter 2026 results, released November 5, 2026; figures are the company's own Business Wire release figures as reported in full by SourceFirst News and Casino.org, both read in this run. Developing item.

DraftKings reported third quarter revenue of 1.33 billion dollars, up 16 percent, and a net loss of 468.7 million dollars, or 94 cents a share, against a 39 cent loss expected by analysts polled by LSEG. The company cut full year 2026 revenue guidance to 6.35 billion to 6.55 billion dollars and adjusted EBITDA guidance to 175 million to 275 million dollars, down from 700 million to 900 million, mainly to spend 650 million to 700 million dollars this year on DraftKings Predictions, its CFTC regulated event contracts business, which management said will bring in no meaningful revenue in 2026 because new customer promotions offset most of what it generates. The shares fell 24 percent in after hours trading.

DraftKings shares sink 24 percent on guidance cut

Sources