How Did DraftKings Inc. (NASDAQ:DKNG) Grow Third Quarter 2026 Revenue 16 Percent and What Guidance Follows?

Sonal Goyal

06 November 2026 11:01 PM AEDT

How Did DraftKings Inc. (NASDAQ:DKNG) Grow Third Quarter 2026 Revenue 16 Percent and What Guidance Follows?

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Key Highlights

Total Revenue rose $185 million, or 16 percent, to $1,329 million.
Average revenue per monthly unique payer increased about 3 percent to $109.
Fiscal 2026 core Adjusted EBITDA is expected between $875 million and $925 million.
Fiscal 2027 revenue guidance is $7.35 billion to $7.75 billion.

DraftKings Inc. (NASDAQ:DKNG) reported third quarter 2026 total revenue of $1,329 million, an increase of $185 million, or 16 percent, from $1,144 million a year earlier. The company attributed the growth primarily to customer engagement and a higher sportsbook net revenue margin. Chief Executive Jason Robins described the quarter as a pivotal moment, pointing to the Predictions offering, which he said is now contributing meaningful growth.

Revenue Drivers and Customer Metrics

Average revenue per monthly unique payer, known as ARPMUP, rose about 3 percent, or $3, to $109 for the quarter. The increase came primarily from an improvement in sportsbook net revenue margin, which means more revenue was retained from each dollar wagered. Per-customer revenue therefore contributed to the overall gain alongside the other revenue drivers the release describes.

The Predictions offering is the newest contributor to the revenue mix. The release presents it as a source of meaningful growth, but it also requires investment, and the company expects Predictions-related Adjusted EBITDA Investment of $175 million to $225 million in the fourth quarter.

Profitability and Investment Decisions

The company expects fiscal 2026 core Adjusted EBITDA of $875 million to $925 million. That range reflects its decision to invest further in iGaming growth and the effect of modestly customer-friendly sports outcomes, according to the release. The company is therefore choosing to direct part of its Earnings into growth initiatives, which affects near-term profit levels.

The gap between revenue growth and the core Adjusted EBITDA range shows how much of the business's improvement is being reinvested rather than retained as profit.

Sector Context

Online sports betting and iGaming are regulated markets in which operators compete on product, pricing and customer acquisition, and results depend on sporting outcomes as well as the state-by-state regulatory environment. Companies in this group often report results that vary with the calendar of major events, so single-quarter comparisons should be read with that pattern in mind.

Risks and What to Watch Next

Sports betting results are sensitive to outcomes, and regulatory changes or tax decisions in individual states can alter economics. The company's fiscal 2027 revenue guidance of $7.35 billion to $7.75 billion and Adjusted EBITDA guidance of $800 million to $1.0 billion will be measured against the fourth quarter investment in Predictions and the pace of iGaming growth.

Final Takeaways

DraftKings reported 16 percent revenue growth in the third quarter, supported by higher per-customer revenue and a growing Predictions offering. The company is directing significant spending into that offering and iGaming, which shapes its fiscal 2026 profit outlook. The fiscal 2027 guidance sets the reference point for how the investments translate into revenue and profit over the next year.

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